DCS Corporation awarded $13.3M engineering services task order by Department of the Navy

Contract Overview

Contract Amount: $13,273,016 ($13.3M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2020-12-31

End Date: 2026-02-28

Contract Duration: 1,885 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW TASK ORDER AWARD

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to DCS CORPORATION for work described as: NEW TASK ORDER AWARD Key points: 1. Task order awarded under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting potential for future work. 2. Engineering services are critical for naval operations, indicating a strategic investment. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The duration of the task order (over 1800 days) signifies a long-term need for these services. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The award was made by the Department of the Navy, a major defense spender.

Value Assessment

Rating: fair

The award of $13.3 million for engineering services appears to be a standard task order under a larger contract. Without access to the base IDIQ contract details or comparable task orders for similar engineering services, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates, though the fixed fee component provides some predictability for contractor profit. Benchmarking against market rates for specialized engineering services would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment that can lead to better pricing and service offerings. The Department of the Navy's approach suggests a commitment to leveraging the broadest possible market for its needs.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to market pressures. This process aims to ensure that the government receives the best value by considering all qualified sources.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operational and developmental requirements. Services delivered likely include design, analysis, testing, and technical support for naval systems and platforms. The geographic impact is primarily centered around naval facilities and operations, potentially including shipyards and research centers. The contract supports a workforce of engineers and technical specialists, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries a risk of cost escalation if not rigorously managed.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess competitive intensity.
The long duration of the task order (over 4 years) requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Engineering services are essential for maintaining and advancing naval capabilities.
The task order is part of a larger IDIQ contract, indicating a structured approach to long-term needs.

Sector Analysis

Engineering services are a vital component of the defense sector, encompassing a wide range of activities from research and development to sustainment and modernization of military platforms. The market for these services is substantial, driven by continuous technological advancements and the need for specialized expertise. This contract fits within the broader category of professional, scientific, and technical services, where government agencies often rely on external contractors to supplement in-house capabilities. Comparable spending benchmarks would typically involve analyzing other engineering services contracts awarded by the Department of Defense or other federal agencies for similar scope and complexity.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses within the provided data. This means that opportunities for small businesses to directly participate in this specific task order may be limited unless they are prime contractors on the base IDIQ contract or are brought in as subcontractors by DCS Corporation. The absence of set-aside provisions suggests the competition was focused on obtaining the best overall value from the broadest range of qualified contractors, rather than prioritizing small business participation for this particular award.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and program management teams within the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee remains appropriate. Accountability measures would include performance reviews, milestone tracking, and adherence to contract terms. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services Contracts
Naval Sea Systems Command (NAVSEA) Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Limited information on the number of bidders in the full and open competition.
No specific small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to DCS CORPORATION. NEW TASK ORDER AWARD

Who is the contractor on this award?

The obligated recipient is DCS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2020-12-31. End: 2026-02-28.

What is the historical performance record of DCS Corporation with the Department of the Navy?

DCS Corporation has a significant history of contracting with the Department of the Navy and other Department of Defense agencies. Analyzing their past performance on similar engineering services contracts would provide insight into their reliability, quality of work, and ability to manage costs effectively. Reviewing past performance evaluations, contract modifications, and any disputes or terminations can help assess their track record. For instance, examining previous task orders under the same or similar IDIQ vehicles awarded to DCS Corporation would reveal trends in their project execution, adherence to schedules, and overall client satisfaction. A detailed review would involve accessing contract databases and performance reporting systems to identify any patterns of success or areas of concern.

How does the $13.3 million value compare to similar engineering services task orders awarded by the Navy?

Benchmarking the $13.3 million value requires comparing it against other engineering services task orders of similar scope, complexity, and duration awarded by the Department of the Navy or other branches of the DoD. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, engineering services can range widely in cost depending on specialization (e.g., naval architecture, systems engineering, cybersecurity engineering) and the specific deliverables required. A task order of this magnitude suggests a substantial project, likely involving complex technical challenges or a significant duration. Factors such as the number of bidders, the contract type (CPFF in this case), and the specific technical requirements heavily influence pricing. A thorough analysis would involve identifying similar contracts and comparing their total value, duration, and the specific services rendered.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs incurred, and receives a predetermined fixed fee representing profit, there is less incentive for the contractor to control costs compared to fixed-price contracts. If costs exceed initial estimates significantly, the government may end up paying more than anticipated. Effective management and oversight are crucial to mitigate this risk. This includes detailed cost tracking, regular audits of expenditures, and clear definition of allowable costs. The fixed fee, however, provides a degree of predictability regarding the contractor's profit margin, which can be beneficial if cost control measures are robustly implemented and monitored by the government.

What is the expected impact of these engineering services on naval operational effectiveness?

The engineering services procured through this task order are expected to directly enhance the operational effectiveness of naval assets and systems. Depending on the specific nature of the services, this could involve improving the performance, reliability, and maintainability of ships, aircraft, or weapon systems. Services might include design modifications for better efficiency, development of new capabilities, troubleshooting complex technical issues, or providing essential technical support during deployment or maintenance cycles. Ultimately, these services contribute to ensuring that naval forces have the advanced technological capabilities and reliable equipment necessary to execute their missions successfully in various operational environments.

How has federal spending on engineering services evolved over the past five years?

Federal spending on engineering services has generally seen a consistent demand, particularly within the Department of Defense and other agencies involved in infrastructure, research, and development. Over the past five years, spending in this category has likely remained robust, driven by modernization efforts, infrastructure upgrades, and ongoing R&D projects. Factors such as geopolitical conditions, technological advancements, and national priorities influence the allocation of funds. While specific aggregate data requires detailed analysis of federal procurement databases (like FPDS-NG or SAM.gov), trends often show increased investment in specialized areas like cybersecurity engineering, AI integration, and advanced materials science, alongside traditional areas like civil and mechanical engineering. The overall trend is likely one of sustained or slightly increasing expenditure, reflecting the critical role of engineering expertise in government operations.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0106

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PK DR STE 500, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $14,846,098

Exercised Options: $14,470,098

Current Obligation: $13,273,016

Actual Outlays: $2,670,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0011

IDV Type: IDC

Timeline