Dod's $70M Engineering Services Contract Awarded to Mantech Advanced Systems International, Inc. in 2004

Contract Overview

Contract Amount: $70,371,666 ($70.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-06-07

End Date: 2009-05-31

Contract Duration: 1,819 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $70.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a broad market search. 2. The contract type, Cost Plus Fixed Fee (CPFF), can incentivize cost overruns if not closely monitored. 3. A duration of 1819 days (approx. 5 years) indicates a significant, long-term engagement. 4. The contract's value of $70.4 million over its term suggests substantial engineering support was required. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The award was made by the Department of the Navy, a major component of the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, a $70.4 million contract over nearly five years for engineering services is substantial. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D or uncertain scope projects, carries inherent risks of cost escalation if not managed with rigorous oversight. Without comparable contract data for similar engineering services within the Navy or DoD, it's difficult to definitively assess if the pricing was optimal, but the duration and value suggest a significant investment in specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that the Department of the Navy sought proposals from all responsible sources. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, allowing the agency to select the best value offering. Full and open competition is the preferred method for federal procurements as it maximizes the pool of potential offerors and can lead to more favorable pricing and innovation.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, as multiple companies vie for the contract.

Public Impact

The primary beneficiaries are likely the Department of the Navy and potentially other Department of Defense entities requiring specialized engineering services. The services delivered would encompass a broad range of engineering support, potentially including design, analysis, testing, and integration for naval systems or platforms. The geographic impact is likely concentrated around naval facilities or areas where the contractor's expertise is deployed, primarily within the United States. Workforce implications include employment for engineers, technicians, and support staff at MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed tightly.
Long contract duration (1819 days) requires sustained oversight to ensure continued value.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
Limited information on the number of bidders in the full and open competition.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contractor has a long-standing relationship with the government, indicated by the award date.
Engineering services are critical for defense modernization and operational readiness.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential expertise for the design, development, and sustainment of complex military systems. This contract falls within the broader professional, scientific, and technical services industry. Spending in this sector is often driven by defense modernization priorities, research and development initiatives, and the need for specialized technical support. Comparable spending benchmarks would typically be found within the DoD's overall budget allocated to engineering and technical support services, which can run into billions of dollars annually.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is possible that MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. may utilize small business subcontractors to fulfill certain aspects of the work. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. Large prime contracts can sometimes create opportunities for small businesses through subcontracting, but they can also present challenges in terms of competition for prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including reporting requirements, performance standards, and payment schedules tied to milestones or deliverables. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract actions. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command (NAVSEA) Contracts
Cost Plus Fixed Fee Contracts
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
Long contract duration requires sustained oversight.
Limited public information on specific deliverables and performance metrics.
No indication of small business subcontracting goals or achievements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $70.4 million.

What is the period of performance?

Start: 2004-06-07. End: 2009-05-31.

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

The provided data indicates the contract falls under NAICS code 541330, which covers Engineering Services. While the specific nature of the services isn't detailed, this typically includes activities such as design, development, consulting, and testing related to various engineering disciplines. Given the award by the Department of the Navy, these services likely supported naval platforms, weapon systems, or related infrastructure. Examples could range from naval architecture and marine engineering to systems engineering, aerospace engineering, or civil engineering, depending on the Navy's specific requirements at the time. The Cost Plus Fixed Fee (CPFF) structure suggests the scope might have involved research, development, or complex problem-solving where precise costs were difficult to estimate upfront.

How does the $70.4 million contract value compare to similar engineering services contracts awarded by the Department of the Navy during that period?

Comparing the $70.4 million contract value requires access to historical procurement data for the Department of the Navy around the 2004-2009 period. However, as a single definitive contract awarded under full and open competition, a value of this magnitude for engineering services over approximately five years is substantial, indicating a significant requirement. The Navy frequently awards large contracts for complex engineering and technical support, particularly for shipbuilding, weapon systems development, and platform modernization. Without specific benchmarks for comparable services (e.g., systems engineering for a specific class of ship or aircraft), it's difficult to definitively state if $70.4 million represents a high, low, or average value. However, it signifies a major investment in specialized engineering capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, especially one valued at $70.4 million over nearly five years, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. Effective management requires rigorous oversight of incurred costs, strict adherence to allowable cost principles, and clear definition of the work to be performed. Without robust government oversight and detailed performance metrics, there's a risk that the final cost could significantly exceed initial estimates, even though the fee is fixed. Scope creep is another significant risk, where the project's objectives expand beyond the original agreement without a corresponding adjustment to the fee.

What does the 'full and open competition' designation imply about the contractor selection process and potential value for taxpayers?

The 'full and open competition' designation signifies that the Department of the Navy solicited proposals from all responsible sources capable of meeting the contract requirements. This is the preferred method of procurement in the federal government because it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids and innovative solutions. For taxpayers, this generally translates to better value, as competition tends to drive down prices and encourage efficiency. It ensures that the government is not limiting its options and is selecting the offeror that provides the best overall value, considering both price and non-price factors. While the specific number of bidders isn't provided, the process itself is designed to foster a competitive environment.

How does the contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., perform in terms of track record and past performance, particularly with the Department of Defense?

Information regarding the specific track record and past performance of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for this particular contract is not detailed in the provided data. However, the award of a $70.4 million definitive contract by the Department of the Navy suggests a level of capability and trust established with the agency. To fully assess their track record, one would need to review their performance history on previous contracts, including any past performance evaluations, awards, or disputes. Government agencies typically assess past performance as a key factor in source selection. A contractor receiving such a significant award often indicates a history of successful contract execution, though a deeper dive into their specific performance metrics and client feedback would be necessary for a comprehensive evaluation.

What are the potential implications of this contract on the broader defense engineering sector and small business participation?

This contract, valued at $70.4 million and awarded to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., signifies a substantial investment in defense engineering services. It likely supports critical naval programs, contributing to the technological advancement and operational readiness of the U.S. Navy. For the broader defense engineering sector, such contracts stimulate innovation and sustain specialized capabilities within prime contractors and their supply chains. Regarding small business participation, the data indicates this was not a small business set-aside. However, large prime contracts often include subcontracting goals, potentially creating opportunities for small businesses to contribute specialized expertise or services. The extent of small business involvement would depend on the prime contractor's subcontracting plan and execution.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline