Navy awards $30.6M for engineering and construction support services to Unified Business Technologies, Inc

Contract Overview

Contract Amount: $30,662,137 ($30.7M)

Contractor: Unified Business Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-01

End Date: 2025-09-30

Contract Duration: 2,221 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NAVFAC MID-ATLANTIC, CAPITAL IMPROVEMENTS (CI) SERVICES FOR CONSTRUCTION ENGINEERING TECHNICIAN, CONSTRUCTION SCHEDULER, CONSTRUCTION MANAGEMENT AND ADMINISTRATIVE ASSISTANT SUPPORT. ESTIMATED LEVEL OF EFFORT: 55 FULL-TIME EQUIVALENT POSITIONS.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to UNIFIED BUSINESS TECHNOLOGIES, INC. for work described as: NAVFAC MID-ATLANTIC, CAPITAL IMPROVEMENTS (CI) SERVICES FOR CONSTRUCTION ENGINEERING TECHNICIAN, CONSTRUCTION SCHEDULER, CONSTRUCTION MANAGEMENT AND ADMINISTRATIVE ASSISTANT SUPPORT. ESTIMATED LEVEL OF EFFORT: 55 FULL-TIME EQUIVALENT POSITIONS. Key points: 1. Contract provides essential support for capital improvement projects, ensuring project timelines and quality. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of over 5 years indicates a long-term need for these specialized services. 4. Services include construction engineering, scheduling, management, and administrative support, covering critical project phases. 5. The estimated level of effort is substantial, requiring 55 full-time equivalent positions. 6. This award is part of the Navy's broader strategy to maintain and improve its infrastructure.

Value Assessment

Rating: good

The contract value of $30.6 million over approximately 6 years for 55 FTEs suggests a per-FTE cost of roughly $95,000 annually. This appears competitive when considering the specialized nature of construction management and engineering support services, which often require experienced professionals. Benchmarking against similar contracts for engineering and construction management support within the Department of Defense would provide a more precise value assessment, but the initial estimate seems reasonable given the scope and duration.

Cost Per Unit: Approximately $95,000 per FTE annually (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. This level of competition is generally favorable for price discovery and ensures that the government receives offers from multiple qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that encourages lower prices and better value for the services procured.

Public Impact

The Department of the Navy benefits from consistent and expert support for its capital improvement projects. Services ensure the efficient execution of construction projects, leading to improved facility infrastructure. The contract supports specialized roles such as construction engineers, schedulers, and managers, enhancing project oversight. Workforce implications include the provision of 55 full-time equivalent positions, supporting skilled labor in the engineering and construction management fields. Geographic impact is primarily within the Mid-Atlantic region, supporting NAVFAC MID-ATLANTIC's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for critical support functions could pose a risk if performance issues arise.
The long duration of the contract may require ongoing vigilance to ensure continued cost-effectiveness and performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contract specifies a firm-fixed-price structure, which helps control costs for the government.
The contractor, Unified Business Technologies, Inc., has experience in providing similar services.
The contract duration allows for continuity of services and development of institutional knowledge.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting construction management and related technical expertise. The market for these services is substantial, driven by ongoing infrastructure development and maintenance needs across government agencies. Comparable spending benchmarks would involve analyzing other large-scale construction support contracts awarded by federal agencies like the Department of Defense, GSA, or DOT, focusing on the cost per FTE or total contract value for similar service scopes.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mentioned. This means that opportunities for small businesses to participate in this contract are likely limited to direct subcontracting by the prime contractor, Unified Business Technologies, Inc., if they choose to engage them. The absence of a small business set-aside may limit the direct infusion of federal dollars into the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract is likely managed by NAVFAC MID-ATLANTIC contracting officers and technical representatives who will monitor performance against contract requirements. Accountability measures are embedded in the firm-fixed-price structure and performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NAVFAC Capital Improvements Programs
Department of Defense Engineering Services Contracts
Construction Management Support Services
Federal Infrastructure Development Contracts

Risk Flags

Long-term contract duration may limit flexibility.
Potential for performance issues over extended period.
Reliance on contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to UNIFIED BUSINESS TECHNOLOGIES, INC.. NAVFAC MID-ATLANTIC, CAPITAL IMPROVEMENTS (CI) SERVICES FOR CONSTRUCTION ENGINEERING TECHNICIAN, CONSTRUCTION SCHEDULER, CONSTRUCTION MANAGEMENT AND ADMINISTRATIVE ASSISTANT SUPPORT. ESTIMATED LEVEL OF EFFORT: 55 FULL-TIME EQUIVALENT POSITIONS.

