DoD's $15.9M Watercraft Electronic Services Contract Awarded to MANTECH Advanced Systems International, Inc

Contract Overview

Contract Amount: $15,901,597 ($15.9M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-12-20

End Date: 2025-12-19

Contract Duration: 2,556 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WATERCRAFT ELECTRONIC SERVICES SHALL INCLUDING DESIGN, ENGINEERING, INTEGRATION, INSTALLATION, RESEARCH AND DEVELOPMENT, TEST AND EVALUATION, LIFE CYCLE SUSTAINMENT, TRAINING, AND PROGRAM MANAGEMENT.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: WATERCRAFT ELECTRONIC SERVICES SHALL INCLUDING DESIGN, ENGINEERING, INTEGRATION, INSTALLATION, RESEARCH AND DEVELOPMENT, TEST AND EVALUATION, LIFE CYCLE SUSTAINMENT, TRAINING, AND PROGRAM MANAGEMENT. Key points: 1. Contract covers a broad range of services including design, engineering, integration, and lifecycle sustainment for watercraft electronics. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 7 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The award was made via a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. 6. The contract is managed by the Department of the Navy, a significant component of the Department of Defense. 7. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.

Value Assessment

Rating: fair

The contract's value of $15.9 million over approximately 7 years averages to about $2.27 million per year. Without specific benchmarks for watercraft electronic services, it's difficult to definitively assess value for money. The CPFF contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. This structure can incentivize cost increases if not rigorously overseen. Further analysis would require comparison to similar contracts for comparable services and equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specific award. While full and open competition is generally preferred, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition. However, the actual savings depend on the number and quality of bids received and the effectiveness of the negotiation process.

Public Impact

The Department of the Navy benefits from specialized engineering and sustainment services for its watercraft fleet. Services include design, integration, installation, R&D, testing, and lifecycle support, ensuring operational readiness of electronic systems. The contract supports the Navy's operational capabilities, particularly those reliant on advanced electronic systems for watercraft. The contract is located in Virginia, potentially impacting the local workforce in engineering and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Limited competition with only 3 bidders might not yield the most cost-effective pricing.
The broad scope of services could present challenges in oversight and performance management.
Long contract duration (over 7 years) requires sustained vigilance to ensure continued value and performance.
Specific details on performance metrics and penalties are not provided, making it hard to assess accountability.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The contractor, MANTECH Advanced Systems International, Inc., has a track record in defense contracting.
The contract addresses critical needs for watercraft electronic systems, supporting naval operations.
The delivery order structure suggests it may be part of a broader strategic sourcing effort.
The contract includes provisions for R&D and lifecycle sustainment, indicating a focus on long-term capability.

Sector Analysis

The defense sector, particularly naval operations, relies heavily on sophisticated electronic systems for navigation, communication, and combat effectiveness. This contract falls within the Engineering Services (NAICS 541330) category, which is a significant part of the broader defense industrial base. Spending on such specialized services can fluctuate based on modernization programs, fleet readiness requirements, and technological advancements. Comparable spending benchmarks would typically be found within the Navy's broader shipbuilding and systems integration budgets.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses, and subcontracting opportunities for small businesses are not explicitly detailed in this award notice. Further investigation into the prime contractor's subcontracting plan would be necessary to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting mechanisms and potential audits by the Defense Contract Audit Agency (DCAA). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Information Technology Contracts
Defense Engineering Services Contracts
Watercraft Modernization Programs
Electronic Systems Integration Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Limited number of bidders (3) may indicate potential for suboptimal price competition.
Broad scope of services necessitates clear performance metrics and robust monitoring.
Long contract duration requires sustained attention to ensure value and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. WATERCRAFT ELECTRONIC SERVICES SHALL INCLUDING DESIGN, ENGINEERING, INTEGRATION, INSTALLATION, RESEARCH AND DEVELOPMENT, TEST AND EVALUATION, LIFE CYCLE SUSTAINMENT, TRAINING, AND PROGRAM MANAGEMENT.

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2018-12-20. End: 2025-12-19.

What is the historical spending pattern for similar watercraft electronic services by the Department of the Navy?

Analyzing historical spending for similar watercraft electronic services by the Department of the Navy requires access to detailed contract databases and budget allocations. Generally, the Navy invests significantly in maintaining and upgrading the electronic systems of its diverse fleet, which includes everything from small patrol boats to larger auxiliary vessels. Spending can be cyclical, driven by fleet modernization initiatives, obsolescence of existing technology, and evolving operational requirements. Contracts for these services often span multiple years and can range from small, specialized support tasks to large-scale integration projects. Without specific historical data points for this exact service category, it's challenging to provide precise figures, but it's reasonable to assume consistent, substantial investment in this area due to the critical nature of electronic systems for naval operations.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a significant degree of uncertainty in the costs involved, such as in research and development or complex system integration. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it carries a higher risk of cost growth for the government. FFP contracts provide greater cost certainty but require a well-defined scope. Other types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. For engineering services where innovation or adaptation is key, CPFF can be appropriate, but it necessitates robust government oversight to control costs.

What are the key performance indicators (KPIs) and success metrics for this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or success metrics for this specific contract. However, for a contract encompassing design, engineering, integration, installation, R&D, testing, and lifecycle sustainment of watercraft electronic services, typical KPIs would likely include: on-time delivery of milestones, adherence to technical specifications and quality standards, successful system integration and testing results, system reliability and uptime during sustainment, effectiveness of training programs, and cost control within the approved budget. The success of R&D efforts might be measured by the successful development and validation of new technologies or solutions. The effectiveness of lifecycle sustainment would be gauged by the reduction in system failures and the responsiveness to maintenance needs.

What is the contractor's (MANTECH Advanced Systems International, Inc.) track record with similar DoD contracts?

MANTECH Advanced Systems International, Inc. has a history of performing contracts within the defense sector, including work related to engineering, technical services, and systems integration. While specific details on their performance for watercraft electronic services require deeper investigation into past performance reviews and contract histories, their presence as a recipient of this significant DoD contract suggests they possess the necessary qualifications and experience. Companies like MANTECH often specialize in providing advanced technological solutions and support to military branches. A thorough review would involve examining their past performance ratings, any past performance issues or awards, and the types of systems and platforms they have supported previously to assess their suitability and reliability for this particular requirement.

What is the potential impact of the CPFF contract type on the final cost compared to an FFP contract?

The Cost Plus Fixed Fee (CPFF) contract type generally carries a higher risk of final cost exceeding initial estimates compared to a Firm-Fixed-Price (FFP) contract. In an FFP contract, the contractor assumes the risk of cost overruns, and the price remains constant unless scope changes. In contrast, with CPFF, the government reimburses the contractor for all allowable costs incurred, plus a fixed fee. If costs escalate due to unforeseen technical challenges, scope creep (even if managed), or inefficient performance, the government pays more. The fixed fee, however, is predetermined and does not increase with costs. The primary risk for the government in CPFF is managing and controlling the 'cost' portion, which can be significantly higher than anticipated if oversight is lax. Therefore, while the fee is fixed, the total contract cost can be substantially more variable and potentially higher than under an FFP arrangement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016718R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DR STE 600, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,690,921

Exercised Options: $22,690,921

Current Obligation: $15,901,597

Actual Outlays: $488,350

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,450,417

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4080

IDV Type: IDC

Timeline