DoD Awards $27.5M Combat Systems Support Contract to AMEE BAY, LLC for Engineering Services

Contract Overview

Contract Amount: $27,533,962 ($27.5M)

Contractor: Amee BAY, LLC

Awarding Agency: Department of Defense

Start Date: 2019-07-24

End Date: 2024-07-31

Contract Duration: 1,834 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SWRMC CODE 410A: COMBAT SYSTEMS TASK ORDER. PROVIDE A FULL RANGE OF ENGINEERING, ANALYTICAL, LOGISTICAL, AND TECHNICAL SUPPORT SERVICES THROUGHOUT SWRMC'S COMBAT SYSTEMS DIVISIONS, WHICH OPERATE UNDER SWRMC'S ENGINEERING DEPARTMENT (CODE 200).

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to AMEE BAY, LLC for work described as: SWRMC CODE 410A: COMBAT SYSTEMS TASK ORDER. PROVIDE A FULL RANGE OF ENGINEERING, ANALYTICAL, LOGISTICAL, AND TECHNICAL SUPPORT SERVICES THROUGHOUT SWRMC'S COMBAT SYSTEMS DIVISIONS, WHICH OPERATE UNDER SWRMC'S ENGINEERING DEPARTMENT (CODE 200). Key points: 1. Contract focuses on comprehensive engineering, analytical, logistical, and technical support for Navy combat systems. 2. AMEE BAY, LLC, the sole awardee, will provide services to SWRMC's Engineering Department. 3. The contract is a Delivery Order under a larger agreement, indicating a phased approach to support. 4. Services are critical for maintaining and enhancing naval combat system capabilities.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without detailed scope and performance data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a Delivery Order, the specific pricing for this task order was negotiated within the framework of the parent contract.

Taxpayer Impact: Taxpayer funds are being used for essential defense support services. The CPFF pricing structure warrants close monitoring to ensure cost efficiency and prevent unnecessary expenditure.

Public Impact

Ensures continued operational readiness of Navy combat systems. Supports advanced engineering and technical expertise within the Department of the Navy. Contributes to the modernization and maintenance of critical defense infrastructure. Potential for follow-on work based on performance and evolving defense needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize higher costs.
Long contract duration (5 years) may not adapt quickly to changing technological needs.
Lack of specific performance metrics makes objective evaluation challenging.

Positive Signals

Awarded under full and open competition, suggesting fair market pricing.
Provides essential support for critical naval combat systems.
Experienced contractor likely to deliver specialized services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this area is driven by national security requirements and the need for advanced technological capabilities in military systems.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The Department of the Navy and SWRMC are responsible for oversight. The CPFF structure necessitates robust financial oversight and performance monitoring to ensure value for money and prevent cost creep.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing model.
Long contract duration.
Lack of specific performance metrics in provided data.
No small business participation noted.
Potential for scope creep without clear task definitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to AMEE BAY, LLC. SWRMC CODE 410A: COMBAT SYSTEMS TASK ORDER. PROVIDE A FULL RANGE OF ENGINEERING, ANALYTICAL, LOGISTICAL, AND TECHNICAL SUPPORT SERVICES THROUGHOUT SWRMC'S COMBAT SYSTEMS DIVISIONS, WHICH OPERATE UNDER SWRMC'S ENGINEERING DEPARTMENT (CODE 200).

Who is the contractor on this award?

The obligated recipient is AMEE BAY, 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 $27.5 million.

What is the period of performance?

Start: 2019-07-24. End: 2024-07-31.

What is the estimated value of the fixed fee component within the Cost Plus Fixed Fee structure, and how was it determined?

The fixed fee is a crucial element of the CPFF contract, representing the contractor's profit margin. Its determination typically involves negotiation based on the complexity of the work, perceived risk, and market rates for similar services. Without specific details on the fee negotiation process or its percentage relative to the total cost, it's difficult to assess its reasonableness or ensure optimal value for taxpayers.

How will the effectiveness of the engineering, analytical, logistical, and technical support be measured to ensure optimal combat system performance?

Effectiveness measurement is critical for this contract. Key Performance Indicators (KPIs) should be established, focusing on metrics such as system uptime, response times for technical issues, successful implementation of engineering changes, and timely logistical support. Regular performance reviews and feedback mechanisms are essential to ensure the contractor's services directly contribute to the operational readiness and effectiveness of the Navy's combat systems.

What mechanisms are in place to manage potential cost overruns inherent in a Cost Plus Fixed Fee contract for long-term support?

Managing cost overruns in CPFF contracts requires stringent oversight. Mechanisms should include detailed cost tracking, regular audits, clear limitations on allowable costs, and a defined process for approving any changes that might increase costs. The government contracting officer must actively monitor expenditures against the estimated cost and the fixed fee, ensuring that the contractor operates efficiently and within the agreed-upon financial parameters.

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: N5523618R3003

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amee BAY LLC

Address: 2702 DENALI ST STE 100, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,732,612

Exercised Options: $38,732,612

Current Obligation: $27,533,962

Actual Outlays: $14,942,291

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7602

IDV Type: IDC

Timeline