DoD's $38.7M Corrosion and Coatings Engineering Services contract awarded to Vision Point Systems, Inc

Contract Overview

Contract Amount: $38,744,172 ($38.7M)

Contractor: Vision Point Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2026-03-31

Contract Duration: 2,374 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CORROSION AND COATINGS ENGINEERING SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to VISION POINT SYSTEMS, INC. for work described as: CORROSION AND COATINGS ENGINEERING SERVICES Key points: 1. Contract provides specialized engineering services for corrosion and coatings. 2. Long-term contract duration suggests a sustained need for these services. 3. Awarded under full and open competition, indicating a broad market solicitation. 4. Cost-plus-fixed-fee pricing structure may incentivize cost control by the contractor. 5. Services are critical for maintaining the integrity and longevity of naval assets. 6. Virginia-based contractor suggests potential regional economic impact.

Value Assessment

Rating: good

The contract's value of $38.7 million over its period of performance appears reasonable for specialized engineering services. Benchmarking against similar contracts for corrosion and coatings engineering is difficult without more specific service details. However, the duration and scope suggest a significant investment in maintaining critical assets, implying a need for these services. The cost-plus-fixed-fee structure requires careful monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of the Navy sought proposals from all responsible sources. The fact that it is a single award delivery order implies that Vision Point Systems, Inc. was selected as the best value offeror among potentially multiple bidders. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by leveraging market forces to drive down costs and encourage innovation.

Public Impact

Naval forces benefit from enhanced asset protection and extended operational readiness through expert corrosion and coatings engineering. The contract supports the maintenance and preservation of critical naval infrastructure and equipment. Geographic impact is likely concentrated in areas where naval operations and maintenance facilities are located. The contract supports specialized engineering roles, potentially creating or sustaining high-skilled jobs within the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for critical engineering services could pose a risk if performance issues arise.
Scope creep could increase the total contract value beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Long contract duration indicates a stable, ongoing need for these specialized services.
Focus on corrosion and coatings is essential for maintaining the longevity and safety of naval assets.

Sector Analysis

The engineering services sector is broad, encompassing specialized fields like corrosion and coatings. This contract falls within the defense industrial base, specifically supporting naval operations. The market for such specialized engineering services is driven by the need to maintain complex and expensive assets, particularly in harsh environments. Comparable spending benchmarks would depend on the specific scale and complexity of the corrosion and coatings challenges faced by the Navy.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized engineering services may limit opportunities for broad small business participation, though specific components or materials might be sourced from smaller enterprises.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and technical representatives. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services
Corrosion Prevention Programs
Coatings Technology Research
Military Asset Maintenance

Risk Flags

Cost-plus-fixed-fee contracts require diligent oversight to manage costs effectively.
Long-term reliance on a single vendor for critical services warrants performance monitoring.
Potential for scope creep in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to VISION POINT SYSTEMS, INC.. CORROSION AND COATINGS ENGINEERING SERVICES

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2026-03-31.

What is the historical spending trend for corrosion and coatings engineering services within the Department of the Navy?

Analyzing historical spending trends for corrosion and coatings engineering services within the Department of the Navy requires access to detailed procurement data over multiple fiscal years. Generally, spending in this area is driven by the operational tempo, the age of the fleet, and the development of new materials and technologies. Increased focus on asset longevity and readiness, coupled with the corrosive nature of marine environments, suggests a consistent and potentially growing demand for these specialized services. Fluctuations may occur due to major fleet modernization programs, budget cycles, and shifts in strategic priorities. Without specific historical data for this contract vehicle or similar service categories, it's challenging to pinpoint precise trends, but the ongoing need for such services is a constant.

How does the awarded amount compare to industry benchmarks for similar engineering services?

Directly comparing the $38.7 million award to industry benchmarks for corrosion and coatings engineering services is challenging without a detailed breakdown of the specific tasks, deliverables, and required expertise. However, the value suggests a significant, long-term engagement. Industry benchmarks for specialized engineering services can vary widely based on factors like the complexity of the problem, the required certifications and experience of the personnel, and the geographic location. For large-scale defense contracts, values in the tens of millions over several years are not uncommon for critical support functions. The Cost Plus Fixed Fee (CPFF) structure also influences how costs are managed and reported, making direct price comparisons with fixed-price contracts difficult.

What are the key performance indicators (KPIs) used to evaluate Vision Point Systems, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on corrosion and coatings engineering services, would likely revolve around technical performance, schedule adherence, and cost control. Specific KPIs might include the effectiveness of proposed solutions in preventing or mitigating corrosion, the timely delivery of engineering reports and recommendations, adherence to project timelines, and the accuracy of cost estimations and management within the CPFF framework. Quality assurance metrics, such as the number of defects or rework required, and compliance with relevant military standards and specifications would also be critical. The Department of the Navy's technical representatives would monitor these KPIs to ensure the contractor meets the contract's objectives and provides value for money.

What is the potential impact of this contract on the broader defense industrial base for coatings and materials science?

This contract can have a notable impact on the defense industrial base, particularly within the coatings and materials science sectors. By demanding advanced solutions for corrosion prevention, it incentivizes innovation and the development of new or improved coating technologies. Vision Point Systems, Inc., as the prime contractor, may collaborate with or subcontract to specialized material suppliers and manufacturers, thereby stimulating activity and potentially driving R&D in these areas. The contract's requirements can shape the types of products and services that are in demand, influencing investment decisions and strategic focus for companies operating in this niche. Furthermore, successful application of these services can lead to best practices and standards that influence future defense procurement in related areas.

Are there any known performance issues or past concerns associated with Vision Point Systems, Inc. on similar government contracts?

Assessing past performance issues requires a review of contractor performance evaluation reports (e.g., CPARS) and any publicly available records of disputes or contract terminations. Without access to these specific databases, it is difficult to definitively state whether Vision Point Systems, Inc. has had performance issues on similar government contracts. Generally, for contracts awarded under full and open competition, the government evaluates past performance as a significant factor. If significant performance concerns existed, it might have impacted their ability to win this award. However, a thorough due diligence would involve checking official performance records and any available feedback from previous contracting officers.

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: N0016719R3501

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3951 PENDER DR STE 115, FAIRFAX, VA, 22030

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $39,627,068

Exercised Options: $39,627,068

Current Obligation: $38,744,172

Actual Outlays: $2,840,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8811

IDV Type: IDC

Timeline