Dod's $46M Engineering Services Contract Awarded to Mantech Advanced Systems International, Inc. for Fleet Support

Contract Overview

Contract Amount: $45,951,689 ($46.0M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-05-12

End Date: 2023-01-13

Contract Duration: 2,072 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF FLEET SUPPORT

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF FLEET SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at 2072 days, indicating a long-term need for these services. 4. The award was a delivery order under a larger contract, implying a phased approach to service delivery. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical support function. 6. The contract was awarded by the Department of the Navy, highlighting its importance for naval operations. 7. The contract value of approximately $46 million over its term suggests significant investment in fleet support.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the significant duration and value suggest a substantial need for engineering services. Comparing this to similar long-term fleet support contracts within the Department of Defense would provide better context for value assessment. The fixed fee component offers some cost control, but the cost-plus nature requires diligent oversight to ensure efficiency and prevent unnecessary expenditures.

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 bids. The presence of 2 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for price discovery, the number of bidders can influence the competitiveness of the final price. Further analysis would be needed to determine if the number of bidders was sufficient to drive optimal pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it generally leads to more competitive pricing and a wider range of innovative solutions. A competitive environment encourages contractors to offer their best value, potentially saving taxpayer dollars.

Public Impact

The primary beneficiaries are the Department of the Navy and its fleet, receiving essential engineering support services. Services delivered likely include design, analysis, testing, and technical support for naval vessels and systems. The geographic impact is likely concentrated around naval bases and operational areas where fleet support is required. The contract supports a workforce of engineers and technical specialists, contributing to specialized employment in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve the fixed fee, requiring robust oversight.
The long duration of the contract (2072 days) increases the risk of scope creep and potential cost escalation over time.
Limited information on performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

Awarded under full and open competition, which typically fosters competitive pricing.
The fixed fee component provides a defined profit margin, offering some predictability for the contractor.
The contract addresses a critical need for fleet support within the Department of the Navy.

Sector Analysis

The engineering services sector supporting the defense industry is highly specialized and critical for maintaining complex military assets. This contract falls within the broader professional, scientific, and technical services market, which is a significant component of federal spending. The Department of Defense is a major client for these services, often requiring highly technical expertise for platforms like naval fleets. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts for naval or other military branches.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of advanced engineering services for naval fleets, it is possible that larger, more established companies are better positioned to compete. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific technical requirements of the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee agreement, including regular reporting on costs and performance. Transparency is facilitated by the contract's award under full and open competition, with data typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Ship Maintenance and Repair Contracts
Defense Engineering and Technical Services
Fleet Readiness and Sustainment Programs
Department of Defense Professional Services

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Performance Monitoring Challenges
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF FLEET SUPPORT

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 $46.0 million.

What is the period of performance?

Start: 2017-05-12. End: 2023-01-13.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Defense?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of contracting with the Department of Defense, primarily in areas related to engineering and technical services. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide insight into their reliability and capability. Federal procurement data often includes past performance ratings and details on contract awards, which can be reviewed to assess their track record. Understanding their experience with Cost Plus Fixed Fee contracts specifically would also be valuable, as this contract type requires careful financial management and reporting.

How does the cost structure of this Cost Plus Fixed Fee contract compare to industry benchmarks for similar engineering services?

Assessing the cost-effectiveness of a Cost Plus Fixed Fee (CPFF) contract requires a detailed breakdown of the 'cost' and 'fee' components, which are not fully detailed in the provided data. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. Benchmarking involves comparing the 'cost' portion against industry standards for labor, materials, and overhead for similar engineering tasks, and evaluating if the 'fixed fee' is reasonable for the scope and risk involved. Without specific cost data and performance metrics, a definitive value-for-money assessment is difficult. However, the government typically negotiates these fees based on historical data and market rates to ensure fairness.

What are the primary risks associated with a long-duration Cost Plus Fixed Fee contract for fleet support?

The primary risks associated with a long-duration Cost Plus Fixed Fee (CPFF) contract for fleet support include potential cost overruns due to the 'cost-plus' nature, where the contractor is reimbursed for incurred costs. The 'fixed fee' component, while intended to cap profit, can become disproportionately large if costs escalate significantly. Long durations (2072 days) increase the risk of scope creep, where the project's objectives expand beyond the original intent without corresponding adjustments to the fee or oversight. Furthermore, maintaining consistent oversight and performance monitoring over an extended period can be challenging for the contracting agency, potentially leading to reduced efficiency or quality if not managed proactively.

How effective has the Department of the Navy been in managing similar long-term engineering support contracts?

The effectiveness of the Department of the Navy in managing long-term engineering support contracts can be evaluated by examining historical contract performance data, including on-time delivery, budget adherence, and quality of services. Reports from the Government Accountability Office (GAO) and the Department of Defense's Inspector General (IG) often highlight best practices and areas for improvement in contract management. Factors contributing to effectiveness include robust program management, clear performance metrics, regular progress reviews, and proactive risk mitigation strategies. The success of this specific contract will depend on the Navy's consistent application of these management principles throughout its duration.

What is the historical spending trend for engineering services by the Department of the Navy?

Historical spending trends for engineering services by the Department of the Navy are generally substantial, reflecting the complexity and maintenance needs of a global fleet. This spending typically fluctuates based on modernization programs, new platform acquisitions, and readiness requirements. Analyzing annual reports from the Department of the Navy or broader defense spending analyses can reveal patterns in procurement for engineering and technical support. Factors such as geopolitical events, technological advancements, and budget allocations significantly influence these trends. The $46 million awarded here represents a portion of the Navy's overall investment in maintaining its operational capabilities.

What are the implications of awarding a delivery order under a larger contract versus a standalone contract?

Awarding a delivery order under a larger, pre-existing contract, often referred to as an 'indefinite-delivery indefinite-quantity' (IDIQ) or 'master' contract, has several implications. For the government, it can streamline the procurement process for subsequent needs, potentially reducing administrative burden and lead times. It also allows for flexibility in ordering services as required. For contractors, it provides a framework for ongoing work but may involve less certainty regarding the volume of orders compared to a fixed-price contract. The competition for the initial IDIQ contract sets the stage, and subsequent delivery orders might be competed among awardees or awarded based on pre-negotiated terms, impacting price discovery for each specific order.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R3334

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: $47,692,276

Exercised Options: $47,692,276

Current Obligation: $45,951,689

Actual Outlays: $4,559,596

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $35,106,674

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4080

IDV Type: IDC

Timeline