DoD awards $305.8M engineering services contract to Reliance Test & Technology, LLC

Contract Overview

Contract Amount: $305,760,029 ($305.8M)

Contractor: Reliance Test & Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-01

End Date: 2026-06-30

Contract Duration: 2,128 days

Daily Burn Rate: $143.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ATLANTIC RANGES AND TARGETS DEPARTMENT SERVICES CONTRACT AWARD

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $305.8 million to RELIANCE TEST & TECHNOLOGY, LLC for work described as: ATLANTIC RANGES AND TARGETS DEPARTMENT SERVICES CONTRACT AWARD Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract duration of over 5 years indicates a long-term need for these services. 3. Cost-plus-fixed-fee pricing structure can incentivize contractor efficiency while managing risk. 4. The award to a single entity suggests specialized capabilities were sought. 5. The significant dollar value points to a critical program or extensive service requirements. 6. The contract is for engineering services, a foundational element for many defense operations.

Value Assessment

Rating: good

The contract's value of over $305 million over approximately 5.75 years suggests a substantial investment in engineering services. Benchmarking this against similar large-scale engineering support contracts within the Department of Defense is crucial for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common, requires careful monitoring to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of six bidders suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors, driving down costs through market forces.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and readiness. This contract likely supports critical infrastructure, weapon systems, or research and development initiatives. The geographic impact is primarily within Maryland, where the contractor is located, but the services may support broader naval operations. The contract supports a workforce of engineers and technical specialists, contributing to the skilled labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely managed.
Reliance on a single contractor for a significant duration may limit future flexibility.
The specific nature of 'ranges and targets' may involve sensitive or specialized operational knowledge.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
The long-term nature of the contract suggests a stable and predictable need for these services.
The contractor, Reliance Test & Technology, LLC, is likely selected for specific expertise in this domain.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for design, development, testing, and sustainment of complex military systems. Spending in this sector is often characterized by long-term, high-value contracts awarded through competitive processes, reflecting the specialized knowledge and security requirements involved.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is Reliance Test & Technology, LLC, the impact on the small business ecosystem would depend on subcontracting opportunities. Without specific subcontracting plans detailed, it's difficult to assess the extent to which small businesses will participate in fulfilling this contract's requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases, though specific performance details and cost breakdowns may be subject to confidentiality.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Support Services
Defense Advanced Research Projects Agency (DARPA) Contracts
Test and Evaluation Services Contracts
Military Range Operations Support

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
CPFF contracts require diligent oversight to manage costs effectively.
Potential for contractor performance issues over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $305.8 million to RELIANCE TEST & TECHNOLOGY, LLC. ATLANTIC RANGES AND TARGETS DEPARTMENT SERVICES CONTRACT AWARD

Who is the contractor on this award?

The obligated recipient is RELIANCE TEST & TECHNOLOGY, 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 $305.8 million.

What is the period of performance?

Start: 2020-09-01. End: 2026-06-30.

What is the historical spending pattern for engineering services by the Department of the Navy in Maryland?

Analyzing historical spending for engineering services by the Department of the Navy in Maryland requires access to detailed procurement data over several fiscal years. Typically, such spending would be concentrated around major naval commands and facilities located in the state. Trends might show an increase in spending related to modernization efforts, new platform development, or sustainment of existing assets. Comparing the current $305.8 million award to historical averages for similar contracts would reveal if this represents a significant increase or a typical investment level for large-scale engineering support in the region. Factors like budget allocations, strategic priorities, and the number of active contracts would influence these patterns.

How does the number of bidders (6) compare to similar large-scale engineering service contracts awarded by the DoD?

A competition with six bidders for a contract valued at over $305 million is generally considered healthy for a specialized field like defense engineering services. For contracts of this magnitude and technical complexity, the number of capable bidders can often be limited due to stringent requirements, security clearances, and demonstrated past performance. While more bidders might suggest broader market interest, six indicates sufficient competition to likely achieve fair market pricing. Contracts with fewer than three bidders might raise concerns about market concentration or potential barriers to entry. Therefore, six bidders suggests a reasonably competitive landscape for this specific award.

What are the key performance indicators (KPIs) typically monitored for a Cost Plus Fixed Fee (CPFF) engineering services contract?

For a CPFF engineering services contract, key performance indicators (KPIs) often revolve around technical performance, schedule adherence, and cost control. Technical KPIs might include the successful completion of design milestones, the accuracy of engineering analyses, the quality of deliverables (e.g., reports, drawings), and the effectiveness of testing conducted. Schedule KPIs would focus on meeting deadlines for project phases and overall contract completion. Cost KPIs are crucial for CPFF contracts; they involve tracking actual costs against projected budgets, ensuring that the fixed fee remains appropriate for the work performed, and managing any potential cost overruns. Regular progress reviews and reporting are essential for monitoring these KPIs.

What is Reliance Test & Technology, LLC's track record with similar DoD contracts?

Assessing Reliance Test & Technology, LLC's track record requires a deep dive into their contract history with the Department of Defense. This would involve examining past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or modifications. Information on their experience with engineering services, particularly in areas related to 'ranges and targets,' would be critical. A positive history of delivering complex engineering solutions on time and within budget, coupled with favorable performance reviews, would indicate a lower risk for this new $305.8 million award. Conversely, any significant past issues could signal potential risks.

What are the potential risks associated with the long duration (over 5 years) of this contract?

The long duration of this contract (over 5 years) presents several potential risks. Firstly, technological advancements could render the initial engineering solutions obsolete before the contract concludes, requiring costly modifications or re-procurement. Secondly, changes in defense strategy or budget priorities could lead to contract scope reductions or termination. Thirdly, maintaining consistent performance and oversight over such an extended period can be challenging for the government. Finally, the contractor might face challenges in retaining key personnel or adapting to evolving regulatory requirements over the contract's lifespan. These risks necessitate robust contract management and flexibility clauses.

How does the engineering services sector contribute to the overall defense budget?

The engineering services sector plays a vital, albeit often indirect, role in the overall defense budget. While not always a distinct budget line item, the funding for engineering services is embedded within major procurement programs, research and development initiatives, and sustainment efforts. These services are essential for designing, developing, testing, and maintaining the complex platforms and systems that form the backbone of military capability. Consequently, the demand for engineering expertise is consistently high, representing a significant portion of the budget allocated to acquiring and maintaining defense readiness. The $305.8 million awarded here is indicative of the substantial investment required in specialized engineering talent.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042118R0038

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4050 S FERDON BLVD, CRESTVIEW, FL, 32536

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

Financial Breakdown

Contract Ceiling: $925,518,185

Exercised Options: $421,971,076

Current Obligation: $305,760,029

Actual Outlays: $18,940,071

Subaward Activity

Number of Subawards: 204

Total Subaward Amount: $56,628,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline