DoD Awards $12.4M Engineering Services Contract to Precise Systems, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $12,390,348 ($12.4M)
Contractor: Precise Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-11-20
End Date: 2026-11-20
Contract Duration: 1,826 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BASE PERIOD LABOR, RDT&E
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to PRECISE SYSTEMS, INC. for work described as: BASE PERIOD LABOR, RDT&E Key points: 1. Contract awarded for Base Period Labor, RDT&E services. 2. Precise Systems, Inc. is the prime contractor. 3. Competition method: Full and Open Competition after Exclusion of Sources. 4. Contract duration is 1826 days, ending November 20, 2026. 5. The contract type is Cost Plus Fixed Fee.
Value Assessment
Rating: good
The contract value of $12.4M for a 5-year period appears reasonable for engineering services. Benchmarking against similar RDT&E contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary engineering services.
Public Impact
Supports Department of the Navy's research, development, testing, and evaluation efforts. Provides critical engineering services to the Department of Defense. Potential for follow-on work based on performance and needs.
Waste & Efficiency Indicators
Waste Risk Score: 67 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Exclusion of sources in competition may limit overall competitive landscape.
Positive Signals
- Full and open competition promotes a fair marketplace.
- Long-term contract provides stability for critical services.
- Awarded to a single entity, potentially streamlining management.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense RDT&E. Spending in this area is significant across the federal government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is managed by the Department of the Navy, implying established oversight mechanisms. The number of modifications (3) suggests some level of ongoing management and potential adjustments.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost growth due to CPFF structure.
- Limited visibility into specific RDT&E project scope.
- Exclusion of sources may reduce competitive pressure.
- Dependence on a single contractor for critical services.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to PRECISE SYSTEMS, INC.. BASE PERIOD LABOR, RDT&E
Who is the contractor on this award?
The obligated recipient is PRECISE SYSTEMS, 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 $12.4 million.
What is the period of performance?
Start: 2021-11-20. End: 2026-11-20.
What specific RDT&E activities will Precise Systems, Inc. be performing under this contract?
The contract specifies 'Base Period Labor, RDT&E,' indicating that the work involves personnel costs for research, development, testing, and evaluation activities. Specific details regarding the nature of these activities, such as the systems or technologies involved, would typically be found in the contract's statement of work, which is not provided in this data.
How does the Cost Plus Fixed Fee structure impact potential cost overruns and contractor incentives?
A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility in evolving RDT&E projects, it can incentivize cost increases as the contractor is guaranteed cost recovery. The fixed fee, however, provides a defined profit margin, potentially mitigating excessive profit-seeking.
What is the significance of 'after exclusion of sources' in the competition method?
This phrase suggests that while the contract was competed broadly ('full and open'), certain potential sources were intentionally excluded from the bidding process. The reasons for exclusion are not specified but could be due to security, capability, or prior performance issues. This exclusion might limit the pool of competitors compared to a purely unrestricted full and open competition.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0042118R0039
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 22290 EXPLORATION DR, STE 400, LEXINGTON PARK, MD, 20653
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $20,118,292
Exercised Options: $15,019,513
Current Obligation: $12,390,348
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,598,293
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042118D0044
IDV Type: IDC
Timeline
Start Date: 2021-11-20
Current End Date: 2026-11-20
Potential End Date: 2026-11-20 00:00:00
Last Modified: 2025-12-12
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