DoD awards $11M engineering services contract to Altus Technical Solutions for 2-year delivery order

Contract Overview

Contract Amount: $11,028,162 ($11.0M)

Contractor: Altus Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-08

End Date: 2026-07-07

Contract Duration: 729 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR WCF

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to ALTUS TECHNICAL SOLUTIONS LLC for work described as: LABOR WCF Key points: 1. Contract value appears reasonable for the scope of engineering services over a two-year period. 2. Full and open competition after exclusion of sources suggests a competitive process, though specific details are needed. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not managed closely. 4. This contract falls within the broader category of engineering services, a common procurement area for the Department of Defense. 5. The delivery order structure indicates a specific tasking within a larger potential framework. 6. Maryland is the primary location for this contract, suggesting a regional focus for the services.

Value Assessment

Rating: good

The contract value of approximately $11 million over two years for engineering services is within a typical range for similar DoD procurements. Benchmarking against other engineering service contracts of comparable scope and duration would provide a more precise value-for-money assessment. The CPFF structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and the value delivered.

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 indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, possibly related to technical requirements or prior performance. The number of bidders is not specified, but this method generally aims for a competitive landscape.

Taxpayer Impact: This procurement approach aims to leverage competition to secure the best value for taxpayers, ensuring that multiple qualified vendors had the opportunity to bid, driving down costs and improving service quality.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential engineering services. The services delivered are expected to support critical defense infrastructure or operational needs. The contract's geographic impact is centered in Maryland, potentially supporting local economic activity and workforce. The contract may indirectly support a specialized engineering workforce within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The 'Exclusion of Sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's potential for success.
The duration of the contract (729 days) is substantial, increasing the risk associated with potential changes in requirements or technology.

Positive Signals

The award to Altus Technical Solutions LLC suggests they possess the necessary qualifications and capabilities for the engineering services required.
The use of 'Full and Open Competition' indicates an effort to ensure a competitive bidding process, potentially leading to better pricing and quality.
The contract is for a defined period, providing clarity on the expected service delivery timeline.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

Engineering services represent a significant sector within government contracting, supporting a wide array of federal agencies. This contract falls under the broader professional, scientific, and technical services category. The market for these services is competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks would typically be assessed against the specific type of engineering required, such as civil, mechanical, or electrical.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The impact on the small business ecosystem would be indirect, depending on whether Altus Technical Solutions LLC utilizes small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the assigned contract specialist within the Department of the Navy. Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is generally maintained through contract databases, though specific details of performance and cost breakdowns may be limited to authorized personnel. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Professional, Scientific, and Technical Services
Naval Facilities Engineering Command Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Potential for limited competition due to 'Exclusion of Sources' clause.
Lack of specific performance metrics in summary data.
Contract duration of 729 days increases exposure to requirement changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to ALTUS TECHNICAL SOLUTIONS LLC. LABOR WCF

Who is the contractor on this award?

The obligated recipient is ALTUS TECHNICAL SOLUTIONS 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 $11.0 million.

What is the period of performance?

Start: 2024-07-08. End: 2026-07-07.

What is the specific nature of the engineering services being procured under this contract, and what are the key performance indicators (KPIs) for Altus Technical Solutions LLC?

The provided data identifies the contract as 'Engineering Services' (NAICS 541330) but does not detail the specific type of engineering (e.g., structural, electrical, mechanical, environmental). Key Performance Indicators (KPIs) are crucial for assessing contractor performance and ensuring value for money. Without specific KPIs outlined in the contract documents, it is challenging to objectively measure Altus Technical Solutions LLC's success in delivering the required services. Typical KPIs for engineering services might include adherence to project timelines, quality of deliverables (e.g., designs, reports, analyses), cost control within the fixed fee, and responsiveness to government requests. A review of the contract statement of work (SOW) would be necessary to identify these specific performance metrics and understand how the government will evaluate the contractor's output and impact.

