DCS Corporation awarded $19.4M contract for air vehicle test and evaluation services by the Department of the Navy

Contract Overview

Contract Amount: $19,357,818 ($19.4M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2026-05-31

Contract Duration: 1,157 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE AIR VEHICLE TEST AND EVALUATION DIVISION (AVT&E) IS RESPONSIBLE FOR TEST OF AIR VEHICLES (MANNED OR UNMANNED), AS WELL AS THOSE SYSTEMS RELATED TO AND ASSOCIATED WITH THE AIR VEHICLE, FOR EXAMPLE, LANDING SYSTEMS, WEAPON SYSTEMS.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to DCS CORPORATION for work described as: THE AIR VEHICLE TEST AND EVALUATION DIVISION (AVT&E) IS RESPONSIBLE FOR TEST OF AIR VEHICLES (MANNED OR UNMANNED), AS WELL AS THOSE SYSTEMS RELATED TO AND ASSOCIATED WITH THE AIR VEHICLE, FOR EXAMPLE, LANDING SYSTEMS, WEAPON SYSTEMS. Key points: 1. Contract focuses on critical testing of manned and unmanned air vehicles and associated systems. 2. The contract duration spans over two years, indicating a sustained need for these specialized services. 3. Competition was full and open, suggesting a robust market for these engineering services. 4. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost oversight. 5. This award falls under engineering services, a sector vital for defense readiness and technological advancement. 6. The primary customer is the Department of the Navy, highlighting its investment in airworthiness and system validation.

Value Assessment

Rating: good

The contract value of $19.4 million over approximately two years for specialized air vehicle test and evaluation services appears reasonable given the complexity and critical nature of the work. Benchmarking against similar contracts for engineering and technical support services in the defense sector suggests that this pricing is within expected ranges. The Cost Plus Fixed Fee structure, while common for R&D and testing, necessitates diligent oversight to ensure costs remain controlled and provide good value for the fixed fee component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and submitted proposals. The presence of four bidders (no=4) suggests a healthy level of competition for these specialized engineering services. This competitive environment is generally favorable for price discovery and ensures the government can select from a range of qualified contractors, potentially leading to better technical solutions and more competitive pricing.

Taxpayer Impact: Full and open competition benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective provider is selected, maximizing the return on investment for defense spending.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, which will receive critical test and evaluation services for air vehicles. Services delivered include testing of manned and unmanned air vehicles, landing systems, and weapon systems, ensuring operational readiness and safety. The contract is geographically focused on Maryland (st=MD), likely supporting naval aviation facilities in the region. This contract supports a highly skilled workforce of engineers and technical specialists involved in defense testing and evaluation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost overruns and ensure the fixed fee remains appropriate.
The duration of the contract (1157 days) necessitates ongoing monitoring to ensure performance remains aligned with objectives and budget.
Specialized nature of air vehicle testing may limit the pool of truly qualified contractors, requiring careful vetting.

Positive Signals

Awarded under full and open competition, indicating a competitive marketplace and potential for value.
The contract supports critical defense capabilities, aligning with national security objectives.
The contractor, DCS Corporation, likely has a track record in engineering and technical services, suggesting capability.

Sector Analysis

The engineering services sector, particularly within defense, is characterized by high technical barriers to entry and significant government investment. This contract falls under NAICS code 541330 (Engineering Services), a broad category encompassing design, development, and testing. The market size for defense engineering services is substantial, driven by the continuous need for modernization and sustainment of military platforms. This award represents a specific instance of federal spending within this vital sector, supporting the development and validation of advanced air systems.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (sb=false). Given the specialized nature of air vehicle test and evaluation, it is possible that subcontracting opportunities may exist for smaller firms providing niche expertise or support services. However, without explicit set-aside goals, the primary focus is likely on large, established defense contractors capable of meeting the extensive requirements.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Key accountability measures will involve regular performance reviews, audits of costs incurred, and adherence to the fixed fee agreement. Transparency is typically maintained through contract reporting requirements and performance metrics, with potential oversight from the Department of Defense Inspector General for significant issues.

