DoD's $33.7M Engineering Services Contract Awarded to Tele-Consultants, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $33,673,035 ($33.7M)
Contractor: Tele-Consultants, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-10-17
End Date: 2012-09-30
Contract Duration: 1,810 days
Daily Burn Rate: $18.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: SERVICES
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $33.7 million to TELE-CONSULTANTS, INC. for work described as: SERVICES Key points: 1. The contract value is $33.7 million over 5 years. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Engineering Services, a critical component of defense procurement.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Benchmarking against similar engineering service contracts would be necessary for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the Cost Plus Fixed Fee structure can still influence the final cost.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable price. However, the CPFF structure warrants close monitoring to ensure costs remain controlled.
Public Impact
Taxpayers benefit from a competitive bidding process for engineering services. The long-term nature of the contract (5 years) suggests a sustained need for these services. The award to Tele-Consultants, Inc. highlights a specific vendor's capability in engineering services for the Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
Positive Signals
- Full and open competition
- Awarded by Department of the Navy
Sector Analysis
Engineering services are crucial for defense projects, encompassing design, development, and technical support. Spending in this sector can vary significantly based on the complexity and scale of defense initiatives. This contract represents a moderate investment within the broader defense engineering landscape.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and contract management practices should be in place to ensure accountability and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to higher costs than anticipated.
- Long contract duration could mask inefficiencies if not closely managed.
- Lack of detail on specific services provided limits full understanding of value.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, ri, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to TELE-CONSULTANTS, INC.. SERVICES
Who is the contractor on this award?
The obligated recipient is TELE-CONSULTANTS, 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 $33.7 million.
What is the period of performance?
Start: 2007-10-17. End: 2012-09-30.
What is the typical profit margin for Cost Plus Fixed Fee engineering contracts of this size and duration?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts can vary widely based on industry, risk, and negotiation. For engineering services, typical fixed fees might range from 7-15% of the estimated cost. However, this is a broad estimate, and specific contract terms, the complexity of the work, and the competitive landscape heavily influence the final fee negotiated.
How does the duration of this contract (1810 days) compare to similar engineering service contracts awarded by the DoD?
A contract duration of approximately 5 years (1810 days) is relatively standard for complex engineering services required by the Department of Defense. Such long durations are often necessary to accommodate the lifecycle of major defense programs, research and development phases, or ongoing operational support needs. Shorter contracts might be used for specific, well-defined tasks.
What specific engineering services are being provided under this contract, and how critical are they to the Department of the Navy's mission?
The provided data classifies the service under NAICS code 541330 (Engineering Services) but does not detail the specific services. These could range from naval architecture and marine engineering to systems engineering for complex platforms. Their criticality would depend on whether they support new acquisitions, maintenance, modernization, or research, directly impacting fleet readiness and capability.
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: N0002407R3290
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tele Consultants Inc (UEI: 622345890)
Address: 860 GREENBRIER CIR STE 404, CHESAPEAKE, VA, 23320
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $34,376,593
Exercised Options: $34,279,317
Current Obligation: $33,673,035
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4611
IDV Type: IDC
Timeline
Start Date: 2007-10-17
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2015-02-09
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