Marine Corps awards $39M for corrosion prevention, with Vision Point Systems Inc. securing the contract

Contract Overview

Contract Amount: $38,969,366 ($39.0M)

Contractor: Vision Point Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-22

End Date: 2024-07-25

Contract Duration: 1,830 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MARINE CORPS SYSTEMS COMMAND (MCSC) CORROSION PREVENTION AND CONTROL (CPAC) PROGRAM OPERATIONS AND SUSTAINMENT INITIATIVES.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to VISION POINT SYSTEMS, INC. for work described as: MARINE CORPS SYSTEMS COMMAND (MCSC) CORROSION PREVENTION AND CONTROL (CPAC) PROGRAM OPERATIONS AND SUSTAINMENT INITIATIVES. Key points: 1. Contract focuses on essential corrosion prevention and control operations and sustainment. 2. Full and open competition was utilized, suggesting a broad market approach. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of 1830 days indicates a long-term need for these services. 5. The contract is a delivery order under a larger program, suggesting phased execution. 6. The award value of approximately $39 million over five years requires careful performance monitoring.

Value Assessment

Rating: good

The contract value of $38,969,366.16 over approximately five years averages to about $7.8 million annually. Benchmarking this against similar large-scale sustainment and operations contracts within the Department of Defense, this appears to be within a reasonable range for specialized engineering and technical support services. The Cost Plus Fixed Fee (CPFF) structure necessitates close oversight to ensure costs remain aligned with the fixed fee and that the overall value delivered is maximized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the use of full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. This approach allows the government to access the widest possible pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces and ensures the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, who will receive sustained support for their corrosion prevention and control programs. Services delivered include operations and sustainment initiatives critical for maintaining the longevity and readiness of Marine Corps assets. The geographic impact is likely widespread, supporting Marine Corps installations and operations globally. Workforce implications include the potential for skilled engineering and technical support jobs, both within the contractor's organization and potentially supporting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit, requiring robust oversight.
Long contract duration (1830 days) increases the risk of scope creep or evolving requirements not being adequately addressed without formal modifications.
Reliance on a single delivery order under a larger program structure might obscure the full scope and total potential cost if not managed holistically.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Focus on corrosion prevention is critical for asset longevity and reducing long-term maintenance costs for the Marine Corps.
The contract specifies operations and sustainment, indicating a commitment to ongoing support rather than one-off solutions.

Sector Analysis

The defense sector, particularly within the Marine Corps, faces significant challenges with material degradation due to environmental factors and operational use. Corrosion prevention and control are vital for maintaining the operational readiness and extending the lifespan of expensive military assets, including vehicles, aircraft, and infrastructure. Spending in this area is a critical component of overall defense sustainment budgets, aiming to mitigate costly repairs and replacements. Comparable spending benchmarks would typically be found within broader military logistics and maintenance contracts.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) for this contract. This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms were likely the primary bidders. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information. The impact on the small business ecosystem is neutral to potentially negative if small businesses capable of performing this work were excluded from direct bidding.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract reporting mechanisms, though specific details of ongoing operations and sustainment activities may be sensitive.

Related Government Programs

Marine Corps Logistics and Maintenance Programs
Department of Defense Corrosion Prevention Initiatives
Defense Engineering Services Contracts
Military Asset Sustainment Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may necessitate flexibility for evolving requirements.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to VISION POINT SYSTEMS, INC.. MARINE CORPS SYSTEMS COMMAND (MCSC) CORROSION PREVENTION AND CONTROL (CPAC) PROGRAM OPERATIONS AND SUSTAINMENT INITIATIVES.

Who is the contractor on this award?

The obligated recipient is VISION POINT SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2019-07-22. End: 2024-07-25.

What is the historical spending trend for corrosion prevention and control operations and sustainment within the Marine Corps?

Analyzing historical spending for the Marine Corps Corrosion Prevention and Control (CPAC) Program Operations and Sustainment Initiatives requires access to detailed budget and contract data over multiple fiscal years. While this specific contract award is for approximately $39 million over five years, understanding the broader trend involves examining previous contract values, the number of awards, and the specific services procured. Generally, defense spending on sustainment and maintenance, including corrosion control, tends to be relatively stable but can fluctuate based on operational tempo, asset age, and strategic priorities. Significant increases might be seen during periods of major equipment modernization or when new environmental regulations necessitate enhanced protective measures. Conversely, budget constraints could lead to reductions or shifts towards less comprehensive solutions. Without specific historical data for this program, it's difficult to pinpoint precise trends, but it's reasonable to assume a consistent, albeit potentially variable, level of investment to maintain fleet readiness.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar sustainment services in terms of cost efficiency?

