DoD's $26.17M Engineering Services Contract Awarded to INTERNATIONAL SYSTEMS, LLC for Naval Support

Contract Overview

Contract Amount: $26,168,388 ($26.2M)

Contractor: International Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2002-04-18

End Date: 2003-05-16

Contract Duration: 393 days

Daily Burn Rate: $66.6K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to INTERNATIONAL SYSTEMS, LLC for work described as: Key points: 1. Contract awarded under a follow-on to a competed action, suggesting prior competition. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can shift risk to the government. 3. The duration of 393 days indicates a medium-term project. 4. The award was made by the Department of the Navy, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded in California, a significant hub for defense contracting.

Value Assessment

Rating: fair

Benchmarking the value of this $26.17 million contract requires more detailed cost breakdowns and comparison to similar engineering service contracts. The CPFF structure means the final cost is dependent on actual expenses incurred, making upfront value assessment challenging. Without specific performance metrics or a comparison to industry standards for similar engineering tasks, it's difficult to definitively assess if the government received excellent value for money. However, the fact that it's a follow-on to a competed action might suggest a competitive pricing history.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' which implies that the original contract was competed. However, the specific competition details for this particular award are not provided. It is unclear if this follow-on action was also competed, or if it was awarded sole-source based on the prior competition. The number of bidders for this specific award is not stated, making it difficult to assess the current level of competition.

Taxpayer Impact: If this follow-on was not competed, taxpayers may not benefit from the most competitive pricing. The lack of transparency regarding the competition process for this specific award raises concerns about potential overspending.

Public Impact

The Department of the Navy benefits from essential engineering services to support its operations. This contract likely supports various naval projects and infrastructure needs. The geographic impact is centered in California, where the contract was awarded. The contract may have implications for the engineering workforce in the California region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly, as the government bears the risk of actual costs.
Lack of specific details on the competition for this follow-on action raises questions about price discovery and potential for higher costs.
The raw dollar amount, while significant, needs context regarding the scope and complexity of the engineering services provided to assess true value.

Positive Signals

The contract is a 'FOLLOW ON TO COMPETED ACTION,' indicating that the original award was subject to competition, which generally leads to better pricing.
Awarding to INTERNATIONAL SYSTEMS, LLC suggests a potentially established relationship and performance history with the Department of the Navy.
The contract is for engineering services, a critical function for defense operations.

Sector Analysis

Engineering services, particularly those supporting defense, represent a significant segment of the professional services market. This contract falls under the broader category of defense contracting, which is characterized by complex requirements and substantial government spending. The NAICS code 541330, Engineering Services, encompasses a wide range of activities from design to consulting. Comparable spending benchmarks would involve analyzing other DoD contracts for similar engineering support, considering factors like contract duration, scope of work, and contractor experience.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the size of the award and the nature of the services, it is likely that larger, established firms like INTERNATIONAL SYSTEMS, LLC are the primary recipients. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or realized.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting of costs and progress. Transparency is often limited in defense contracts, but contract award data is generally made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Services
Naval Facilities Engineering Command Contracts
Cost Plus Fixed Fee Contracts
Defense Professional Services Contracts

Risk Flags

Cost-reimbursable contract type (CPFF) requires robust oversight to manage costs.
Lack of clarity on competition for this specific award.
Potential for cost escalation due to CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to INTERNATIONAL SYSTEMS, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL SYSTEMS, 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 $26.2 million.

What is the period of performance?

Start: 2002-04-18. End: 2003-05-16.

What was the specific scope of engineering services provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330, awarded by the Department of the Navy. However, the specific scope of work is not detailed. Typically, engineering services for the Navy can encompass a wide range of activities, including but not limited to, architectural design, structural engineering, mechanical and electrical systems design, environmental engineering, civil engineering for infrastructure, and technical consulting for naval platforms or facilities. The 'FOLLOW ON TO COMPETED ACTION' designation suggests it might be a continuation or modification of previous engineering support, potentially for a specific project or program.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts a significant portion of the cost risk to the government, as the final contract price is not fixed upfront and can increase if costs escalate. While CPFF can be useful for contracts with uncertain scopes or high research and development components where costs are difficult to estimate, it can lead to less favorable value for money compared to fixed-price contracts if not managed diligently. Effective oversight is crucial to ensure costs are reasonable and allocable, and the fixed fee provides a limited incentive for cost control.

What does 'FOLLOW ON TO COMPETED ACTION' imply about the original competition and this award?

The phrase 'FOLLOW ON TO COMPETED ACTION' suggests that the original contract, which this award is based upon or related to, was initially awarded through a competitive bidding process. This implies that multiple vendors likely submitted proposals, and the contract was awarded to the best value offeror at that time. However, it does not automatically mean that this specific follow-on award was also competed. It could be a sole-source modification or extension if certain conditions are met, such as the original contractor possessing unique capabilities or if it's deemed impractical to recompete. Further details would be needed to ascertain the competition level of this specific award.

What is the significance of the NAICS code 541330 for this contract?

The North American Industry Classification System (NAICS) code 541330 specifically identifies 'Engineering Services.' This classification indicates that the primary business activity covered by this contract involves providing professional engineering services. These services can range from conceptual design and feasibility studies to detailed engineering, testing, and consulting across various disciplines like civil, mechanical, electrical, and aerospace engineering. For the Department of the Navy, this code suggests the contract is for specialized technical expertise required for military projects, infrastructure development, or platform support.

How does the contract award location in California potentially influence the contract?

Awarding a significant federal contract in California, especially for engineering services, often leverages the state's robust aerospace, defense, and technology sectors. California has a large concentration of engineering firms, including many small and medium-sized businesses, as well as major defense contractors. This proximity can facilitate collaboration, reduce travel costs, and potentially tap into a highly skilled workforce. However, it can also mean higher labor costs compared to other regions. The presence of numerous potential bidders in the region might have influenced the original competition, and the location could impact the availability of specialized engineering talent for this specific project.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)

Address: 9925 CARROLL CANYON ROAD, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline