DoD awards $12.1M for Fiber Optics Engineering Support to Advanced Integrated Technologies, LLC

Contract Overview

Contract Amount: $12,111,635 ($12.1M)

Contractor: Advanced Integrated Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2026-01-31

Contract Duration: 2,556 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FIBER OPTICS ENGINEERING SUPPORT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to ADVANCED INTEGRATED TECHNOLOGIES, LLC for work described as: FIBER OPTICS ENGINEERING 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 2556 days, indicating a long-term need for these services. 4. The contract is a delivery order under a larger contract, implying it's part of a broader acquisition strategy. 5. The small business set-aside flag is false, meaning it was not specifically reserved for small businesses. 6. The contract is for engineering services, a critical component for defense infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $12.1 million contract for fiber optics engineering support is challenging without specific deliverables and performance metrics. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While CPFF can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure the government receives good value and the contractor is not incentivized to increase costs. Comparing this to similar long-term engineering support contracts would provide a clearer picture of its cost-effectiveness.

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 two bidders participated, the extent of pre-bid engagement and the specific evaluation criteria would determine if this truly fostered optimal price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing. However, with only two bids, there's a possibility that the pricing may not reflect the lowest achievable cost.

Public Impact

The Department of the Navy benefits from specialized engineering support for its fiber optic infrastructure. Services delivered likely include design, installation, maintenance, and optimization of fiber optic networks. The geographic impact is primarily within the operational areas of the Department of the Navy, potentially global. Workforce implications include the need for skilled engineers and technicians, both within the contractor's organization and potentially for government oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost increases if not closely monitored.
Limited competition (2 bids) may result in less favorable pricing than a more robust bidding environment.
Long contract duration (2556 days) requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, indicating a fair opportunity for multiple vendors.
Engineering services are critical for maintaining and upgrading essential defense communication infrastructure.
The contract is a delivery order, suggesting it aligns with a pre-established strategic acquisition framework.

Sector Analysis

The market for engineering services, particularly within the defense sector, is substantial and highly specialized. This contract falls under the Engineering Services (NAICS 541330) category. Companies like Advanced Integrated Technologies, LLC provide critical support for complex technological systems. Spending in this sector is driven by the need for advanced technological solutions, infrastructure upgrades, and ongoing maintenance for government and military operations. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD and other federal agencies for similar services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are likely limited to subcontracting roles that may arise at the discretion of the prime contractor, Advanced Integrated Technologies, LLC. The absence of set-aside provisions suggests the primary focus was on securing the most capable provider through open competition, rather than specifically fostering small business participation.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and technical representatives. They are responsible for monitoring costs, ensuring performance aligns with contract requirements, and approving invoices. Accountability measures are embedded in the contract terms, requiring the contractor to adhere to specifications and manage costs within the agreed-upon fee structure. Transparency is facilitated through contract reporting requirements, though detailed public access to cost breakdowns may be limited due to proprietary or national security concerns. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Communications Infrastructure Modernization
Naval Network Engineering Support
Federal IT Services Contracts
Engineering and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bids (2) may indicate potential for suboptimal price discovery.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to ADVANCED INTEGRATED TECHNOLOGIES, LLC. FIBER OPTICS ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is ADVANCED INTEGRATED TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2019-02-01. End: 2026-01-31.

What is the track record of Advanced Integrated Technologies, LLC with the Department of Defense?

Assessing the track record of Advanced Integrated Technologies, LLC with the Department of Defense requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or terminations. A positive history of timely delivery, quality work, and adherence to budget on prior DoD contracts would indicate a lower risk for this current award. Conversely, a history of performance issues or cost overruns on similar projects would raise concerns about the contractor's reliability and the potential value for money in this $12.1 million award.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, such as in research and development or complex engineering projects. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a fixed fee representing their profit. This differs from Fixed-Price contracts, where the price is set regardless of the actual costs incurred, incentivizing the contractor to control expenses. Cost-reimbursement contracts like CPFF can be advantageous for the government when risks are high and precise cost estimation is difficult, but they require stringent oversight to prevent cost escalation. For routine engineering services with well-defined scopes, fixed-price contracts often offer better value for money due to stronger contractor incentives for efficiency.

What are the potential risks associated with a long-duration contract like this (2556 days)?

Long-duration contracts, such as this 2556-day (approximately 7-year) award, present several potential risks. Firstly, the risk of scope creep increases over time, where the requirements may evolve beyond the original intent, potentially leading to cost increases if not managed through formal contract modifications. Secondly, technological obsolescence is a concern; the technology or methodologies employed at the start of the contract may become outdated by its end, requiring costly upgrades or replacements. Thirdly, contractor performance can degrade over extended periods if oversight is not consistently rigorous. Finally, market conditions and pricing can change significantly over several years, potentially making the initial pricing less competitive as the contract progresses. Effective contract management, including regular performance reviews and potential price adjustments based on market data, is crucial to mitigate these risks.

What does the 'Delivery Order' designation imply about this contract?

The designation 'Delivery Order' indicates that this contract is not a standalone award but rather a specific order placed against a previously established indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. This means that Advanced Integrated Technologies, LLC likely won a larger, overarching contract vehicle, and this $12.1 million award represents one specific task or requirement issued under that broader agreement. Delivery orders allow agencies to procure goods or services incrementally as needed, providing flexibility. For taxpayers, it suggests that the initial competition occurred at the IDIQ level, and this order is a subsequent exercise of that pre-competed agreement, potentially streamlining the procurement process for specific needs.

How does the NAICS code 541330 (Engineering Services) typically relate to defense spending?

The NAICS code 541330, 'Engineering Services,' is a broad category that encompasses a wide range of specialized technical expertise crucial to defense operations. For the Department of Defense, this code often covers services related to the design, development, testing, and sustainment of military platforms, weapons systems, infrastructure, and advanced technologies. This includes everything from aerospace and naval architecture to civil and electrical engineering required for bases, communication networks, and sophisticated equipment. Defense spending heavily relies on engineering services to maintain technological superiority, ensure operational readiness, and develop next-generation capabilities, making this a significant sector for federal procurement.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017818R3000

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2427 INGLESIDE RD, NORFOLK, VA, 23513

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,340,897

Exercised Options: $14,974,277

Current Obligation: $12,111,635

Actual Outlays: $1,513,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017811D6417

IDV Type: IDC

Timeline