DoD's Navy awards $31.9M contract for weapons systems technical and engineering expertise

Contract Overview

Contract Amount: $31,945,797 ($31.9M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-13

End Date: 2026-09-22

Contract Duration: 1,348 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL AND ENGINEERING EXPERTISE FOR, COMPUTER PROGRAM BUILD AND INSTALLATION SUPPORT, FLEET SUPPORT, AND DOCUMENTATION MANAGEMENT OF WEAPONS SYSTEMS/COMBAT SYSTEMS FOR NAVAL PROGRAMS.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TECHNICAL AND ENGINEERING EXPERTISE FOR, COMPUTER PROGRAM BUILD AND INSTALLATION SUPPORT, FLEET SUPPORT, AND DOCUMENTATION MANAGEMENT OF WEAPONS SYSTEMS/COMBAT SYSTEMS FOR NAVAL PROGRAMS. Key points: 1. Contract focuses on critical engineering, computer program build, installation, fleet support, and documentation for naval weapons systems. 2. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting ongoing needs. 3. Competition was full and open, indicating a broad market search for qualified contractors. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. The contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., has a track record in defense contracting. 6. The duration of the contract is substantial, spanning over three years, implying long-term support requirements.

Value Assessment

Rating: good

The contract value of $31.9 million over approximately 3.5 years represents a significant investment in specialized engineering and technical support for naval weapons systems. Benchmarking this specific type of support is challenging due to its niche nature. However, the CPFF contract type, while allowing for flexibility, necessitates robust oversight to ensure costs remain reasonable and aligned with the fixed fee. The number of bids received (2) is on the lower side for a full and open competition, which could warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation resulted in two bids. While full and open competition is generally preferred for maximizing market reach and achieving competitive pricing, the low number of bids received (two) may suggest potential limitations in the market for this highly specialized technical and engineering expertise, or perhaps specific requirements that narrowed the field.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, is generally favorable for taxpayers as it aims to solicit the best possible pricing and technical solutions from the available market. However, the low bid count warrants scrutiny to ensure the final price reflects true market value.

Public Impact

Naval programs benefit from enhanced technical and engineering support, improving the readiness and effectiveness of weapons systems. The contract supports the development, installation, and maintenance of critical combat and weapons systems for the U.S. Navy. Geographic impact is primarily focused on naval bases and facilities where these systems are deployed and maintained. Workforce implications include the potential for skilled engineers and technicians to be employed by the prime contractor or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) for a full and open solicitation could indicate potential market concentration or specialized requirements that restrict broader participation, potentially impacting price competitiveness.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs effectively and prevent potential overruns, as contractor profit is fixed regardless of actual costs incurred.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified offerors.
The contract addresses critical needs for naval weapons systems, contributing to national defense capabilities.
The contractor has been selected to provide specialized technical and engineering expertise, indicating a level of trust and capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing firms that provide specialized engineering expertise. The defense industry, particularly naval systems, relies heavily on such services for the design, development, integration, and sustainment of complex platforms. Spending in this sector is driven by modernization efforts, maintenance requirements, and the development of new defense technologies. Comparable spending benchmarks would typically be found within other large defense contracts for similar engineering and technical support services.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, small businesses are not specifically targeted for this prime contract award. However, the prime contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their subcontracting plans and the availability of specialized small business capabilities within the defense supply chain.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Navy's contracting officers and program managers, who are responsible for monitoring performance, costs, and compliance with contract terms. The CPFF structure necessitates close financial oversight to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Weapons Systems Development and Support
Combat Systems Engineering
Defense Engineering Services
IDIQ Contract Vehicles

Risk Flags

Limited competition (2 bidders) for full and open solicitation.
Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for specialized expertise to limit market breadth.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TECHNICAL AND ENGINEERING EXPERTISE FOR, COMPUTER PROGRAM BUILD AND INSTALLATION SUPPORT, FLEET SUPPORT, AND DOCUMENTATION MANAGEMENT OF WEAPONS SYSTEMS/COMBAT SYSTEMS FOR NAVAL PROGRAMS.

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 $31.9 million.

What is the period of performance?

Start: 2023-01-13. End: 2026-09-22.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Defense, particularly in similar engineering and technical support roles?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of contracting with the Department of Defense, including the Department of the Navy. Their experience often involves providing specialized engineering, technical, and program management support for complex defense systems. While specific details on past performance for identical services require deeper database analysis, their selection for this significant contract suggests they possess the requisite experience and capabilities. Reviewing their contract history for similar scope, value, and performance metrics would provide a more comprehensive understanding of their track record and reliability in executing defense-related technical and engineering tasks.

How does the pricing structure (Cost Plus Fixed Fee) compare to other similar engineering support contracts awarded by the Navy?

The Cost Plus Fixed Fee (CPFF) contract type is common in defense contracting for services where the scope of work may evolve or is difficult to precisely define upfront, such as complex engineering and technical support. It allows for flexibility by reimbursing the contractor for actual costs incurred, plus a predetermined fixed fee representing profit. Compared to other similar contracts, CPFF can sometimes lead to higher overall costs if not managed diligently, as there is less direct incentive for the contractor to control costs compared to fixed-price contracts. However, it is often chosen when innovation or adaptation is key. Benchmarking requires comparing the fixed fee percentage and the total estimated cost against contracts with similar technical complexity, duration, and number of bidders.

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

Key risks for this contract include potential cost overruns due to the CPFF structure, scope creep if requirements are not well-defined, and performance issues if the contractor lacks the necessary specialized expertise. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, regular performance reviews, and clear definition of work requirements. The limited number of bidders (2) also presents a risk of reduced competition, potentially impacting price and innovation. The government mitigates this by ensuring thorough evaluation criteria and potentially seeking broader competition on future IDIQ task orders if feasible. Contractor performance is monitored against defined metrics.

How effective is the current competition level (2 bidders) in ensuring value for taxpayer money on this contract?

The competition level of two bidders for a full and open solicitation is a point of concern regarding optimal value for taxpayer money. While two bidders do represent some level of competition, it is significantly less than ideal for ensuring robust price discovery and driving the most competitive offers. This limited competition could allow the incumbent or the few bidders to command higher prices than might be achieved in a more crowded marketplace. Taxpayers may not be receiving the full benefit of market forces. Further analysis would be needed to determine if the specialized nature of the services inherently limits the number of capable bidders or if the solicitation process could be improved to attract more interest in the future.

What is the historical spending trend for similar engineering and technical support services for naval weapons systems by the Department of the Navy?

Historical spending by the Department of the Navy on engineering and technical support for naval weapons systems has been substantial and generally increasing, driven by modernization programs, fleet readiness initiatives, and the development of new platforms. This specific contract, valued at approximately $31.9 million over 3.5 years, aligns with the typical scale of such support contracts. Analyzing past spending patterns reveals a consistent demand for these specialized services, often awarded through IDIQ vehicles to ensure agile support. Trends indicate a growing reliance on advanced technical expertise to maintain superiority in complex combat systems, suggesting continued significant investment in this area.

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: N0017822R3007

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: $56,176,438

Exercised Options: $40,724,671

Current Obligation: $31,945,797

Actual Outlays: $297,982

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $21,632,346

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