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 high degree of uncertainty, such as in research and development or complex sustainment operations. In CPFF contracts, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While this structure provides flexibility and encourages the contractor to undertake challenging work, it carries inherent risks for cost efficiency. Unlike fixed-price contracts, CPFF does not provide a strong incentive for the contractor to control costs, as the government bears the risk of cost overruns. If costs exceed estimates, the government pays more, while the contractor's fee remains fixed. This contrasts with Firm-Fixed-Price (FFP) contracts, where the contractor assumes most of the cost risk and is incentivized to manage expenses tightly to maximize profit. However, FFP contracts require a very well-defined scope, which may not be feasible for evolving sustainment needs. Best value often lies in a hybrid approach or careful management of CPFF contracts through robust oversight, negotiation, and clear performance metrics to mitigate cost escalation.

What are the key performance indicators (KPIs) typically used to measure the success of corrosion prevention and control sustainment contracts?

Key Performance Indicators (KPIs) for corrosion prevention and control sustainment contracts are crucial for ensuring the effectiveness of the services and the value delivered to the Marine Corps. Common KPIs often revolve around the reduction of corrosion-related defects and failures, the timely execution of preventative maintenance schedules, and the overall readiness of assets protected. Specific metrics might include the percentage decrease in reported corrosion incidents on targeted equipment or infrastructure, the adherence rate to scheduled inspections and treatments (e.g., achieving 95% on-time completion), and the measured lifespan extension of treated assets compared to historical averages. Furthermore, KPIs could assess the efficiency of applied treatments, such as the coverage achieved per unit of material or the durability of protective coatings under operational stress. Cost-effectiveness metrics, like the ratio of preventative spending to reactive repair costs, are also vital. Ultimately, the success is measured by the sustained operational availability and reduced lifecycle costs of the Marine Corps' assets.

What is the track record of Vision Point Systems, Inc. in performing similar large-scale defense sustainment contracts?

Assessing the track record of Vision Point Systems, Inc. in performing similar large-scale defense sustainment contracts requires a review of their past performance evaluations, contract history, and any reported issues or successes. Information on past performance is often available through government databases like the Contractor Performance Assessment Reporting System (CPARS), though direct access may be restricted. Generally, for a company to be awarded a contract of this magnitude ($39 million over five years), they would need to demonstrate a history of successful project execution, financial stability, and technical capability relevant to the scope of work. This includes experience with similar contract types (like CPFF), managing complex logistics, and adhering to stringent defense requirements. Any significant past performance issues, such as contract terminations, major delays, or quality control problems, would typically be flagged during the source selection process. Without specific CPARS data or public records detailing their performance on comparable contracts, a definitive assessment is challenging, but the award itself suggests they met the necessary qualifications.

What is the potential impact of this contract on the overall readiness and operational capability of the Marine Corps?

This contract for corrosion prevention and control operations and sustainment is directly linked to maintaining the operational readiness and capability of the U.S. Marine Corps. Corrosion is a pervasive threat that can degrade critical systems, reduce the lifespan of expensive assets (like vehicles, aircraft, and infrastructure), and ultimately impact mission effectiveness. By ensuring robust and ongoing corrosion prevention measures, this contract helps to mitigate these risks. It supports the longevity of equipment, reduces the need for costly emergency repairs, and ensures that assets are available when and where they are needed. A well-executed sustainment program contributes to higher operational availability rates, lower lifecycle costs, and enhanced safety for personnel. Therefore, the successful performance of this contract is vital for preserving the Marine Corps' ability to execute its diverse missions effectively across various environments.

How does the $38.9 million award compare to the total annual budget for Marine Corps maintenance and sustainment?

The $38.9 million award for corrosion prevention and control operations and sustainment over approximately five years represents an average annual expenditure of roughly $7.8 million for this specific program. To contextualize this against the total annual budget for Marine Corps maintenance and sustainment, one would need to examine the broader defense budget allocations. The Marine Corps' overall maintenance and sustainment budget is substantial, encompassing a wide array of activities including depot maintenance, field-level repairs, supply chain management, and infrastructure upkeep for numerous installations worldwide. This specific contract, while significant, likely represents a fraction of the total annual spending in these areas. For instance, total Marine Corps budget requests often run into the tens of billions of dollars annually, with a considerable portion dedicated to personnel, training, and procurement, but also a significant segment for operations and maintenance (O&M). Therefore, while $7.8 million annually is a considerable sum for a specialized program, it should be viewed as a targeted investment within a much larger overall sustainment framework.

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: N0016719R3001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1700 KRAFT DR STE 2150, BLACKSBURG, VA, 24060

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,634,823

Exercised Options: $44,634,823

Current Obligation: $38,969,366

Actual Outlays: $7,068,724

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7991

IDV Type: IDC

Timeline