Navy awards $11.8M engineering services contract to J.F. Taylor, Inc. for 5-year period

Contract Overview

Contract Amount: $11,759,303 ($11.8M)

Contractor: J.F. Taylor, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2026-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR - PROC

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to J.F. TAYLOR, INC. for work described as: LABOR - PROC Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of five years indicates a long-term need for these services. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 5. Geographic concentration in Maryland may point to specific regional defense needs. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $11.8 million over five years averages approximately $2.36 million annually. Benchmarking against similar engineering services contracts within the Department of Defense is crucial for a precise value assessment. However, the fixed-fee component suggests that the contractor's profit margin is predetermined, which can offer some cost predictability. The specific nature of the engineering services will heavily influence the overall value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, driving down costs and improving service delivery.

Public Impact

The Department of the Navy benefits from specialized engineering support for its operations. Services delivered likely include design, analysis, and technical consultation critical for naval systems. The geographic impact is concentrated in Maryland, potentially supporting regional defense infrastructure or personnel. Workforce implications may involve skilled engineers and technical staff employed by J.F. Taylor, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not rigorously managed.
Limited visibility into the specific engineering tasks and their criticality without further detail.
Concentration of contract value with a single large business may limit broader economic impact.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration (5 years) indicates a stable and ongoing requirement.
J.F. Taylor, Inc. is a known entity in the defense contracting space.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including defense, infrastructure, and research. The market for specialized engineering services is competitive, with numerous firms offering expertise. The total federal spending on engineering services is substantial, reflecting the government's reliance on external expertise for complex projects.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, J.F. Taylor, Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract, which could still provide benefits to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Cost-plus contract type requires diligent oversight to manage potential cost escalations.
Lack of specific details on engineering tasks necessitates review of the Statement of Work.
Absence of small business set-aside warrants investigation into subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to J.F. TAYLOR, INC.. LABOR - PROC

Who is the contractor on this award?

The obligated recipient is J.F. TAYLOR, 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 $11.8 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-06-30.

What is the historical spending pattern for J.F. Taylor, Inc. with the Department of the Navy?

Analyzing historical spending data for J.F. Taylor, Inc. with the Department of the Navy is essential to understand the company's track record and the government's reliance on its services. A review of past contracts would reveal the types of services rendered, their value, and the duration of those engagements. Consistent awards suggest a positive past performance and a strong relationship. Conversely, a significant increase or decrease in spending could indicate evolving needs or shifts in contractor performance. Without specific historical data, it's difficult to definitively assess the contractor's established relationship and performance trends with the Navy.

How does the annual value of this contract compare to similar engineering services contracts awarded by the Navy?

The annual value of this contract, approximately $2.36 million ($11.8M / 5 years), needs to be benchmarked against comparable engineering services contracts awarded by the Department of the Navy. If similar contracts for comparable services are valued significantly higher or lower, it could indicate either an exceptionally good or fair deal, or potential issues with pricing. Factors such as contract scope, complexity, duration, and the specific engineering disciplines involved must be considered for an accurate comparison. A higher annual value than benchmarks might suggest premium pricing or more extensive scope, while a lower value could indicate cost savings or a more limited service offering.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of engineering service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for engineering services lies in potential cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a predetermined profit margin. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the government bears the brunt of these increased expenses. The contractor has less incentive to control costs once the fee is fixed. Rigorous oversight, detailed cost tracking, and clear scope definition are crucial to mitigate these risks and ensure the government receives value for its investment.

What specific engineering capabilities does J.F. Taylor, Inc. bring to the Department of the Navy under this contract?

The contract specifies 'Engineering Services' (NAICS 541330), which is a broad category. To understand the specific capabilities J.F. Taylor, Inc. brings, one would need to examine the Statement of Work (SOW) or Performance Work Statement (PWS) associated with this delivery order. These documents detail the precise tasks, deliverables, and technical requirements. Typical engineering services for the Navy could include naval architecture, marine engineering, systems engineering, electrical engineering, mechanical engineering, software engineering, or specialized design and analysis for ships, submarines, or other naval platforms. The contract's value and duration suggest a significant scope of work.

What is the potential impact of this contract on small business participation in the defense engineering sector?

Given that this contract was awarded under full and open competition and does not appear to have a small business set-aside designation (ss: false, sb: false), the direct impact on small business prime contracting is likely minimal. However, the potential for small business subcontracting is a key consideration. J.F. Taylor, Inc., as the prime contractor, may be required or incentivized to subcontract portions of this work to small businesses, particularly those with specialized expertise. The extent of this subcontracting will determine the indirect impact on the small business ecosystem. Without specific subcontracting plans or goals, it's difficult to quantify this impact.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042120R0117

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21610 SOUTH ESSEX DR, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $13,341,800

Exercised Options: $13,341,800

Current Obligation: $11,759,303

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,093,761

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0016

IDV Type: IDC

Timeline