Navy's $10.2M FMS CSS contract awarded to George Consulting Ltd. for engineering services

Contract Overview

Contract Amount: $10,241,940 ($10.2M)

Contractor: George Consulting Ltd

Awarding Agency: Department of Defense

Start Date: 2024-09-05

End Date: 2026-09-04

Contract Duration: 729 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVY INTERNATIONAL PROGRAM OFFICE (NIPO) FOREIGN MILITARY SALES CONTRACTOR SUPPORT SERVICES (FMS CSS)

Place of Performance

Location: BEL AIR, HARFORD County, MARYLAND, 21014

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to GEORGE CONSULTING LTD for work described as: NAVY INTERNATIONAL PROGRAM OFFICE (NIPO) FOREIGN MILITARY SALES CONTRACTOR SUPPORT SERVICES (FMS CSS) 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 also carries risk. 3. The duration of 729 days indicates a significant, long-term need for these services. 4. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical support function. 6. The contract is managed by the Department of the Navy, part of the broader Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this $10.2 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing it to similar FMS CSS contracts would require access to detailed scope of work and pricing structures for those awards. The fixed fee component, while intended to provide contractor incentive, needs careful monitoring to ensure it represents fair value for the services rendered.

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 two bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for price discovery, the limited number of bidders might suggest specific expertise requirements or market concentration for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bidders, the potential for significant cost savings may be constrained compared to scenarios with a larger pool of competitors.

Public Impact

This contract supports the Navy International Program Office (NIPO) in managing Foreign Military Sales (FMS) programs. It provides essential engineering services, likely contributing to the successful execution of defense sales to allied nations. The services delivered will indirectly benefit partner nations by ensuring the effective transfer of defense capabilities. Geographic impact is likely global, as FMS programs involve numerous international partners. Workforce implications include the employment of specialized engineers and support staff by George Consulting Ltd.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent potential cost creep and ensure the fixed fee remains reasonable.
Limited competition (2 bidders) may indicate a niche market where price discovery could be less robust than in broader markets.
The specific nature of FMS CSS may involve complex requirements that are difficult to benchmark against standard engineering services.

Positive Signals

Awarded under full and open competition, which is a positive signal for market fairness.
The contract is for engineering services, a critical component of defense support and international cooperation.
The duration of the contract suggests a stable, ongoing requirement, providing predictability for the contractor and supporting services.

Sector Analysis

The engineering services sector supporting defense and international programs is highly specialized. Companies operating in this space often possess unique technical expertise and security clearances. The market size for such niche services can be substantial within the broader defense industrial base, with significant government spending allocated to program management and technical support for foreign military sales. This contract fits within the broader category of professional, scientific, and technical services, a key segment of the U.S. economy.

Small Business Impact

This contract does not appear to have a small business set-aside (SB is false) and the contractor, George Consulting Ltd., is not explicitly identified as a small business. Therefore, the direct impact on small business set-asides is minimal. However, the potential for subcontracting opportunities for small businesses within the engineering services domain exists, depending on the specific tasks outlined in the delivery order. The overall impact on the small business ecosystem would depend on George Consulting's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy, specifically the International Program Office. Accountability measures will be tied to the performance against the contract's statement of work and the Cost Plus Fixed Fee structure, requiring detailed cost reporting and progress tracking. Transparency is facilitated through contract award databases, but detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales (FMS) Program
Navy International Program Office (NIPO) Operations
Defense Contract Management Agency (DCMA) Oversight
Engineering Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Limited number of bidders (2) may indicate potential for reduced price competition.
Contractor's past performance data is not available for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to GEORGE CONSULTING LTD. NAVY INTERNATIONAL PROGRAM OFFICE (NIPO) FOREIGN MILITARY SALES CONTRACTOR SUPPORT SERVICES (FMS CSS)

Who is the contractor on this award?

The obligated recipient is GEORGE CONSULTING LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2024-09-05. End: 2026-09-04.

What is the specific scope of engineering services provided under this contract?

The provided data indicates the contract is for 'FOREIGN MILITARY SALES CONTRACTOR SUPPORT SERVICES (FMS CSS)' and falls under NAICS code 541330 (Engineering Services). However, the specific technical tasks, deliverables, and areas of engineering expertise (e.g., naval systems, avionics, logistics support) are not detailed in the summary data. These services likely support the administration, management, and technical aspects of FMS cases, ensuring that defense articles and services transferred to partner nations are properly supported and integrated. Detailed scope would be found in the contract's statement of work.

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

Cost Plus Fixed Fee (CPFF) contracts are common for complex projects where the scope is not fully defined at the outset or involves significant research and development. Unlike fixed-price contracts, CPFF allows the contractor to recover all allowable costs incurred. The 'fixed fee' is negotiated upfront and represents the contractor's profit. This structure incentivizes the contractor to control costs to maximize profit margin, but it also places a significant burden on the government to meticulously audit costs. For services where performance is difficult to quantify or where innovation is key, CPFF can be appropriate, but it carries higher cost risk for the government compared to firm-fixed-price contracts.

What are the potential risks associated with a CPFF contract for FMS CSS?

The primary risk with CPFF contracts is cost overrun, as the government is obligated to pay all allowable costs. If the contractor's cost estimating is inaccurate or if unforeseen issues arise, the total cost can exceed initial projections. Another risk is the potential for the contractor to prioritize cost recovery over efficiency, especially if oversight is lax. For FMS CSS, risks could also include scope creep, inadequate performance monitoring, and challenges in ensuring the contractor's personnel possess the necessary security clearances and technical expertise for sensitive international programs. Effective government oversight and robust auditing are crucial to mitigate these risks.

What is the historical spending trend for FMS CSS contracts within the Department of the Navy?

Historical spending data for FMS CSS contracts within the Department of the Navy is not provided in the summary. However, FMS programs are a significant component of U.S. defense diplomacy and security cooperation, involving billions of dollars annually across all services. Spending on contractor support services for these programs typically fluctuates based on geopolitical demands, the number and complexity of active FMS cases, and specific platform sustainment requirements. A detailed analysis would require examining historical contract awards and obligations specifically for NIPO and similar FMS support functions over several fiscal years.

How does George Consulting Ltd.'s track record influence the assessment of this contract's risk?

The provided data does not include information on George Consulting Ltd.'s specific track record, past performance ratings, or any history of contract disputes or awards. A comprehensive risk assessment would necessitate reviewing their performance on previous government contracts, particularly those involving similar services (engineering, program support) and contract types (CPFF). A history of successful contract completion, adherence to schedules and budgets, and positive performance reviews would reduce perceived risk. Conversely, a history of cost overruns, performance issues, or unresolved disputes would increase the risk profile for this current contract.

What is the significance of the contract being a 'delivery order'?

The fact that this award is a 'delivery order' signifies that it is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing agencies to issue orders as needed. This approach provides flexibility for the government to procure services incrementally. The significance here is that the competition and overall contract structure were likely established when the parent IDIQ was awarded. This specific delivery order represents a portion of the total potential value under that IDIQ, and its terms (like duration and price) are specific to this task.

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: N0018924R3003

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2456 REMOUNT RD STE 308, NORTH CHARLESTON, SC, 29406

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

Financial Breakdown

Contract Ceiling: $39,398,744

Exercised Options: $14,097,624

Current Obligation: $10,241,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7702

IDV Type: IDC

Timeline