Who is the contractor on this award?

The obligated recipient is UNIFIED BUSINESS TECHNOLOGIES, 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 $30.7 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-09-30.

What is the track record of Unified Business Technologies, Inc. in performing similar government contracts?

Unified Business Technologies, Inc. has a history of performing government contracts, including those related to engineering and technical support services. While specific details on past performance for contracts of this exact scale and scope require deeper analysis of contract databases and performance reviews, their ability to win this significant award suggests they possess the necessary qualifications and experience. Further investigation into their past performance ratings, any past disputes, and the types of agencies they have served would provide a more comprehensive understanding of their track record. It is important to note that contract awards do not always equate to flawless performance, and a review of past performance metrics is crucial for a complete assessment.

How does the estimated per-FTE cost compare to industry benchmarks for similar engineering and construction management services?

The estimated annual per-FTE cost of approximately $95,000 for this contract appears to be within a reasonable range for specialized engineering and construction management support services. Industry benchmarks can vary significantly based on geographic location, specific skill sets required, and the level of experience demanded. For roles such as construction schedulers, project managers, and engineering technicians, particularly those requiring security clearances or specialized certifications, annual salaries and overhead can easily reach or exceed this figure. A more precise comparison would involve analyzing salary data for comparable positions in the Virginia region and factoring in contractor overhead, profit, and administrative costs. However, based on general market knowledge, this figure does not immediately raise significant red flags for value.

What are the primary risks associated with the long duration (over 5 years) of this contract?

The primary risks associated with a contract duration exceeding five years include potential for cost escalation beyond initial projections if not adequately managed through contract clauses, and the risk of technological or procedural obsolescence if the services required evolve significantly over time. There's also a risk of contractor performance degradation over an extended period, or a decline in the competitive landscape, potentially leading to less favorable terms in future modifications or renewals. Furthermore, long-term contracts can sometimes reduce the government's flexibility to adapt to changing mission requirements or to take advantage of new, more cost-effective solutions that may emerge. Robust oversight and performance management are critical to mitigating these risks.

How does this contract contribute to the Department of the Navy's overall capital improvement goals?

This contract is directly aligned with the Department of the Navy's capital improvement goals by providing essential personnel and expertise to manage, schedule, and oversee construction projects. These projects are critical for maintaining and modernizing naval facilities, ensuring operational readiness, and supporting the warfighter. By securing specialized support services, the Navy can ensure that its infrastructure projects are executed efficiently, on time, and within budget. This contract enables NAVFAC MID-ATLANTIC to effectively manage its portfolio of construction projects, contributing to the Navy's long-term infrastructure sustainment and development strategy.

What is the historical spending pattern for similar engineering and construction support services by NAVFAC MID-ATLANTIC or the Department of the Navy?

Historical spending patterns for engineering and construction support services by NAVFAC MID-ATLANTIC and the broader Department of the Navy typically show significant and consistent investment in these areas due to the vast and aging infrastructure portfolio. Agencies like NAVFAC regularly award multi-year, multi-million dollar contracts for program management, design, engineering, and construction oversight. Spending often fluctuates based on military construction priorities, budget allocations, and the lifecycle of major infrastructure assets. Analyzing past awards for similar services, including their values, durations, and competition levels, would reveal trends in how the Navy procures these critical support functions and provide context for the current $30.6 million award.

What are the implications of the firm-fixed-price contract type for cost control and contractor risk?

A firm-fixed-price (FFP) contract type places the primary risk of cost overruns on the contractor. This means that Unified Business Technologies, Inc. is obligated to complete the work for the agreed-upon price, regardless of unforeseen cost increases they may encounter. This structure is highly beneficial for the government in terms of cost certainty and predictability, as the total cost is known upfront. For the contractor, it incentivizes efficient performance and careful cost management to ensure profitability. However, FFP contracts can sometimes lead to contractors being less willing to accommodate minor scope changes without formal change orders, and they may build in higher contingency amounts to account for the risk they assume, potentially impacting the initial price.

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: N4008519R3504

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 353 INDUSCO COURT SUITE C, TROY, MI, 48083

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $38,042,013

Exercised Options: $38,042,013

Current Obligation: $30,662,137

Actual Outlays: $10,126,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8762

IDV Type: IDC

Timeline