DoD's $107M engineering services contract with Cryptek Inc. awarded in 2003, ending in 2005

Contract Overview

Contract Amount: $10,746,183 ($10.7M)

Contractor: Cryptek Incorporated

Awarding Agency: Department of Defense

Start Date: 2003-11-18

End Date: 2005-12-31

Contract Duration: 774 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200411!000262!1700!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0007 !A!N! !Y! ! !20031118!20050517!933350100!933350100!362915118!N!CRYPTEK, INC !1501 MORAN ROAD !STERLING !VA!20166!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000010672993!N!N!000010672993!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !3!C!S! ! ! !99990909!B! ! !A! !A!U!U!1!001!B! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to CRYPTEK INCORPORATED for work described as: 200411!000262!1700!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0007 !A!N! !Y! ! !20031118!20050517!933350100!933350100!362915118!N!CRYPTEK, INC !1501 MORAN ROAD !STERLING !VA!20166!75376!107!51!STERLING !LOUD… Key points: 1. Contract awarded for engineering and technical services, indicating a need for specialized expertise. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was used, which can incentivize cost control by the contractor. 4. The contract duration was approximately 2 years, suggesting a project or service with a defined scope. 5. The contractor, Cryptek, Inc., received a significant award, highlighting their role in defense services. 6. The contract falls under the Engineering Services category, a critical support function for military operations.

Value Assessment

Rating: fair

The contract's value of $107 million over two years for engineering services is substantial. Without specific performance metrics or a detailed breakdown of services rendered, it's challenging to benchmark its value definitively. However, the CPFF structure, while common, can sometimes lead to higher costs if not managed tightly. Comparing this to similar engineering support contracts within the DoD for the same period would provide a clearer picture of whether the pricing was competitive and delivered good value for the specialized services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but the designation suggests a robust competitive environment. This approach is generally intended to foster price discovery and ensure the government receives the best possible value by leveraging market forces.

Taxpayer Impact: A full and open competition aims to secure competitive pricing, potentially saving taxpayer dollars by encouraging multiple firms to offer their best terms and rates.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which receive essential engineering and technical support. Services delivered likely include design, development, testing, and integration of systems or components crucial for naval air warfare. The geographic impact is centered around the Naval Air Warfare Center and potentially other DoD facilities where Cryptek, Inc. operates. Workforce implications include employment opportunities for engineers, technicians, and support staff at Cryptek, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the engineering services provided.
The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not meticulously managed and monitored by the contracting agency.
Limited information on the competitive landscape (number of bidders) makes it hard to confirm if the pricing was truly optimal.
The contract ended in 2005, and without data on follow-on contracts or performance history since then, assessing long-term contractor reliability is challenging.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract was awarded to Cryptek, Inc., indicating their capability to meet the DoD's specialized engineering needs.
The contract was for engineering technical services, a vital area for defense readiness and technological advancement.
The fixed fee component in the CPFF structure provides some level of cost certainty for the government compared to pure cost-plus contracts.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant segment of the professional services market supporting government and commercial clients. The defense industry relies heavily on such services for research, development, and sustainment of complex military systems. Spending in this sector can fluctuate based on defense budgets and modernization priorities. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the DoD or other federal agencies during the early 2000s.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Given the substantial value and specialized nature of the services, it's possible that larger firms like Cryptek, Inc. were the primary awardees. Further investigation into subcontracting reports would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Naval Air Warfare Center and the Defense Contract Management Agency (DCMA). These entities are responsible for ensuring contractor performance, compliance with contract terms, and proper financial management. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts
Defense Technical Support Services

Risk Flags

Cost Overrun Potential (CPFF structure)
Performance Monitoring Difficulty (lack of detailed metrics)
Limited Competition Data (number of bidders unknown)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to CRYPTEK INCORPORATED. 200411!000262!1700!A8106 !NAVAL AIR WARFARE CENTER, AIRCRA!N0042104C0007 !A!N! !Y! ! !20031118!20050517!933350100!933350100!362915118!N!CRYPTEK, INC !1501 MORAN ROAD !STERLING !VA!20166!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000010672993!N!N!000010672993!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !3!C!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is CRYPTEK INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2003-11-18. End: 2005-12-31.

What was the specific nature of the engineering technical services provided under this contract?

The contract data indicates the service was categorized under NAICS code 541330, 'Engineering Services,' and specifically listed as 'ENGINEERING TECHNICAL SERVICES.' While the exact deliverables are not detailed, this typically encompasses a broad range of activities such as system design, analysis, testing, integration, and technical support for complex systems, likely related to naval air warfare platforms or technologies. These services are critical for maintaining and advancing the capabilities of military assets, ensuring they meet operational requirements and technological standards.

How did Cryptek, Inc.'s performance on this contract compare to industry benchmarks or other similar contracts?

Assessing Cryptek, Inc.'s performance against industry benchmarks or similar contracts is challenging without access to detailed performance reviews, quality metrics, or post-award evaluations for this specific contract (N0042104C0007). The provided data confirms the award and its basic terms but lacks qualitative performance data. To conduct such a comparison, one would need to analyze contractor past performance databases, CPARS (Contractor Performance Assessment Reporting System) reports if available, and compare the contract's cost, schedule, and scope adherence against other engineering services contracts of similar size and complexity awarded by the DoD during the 2003-2005 timeframe.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract, and how were they managed?

The primary risk with a CPFF contract is the potential for the contractor to incur costs exceeding the estimated cost, although the fixed fee provides a ceiling on the profit. The government bears the risk of cost overruns up to the agreed-upon ceiling. Effective management requires rigorous oversight by the contracting officer and administrative contracting officer to monitor costs, ensure efficiency, and prevent scope creep. For this contract, risks might have included unforeseen technical challenges, changes in requirements, or inefficient resource allocation by the contractor. Management strategies would involve detailed cost tracking, regular progress reviews, and clear communication channels to address issues proactively.

What is the historical spending trend for engineering services by the Naval Air Warfare Center or the Department of Defense?

Historical spending on engineering services by the Naval Air Warfare Center (NAWC) and the broader Department of Defense (DoD) has generally been substantial and often increasing, driven by the need for advanced technological development, system modernization, and ongoing maintenance of complex defense platforms. While this specific contract was awarded in 2003, overall DoD spending on services, including engineering and technical support, has seen significant fluctuations over the past two decades, influenced by geopolitical events, budget appropriations, and strategic priorities. Analyzing annual defense spending reports and contract award databases would reveal trends in the volume and value of engineering services procured by the NAWC and DoD over time.

Were there any significant issues or disputes reported regarding this contract during its performance period?

The provided data does not contain information regarding specific issues, disputes, or contract modifications for award N0042104C0007. Standard contract administration processes would involve tracking modifications, change orders, and any formal disputes that may have arisen. Without access to the contract file or post-award performance reports, it is impossible to determine if any significant problems occurred. Typically, major issues would be reflected in contract modification logs or potentially in litigation records if disputes escalated.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Angelo, Gordon & CO., L.P. (UEI: 362915118)

Address: 1501 MORAN ROAD, STERLING, VA, 20166

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline