Navy awards $16.7M engineering support contract to Ancilla Technologies & Services Inc

Contract Overview

Contract Amount: $16,666,196 ($16.7M)

Contractor: Ancilla Technologies & Services Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BUMED EXECUTIVE LIAISON OFFICE (LNO) SUPPORT

Place of Performance

Location: CLARKSBURG, MONTGOMERY County, MARYLAND, 20871

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to ANCILLA TECHNOLOGIES & SERVICES INC for work described as: BUMED EXECUTIVE LIAISON OFFICE (LNO) 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 incentivize cost control but requires careful oversight. 3. The duration of 1825 days (5 years) indicates a long-term need for these engineering services. 4. The contract is for support to the BUMED Executive Liaison Office (LNO). 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The award was made by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this $16.7 million contract over five years requires more detailed cost breakdowns and comparisons to similar LNO support contracts. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure costs remain reasonable and the fixed fee is justified. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the duration and scope suggest a significant investment in specialized support.

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 3 bids suggests a moderate level of competition for this specific requirement. While competition is generally positive, the number of bidders could be higher for a contract of this size and duration, potentially impacting price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A competitive process increases the likelihood that the government secures services at a fair market value.

Public Impact

The primary beneficiaries are the BUMED Executive Liaison Office (LNO), receiving essential support services. The services delivered are engineering support, crucial for the operational effectiveness of the LNO. The geographic impact is likely concentrated within the areas served by the BUMED LNO, primarily Maryland. Workforce implications include the creation or sustainment of jobs for engineers and support staff employed by Ancilla Technologies & Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Limited competition (3 bidders) may not have yielded the lowest possible price.
The specific nature of LNO support might limit the pool of qualified bidders.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential offerors.
The contract duration suggests a stable, long-term need and commitment from the agency.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. The federal government is a significant consumer of engineering services, particularly within the Department of Defense for complex projects and operational support. Comparable spending benchmarks would involve analyzing other engineering support contracts awarded by DoD components or other federal agencies for similar functions and durations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. Ancilla Technologies & Services Inc. is likely a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of the Navy's contracting officers and program managers. They are responsible for monitoring costs, ensuring performance against the contract requirements, and approving reimbursements. Transparency is facilitated through contract award databases, but detailed cost and performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

BUMED Executive Liaison Office Support
Department of Defense Engineering Services
Navy Professional Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited number of bidders (3) may indicate a less competitive market for this specific service.
The specific nature of LNO support could present unique challenges in defining scope and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to ANCILLA TECHNOLOGIES & SERVICES INC. BUMED EXECUTIVE LIAISON OFFICE (LNO) SUPPORT

Who is the contractor on this award?

The obligated recipient is ANCILLA TECHNOLOGIES & SERVICES 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 $16.7 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is the track record of Ancilla Technologies & Services Inc. with the federal government, particularly with the Department of Defense?

Ancilla Technologies & Services Inc. has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance, including contract values, types, and any reported issues or awards, is crucial. A review of their contract history would reveal their experience in delivering engineering and support services. Specific details on past performance ratings, any contract disputes, or successful project completions would provide a clearer picture of their reliability and capability to fulfill the requirements of this BUMED LNO support contract. This information is typically available through federal procurement data systems.

How does the awarded amount of $16.7 million compare to similar engineering support contracts for executive liaison offices?

Comparing the $16.7 million award to similar contracts requires identifying comparable contracts based on scope, duration, and agency. Contracts for executive liaison office support can vary significantly depending on the specific agency and its mission. For a 5-year duration, $16.7 million averages approximately $3.34 million per year. This figure needs to be benchmarked against other DoD or federal LNO support contracts, considering factors like the number of personnel supported, the complexity of the liaison functions, and the required engineering expertise. Without direct comparable data, it's difficult to definitively state if this represents high or low value, but it indicates a substantial investment.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate beyond initial projections due to unforeseen complexities, scope creep, or inefficient management by the contractor, the total contract value can increase significantly. For the government, the risk lies in paying higher-than-expected costs. Effective oversight, detailed cost tracking, and robust change management processes are essential to mitigate these risks and ensure the contractor remains incentivized to control expenses.

How effective is full and open competition in ensuring competitive pricing for specialized engineering services like this?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows all qualified vendors to bid, fostering a robust marketplace. However, the effectiveness can be influenced by the specificity of the requirement. If the engineering services needed are highly specialized, the pool of qualified bidders might be limited, even under full and open competition. In this case, only 3 bids were received, suggesting that while the process was open, the market for this particular service might not be exceptionally broad. This moderate competition level still provides a degree of price discovery but may not achieve the lowest possible price compared to a market with numerous highly competitive bidders.

What is the historical spending trend for BUMED Executive Liaison Office (LNO) support or similar services within the Department of the Navy?

Analyzing historical spending for BUMED LNO support or analogous services within the Department of the Navy is crucial for context. This involves examining past contract awards for similar functions, their values, durations, and the contractors involved. A trend of increasing or consistently high spending on LNO support might indicate a growing need or a stable requirement. Conversely, fluctuating spending could suggest changes in program priorities or contracting strategies. Understanding these historical patterns helps in evaluating whether the current $16.7 million award aligns with past investment levels or represents a significant shift in resource allocation for these support functions.

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: N0018921R3037

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12610 GRANITE ROCK RD., CLARKSBURG, MD, 20871

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,266,320

Exercised Options: $17,151,394

Current Obligation: $16,666,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7123

IDV Type: IDC

Timeline