DoD awards $2M engineering services contract to Total Logistics SB Joint Venture for 5-year period

Contract Overview

Contract Amount: $2,013,655 ($2.0M)

Contractor: Total Logistics SB Joint Venture

Awarding Agency: Department of Defense

Start Date: 2021-11-04

End Date: 2026-11-03

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EO14042: (1) NEW AWARD THAT INCLUDES CLAUSE 252.223-7999 (DEV).

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to TOTAL LOGISTICS SB JOINT VENTURE for work described as: EO14042: (1) NEW AWARD THAT INCLUDES CLAUSE 252.223-7999 (DEV). Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a specific justification for limiting initial bidders. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not carefully managed. 3. The awardee is a small business joint venture, potentially indicating a focus on developing small business capabilities. 4. The contract duration is 1825 days (5 years), suggesting a long-term need for these engineering services. 5. The contract is for engineering services, a critical support function for defense operations. 6. The contract includes a clause related to 'DEV' (likely Development), which may signify a focus on new or evolving capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this $2.01 million contract is challenging without more detailed cost breakdowns or comparisons to similar engineering service contracts. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their effort without incentivizing excessive spending. Without specific performance metrics or a comparison to industry standards for similar engineering services, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This solicitation method suggests that while the competition was intended to be open, specific sources were initially excluded, possibly due to unique qualifications or a prior relationship. The number of bidders is not specified, but the method implies a controlled competitive environment rather than a broad solicitation.

Taxpayer Impact: This limited competition approach may not yield the most competitive pricing for taxpayers compared to a truly full and open solicitation where all qualified sources could bid without prior exclusion.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations. The contract is expected to deliver engineering expertise crucial for defense readiness. The primary geographic impact is likely within the operational areas of the Department of the Navy, potentially worldwide. The contract supports the workforce within the engineering services sector, particularly benefiting the small business joint venture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not managed stringently.
The 'after exclusion of sources' competition method raises questions about the breadth of market engagement and potential price optimization.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services delivered.
The specific nature of the 'DEV' clause requires further clarification to understand its full implications on cost and scope.

Positive Signals

Award to a small business joint venture supports small business development and participation in federal contracting.
The 5-year duration indicates a stable, long-term need, suggesting the services are critical and valued.
Engineering services are essential for maintaining and advancing defense capabilities.

Sector Analysis

The engineering services sector is a vital component of the broader defense industrial base, providing specialized expertise for design, development, testing, and sustainment of complex systems. This contract falls within the professional, scientific, and technical services industry, which is characterized by a mix of large defense contractors and specialized small businesses. Spending in this category is substantial across the federal government, particularly within the Department of Defense, to maintain technological superiority and operational readiness.

Small Business Impact

This contract is awarded to a small business joint venture, indicating a specific effort to engage and support small businesses in the federal contracting landscape. While the contract itself is not a small business set-aside, the awardee's structure suggests a focus on building small business capacity. Further analysis would be needed to determine if subcontracting opportunities are mandated or encouraged, and how this award impacts the broader small business ecosystem within the engineering services domain.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor expenditures against the estimated cost and the fixed fee. Transparency regarding cost reporting and performance metrics will be key. While specific Inspector General (IG) jurisdiction for this particular delivery order isn't detailed, the DoD IG generally has oversight over defense contracts to prevent fraud, waste, and abuse.

Related Government Programs

Defense Engineering Services
Naval Support Contracts
Professional, Scientific, and Technical Services
Small Business Joint Ventures
Cost-Plus Contracts

Risk Flags

CPFF contract type requires diligent cost monitoring.
Limited competition methodology may impact price optimization.
Need for clear performance metrics to assess value.
Potential risks associated with developmental clauses ('DEV').

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to TOTAL LOGISTICS SB JOINT VENTURE. EO14042: (1) NEW AWARD THAT INCLUDES CLAUSE 252.223-7999 (DEV).

Who is the contractor on this award?

The obligated recipient is TOTAL LOGISTICS SB JOINT VENTURE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2021-11-04. End: 2026-11-03.

What is the track record of Total Logistics SB Joint Venture in delivering engineering services to the Department of Defense?

Information regarding the specific track record of 'TOTAL LOGISTICS SB JOINT VENTURE' for delivering engineering services to the Department of Defense is not detailed in the provided data. As a joint venture, its operational history might be linked to its parent companies or individual members. A thorough assessment would require examining past performance evaluations, contract completion history, and any reported issues or successes on previous DoD contracts. Without this specific data, it's difficult to gauge their experience level and reliability for this particular engineering services requirement.

How does the awarded amount compare to similar engineering services contracts awarded by the Department of the Navy?

The awarded amount of approximately $2.01 million for a 5-year engineering services contract is relatively modest when compared to the vast scale of DoD procurement. However, without specific details on the scope of services, complexity, and duration of comparable contracts, a direct comparison is difficult. Engineering services can range from basic consulting to highly specialized design and development. To benchmark effectively, one would need to analyze contracts with similar service descriptions, contract types (CPFF), and client agencies within the DoD. The value proposition also depends heavily on the criticality and uniqueness of the engineering expertise provided.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is paid their actual costs plus a predetermined fixed fee, there is less incentive for them to control costs compared to fixed-price contracts. If the contractor's costs escalate beyond initial estimates, the government bears that burden. For the government, effective oversight is crucial to ensure costs are reasonable, allocable, and allowable. The fixed fee itself can also become a point of negotiation or dispute if the scope of work changes significantly. For engineering services, unforeseen technical challenges or scope creep can easily drive up costs.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract's efficiency and cost-effectiveness?

This designation implies that the competition was not entirely unrestricted from the outset. 'Exclusion of sources' suggests that certain potential bidders were not invited or considered, possibly due to specific requirements, pre-qualification criteria, or a belief that only a limited number of firms possessed the necessary capabilities. While it aims to ensure qualified bidders participate, it can potentially limit the pool of competition, which might lead to higher prices than if a truly broad, unrestricted competition had been held. The justification for excluding sources would need to be robust to ensure maximum value for taxpayer dollars.

What is the significance of the 'DEV' clause (252.223-7999) in this contract?

The clause 252.223-7999, often related to 'Developmental Test and Evaluation Support,' suggests that this engineering services contract may involve work related to the testing, evaluation, or development of new or existing defense systems or technologies. This implies a focus on innovation, performance assessment, and potentially the refinement of capabilities. Contracts with such clauses often require specialized expertise and may carry inherent risks associated with the developmental nature of the work, including potential for unforeseen challenges and evolving requirements.

How does the award to a small business joint venture impact the overall small business participation goals of the DoD?

Awarding contracts to small business joint ventures, like Total Logistics SB Joint Venture, directly contributes to the government's goal of increasing small business participation in federal contracting. Joint ventures allow smaller businesses to pool resources and expertise, enabling them to compete for larger or more complex contracts they might not otherwise pursue. This specific award demonstrates the DoD's commitment to fostering the growth and capability development of small businesses within the defense industrial base, potentially leading to more robust subcontracting opportunities and a stronger ecosystem of small business providers.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R0155

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9161 LIBERIA AVE #305, MANASSAS, VA, 20110

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,505,137

Exercised Options: $2,505,137

Current Obligation: $2,013,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042120D0015

IDV Type: IDC

Timeline