DoD Awards $174M Contract for Tomahawk Strike Coordination, Facing Potential Cost Overruns

Contract Overview

Contract Amount: $9,971,917 ($10.0M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 1999-11-12

End Date: 2006-04-30

Contract Duration: 2,361 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200008!1700!001262!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2009 !A!*!* !19991112!20000930!174245993!174245993!053518312!N!2U954!MANTECH SYSTEMS ENGINEERING CO!12015 LEE JACKSON HWY !FAIRFAX !VA!22033!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !0001!+000000200000!N!N!000000000000!H914!OTHER QUALITY CNTL SVCS/GUIDED MISSILES !S1 !SERVICES !2CPS!TOMHWK STRIKE COOR MDLE (TSCM)!8711!3!*!*!*!B!A!*!A !N!U!2!003!B!* !Z!N!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!C!N!*!*!*!Y!*!

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: 200008!1700!001262!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2009 !A!*!* !19991112!20000930!174245993!174245993!053518312!N!2U954!MANTECH SYSTEMS ENGINEERING CO!12015 LEE JACKSON HWY !FAIRFAX !VA!22033!46725!037!24!LEXINGTON PARK !ST.… Key points: 1. Contract awarded for critical Tomahawk Strike Coordination services. 2. Significant competition was present, with multiple bids received. 3. Potential for cost overruns exists due to the Cost Plus Fixed Fee structure. 4. The contract falls under the Defense sector, specifically IT and Engineering Services.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar CPFF contracts for complex defense services is crucial to assess if the final price reflects fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. However, the CPFF pricing model means the final cost is not fixed upfront, potentially impacting the government's ability to secure the lowest possible price.

Taxpayer Impact: Taxpayers bear the risk of potential cost overruns inherent in CPFF contracts, though competition should mitigate excessive pricing.

Public Impact

Ensures continued operational readiness for the Tomahawk missile system. Supports advanced defense capabilities and national security objectives. Potential for job creation within the defense contracting industry. Impacts the strategic deployment and effectiveness of naval strike capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing model
Potential for cost overruns
Contract duration extended beyond initial award

Positive Signals

Full and open competition
Awarded to a capable contractor
Supports critical defense systems

Sector Analysis

This contract falls within the Defense sector, specifically supporting command and control systems for naval warfare. Spending benchmarks for similar engineering and quality control services in defense are typically high due to the specialized nature and security requirements.

Small Business Impact

While this specific award went to a large business, the defense contracting ecosystem often involves numerous small business subcontractors. Further analysis would be needed to determine the extent of small business participation in this particular contract's performance.

Oversight & Accountability

The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is essential to manage the CPFF structure and ensure contractor performance meets requirements and stays within reasonable cost parameters.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing model
Potential for cost overruns
Contract duration extended beyond initial award
Complexity of services provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. 200008!1700!001262!BW10C !NAVAL SURFACE WARFARE CENTER, DA!N0017800C2009 !A!*!* !19991112!20000930!174245993!174245993!053518312!N!2U954!MANTECH SYSTEMS ENGINEERING CO!12015 LEE JACKSON HWY !FAIRFAX !VA!22033!46725!037!24!LEXINGTON PARK !ST. MARY S !MARYLAND !0001!+000000200000!N!N!000000000000!H914!OTHER QUALITY CNTL SVCS/GUIDED MISSILES !S1 !SERVICES !2CPS!TOMHWK STRIKE COOR MDLE (TSCM)!8711!3!*!*!*!B!A!*!A !N!U!

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 1999-11-12. End: 2006-04-30.

What specific cost drivers contributed to the contract's duration and potential for cost escalation under the CPFF structure?

The Cost Plus Fixed Fee (CPFF) structure inherently allows for costs to fluctuate based on actual expenses incurred by the contractor, plus a predetermined fixed fee. Specific cost drivers could include labor rates, material costs, unforeseen technical challenges, scope creep, or extended project timelines. Without detailed breakdowns, it's difficult to pinpoint exact drivers, but these are common factors in CPFF contracts for complex defense systems.

How does the extended contract duration impact the overall value proposition for the government?

An extended contract duration can offer stability and continuity for critical services, ensuring uninterrupted support for systems like the Tomahawk. However, it also increases the risk of cost escalation over time, especially with a CPFF model. The value proposition hinges on whether the extended support provides a demonstrable strategic advantage and cost-effectiveness compared to shorter-term or alternative solutions.

What measures are in place to ensure the quality of 'Other Quality Control Services/Guided Missiles' under this contract?

The contract specifies 'Other Quality Control Services/Guided Missiles,' implying a focus on ensuring the reliability and performance of related systems. Quality assurance is typically managed through contract clauses, performance metrics, and oversight by the contracting officer's representative (COR). Regular inspections, testing, and adherence to stringent military specifications are expected to maintain the required quality standards.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 2251 CORPORATE PARK DRIVE, HERNDON, VA, 20171

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline