DoD Awards $20.18M Engineering Services Contract to Qwaltec Inc. via Full and Open Competition
Contract Overview
Contract Amount: $20,177,797 ($20.2M)
Contractor: Qwaltec Inc
Awarding Agency: Department of Defense
Start Date: 2021-08-13
End Date: 2026-07-31
Contract Duration: 1,813 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: NAVSOC ON ORBIT ENGINEERING SERVICES
Place of Performance
Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042
Plain-Language Summary
Department of Defense obligated $20.2 million to QWALTEC INC for work described as: NAVSOC ON ORBIT ENGINEERING SERVICES Key points: 1. Contract awarded to Qwaltec Inc. for engineering services. 2. Significant contract value of $20.18 million. 3. Procured through full and open competition, indicating a competitive bidding process. 4. Services are for the Department of the Navy, supporting NAVSOC. 5. Contract duration spans from August 2021 to July 2026.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering service contracts is recommended to confirm pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, which generally aims to secure the best value. The fixed fee component provides some cost certainty for the government.
Public Impact
Ensures continued engineering support for critical naval operations. Supports a private sector company, Qwaltec Inc., contributing to the defense industrial base. The competitive award process aims to maximize the efficient use of taxpayer dollars. Long-term contract provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in CPFF contracts if not managed diligently.
- Reliance on a single contractor for a significant period.
- Need for ongoing performance monitoring to ensure quality and adherence to scope.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and defined scope of work.
- Supports a key agency within the Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for supporting complex government projects. Spending in this sector is often driven by defense, infrastructure, and research initiatives, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
While this contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Robust oversight mechanisms, including performance reviews and financial audits, are essential to ensure accountability and effective use of funds.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun risk associated with CPFF structure.
- Potential for scope creep if not managed tightly.
- Dependency on contractor performance over a multi-year period.
- Need for continuous market surveillance to ensure ongoing cost-effectiveness.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to QWALTEC INC. NAVSOC ON ORBIT ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is QWALTEC 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 $20.2 million.
What is the period of performance?
Start: 2021-08-13. End: 2026-07-31.
What is the typical profit margin for Cost Plus Fixed Fee engineering service contracts of this size and duration within the defense sector?
Profit margins for CPFF contracts in the defense engineering sector can vary, but typically range from 7-15% of the total contract cost. This range is influenced by factors such as contract complexity, risk, and the contractor's established reputation. Specific benchmarks for this contract would require detailed analysis of comparable awards and market rates.
How does the awarded price compare to industry benchmarks for similar engineering services provided to naval organizations?
Without access to detailed cost breakdowns and specific service deliverables, a precise benchmark comparison is challenging. However, the full and open competition suggests the price was likely competitive. Further analysis would involve comparing the per-hour rates, overhead application, and fixed fee percentage against publicly available data for similar DoD engineering contracts.
What are the key performance indicators (KPIs) being used to measure the effectiveness of Qwaltec Inc.'s engineering services under this contract?
Effective oversight typically involves tracking KPIs related to project milestones, technical performance, adherence to schedule, and budget management. For engineering services, this might include metrics like design accuracy, successful system integration, timely problem resolution, and compliance with technical specifications. The contracting officer's representative (COR) is usually responsible for monitoring these KPIs.
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: N0024421R3007
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 8950 S 52ND ST STE 409, TEMPE, AZ, 85284
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $20,889,860
Exercised Options: $20,889,860
Current Obligation: $20,177,797
Actual Outlays: $3,737,897
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8384
IDV Type: IDC
Timeline
Start Date: 2021-08-13
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2026-02-04
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