DoD's $21M engineering services contract with ShadowObjects LLC awarded via sole-source vehicle
Contract Overview
Contract Amount: $21,051,080 ($21.1M)
Contractor: Shadowobjects LLC
Awarding Agency: Department of Defense
Start Date: 2020-09-26
End Date: 2026-03-25
Contract Duration: 2,006 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Other
Official Description: LABOR CLIN (BASE)
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to SHADOWOBJECTS LLC for work described as: LABOR CLIN (BASE) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Fixed Price Level of Effort contract type suggests defined scope but requires careful monitoring of effort. 3. Long performance period (2020-2026) indicates a sustained need for engineering services. 4. The contract is for engineering services, a critical component for defense operations. 5. Awarded by the Department of the Navy, a major component of the DoD. 6. The contract value of over $21 million over its life cycle warrants close scrutiny.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The fixed price level of effort structure implies that the government is paying for a defined amount of work, but the absence of competition raises concerns about whether the price reflects fair market value. Without comparable contracts or market data, it's difficult to definitively assess if the $21 million represents good value for the engineering services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition means that multiple bidders were not considered, which can limit the government's ability to secure the most favorable pricing and terms.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that can arise from a competitive bidding process. This can lead to higher overall spending for the government.
Public Impact
The Department of Defense, specifically the Department of the Navy, benefits from specialized engineering services. Services delivered are critical for supporting naval operations and defense infrastructure. The contract's primary geographic impact is likely within Maryland, where the contractor is located. The contract supports specialized engineering roles, potentially impacting the workforce in that sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award raises concerns about potential overpricing and lack of competitive pressure.
- Limited transparency into the justification for sole-source award.
- Long contract duration could mask inefficiencies if not closely managed.
- Fixed Price Level of Effort can be prone to scope creep if not well-defined.
Positive Signals
- Contract addresses a critical need for engineering services within the Department of Defense.
- Fixed Price contract type provides some cost certainty for the government.
- Contractor is based in Maryland, potentially supporting local economy.
Sector Analysis
This contract falls within the Engineering Services sector, a vital part of the broader professional services industry supporting government and private entities. The market for specialized engineering services, particularly for defense applications, is significant. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the engineering services, but defense contracts for such services often represent substantial investments.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement or was not met (sb: false, ss: false). There is no indication of small business set-asides or subcontracting plans. This suggests that the contract did not prioritize small business engagement, potentially limiting opportunities for smaller firms in this specific procurement.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance requirements outlined in the Fixed Price Level of Effort contract. Transparency is limited due to the sole-source nature of the award, and specific Inspector General jurisdiction would depend on the nature of any potential issues investigated.
Related Government Programs
- Department of Defense Engineering Services
- Department of the Navy Professional Services
- Sole-Source Defense Contracts
- Fixed Price Level of Effort Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Tags
engineering-services, department-of-defense, department-of-the-navy, sole-source, fixed-price-level-of-effort, maryland, professional-services, defense-contracting, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to SHADOWOBJECTS LLC. LABOR CLIN (BASE)
Who is the contractor on this award?
The obligated recipient is SHADOWOBJECTS 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 $21.1 million.
What is the period of performance?
Start: 2020-09-26. End: 2026-03-25.
What specific engineering services are being provided under this contract, and how do they align with the Department of the Navy's mission requirements?
The contract is categorized under NAICS code 541330, which denotes Engineering Services. While the specific details of the services are not provided in the abbreviated data, engineering services for the Department of the Navy typically encompass a wide range of activities. These can include design, development, testing, and evaluation of military systems, infrastructure, and platforms. They are crucial for maintaining and advancing naval capabilities, ensuring operational readiness, and supporting technological innovation. The alignment with the Navy's mission would depend on whether these services support shipbuilding, aircraft development, weapons systems, base infrastructure, or other critical operational needs.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the abbreviated data. Typically, sole-source awards are justified under circumstances such as the existence of only one responsible source, urgent and compelling needs, or when a specific brand-name item is required. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to ascertain the precise reasons or whether alternative competitive strategies were explored and deemed unsuitable.
How does the contract's fixed price level of effort structure impact cost control and performance monitoring for the Department of the Navy?
A Fixed Price Level of Effort (FPLE) contract obligates the contractor to use a specified level of effort (e.g., hours) within a stated period, and the government agrees to pay a fixed price for that effort. This structure provides some cost certainty for the government, as the total price is predetermined for the defined effort. However, it requires diligent monitoring by the government to ensure that the effort expended is appropriate and necessary for the scope of work. If the effort exceeds the defined level, the government is not obligated to pay more unless the contract is modified. Conversely, if the contractor completes the work with less effort, the government still pays the fixed price. Effective performance monitoring is crucial to ensure value for money and prevent potential inefficiencies or over-expenditure of labor hours.
What is the historical spending pattern for engineering services by the Department of the Navy, and how does this contract compare?
The provided data only includes information for this specific contract awarded in 2020. To analyze historical spending patterns, one would need access to broader federal procurement databases that track all contracts awarded by the Department of the Navy for engineering services (NAICS 541330) over multiple fiscal years. This would allow for an assessment of trends in contract values, types of services procured, and the prevalence of competitive versus sole-source awards. Without this broader dataset, it is impossible to determine if this $21 million contract represents a typical, increased, or decreased level of spending for the Department of the Navy in this category.
What are the potential risks associated with a sole-source award of this magnitude and duration?
A sole-source award of $21 million over six years carries several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, there's a risk of reduced innovation and quality, as the contractor may not feel compelled to go above and beyond standard service delivery without competitive incentives. Thirdly, the long duration increases the government's dependence on a single contractor, making it difficult to switch providers if performance issues arise or if market conditions change. Finally, the absence of a competitive process can create a perception of unfairness and may not represent the best use of taxpayer funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042119R0050
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 41650 COURTHOUSE DR, LEONARDTOWN, MD, 20650
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $37,585,738
Exercised Options: $37,585,738
Current Obligation: $21,051,080
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042120D0070
IDV Type: IDC
Timeline
Start Date: 2020-09-26
Current End Date: 2026-03-25
Potential End Date: 2026-03-25 00:00:00
Last Modified: 2025-11-12
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