Naval Warfare Center Awards $17.7M Contract to OPTEC, Inc. for Engineering Services

Contract Overview

Contract Amount: $17,732,184 ($17.7M)

Contractor: Optec, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-05-04

End Date: 2008-01-03

Contract Duration: 609 days

Daily Burn Rate: $29.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200608!447085!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017806C3020 !A!N! !N! !PZ0001!20060504!20070413!128603276!128603276!128603276!N!OPTEC INC !2021-A STE 214 EMMORTON RD!BEL AIR !MD!21015!05525!001!24!BEL AIR !ALLEGANY !MARYLAND !+000005190000!N!N!000000000000!B506!DATA ANALYSES (OTHER THAN SCIENTIFIC) !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! !J! ! !99990909!B! ! !N!Z!D!N!U!1!001!N!6A!Z!Y!Z! ! !N!B!N!N! !B!A! !A!A!000!A!B!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: BELCAMP, HARFORD County, MARYLAND, 21017

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.7 million to OPTEC, INC. for work described as: 200608!447085!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017806C3020 !A!N! !N! !PZ0001!20060504!20070413!128603276!128603276!128603276!N!OPTEC INC !2021-A STE 214 EMMORTON RD!BEL AIR !MD!21015!05525!001!24!BEL AIR !ALLE… Key points: 1. The contract is for engineering services, a critical component of defense operations. 2. OPTEC, INC. is the sole awardee, raising questions about competition. 3. The contract's cost-plus-fixed-fee structure may present cost control risks. 4. The sector is Defense, a significant area of federal spending.

Value Assessment

Rating: fair

The contract value of $17.7 million for engineering services appears within a reasonable range for similar defense contracts. However, without specific benchmarks for the exact services provided, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $17.7 million contract could lead to higher costs, impacting taxpayer value.

Public Impact

Taxpayers may be paying more due to the absence of competitive bidding. The defense sector relies on specialized engineering services, making oversight crucial. The long-term implications of sole-source contracts on innovation and cost-efficiency are a concern.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus-fixed-fee contract type can incentivize cost overruns.
Contract duration of 609 days is substantial.

Positive Signals

Awarded to a specific company for specialized services.
Contract supports critical Naval operations.

Sector Analysis

This contract falls within the Engineering Services sector, which is a vital part of the broader Defense industry. Spending in this area is consistently high due to the need for specialized technical expertise in military operations and equipment.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, which is a missed opportunity for small business participation in federal contracting.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services are necessary and priced appropriately. Accountability for cost management under the cost-plus-fixed-fee structure is essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost-plus-fixed-fee contract type can lead to higher costs.
Lack of transparency in pricing justification.
Potential for missed small business opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.7 million to OPTEC, INC.. 200608!447085!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017806C3020 !A!N! !N! !PZ0001!20060504!20070413!128603276!128603276!128603276!N!OPTEC INC !2021-A STE 214 EMMORTON RD!BEL AIR !MD!21015!05525!001!24!BEL AIR !ALLEGANY !MARYLAND !+000005190000!N!N!000000000000!B506!DATA ANALYSES (OTHER THAN SCIENTIFIC) !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !3! ! !J! ! !999

Who is the contractor on this award?

The obligated recipient is OPTEC, 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 $17.7 million.

What is the period of performance?

Start: 2006-05-04. End: 2008-01-03.

What specific engineering services were provided under this contract, and how do they align with the stated need for 'DATA ANALYSES (OTHER THAN SCIENTIFIC)'?

The contract description 'DATA ANALYSES (OTHER THAN SCIENTIFIC)' is broad. Further details are needed to understand the precise nature of the engineering services rendered by OPTEC, Inc. This could range from complex data processing and interpretation to more routine analytical tasks. Clarification is required to assess if the services fully justified the sole-source award and the contract's value.

Given the sole-source award, what mechanisms were in place to ensure fair pricing and prevent potential cost overruns for this $17.7 million contract?

With a sole-source award and a cost-plus-fixed-fee contract type, robust oversight is critical. The government should have employed detailed cost analysis, negotiation, and ongoing monitoring to ensure OPTEC, Inc.'s pricing was fair and reasonable. Without evidence of such measures, the risk of inflated costs and reduced taxpayer value increases significantly.

How effective was OPTEC, Inc. in delivering the required engineering services, and did this sole-source contract contribute to or hinder overall Naval warfare capabilities?

The effectiveness of OPTEC, Inc.'s performance is not detailed in the provided data. However, the sole-source nature of the contract raises questions about whether a competitive process might have yielded better results or fostered greater innovation. Assessing the long-term impact requires evaluating the quality of deliverables and whether alternative providers could have offered superior solutions or cost savings.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2021-A STE 214 EMMORTON RD, BEL AIR, MD, 21015

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,872,619

Exercised Options: $17,872,619

Current Obligation: $17,732,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline