DoD's $58.4M contract for combat systems testing awarded to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC

Contract Overview

Contract Amount: $58,379,657 ($58.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2025-11-30

Contract Duration: 1,460 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TEST AND EVALUATION OF COMBAT SYSTEMS/WEAPON SYSTEMS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TEST AND EVALUATION OF COMBAT SYSTEMS/WEAPON SYSTEMS Key points: 1. Value-for-money assessment pending detailed cost analysis and benchmarking. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are moderate, requiring close monitoring of performance and cost overruns. 4. Performance context is tied to critical combat and weapon systems development. 5. Sector positioning is within the defense engineering services domain.

Value Assessment

Rating: fair

The contract value of $58.4 million over approximately four years requires a thorough review against similar defense testing and evaluation contracts. Benchmarking the pricing structure, particularly the Cost Plus Fixed Fee (CPFF) elements, against industry standards and historical data for engineering services is crucial. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is challenging, but the scale suggests significant investment in specialized engineering expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, but the specific number of bidders does not inherently guarantee the most competitive pricing without further analysis of the bid proposals and the nature of the specialized services required.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to leverage market forces to achieve the best possible price and quality for government services.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical testing and evaluation for combat and weapon systems. Services delivered include advanced engineering and technical support for system validation and verification. The geographic impact is primarily within Virginia, where the contractor is located, but the systems tested have national defense implications. Workforce implications include employment for specialized engineers and technical personnel within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Dependence on a single contractor for critical testing phases could pose a risk if performance falters.
The specialized nature of combat systems testing may limit the pool of qualified oversight personnel.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration of nearly four years allows for sustained focus and development.
The contractor's specialization in advanced systems aligns with the contract's technical requirements.

Sector Analysis

This contract falls within the Defense Engineering Services sector, a critical component of the broader aerospace and defense industry. This sector is characterized by high technical barriers to entry, significant R&D investment, and stringent government oversight. Spending in this area is substantial, driven by the continuous need to modernize and maintain advanced military capabilities. Comparable spending benchmarks would involve analyzing other large-scale testing and evaluation contracts awarded by the DoD for complex weapon systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The primary contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., is likely a mid-to-large-sized entity. Further investigation into subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to contract performance metrics, delivery schedules, and adherence to the Cost Plus Fixed Fee structure. Transparency is facilitated through contract award databases, but detailed performance reports may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation (RDT&E)
Naval Sea Systems Command (NAVSEA) Contracts
Combat Systems Engineering Services
Weapon Systems Testing and Evaluation

Risk Flags

Cost Overrun Potential
Schedule Delay Risk
Technical Performance Uncertainty
Contractor Performance History (requires further review)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TEST AND EVALUATION OF COMBAT SYSTEMS/WEAPON SYSTEMS

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 $58.4 million.

What is the period of performance?

Start: 2021-12-01. End: 2025-11-30.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Defense, particularly in combat systems testing?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of performing services for the Department of Defense. A detailed review of their past performance on similar contracts, including any awards, penalties, or contract modifications, would provide insight into their reliability and expertise in combat systems testing. Analyzing their financial health and any past issues related to quality, timeliness, or cost control is essential for a comprehensive assessment. Their specific experience with the types of combat and weapon systems covered under this new contract would also be a key factor in evaluating their suitability and the potential risks associated with their performance.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to industry benchmarks for similar engineering services?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee representing profit. For specialized engineering services like combat systems testing, CPFF can be appropriate when the scope of work is not precisely defined or is subject to change. However, it carries a risk of cost overruns if not managed diligently. Benchmarking this contract's fee against the total estimated cost, compared to similar CPFF contracts in the defense sector, is crucial. Industry benchmarks often look at the fee as a percentage of total estimated costs; a significantly higher percentage for MANTECH could indicate less competitive pricing or higher perceived risk by the contractor. Effective oversight is paramount to ensure costs are reasonable and allocable.

What are the primary performance risks associated with this contract, and what mitigation strategies are in place?

Primary performance risks include potential cost overruns due to the CPFF structure, delays in testing schedules impacting weapon system readiness, and technical challenges in evaluating complex combat systems. Mitigation strategies should involve robust government oversight of incurred costs, detailed performance work statements with clear deliverables and milestones, and regular progress reviews. The Department of the Navy should have mechanisms in place to monitor contractor performance against these metrics, identify deviations early, and implement corrective actions. Furthermore, ensuring the contractor has adequate technical expertise and resources to address unforeseen technical hurdles is critical.

How does this contract's value and scope compare to historical spending on combat systems testing by the Department of the Navy?

The $58.4 million contract value over approximately four years represents a significant, but potentially standard, investment for specialized combat systems testing. To assess its historical context, one would need to analyze the Department of the Navy's spending trends in Research, Development, Test, and Evaluation (RDT&E) for similar weapon systems over the past decade. Comparing the annual average spending on this contract ($14.6 million/year) against the total RDT&E budget or specific program budgets for comparable systems would provide perspective. If historical spending on similar testing efforts has been consistently lower or higher, it warrants further investigation into the specific requirements and market conditions driving this contract's value.

What is the potential impact of this contract on the development timeline and effectiveness of the targeted combat/weapon systems?

This contract is directly tied to ensuring the effectiveness and readiness of critical combat and weapon systems through rigorous testing and evaluation. Successful execution by MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. should lead to validated systems that meet performance requirements, thereby enhancing warfighter capabilities. Delays or failures in testing could postpone the deployment of these systems, potentially impacting national security objectives. The effectiveness of the testing itself, as measured by its ability to identify flaws and validate performance, is paramount. Therefore, the contractor's technical proficiency and the thoroughness of the evaluation process are key determinants of the ultimate impact on system development and operational effectiveness.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017821R3011

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: $92,730,834

Exercised Options: $61,076,410

Current Obligation: $58,379,657

Actual Outlays: $972,833

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $28,937,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8070

IDV Type: IDC

Timeline