DoD's $24.3M contract for RFP package preparation awarded to MACTEC RK&K JV shows fair competition

Contract Overview

Contract Amount: $24,322,418 ($24.3M)

Contractor: Mactec RK&K Joint Venture

Awarding Agency: Department of Defense

Start Date: 2009-04-27

End Date: 2016-12-31

Contract Duration: 2,805 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUND ACRN AA CONTRACTOR SHALLPREPARE THE RFP PACKAGE FOR P1262

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to MACTEC RK&K JOINT VENTURE for work described as: FUND ACRN AA CONTRACTOR SHALLPREPARE THE RFP PACKAGE FOR P1262 Key points: 1. Contract awarded for RFP package preparation, a critical early-stage procurement function. 2. Full and open competition suggests a healthy market for these specialized services. 3. The contract duration of over 7 years indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overruns for the government. 5. The contract was awarded to a joint venture, potentially indicating specialized expertise. 6. North Carolina is the performance location, suggesting regional concentration of defense contracting.

Value Assessment

Rating: fair

Benchmarking the value of RFP package preparation is challenging as it's a service, not a deliverable product. The contract value of $24.3 million over approximately 7.6 years averages to about $3.2 million per year. This figure needs to be assessed against the complexity and scope of the solicitations being prepared. Without knowing the scale of the projects for which RFP packages were developed, a direct comparison to similar contracts is difficult. However, the fixed-price nature provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method is generally preferred as it allows the government to solicit offers from all responsible sources, fostering a competitive environment. The presence of multiple bidders typically leads to better pricing and service options for the government, as contractors vie for the award.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces and encouraging a wider pool of qualified contractors to participate.

Public Impact

The Department of the Navy benefits from a prepared RFP package, streamlining its procurement process. This contract supports the acquisition of future goods and services for defense needs. The performance is located in North Carolina, potentially impacting the local professional services workforce. The contractor, MACTEC RK&K JOINT VENTURE, provides specialized expertise in procurement support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 7 years) could lead to potential complacency or reduced urgency if not actively managed.
The nature of RFP package preparation is critical; errors or omissions could lead to flawed solicitations and wasted future spending.
Reliance on a single joint venture for an extended period might limit future competition if market dynamics shift.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The contract's existence indicates a structured approach to preparing complex solicitations.
The joint venture structure may bring together diverse and specialized expertise.

Sector Analysis

This contract falls within the Architectural and Engineering Services sector (NAICS 541310), specifically focusing on the preparation of Request for Proposal (RFP) packages. This is a crucial pre-acquisition service that supports the broader defense industry's ability to procure necessary goods and services. The market for such specialized support services is competitive, with numerous firms offering expertise in navigating complex government procurement regulations. The total federal spending in this sector can be substantial, supporting various defense and civilian agency needs.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity or a joint venture composed of larger firms. The absence of small business set-asides or subcontracting goals means that the direct economic impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, adherence to the firm fixed-price terms, and quality of the RFP packages prepared would be key areas of oversight. Transparency is generally maintained through contract award databases, but the detailed internal processes of RFP package development are proprietary to the contractor.

Related Government Programs

Department of Defense Procurement Support Services
Architectural and Engineering Services
Federal Acquisition Regulation (FAR) Compliance Support
Request for Proposal (RFP) Development Services

Risk Flags

Potential for outdated methodologies over long contract duration.
Risk of inadequate RFP quality impacting downstream procurements.
Dependence on a single joint venture may limit future market options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to MACTEC RK&K JOINT VENTURE. FUND ACRN AA CONTRACTOR SHALLPREPARE THE RFP PACKAGE FOR P1262

Who is the contractor on this award?

The obligated recipient is MACTEC RK&K 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 $24.3 million.

What is the period of performance?

Start: 2009-04-27. End: 2016-12-31.

What is the track record of MACTEC RK&K JOINT VENTURE with the Department of Defense?

Information on the specific track record of the 'MACTEC RK&K JOINT VENTURE' entity requires detailed database searches, as joint ventures can be project-specific or long-term. Generally, MACTEC (now part of WSP) and RK&K have separate, extensive histories of performing work for various government agencies, including the Department of Defense. Their combined experience likely encompasses a wide range of engineering, environmental, and construction management services. Assessing their performance on this specific contract would involve reviewing performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) if publicly available, looking for any past performance issues, and examining the successful completion of deliverables related to RFP package preparation.

How does the average annual value of this contract compare to similar RFP preparation contracts?

The average annual value of this contract is approximately $3.2 million ($24.3M / 7.6 years). Benchmarking this against similar contracts for RFP package preparation is challenging due to the variability in the scope, complexity, and scale of the projects for which RFPs are prepared. Contracts for preparing RFPs for major weapon systems or large-scale infrastructure projects would command higher values than those for smaller, more routine procurements. Without specific details on the types of solicitations MACTEC RK&K JOINT VENTURE was tasked with supporting, a direct comparison is difficult. However, for a long-term, comprehensive support role, this annual figure appears within a reasonable range for specialized professional services supporting a major agency like the Navy.

What are the primary risks associated with a long-term contract for RFP package preparation?

The primary risks associated with a long-term contract for RFP package preparation include potential scope creep if not tightly managed, the risk of outdated methodologies or technologies being used over time, and the possibility of the contractor becoming entrenched, potentially reducing incentives for innovation or efficiency. There's also a risk that the government's needs may evolve, and the contractor's capabilities might not adapt quickly enough. Furthermore, if the quality of the RFP packages is subpar, it can lead to flawed procurements, protests, and ultimately, suboptimal value for the government in subsequent contracts. Ensuring continuous government oversight and clear performance metrics is crucial to mitigate these risks.

What is the typical duration for contracts of this nature?

Contracts for specialized professional services like RFP package preparation can vary significantly in duration. While some might be short-term, project-specific efforts, longer-term contracts, often with option periods, are common for ongoing support needs. A duration of over 7 years, as seen in this case, is substantial but not unusual for strategic support services where continuity and deep institutional knowledge are valued. Such durations often reflect the long planning and acquisition cycles within the Department of Defense. The inclusion of multiple option periods within the contract structure allows the government flexibility to extend or terminate the agreement based on evolving requirements and performance.

How does the firm fixed-price contract type impact cost control for this service?

The firm fixed-price (FFP) contract type is generally considered the most advantageous for the government when the scope of work is well-defined and risks are manageable. For RFP package preparation, an FFP contract establishes a ceiling price that the contractor cannot exceed, regardless of their actual costs. This places the risk of cost overruns on the contractor, incentivizing them to manage their resources efficiently and accurately estimate their labor and overhead. It provides the government with maximum cost certainty. However, it also means the government may not benefit from cost savings if the contractor performs more efficiently than anticipated, unless specific incentive clauses are included.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 ATLANTIC AVE, RALEIGH, NC, 27604

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,526,612

Exercised Options: $24,322,418

Current Obligation: $24,322,418

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline