DoD's $311M Engineering Services Contract with EG&G Technical Services Shows Long-Term Commitment

Contract Overview

Contract Amount: $31,121,957 ($31.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-10-01

End Date: 2009-09-30

Contract Duration: 2,191 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200401!041039!1700!BW10D !NAVAL SURFACE WARFARE CENTER, DA!N0017804C3002 !A!N! !N! ! !20031001!20080930!083070925!065262573!043271568!N!EG&G TECHNICAL SERVICES, INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000225000!N!N!000000000000!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !N00178!0001! !

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to AMENTUM SERVICES, INC. for work described as: 200401!041039!1700!BW10D !NAVAL SURFACE WARFARE CENTER, DA!N0017804C3002 !A!N! !N! ! !20031001!20080930!083070925!065262573!043271568!N!EG&G TECHNICAL SERVICES, INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!21008!099!51!DAHLGREN !KING… Key points: 1. Contract awarded for a significant duration, indicating a sustained need for engineering services. 2. The contract utilized full and open competition, suggesting a competitive bidding process. 3. The primary service category is Research, Development, Test, and Evaluation (RDT&E), highlighting its role in innovation. 4. The contract was a definitive contract, providing a clear framework for service delivery. 5. The awardee, EG&G Technical Services, Inc., has a substantial contract value, pointing to its capacity and expertise. 6. The contract's geographic focus is Virginia, aligning with significant defense sector presence.

Value Assessment

Rating: good

The total award amount of $311,219,573.31 over a period of approximately 5 years suggests a substantial investment in engineering services. Benchmarking this against similar long-term RDT&E contracts within the Department of Defense would provide further context on value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for RDT&E, can sometimes lead to cost overruns if not managed tightly. However, the definitive contract type implies a well-defined scope, which can help control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant investment in engineering services.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which receive critical engineering and technical support. Services delivered likely encompass a wide range of engineering disciplines essential for defense research, development, testing, and manufacturing. The geographic impact is centered around Dahlgren, Virginia, a known hub for naval warfare research and development. The contract supports a workforce skilled in specialized engineering and technical fields, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost growth inherent in Cost Plus Fixed Fee contracts if scope management is not rigorous.
Long contract duration could lead to vendor lock-in if not periodically re-competed or reviewed.
Reliance on a single contractor for a significant period may limit opportunities for emerging technologies or alternative solutions.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The definitive contract type suggests a well-defined scope of work, reducing ambiguity.
The substantial value awarded implies a high level of trust and proven capability from the contractor.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Defense Industrial Base. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and platform sustainment. Spending in this category is often characterized by long-term relationships and specialized expertise, with significant government investment in R&D. Comparable spending benchmarks would typically be found within the Department of Defense's RDT&E budget allocations for engineering support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited based on this information. However, the prime contractor may engage small businesses as subcontractors, which would need further investigation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Naval Surface Warfare Center and the Defense Contract Management Agency (DCMA). These entities are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center Contracts
Department of Defense RDT&E Spending
Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Definitive Contracts

Risk Flags

Cost Plus Fixed Fee pricing structure requires diligent oversight to manage potential cost growth.
Long contract duration necessitates monitoring for technological relevance and potential scope creep.
Lack of explicit small business subcontracting details requires further inquiry into ecosystem impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to AMENTUM SERVICES, INC.. 200401!041039!1700!BW10D !NAVAL SURFACE WARFARE CENTER, DA!N0017804C3002 !A!N! !N! ! !20031001!20080930!083070925!065262573!043271568!N!EG&G TECHNICAL SERVICES, INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000225000!N!N!000000000000!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, 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 $31.1 million.

What is the period of performance?

Start: 2003-10-01. End: 2009-09-30.

What specific types of engineering services were provided under this contract?

The contract data indicates the primary service category as 'RDTE/SERVICES-ENG/MANUF DEVELOP' and the North American Industry Classification System (NAICS) code 541330, which corresponds to Engineering Services. While the specific sub-disciplines are not detailed, this generally encompasses a broad range of activities including research, design, development, testing, and manufacturing support for defense systems. Given the Naval Surface Warfare Center as the issuing activity, services likely related to naval platforms, weapons systems, and associated technologies. This could include areas like systems engineering, mechanical engineering, electrical engineering, software engineering, and test and evaluation support.

How does the $311 million award compare to typical spending for similar engineering services contracts within the DoD?

An award of $311 million for engineering services over approximately five years is a substantial contract, indicative of a significant program or long-term support requirement. Within the Department of Defense, RDT&E and engineering support contracts frequently reach these magnitudes, especially for major platform development or sustainment. For context, the DoD's annual RDT&E budget runs into the tens of billions of dollars. Contracts of this size are not uncommon for critical defense capabilities, but they represent a significant portion of specific program budgets. Benchmarking would require comparing it to contracts for similar services (e.g., systems engineering, platform integration) awarded to other large defense contractors over comparable periods.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract, especially one valued at $311 million over nearly five years, is the potential for cost overruns. While the 'fixed fee' provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses the contractor's allowable costs. If the contractor's costs exceed initial estimates, the total contract value increases, potentially beyond the original $311 million if contract modifications occur. Effective oversight is crucial to ensure costs are reasonable, allocable, and allowable. Scope creep, where the project's requirements expand without corresponding adjustments to the fee or schedule, is another significant risk. The long duration also increases the risk of technological obsolescence or changes in government requirements that may necessitate costly modifications or contract restructuring.

What does the 'Definitive Contract' designation imply about the contract's structure and execution?

A 'Definitive Contract' is a standard, fully warranted contract that specifies all the terms and conditions, including price, quantity, and delivery schedules. Unlike basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts which may have further task orders or calls issued against them, a definitive contract represents a complete agreement. For this $311 million contract with EG&G Technical Services, it implies that the scope of work, performance requirements, and pricing were finalized and agreed upon at the time of award. This structure provides clarity and predictability for both the government and the contractor, reducing ambiguity in execution and facilitating performance management.

How does the contractor's location in Gaithersburg, MD, relate to the contract's performance location in Virginia?

The contractor, EG&G Technical Services, Inc., lists its address as Gaithersburg, Maryland. However, the contract performance location is specified as Dahlgren, Virginia. This is a common scenario in government contracting. Many large defense contractors have headquarters or major operational facilities in one location (like Maryland, which is proximate to Washington D.C. and numerous federal agencies) while performing work at government sites or other facilities elsewhere. Dahlgren, Virginia, is a significant site for the Naval Surface Warfare Center (NSWC Dahlgren Division), a major research, development, and testing facility. Therefore, EG&G likely established a presence or deployed personnel to Dahlgren to directly support the NSWC's mission requirements under this contract.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: AECOM Global II, LLC

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

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