Related Government Programs

Air Vehicle Research and Development
Aerospace Engineering Services
Defense Test and Evaluation Programs
Naval Aviation Systems Support
Weapon System Integration and Testing

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Specialized nature of services may limit competition in future procurements.
Performance monitoring is critical throughout the multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to DCS CORPORATION. THE AIR VEHICLE TEST AND EVALUATION DIVISION (AVT&E) IS RESPONSIBLE FOR TEST OF AIR VEHICLES (MANNED OR UNMANNED), AS WELL AS THOSE SYSTEMS RELATED TO AND ASSOCIATED WITH THE AIR VEHICLE, FOR EXAMPLE, LANDING SYSTEMS, WEAPON SYSTEMS.

Who is the contractor on this award?

The obligated recipient is DCS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2023-03-31. End: 2026-05-31.

What is DCS Corporation's track record with similar Department of Defense contracts?

DCS Corporation has a significant history of performing engineering and technical services for the Department of Defense across various branches, including the Navy and Air Force. Their contract portfolio often includes support for research, development, testing, and evaluation of complex systems, including aviation platforms. While specific details on past performance for air vehicle testing would require deeper analysis of contract databases, their general profile suggests they are an established provider in this domain. Reviewing past performance evaluations and any past performance issues would provide a more complete picture of their reliability and capability for this specific contract.

How does the $19.4 million value compare to similar air vehicle testing contracts?

The $19.4 million contract value for approximately two years of air vehicle test and evaluation services appears to be within a reasonable range for specialized defense engineering support. Contracts of this nature, involving complex testing and evaluation of manned and unmanned systems, often range from several million to tens of millions of dollars depending on scope, duration, and specific systems involved. Without direct comparison to identical service scopes, it's difficult to provide a precise benchmark. However, considering the duration and the critical nature of ensuring airworthiness and system functionality, this award suggests a moderate-sized, focused effort rather than a large-scale program.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns by the contractor. While the contractor is reimbursed for allowable costs, the fixed fee is predetermined. If costs escalate significantly beyond projections due to inefficiencies, scope creep not properly managed, or unforeseen technical challenges, the contractor may face reduced profit margins. Conversely, the government bears the risk of paying for costs that might have been avoided with a different contract type. Effective oversight, clear definition of work, and robust cost tracking are crucial to mitigate these risks and ensure value for money.

How effective is full and open competition in ensuring value for taxpayer money in specialized engineering services?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, especially in specialized engineering services. It allows a broad range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. When multiple bidders submit proposals, the government can compare technical approaches and costs, selecting the best overall value. For specialized services like air vehicle testing, this means the government is more likely to secure high-quality services at a fair market price, as contractors are incentivized to be efficient and competitive to win the award.

What is the historical spending trend for air vehicle test and evaluation services within the Department of the Navy?

Historical spending trends for air vehicle test and evaluation services within the Department of the Navy are generally substantial and consistent, reflecting the ongoing need to maintain and modernize naval aviation capabilities. While specific figures fluctuate annually based on program priorities, technological advancements, and budget allocations, the Navy consistently invests in ensuring the safety, reliability, and performance of its diverse fleet of manned and unmanned aircraft. This includes significant outlays for research, development, prototyping, and rigorous testing and evaluation phases. The $19.4 million awarded to DCS Corporation represents a component of this broader, sustained investment in naval air power.

What are the implications of the contract duration (1157 days) on performance and cost?

A contract duration of 1157 days (approximately 3 years and 2 months) for air vehicle test and evaluation services implies a long-term need for these capabilities and allows for a more comprehensive and phased approach to testing complex systems. For performance, this extended period enables thorough evaluation, iterative improvements, and adaptation to evolving requirements. From a cost perspective, a longer duration can sometimes lead to better cost efficiencies through economies of scale and reduced transition costs compared to multiple shorter contracts. However, it also increases the government's exposure to potential cost increases over time and necessitates sustained oversight to ensure the contractor remains efficient and delivers value throughout the contract period.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042122R3002

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PK DR STE 500, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $64,880,695

Exercised Options: $34,745,067

Current Obligation: $19,357,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7484

IDV Type: IDC

Timeline