Dod's $15.67M Towed Array Test Equipment Contract Awarded to Mantech Advanced Systems International, Inc

Contract Overview

Contract Amount: $15,671,042 ($15.7M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-14

End Date: 2026-12-15

Contract Duration: 1,462 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TOWED ARRAY TEST EQUIPMENT (TATE)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TOWED ARRAY TEST EQUIPMENT (TATE) Key points: 1. Value for money assessed through benchmarking against similar engineering services contracts. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may shift cost uncertainty to the government. 4. Performance context is tied to the Department of the Navy's testing and evaluation needs. 5. Sector positioning within Engineering Services (NAICS 541330) for defense applications. 6. The contract duration of over 4 years suggests a significant, long-term requirement.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring as it can lead to cost overruns if not managed effectively. Benchmarking against similar engineering services contracts for test equipment is crucial to determine if the fixed fee and estimated costs are reasonable. Without specific performance data or detailed cost breakdowns, a definitive value assessment is challenging, but the CPFF type suggests a higher risk of cost escalation compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specialized requirement. While two bidders are better than one, a higher number of bidders would typically provide stronger assurance of competitive pricing and optimal value for the government.

Taxpayer Impact: A full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and potentially driving down costs compared to sole-source or limited competition scenarios.

Public Impact

The Department of the Navy benefits from specialized test equipment for its towed array systems. Services delivered include engineering support for testing and evaluation of critical defense hardware. Geographic impact is primarily within Virginia, where the contractor is located and likely where testing activities will occur. Workforce implications include employment for engineers and technical staff at MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces potential for cost growth.
Limited number of bidders (2) may not represent the full competitive landscape.
Specific performance metrics and success criteria are not detailed in the provided data.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contractor has a track record with the Department of Defense, suggesting familiarity with requirements.
Long contract duration (over 4 years) indicates a stable, ongoing need for these services.

Sector Analysis

The Engineering Services sector (NAICS 541330) is a critical component of the defense industrial base, providing specialized technical expertise for complex systems. This contract for Towed Array Test Equipment (TATE) fits within the broader defense R&D and procurement landscape, supporting naval capabilities. Comparable spending in this sector often involves significant investments in testing, simulation, and specialized equipment for advanced military platforms.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, though the prime contractor may engage small businesses as suppliers or subcontractors if needed for specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring detailed cost reporting and justification. Transparency is facilitated by the contract award data being publicly available, though detailed performance and cost breakdowns may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Test and Evaluation Equipment
Towed Array Sonar Systems
Department of Defense Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost escalation risks.
Limited competition (2 bidders) may not yield the best possible pricing.
Potential for technology obsolescence given the contract's long duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TOWED ARRAY TEST EQUIPMENT (TATE)

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 $15.7 million.

What is the period of performance?

Start: 2022-12-14. End: 2026-12-15.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Defense, particularly in providing similar test equipment or engineering services?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of contracting with the Department of Defense, including various agencies within the Navy and Air Force. Their experience often involves providing specialized engineering, technical, and programmatic support services. For towed array test equipment specifically, their past performance would need to be reviewed against contract requirements to ensure a direct match. However, their general experience in defense engineering suggests a foundational understanding of the operational and technical demands associated with military systems, which is a positive indicator for this contract's successful execution.

How does the awarded amount of $15.67 million compare to similar contracts for towed array test equipment or related engineering services?

Benchmarking the $15.67 million award requires comparing it against contracts for similar towed array test equipment (TATE) or closely related engineering services within the Department of Defense or other federal agencies. Factors such as contract duration (over 4 years), scope of work (engineering services), and contract type (Cost Plus Fixed Fee) are critical for a fair comparison. Without access to a comprehensive database of comparable contract values, it's difficult to definitively state if this amount is high or low. However, specialized defense equipment and engineering services often command significant investment due to complexity and R&D requirements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of specialized equipment?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the cost risk. While the contractor receives a fixed fee, they are reimbursed for all allowable costs. This structure can incentivize cost overruns, as the contractor may not have as strong a financial incentive to control expenses as they would in a fixed-price contract. For specialized equipment like TATE, where development or testing complexities might be underestimated, costs could escalate beyond initial projections. Effective government oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money given only two bidders?

While 'full and open competition' is the preferred method for maximizing value, the effectiveness is somewhat diminished when only two bidders participate. Ideally, a larger pool of bidders fosters more robust price competition and innovation. With only two bidders, there's a greater chance that the pricing might not reflect the absolute lowest achievable cost, and the government has fewer options if one bidder's proposal is deemed unacceptable. However, it still provides a competitive baseline compared to sole-source awards and ensures that at least two capable contractors were considered, offering some assurance of market competitiveness.

What are the potential implications of the contract duration (1462 days) on the technology lifecycle and future modernization needs?

A contract duration of 1462 days (approximately 4 years) for towed array test equipment suggests a long-term need for this capability. This extended period can be beneficial for ensuring stability and continuity in testing operations. However, it also raises questions about technological obsolescence. Defense technology, especially in areas like sonar and signal processing, can evolve rapidly. A 4-year commitment might mean that the test equipment procured or supported under this contract could be nearing the end of its effective technological lifecycle by the contract's end, potentially necessitating early planning for upgrades or replacements to keep pace with evolving threats and operational requirements.

What is the significance of the PSC code (likely related to engineering services) and NAICS code (541330) in understanding the nature of this contract?

The Product Service Code (PSC) and North American Industry Classification System (NAICS) code provide essential context for the contract's nature. NAICS code 541330, 'Engineering Services,' clearly indicates that the primary service procured is professional engineering expertise, rather than the direct manufacturing or sale of hardware. This suggests the contract likely involves design, development, analysis, testing, or integration services related to towed array systems. The specific PSC, if available, would further refine the type of engineering service. Together, these codes signal that the Department of the Navy is investing in specialized technical knowledge and support critical for its naval systems.

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: N0016722R3002

Offers Received: 2

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: $27,705,746

Exercised Options: $22,072,761

Current Obligation: $15,671,042

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $8,105,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8070

IDV Type: IDC

Timeline