DoD's $13.8M Engineering Services Contract with AVIAN-PRECISE COMPANY, LLC Shows Fair Value Amidst Full Competition

Contract Overview

Contract Amount: $13,821,797 ($13.8M)

Contractor: Avian-Precise Company, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-31

End Date: 2024-07-31

Contract Duration: 1,827 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMA 207 PROCUREMENT LABOR

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to AVIAN-PRECISE COMPANY, LLC for work described as: PMA 207 PROCUREMENT LABOR Key points: 1. The contract demonstrates a commitment to competitive sourcing, with a full and open competition after exclusion of sources. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. The contract's duration of 1827 days suggests a long-term need for specialized engineering expertise. 4. Performance is being monitored under a Cost Plus Fixed Fee (CPFF) structure, which allows for cost transparency. 5. The contract falls within the Engineering Services sector, a critical area for defense procurement. 6. The award value of $13.8M is within the expected range for complex engineering support services.

Value Assessment

Rating: good

The contract's value of $13.8M for engineering services over five years appears reasonable when compared to similar long-term, specialized engineering support contracts within the Department of Defense. The CPFF pricing structure, while potentially leading to higher costs than fixed-price contracts, is often used for complex projects where scope can evolve, allowing for flexibility. Benchmarking against industry standards for engineering services suggests that the proposed labor rates and overhead are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had limitations, the final award was made after a broad competitive process. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought, which typically leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and ensured the government received the best possible technical solution at a fair price.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its missions. Services delivered likely include design, analysis, testing, and technical support for naval systems and platforms. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications include the employment of skilled engineers and technical professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize cost overruns if not closely monitored.
The long duration of the contract may lead to scope creep if not managed effectively.
Reliance on a single contractor for extended periods could reduce future competitive pressure.

Positive Signals

The 'Full and Open Competition' designation indicates a strong effort to achieve best value.
The contract is for essential engineering services, supporting critical defense capabilities.
The CPFF structure allows for flexibility in adapting to evolving technical requirements.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, particularly for agencies like the Department of Defense that require specialized technical expertise for complex systems and platforms. This contract, valued at $13.8M, fits within the broader market for professional, scientific, and technical services, which sees significant government spending annually. Comparable spending benchmarks for similar engineering support contracts within the defense sector often range from several million to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it mention subcontracting goals. As the contract was awarded under 'Full and Open Competition,' it suggests that large and small businesses alike were eligible to bid. Further analysis would be needed to determine if small businesses are participating as subcontractors or if there are opportunities missed for small business engagement.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is facilitated through contract reporting mechanisms, and any significant issues would fall under the purview of the Department of Defense's Inspector General.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep over the contract's extended duration.
Need for robust government oversight of contractor performance and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to AVIAN-PRECISE COMPANY, LLC. PMA 207 PROCUREMENT LABOR

Who is the contractor on this award?

The obligated recipient is AVIAN-PRECISE COMPANY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-07-31.

What is the track record of AVIAN-PRECISE COMPANY, LLC with the Department of Defense?

AVIAN-PRECISE COMPANY, LLC has a history of contracting with the Department of Defense, as evidenced by this award. To fully assess their track record, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing past performance evaluations, any documented issues or disputes, and their success in delivering on time and within budget on previous DoD engagements. Understanding their experience with Cost Plus Fixed Fee (CPFF) contracts specifically would also be valuable, as this contract type requires diligent cost management and reporting.

How does the $13.8M award value compare to similar engineering services contracts awarded by the Navy?

The $13.8M award value for five years of engineering services appears to be within a reasonable range for specialized support provided to the Department of the Navy. Benchmarking against similar contracts for engineering, research, and development services awarded by naval commands reveals that contracts of this magnitude are common for long-term, complex projects. Factors such as the specific technical requirements, the level of expertise needed, and the duration of the contract influence the overall value. Without specific details on the scope of work, a precise comparison is difficult, but the value does not immediately suggest overpricing relative to the market for such services.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a CPFF contract is the potential for cost overruns. Unlike fixed-price contracts, the government agrees to pay the contractor's actual costs plus a negotiated fixed fee. This structure can incentivize contractors to incur higher costs, as their profit (the fixed fee) remains constant. Effective risk mitigation requires stringent government oversight of costs, regular audits, and clear performance metrics. Scope creep is another significant risk; if the project's requirements are not well-defined or managed, costs can escalate beyond initial projections. The government must maintain tight control over contract modifications and ensure that any changes are justified and properly priced.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' approach is generally effective in ensuring value for taxpayers. It signifies that while certain sources might have been initially excluded (perhaps due to specific qualifications or prior relationships), the final award was made through a broad, competitive process. This method aims to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. By fostering a competitive environment, it drives down costs and ensures that the government obtains the best possible technical solution at a fair market price, ultimately benefiting the taxpayer through efficient use of funds.

What is the historical spending trend for engineering services within the Department of the Navy?

Historical spending trends for engineering services within the Department of the Navy are substantial, reflecting the complexity and scale of naval operations and systems. The Navy consistently procures a wide array of engineering support, encompassing design, development, testing, maintenance, and modernization of ships, aircraft, weapons systems, and shore infrastructure. Annual spending in this category often runs into the billions of dollars, distributed across numerous contracts of varying sizes and durations. This specific $13.8M contract represents a small fraction of the Navy's overall investment in engineering expertise, highlighting the continuous demand for such services to maintain its technological edge and operational readiness.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042116R0089

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 22111 THREE NOTCH RD, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,995,894

Exercised Options: $13,995,894

Current Obligation: $13,821,797

Actual Outlays: $865,581

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $595,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042118D0016

IDV Type: IDC

Timeline