DoD's $11.2M Engineering Services Contract Awarded to Synectic Solutions, Inc. for Naval Support

Contract Overview

Contract Amount: $11,196,864 ($11.2M)

Contractor: Synectic Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-04

End Date: 2026-02-03

Contract Duration: 730 days

Daily Burn Rate: $15.3K/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: PMA 259

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to SYNECTIC SOLUTIONS, INC. for work described as: PMA 259 Key points: 1. Contract value represents a significant investment in specialized engineering capabilities for the Department of the Navy. 2. The 'Full and Open Competition After Exclusion of Sources' contract type suggests a competitive process with specific pre-qualification criteria. 3. Potential risk indicators include the Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to cost overruns if not managed tightly. 4. The contract duration of 730 days allows for sustained support but requires ongoing performance monitoring. 5. Engineering services are critical for maintaining and modernizing naval assets, positioning this contract within a vital sector. 6. The award amount of approximately $11.2 million warrants a detailed analysis of value for money and pricing benchmarks.

Value Assessment

Rating: fair

Benchmarking the $11.2 million contract value for engineering services is challenging without specific details on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. A thorough value assessment would require comparing the proposed labor rates, overheads, and profit margins against industry standards and historical data for similar naval engineering support contracts. Without more granular data, it's difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific technical requirements, security clearances, or prior performance evaluations. The number of bidders is not specified, but the exclusion of sources suggests a more tailored competition than a completely unrestricted process. This approach can sometimes limit price discovery compared to a truly open competition.

Taxpayer Impact: While the exclusion of sources might streamline the selection process for specialized needs, it could potentially limit the number of competitive bids, possibly impacting the final price achieved for taxpayers.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operational and developmental needs. Services delivered are expected to contribute to the maintenance, upgrade, or development of naval systems and infrastructure. The geographic impact is likely concentrated around naval bases or facilities where the engineering support is required. Workforce implications may include the direct employment of engineers and technical staff by Synectic Solutions, Inc. and potential indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing structure can incentivize cost overruns if not rigorously managed.
The 'Exclusion of Sources' in the competition may have limited the pool of potential bidders, potentially affecting price competitiveness.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's historical performance.
The contract duration of two years requires sustained oversight to ensure ongoing value and adherence to scope.

Positive Signals

Award to a single contractor (Synectic Solutions, Inc.) suggests they met specific technical and capability requirements.
The contract is for engineering services, a critical function for the Department of the Navy's mission.
The contract is awarded by the Department of Defense, indicating a high level of scrutiny and adherence to federal procurement standards.
The contract has a defined start and end date, providing clear parameters for the engagement.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential expertise for the design, development, maintenance, and modernization of complex military systems. This contract falls within the broader professional, scientific, and technical services industry, which is characterized by specialized knowledge and skilled labor. The Department of Defense is a major consumer of these services, often requiring highly specific technical capabilities. Comparable spending benchmarks would typically involve analyzing other contracts for similar engineering support within the naval domain or across other military branches.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary focus appears to be on securing the necessary engineering expertise, with small business considerations not being a primary driver in the contract's structure or award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones or deliverables. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Support Services
Professional, Scientific, and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Defense Logistics Agency (DLA) Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent cost monitoring.
Potential for limited competition due to 'Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to SYNECTIC SOLUTIONS, INC.. PMA 259

Who is the contractor on this award?

The obligated recipient is SYNECTIC SOLUTIONS, 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 $11.2 million.

What is the period of performance?

Start: 2024-02-04. End: 2026-02-03.

What is the specific scope of engineering services required under this contract?

The provided data does not detail the specific scope of engineering services. However, given the awarding agency (Department of the Navy) and the NAICS code (541330 - Engineering Services), it is likely to encompass a range of activities such as systems engineering, design, analysis, testing, and technical support for naval platforms, systems, or infrastructure. The 'Exclusion of Sources' suggests the services are highly specialized, potentially related to specific naval technologies, security requirements, or legacy systems requiring unique expertise. A comprehensive understanding would necessitate reviewing the contract's Statement of Work (SOW).

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or complex services where the scope is not fully defined at the outset, allowing for flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts, as the contractor is reimbursed for allowable costs plus a fixed fee. For routine or well-defined engineering tasks, fixed-price contracts (like Firm-Fixed Price - FFP) are often preferred for better cost control. The CPFF structure here suggests the Navy anticipated uncertainties in the project or required a high degree of adaptability from the contractor, but it necessitates stringent cost monitoring by the government to ensure value.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' method?

This procurement method aims to balance competition with the need for specialized capabilities. The 'exclusion of sources' means that while the competition was open, it was not to all potential offerors. This could be due to specific security clearances, proprietary technology access, or unique past performance requirements. The risk lies in potentially limiting the number of bidders, which could reduce competitive pressure on pricing. It also raises questions about the justification for excluding certain sources, ensuring that the exclusion was based on legitimate technical or security needs rather than arbitrary restrictions.

What is Synectic Solutions, Inc.'s track record with the Department of Defense or similar contracts?

Detailed track record information for Synectic Solutions, Inc. is not provided in the summary data. To assess their performance, one would need to consult federal procurement databases (like FPDS or SAM.gov) for past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Their ability to win this 'Full and Open Competition After Exclusion of Sources' award suggests they possess the required specialized capabilities, but a deeper dive into their past performance is crucial for a complete risk assessment.

How does the $11.2 million award compare to historical spending on similar engineering services by the Department of the Navy?

Without specific details on the scope of work, a direct comparison of the $11.2 million award to historical spending is difficult. However, the Department of the Navy procures substantial amounts of engineering services annually, often in the hundreds of millions or billions of dollars, covering a wide array of needs from ship design to IT infrastructure. This $11.2 million contract appears to be a mid-to-large size award for a specific, likely specialized, engineering support task. Benchmarking would require identifying contracts with similar NAICS codes (541330), contract types (CPFF), and service descriptions within the naval domain.

What are the implications of the 730-day duration for performance and oversight?

A 730-day (two-year) duration indicates a sustained need for the engineering services. This provides the contractor, Synectic Solutions, Inc., with a stable period to execute the work and allows the Department of the Navy to benefit from consistent expertise. For oversight, this duration necessitates ongoing engagement from the COR and contracting team to monitor progress, manage costs (especially with CPFF), ensure adherence to the SOW, and evaluate performance throughout the contract lifecycle. It also allows for potential adjustments or modifications if project needs evolve, but requires diligent management to prevent scope creep or cost escalation over the two years.

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: N0042121R0115

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1701 PACIFIC AVE STE #260, OXNARD, CA, 93033

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: $39,706,681

Exercised Options: $14,311,378

Current Obligation: $11,196,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0086

IDV Type: IDC

Timeline