DoD awards $11.18M for engineering services to Data Intelligence LLC, with 7 bidders

Contract Overview

Contract Amount: $11,184,310 ($11.2M)

Contractor: Data Intelligence LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-11

End Date: 2026-07-10

Contract Duration: 1,460 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CORPORATE A&A VALIDATION SUPPORT & SUSTAINMENT SERVICES - THIS ACQUISITION WILL PROVIDE VALIDATION AND SUSTAINMENT SUPPORT TO NSWCDD AND NSWCDD DAM NECK.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to DATA INTELLIGENCE LLC for work described as: CORPORATE A&A VALIDATION SUPPORT & SUSTAINMENT SERVICES - THIS ACQUISITION WILL PROVIDE VALIDATION AND SUSTAINMENT SUPPORT TO NSWCDD AND NSWCDD DAM NECK. Key points: 1. Contract awarded to Data Intelligence LLC for validation and sustainment support. 2. The contract has a duration of 1460 days, ending in July 2026. 3. This is a Delivery Order under a larger contract. 4. The contract type is Cost Plus Fixed Fee. 5. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services. 6. The contract was awarded through Full and Open Competition. 7. The award amount is $11,184,310. 8. The contract is for services supporting NSWCDD and NSWCDD DAM NECK.

Value Assessment

Rating: fair

The contract value of $11.18 million for engineering services appears to be within a reasonable range for a multi-year support contract of this nature. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar sustainment and validation contracts for naval facilities would provide a clearer picture of pricing efficiency. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are reimbursed, plus a fixed fee for profit, which can sometimes lead to less cost control compared to fixed-price contracts if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through Full and Open Competition, indicating that all responsible sources were permitted to submit offers. Seven bidders participated in the competition, suggesting a moderate level of market interest. The presence of multiple bidders generally promotes price discovery and can lead to more competitive pricing for the government. The specific evaluation criteria and the relative strengths of the proposals would ultimately determine the winning offer.

Taxpayer Impact: The full and open competition with seven bidders is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. This process helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center (NSWC) Divisions, specifically NSWCDD and NSWCDD DAM NECK, which will receive validation and sustainment support. The services delivered will ensure the continued operational readiness and effectiveness of critical naval systems and facilities. The geographic impact is concentrated in Virginia, where the supported facilities are located. The contract supports the engineering and technical workforce involved in naval warfare systems development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may offer less incentive for cost savings compared to fixed-price arrangements.
The specific deliverables and performance metrics are not detailed, making it difficult to fully assess performance risks.
Sustainment and validation support can be complex, requiring deep technical expertise and potentially long-term knowledge transfer challenges.

Positive Signals

Awarded through Full and Open Competition with multiple bidders, indicating a competitive process.
The contractor, Data Intelligence LLC, is providing essential support to critical naval facilities.
The contract duration of nearly four years suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The market for defense engineering support is substantial, driven by the continuous need for modernization, sustainment, and research and development of military systems. Comparable spending benchmarks for similar sustainment and validation contracts within the Department of Defense, particularly for naval warfare centers, would typically range from several million to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Data Intelligence LLC, may choose to subcontract portions of the work to small businesses as part of its overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, specifically the Naval Sea Systems Command (NAVSEA) which oversees NSWCDD. Accountability measures will be tied to the performance requirements outlined in the contract's Statement of Work and the Cost Plus Fixed Fee structure. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Naval Surface Warfare Center (NSWC) Support Services
Defense Engineering Services
Cost Plus Fixed Fee Contracts
Delivery Orders
Sustainment Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Scope creep risk if not clearly defined in the Statement of Work.
Dependence on contractor's technical expertise for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to DATA INTELLIGENCE LLC. CORPORATE A&A VALIDATION SUPPORT & SUSTAINMENT SERVICES - THIS ACQUISITION WILL PROVIDE VALIDATION AND SUSTAINMENT SUPPORT TO NSWCDD AND NSWCDD DAM NECK.

Who is the contractor on this award?

The obligated recipient is DATA INTELLIGENCE 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 $11.2 million.

What is the period of performance?

Start: 2022-07-11. End: 2026-07-10.

What is the track record of Data Intelligence LLC in performing similar engineering and sustainment services for the Department of Defense?

Assessing the track record of Data Intelligence LLC 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 successes or failures. Key indicators would include their experience with naval systems, validation processes, and sustainment operations. A history of successful, on-time, and within-budget performance on comparable projects would suggest a lower risk for this current contract. Conversely, a history of performance issues, cost overruns, or missed deadlines would raise concerns about their capability to meet the requirements effectively.

How does the awarded amount of $11.18 million compare to similar engineering support contracts for naval facilities?

To benchmark the $11.18 million award, one would need to identify comparable contracts for engineering, validation, and sustainment services provided to other Naval Surface Warfare Centers or similar Department of Defense facilities. Factors such as contract duration, scope of work complexity, number of personnel required, and specific technical requirements would need to be aligned. If similar contracts of comparable duration and scope have been awarded for significantly less, it might indicate potential overpricing or less favorable terms. Conversely, if the scope is particularly complex or demanding, the price might be justified. Without access to detailed comparative data, a definitive assessment is difficult, but the number of bidders (7) suggests a competitive market that should have driven a reasonable price.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these types of services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can reduce the contractor's incentive to control costs, as they are guaranteed their profit margin regardless of how efficiently they manage expenses. If the government's oversight is not robust, or if the initial cost estimates are inaccurate, the total contract cost could exceed what might have been achieved under a fixed-price contract. For sustainment and validation services, where scope can sometimes evolve, effective cost tracking and rigorous auditing by the government are crucial to mitigate the risk of cost overruns.

How effective are the current oversight mechanisms for ensuring performance and value for money on this contract?

The effectiveness of oversight mechanisms depends on the specific processes implemented by the Department of the Navy. Typically, oversight involves regular progress meetings, review of contractor deliverables, performance monitoring against key metrics, and financial audits. For a CPFF contract, close monitoring of incurred costs against the estimated cost is vital. The presence of a Contracting Officer's Representative (COR) is essential for day-to-day oversight of performance. The quality of the Statement of Work and the clarity of performance metrics directly impact the effectiveness of oversight. Without specific details on the COR's engagement and the reporting structure, it's difficult to definitively assess the robustness of oversight.

What is the historical spending trend for engineering and sustainment services at NSWCDD and NSWCDD DAM NECK?

To understand historical spending trends, one would need to analyze contract data for NSWCDD and NSWCDD DAM NECK over several preceding fiscal years. This analysis should identify the total amount spent on engineering, validation, and sustainment services, the types of contracts used (e.g., fixed-price, cost-reimbursable), and the primary contractors. Significant year-over-year increases or decreases in spending could indicate changes in program priorities, funding availability, or the nature of the support required. Understanding these trends provides context for the current $11.18 million award and helps identify any anomalies or patterns in federal investment in these areas.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017821R3024

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2 EVES DR STE 250, MARLTON, NJ, 08053

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,308,794

Exercised Options: $11,184,310

Current Obligation: $11,184,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7472

IDV Type: IDC

Timeline