DoD Awards $6.7M Contract for Mobile Ordnance Training, Competition Method Raises Questions

Contract Overview

Contract Amount: $6,716,417 ($6.7M)

Contractor: DEL REY Systems & Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MOBILE ORDNANCE TRAINING TEAM (MOTT)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to DEL REY SYSTEMS & TECHNOLOGY, INC. for work described as: MOBILE ORDNANCE TRAINING TEAM (MOTT) Key points: 1. Contract Value: $6.7 million over 5 years. 2. Contractor: Del Rey Systems & Technology, Inc. 3. Competition: Full and open, but award type (delivery order) warrants scrutiny. 4. Sector: Engineering Services for the Department of the Navy.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open, the award is a delivery order, suggesting it might be part of a larger IDIQ or a specific task order. This method can sometimes limit true price discovery if the initial competition was broad but the specific task order was not re-competed.

Taxpayer Impact: Taxpayer funds are being used for specialized training services. The effectiveness of the competition and cost controls will determine the ultimate value for taxpayers.

Public Impact

Ensures readiness for ordnance personnel through specialized training. Supports the Department of the Navy's operational capabilities. Potential for cost efficiencies if managed effectively. Impact on small businesses is minimal as the prime contractor is not a small business.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Delivery order award mechanism may not represent the best value for this specific task.
Lack of detailed cost data makes independent verification challenging.

Positive Signals

Contract supports critical military training needs.
Full and open competition was utilized.
Long-term contract provides stability for training services.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for maintaining and developing military capabilities. Spending benchmarks for similar services vary widely based on specialization and duration, but $6.7M over five years for specialized training is within a reasonable range if performance is effective.

Small Business Impact

The prime contractor, Del Rey Systems & Technology, Inc., is not a small business. There is no indication of subcontracting goals for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive spending and that the training objectives are met efficiently. The Department of the Navy's contracting office is responsible for monitoring performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Delivery order award may not represent optimal price discovery.
Lack of small business subcontracting information.
Limited transparency on specific engineering services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to DEL REY SYSTEMS & TECHNOLOGY, INC.. MOBILE ORDNANCE TRAINING TEAM (MOTT)

Who is the contractor on this award?

The obligated recipient is DEL REY SYSTEMS & TECHNOLOGY, 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 $6.7 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What specific engineering services are included in the Mobile Ordnance Training Team (MOTT) contract, and how do they contribute to overall mission effectiveness?

The contract likely encompasses the development, delivery, and maintenance of training programs and materials related to ordnance handling, safety, and operational procedures. These services are crucial for ensuring that military personnel are proficient and safe when working with ordnance, directly impacting mission readiness and reducing the risk of accidents.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and ensure the government receives good value for the $6.7 million investment?

The 'fixed fee' component provides some cost certainty, but the 'cost plus' aspect requires robust oversight. The Department of the Navy must actively monitor allowable costs, ensure efficient resource utilization, and verify that the contractor is not incurring unnecessary expenses. Regular performance reviews and audits are essential to manage this contract type effectively.

How does the delivery order award, under a full and open competition, ensure the most effective and cost-efficient training solution for the Department of the Navy?

While full and open competition is a positive indicator, the delivery order mechanism for a 5-year contract raises questions. It suggests this task might be one of many under a broader agreement, or that the specific requirements were defined later. To ensure effectiveness and cost-efficiency, the Navy should confirm that the competition for this specific delivery order was robust and that the chosen solution truly represents the best value for the defined training needs.

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: N0024421R3014

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9449 BALBOA AVE, SAN DIEGO, CA, 92123

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

Financial Breakdown

Contract Ceiling: $6,716,417

Exercised Options: $6,716,417

Current Obligation: $6,716,417

Actual Outlays: $378,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7499

IDV Type: IDC

Timeline