USMC Mine Roller Systems contract awarded for over $16.3M, highlighting engineering services for defense

Contract Overview

Contract Amount: $16,355,875 ($16.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-12-15

End Date: 2013-12-14

Contract Duration: 1,095 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FSR MATERIAL FOR USMC MINE ROLLER SYSTEMS

Plain-Language Summary

Department of Defense obligated $16.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: FSR MATERIAL FOR USMC MINE ROLLER SYSTEMS Key points: 1. Contract focused on specialized engineering services for mine roller systems, crucial for troop safety. 2. Awarded under full and open competition, suggesting a broad market search for qualified vendors. 3. The contract duration of 1095 days indicates a significant, multi-year commitment to this capability. 4. Cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight of costs. 5. The undisclosed domestic awardees prevent a direct assessment of specific contractor performance history. 6. This spending supports the Marine Corps' operational readiness and counter-mine capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific engineering services contract is challenging without knowing the exact scope of work and the specific technologies involved. The cost-plus-fixed-fee (CPFF) structure, while common for complex R&D or services where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts if not managed diligently. Without comparable contract data for similar mine roller system engineering, a precise value-for-money assessment is difficult. However, the total award amount of over $16.3 million over three years suggests a substantial investment in this critical defense capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. This approach generally promotes a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed broadly suggests that the government aimed to leverage market forces to secure the most advantageous terms. However, the number of bidders (4) is on the lower side for a full and open competition, which might warrant further investigation into potential barriers to entry or market concentration.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to better value for the funds expended.

Public Impact

The primary beneficiaries are the United States Marine Corps, receiving enhanced mine roller systems to improve operational safety and effectiveness. The services delivered include engineering expertise crucial for the design, development, and potentially sustainment of mine roller technology. Geographic impact is primarily within military operational theaters where mine threats exist, and domestically at contractor facilities. Workforce implications include employment for engineers, technicians, and support staff within the awarded defense contractors' organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific awardees makes it difficult to assess past performance and potential conflicts of interest.
The CPFF contract type necessitates robust government oversight to control costs and prevent potential overruns.
Limited number of bidders (4) in a full and open competition could indicate potential market limitations or high barriers to entry for other firms.

Positive Signals

Awarded through full and open competition, suggesting a commitment to leveraging market competition for best value.
The contract addresses a critical defense need for mine protection systems, directly contributing to force protection.
A defined contract duration (3 years) provides a clear timeframe for service delivery and budget planning.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for defense engineering services is substantial, driven by continuous modernization and operational needs of military branches. Mine roller systems are a niche but critical component of counter-Improvised Explosive Device (IED) and route clearance strategies. Comparable spending benchmarks would typically be found within broader defense procurement categories for specialized vehicle systems or engineering support services, often involving significant R&D and integration efforts.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Given the specialized nature of defense engineering services and mine roller systems, it is possible that larger, established defense contractors were the primary recipients. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed to engage them more directly in this procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to monitor expenditures and ensure the fixed fee remains appropriate. Transparency is enhanced through contract reporting mechanisms, though specific details on individual awardees and their performance are not publicly detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Mine Resistant Ambush Protected (MRAP) Vehicles
Counter-Improvised Explosive Device (C-IED) Equipment
Ground Vehicle Systems Engineering
Defense Research and Development

Risk Flags

Lack of Awardee Transparency
Cost-Plus Contract Type Oversight
Limited Bidder Pool in Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to DOMESTIC AWARDEES (UNDISCLOSED). FSR MATERIAL FOR USMC MINE ROLLER SYSTEMS

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2010-12-15. End: 2013-12-14.

What specific engineering services were encompassed by this $16.3M contract for USMC Mine Roller Systems?

The provided data indicates the contract was for 'FSR MATERIAL FOR USMC MINE ROLLER SYSTEMS' and falls under 'Engineering Services'. While the exact scope is not detailed, it likely involved design, development, testing, integration, and potentially sustainment engineering related to mine roller systems used by the Marine Corps. This could include modifications to existing platforms, development of new roller configurations, or ensuring compatibility with various Marine Corps vehicles. The 'FSR MATERIAL' designation might suggest a focus on field service representative support or material provision related to the engineering effort.

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

The CPFF structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is uncertain or involves significant research and development, allowing flexibility. For taxpayers, the risk lies in potential cost overruns, as the government bears the brunt of unexpected expenses. Effective value is achieved through robust government oversight, clear performance metrics, and negotiation of a reasonable fixed fee. Without detailed cost data and performance outcomes, it's difficult to definitively assess the value achieved, but the CPFF necessitates vigilant management to control expenditures.

What are the implications of having 4 bidders in a 'Full and Open Competition' for this defense contract?

A 'Full and Open Competition' aims to maximize the number of potential bidders. While 4 bidders is a positive sign of competition, it is on the lower end for some large-scale procurements. This could suggest several things: the market for highly specialized mine roller system engineering might be limited, the barriers to entry (e.g., technical expertise, security clearances, existing infrastructure) are high, or the specific requirements of the solicitation may have narrowed the field. From a taxpayer perspective, fewer bidders can sometimes translate to less aggressive pricing, although the quality and technical merit of the proposals also play a crucial role in the final award.

Can the performance history of the 'undisclosed domestic awardees' be assessed, and what risks does this lack of transparency pose?

The data explicitly states 'DOMESTIC AWARDEES (UNDISCLOSED)', meaning specific contractor names are not provided. This lack of transparency prevents a direct assessment of the awardees' past performance on similar contracts, their track record for cost control, or their overall reliability. The primary risk this poses is the inability to independently verify if the contract was awarded to the most capable and cost-effective vendor based on historical data. It also hinders public accountability and makes it harder to identify potential patterns of overpricing or underperformance by specific firms within the defense industrial base.

What is the historical spending context for USMC Mine Roller Systems or similar engineering services?

Historical spending on mine roller systems and related engineering services for the USMC would likely fluctuate based on operational needs, deployment levels, and technological advancements. Significant spending often correlates with periods of active conflict or heightened counter-IED efforts. While this specific $16.3M contract represents a substantial investment over three years, it needs to be viewed within the broader context of the USMC's overall budget for ground vehicle modernization and force protection equipment. Without access to historical contract databases detailing similar procurements, a precise comparison is difficult, but such systems are consistently funded due to their critical role.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6133110R0002

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,895,685

Exercised Options: $37,895,685

Current Obligation: $16,355,875

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline