DoD's $12M Flight Control Engineering Support Contract Awarded to Solution Engineering Associates, Inc

Contract Overview

Contract Amount: $12,081,507 ($12.1M)

Contractor: Solution Engineering Associates, Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-22

End Date: 2026-03-21

Contract Duration: 1,460 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FLIGHT CONTROL/FLIGHT DYNAMICS ENGINEERING SUPPORT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to SOLUTION ENGINEERING ASSOCIATES, INC for work described as: FLIGHT CONTROL/FLIGHT DYNAMICS ENGINEERING SUPPORT Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Performance period spans 4 years, suggesting a long-term need for these specialized engineering services. 4. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 6. The award was made by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement nature requires robust oversight to ensure efficiency. Comparing it to similar flight control engineering support contracts would require access to proprietary pricing data and specific scope of work details. However, the duration and specialized nature suggest a significant investment in critical capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to prior performance, security, or specialized capabilities. The exact number of bidders and the rationale for exclusions are not detailed, making a full assessment of competition dynamics difficult. This procurement method can sometimes lead to less competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. However, if the exclusions were justified by unique qualifications, the price paid might reflect the specialized expertise required.

Public Impact

The Department of the Navy benefits from specialized engineering support for flight control and flight dynamics systems. This contract ensures the continued operational readiness and development of naval aviation platforms. The services delivered are critical for maintaining and improving the safety and performance of aircraft. The geographic impact is likely concentrated around naval aviation facilities and research centers, primarily in Maryland. The contract supports a workforce of skilled engineers and technical specialists in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage cost overruns and ensure value for money.
The 'exclusion of sources' clause warrants scrutiny to ensure fair competition and prevent undue restrictions.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The long duration of the contract could lead to complacency if not actively managed and reviewed.

Positive Signals

Awarded through a competitive process, indicating some level of market vetting.
The specialized nature of flight control engineering suggests a high degree of technical expertise is being procured.
The fixed fee component provides a defined profit margin, offering some predictability.
The long-term nature of the contract suggests a stable, ongoing requirement for critical defense capabilities.

Sector Analysis

The aerospace and defense engineering services sector is highly specialized, with significant barriers to entry due to technical expertise, security clearances, and regulatory compliance. Contracts like this are crucial for maintaining the technological edge of military aviation. The market is characterized by a few large prime contractors and numerous specialized subcontractors. Spending in this area is driven by defense modernization, sustainment, and research and development efforts, often involving complex systems integration and advanced engineering analysis.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Solution Engineering Associates, Inc., is not explicitly identified as a small business. There is no information provided regarding subcontracting plans or goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor costs against the fixed fee and ensure compliance with contract terms. Transparency is dependent on the reporting requirements stipulated in the contract and the Navy's internal review processes. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations related to fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Engineering Services
Air Force Flight Control Systems Support
Army Aviation Engineering Services
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Procurement method 'Full and Open Competition After Exclusion of Sources' may limit competition.
Lack of detailed performance metrics hinders value assessment.
Contractor's specific past performance data not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to SOLUTION ENGINEERING ASSOCIATES, INC. FLIGHT CONTROL/FLIGHT DYNAMICS ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is SOLUTION ENGINEERING ASSOCIATES, 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 $12.1 million.

What is the period of performance?

Start: 2022-03-22. End: 2026-03-21.

What is the track record of Solution Engineering Associates, Inc. with the Department of Defense?

Information regarding Solution Engineering Associates, Inc.'s specific track record with the Department of Defense is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any documented issues or commendations from previous DoD engagements. Typically, agencies evaluate past performance as a key factor in award decisions, especially for complex engineering services. Without access to these specific records, it's difficult to definitively assess their reliability and effectiveness in fulfilling similar contracts. Further research into federal procurement databases and agency performance review systems would be necessary.

How does the estimated value of this contract compare to similar flight control engineering support contracts?

Comparing the $12.08 million value of this contract to similar ones is challenging without a standardized benchmark for 'flight control/flight dynamics engineering support.' The value is influenced by factors such as contract duration (4 years), scope of work, specific aircraft platforms supported, and the level of expertise required. Contracts for highly specialized engineering services often command significant values due to the niche skill sets and R&D involved. To provide a meaningful comparison, one would need to identify contracts with comparable durations, agencies (e.g., other DoD branches), and service descriptions, then analyze their total award values and pricing structures (e.g., fixed-price vs. cost-reimbursable).

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

The primary risk with CPFF contracts is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. While the fixed fee provides a ceiling on profit, the contractor could potentially incur higher costs, leading to a higher overall contract value within the cost reimbursement parameters. This necessitates robust oversight from the government to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. Another risk is scope creep, where the project's requirements expand beyond the initial agreement, potentially increasing costs and delaying timelines if not managed effectively through contract modifications.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact price discovery?

The 'Full and Open Competition After Exclusion of Sources' method implies that while the solicitation was initially intended for broad competition, certain potential offerors were subsequently excluded. The reasons for exclusion are critical; if based on legitimate technical qualifications, security requirements, or past performance issues, it might still yield competitive pricing among the remaining qualified bidders. However, if the exclusions were arbitrary or overly restrictive, it could limit the pool of competitors, potentially leading to less downward pressure on prices and a suboptimal outcome for taxpayers compared to unrestricted full and open competition where all responsible sources are considered.

What is the significance of the 4-year duration for this engineering support contract?

The 4-year duration (1460 days) signifies a long-term, stable requirement for the specialized flight control and flight dynamics engineering services. This extended period suggests that these services are critical for ongoing operations, sustainment, or development programs within the Department of the Navy. A longer duration can allow the contractor to build deep expertise and institutional knowledge regarding the specific systems they support, potentially leading to improved efficiency and effectiveness over time. However, it also necessitates continuous government oversight to ensure performance remains high and costs are managed effectively throughout the contract's life.

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: N0042120R0134

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 23256 DILLOW COURT, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $15,593,631

Exercised Options: $15,483,631

Current Obligation: $12,081,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0003

IDV Type: IDC

Timeline