How does the $11 million contract value compare to similar engineering service contracts awarded by the Department of the Navy or other DoD components for comparable services?

Benchmarking the $11 million contract value against similar engineering service contracts is essential for assessing value for money. The Department of the Navy and other DoD components frequently procure engineering services, ranging from architectural design to complex systems engineering. To conduct a thorough comparison, one would need to identify contracts with similar scopes of work, durations (this contract is for 729 days), and complexity. Factors such as the specific engineering discipline (e.g., civil, mechanical, IT infrastructure), the level of security clearance required, and the geographic location can significantly influence pricing. Preliminary analysis suggests that $11 million over two years for specialized engineering services is within a reasonable range, but a detailed comparison with contracts for identical or highly similar services would be required to confirm if this represents a competitive price point and good value for the taxpayer.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type, and what mitigation strategies are in place?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks, primarily the potential for the contractor to incur higher costs than anticipated, which are then reimbursed by the government, while the contractor receives a predetermined fixed fee. This structure can incentivize cost escalation if not managed diligently, as the contractor's profit (the fixed fee) is not directly tied to cost savings. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, audits, and thorough review of all incurred expenses. The contracting officer and technical team must ensure that all costs claimed are reasonable, allocable, and allowable according to the contract terms. Clear definition of the scope of work and performance standards is also critical to prevent scope creep, which can drive up costs. The fixed fee itself acts as a ceiling on the contractor's profit, but the government bears the risk of cost overruns.

What does 'Full and Open Competition After Exclusion of Sources' mean in practice for this contract, and could it have limited competitive pricing?

'Full and Open Competition After Exclusion of Sources' signifies that the solicitation was made available to all responsible prospective contractors, but specific sources were excluded from consideration for documented reasons. This exclusion could be based on factors such as the need for specific proprietary technology, unique capabilities, or prior performance issues with certain entities. While the intent is still to foster competition, the exclusion of certain sources inherently limits the pool of potential bidders. The impact on competitive pricing depends heavily on the number and capability of the remaining bidders. If the excluded sources represented significant competition, their absence could potentially lead to less aggressive pricing. Conversely, if the remaining bidders are highly capable and numerous, robust competition may still be achieved. A review of the justification for exclusion and the number of proposals received would provide further insight.

What is the track record of Altus Technical Solutions LLC in performing similar engineering services contracts for the Department of Defense or other federal agencies?

Assessing the track record of Altus Technical Solutions LLC is crucial for understanding their capability and reliability in delivering the required engineering services. Information regarding past performance is typically available through government databases like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS reports would reveal ratings on previous contracts, highlighting strengths and weaknesses in areas such as technical performance, cost control, schedule adherence, and management. Examining their history with similar Cost Plus Fixed Fee (CPFF) contracts and their experience within the Department of Defense specifically would provide valuable context. A positive performance history suggests a lower risk for this new contract, while a history of issues might indicate potential challenges that require closer monitoring by the government.

How does the $11 million spending on engineering services align with historical spending patterns for this type of service within the Department of the Navy?

Understanding how this $11 million award fits into the Department of the Navy's historical spending on engineering services provides context for its significance. The Navy, like other branches of the DoD, relies heavily on engineering expertise for a wide range of projects, from ship design and maintenance to infrastructure development and advanced technology integration. Analyzing historical spending data for similar NAICS codes (e.g., 541330 - Engineering Services) over several fiscal years would reveal trends in contract values, types of services procured, and key contractors. This $11 million award, spread over two years, appears to be a moderate-sized contract within the broader context of DoD engineering expenditures. Its alignment with historical patterns would depend on the specific sub-discipline of engineering and the strategic priorities of the Navy at the time of award.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042123R0049

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7250 PARKWAY DR, HANOVER, MD, 21076

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,942,401

Exercised Options: $17,465,428

Current Obligation: $11,028,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042124D0014

IDV Type: IDC

Timeline