DoD Awards $12.6M Engineering Services Contract to A 2 Joint Venture, LLC for FORATI Branch

Contract Overview

Contract Amount: $12,646,990 ($12.6M)

Contractor: A 2 Joint Venture, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-31

End Date: 2026-10-30

Contract Duration: 1,460 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ESTABLISH TO FOR ATI BRANCH

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to A 2 JOINT VENTURE, LLC for work described as: ESTABLISH TO FOR ATI BRANCH Key points: 1. Contract awarded for Engineering Services (NAICS 541330) to A 2 Joint Venture, LLC. 2. The contract has a Cost Plus Fixed Fee (CPFF) pricing structure. 3. Competition was Full and Open after exclusion of sources, indicating a competitive process. 4. The contract duration is 1460 days, ending in October 2026. 5. The award is a Delivery Order under a larger contract.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar engineering services is difficult without more detailed scope information.

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'. This suggests an initial exclusion period followed by a broader competition, which can impact price discovery depending on the reasons for exclusion.

Taxpayer Impact: The total value of $12.6M represents taxpayer funds allocated for essential engineering services within the Department of Defense.

Public Impact

Ensures continued support for critical Department of the Navy operations through specialized engineering services. Supports a joint venture, potentially fostering growth in specific business sectors. The CPFF structure requires robust oversight to ensure cost efficiency and prevent unnecessary spending. The duration of the contract suggests a long-term need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF pricing can be less cost-effective than fixed-price contracts.
Potential for scope creep in CPFF contracts.
Limited information on the specific 'exclusion of sources' rationale.

Positive Signals

Full and open competition ensures a broad range of potential offerors.
Contract supports critical defense infrastructure.
Award to a joint venture may promote small business participation.

Sector Analysis

Engineering Services (NAICS 541330) is a broad sector encompassing design, consulting, and project management for various infrastructure and systems. Spending in this sector is often driven by government defense and infrastructure projects, with benchmarks varying significantly by project complexity and duration.

Small Business Impact

The award is to a joint venture, which may include small businesses. However, without specific details on the joint venture's composition, it's difficult to assess the direct impact on small business participation. Further investigation into the joint venture partners would be needed.

Oversight & Accountability

The CPFF contract type necessitates strong government oversight to monitor costs, ensure performance, and prevent contractor inefficiencies. The 'Delivery Order' nature suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which may have its own oversight mechanisms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type.
Potential for limited competition due to 'exclusion of sources'.
Lack of detailed scope of work.
Need for robust oversight of CPFF expenditures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to A 2 JOINT VENTURE, LLC. ESTABLISH TO FOR ATI BRANCH

Who is the contractor on this award?

The obligated recipient is A 2 JOINT VENTURE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2022-10-31. End: 2026-10-30.

What specific engineering services are being provided under this contract, and how do they align with the FORATI Branch's mission objectives?

The contract details are limited, but 'FORATI Branch' likely refers to a specific operational or research unit within the Department of the Navy. The engineering services could range from facility design and maintenance to specialized system development or integration. Understanding the precise nature of these services is crucial for assessing their value and ensuring they directly support the branch's strategic goals and operational readiness.

What were the primary reasons for excluding certain sources initially, and how did this impact the final pricing and competition?

The rationale behind excluding specific sources prior to the 'full and open' competition is not provided. This exclusion could be due to security requirements, specialized capabilities, or previous performance issues. Understanding this could reveal potential risks or benefits, such as ensuring a highly qualified contractor was selected or potentially limiting the competitive pool and thus the downward pressure on price.

How will the Cost Plus Fixed Fee (CPFF) structure be managed to ensure cost efficiency and prevent potential overruns for this $12.6M contract?

Effective management of a CPFF contract requires rigorous oversight of contractor expenditures, regular audits, and clear performance metrics. The government contracting officer must actively monitor costs against the fixed fee and the estimated cost ceiling. Establishing detailed reporting requirements and conducting frequent reviews of the contractor's progress and spending are essential to ensure taxpayer funds are used efficiently and the project stays within budget.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042119R0069

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21801 N SHANGRI LA DR STE F, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,582,940

Exercised Options: $63,263,644

Current Obligation: $12,646,990

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042121D0009

IDV Type: IDC

Timeline