DoD's $19.5M RDTE Network Support contract awarded to King Technologies, Inc. for engineering services

Contract Overview

Contract Amount: $19,551,737 ($19.6M)

Contractor: King Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-11

End Date: 2025-06-10

Contract Duration: 1,825 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RDTE NETWORK SUPPORT

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to KING TECHNOLOGIES, INC. for work described as: RDTE NETWORK SUPPORT Key points: 1. Contract value represents a significant investment in specialized engineering services for the Navy. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and optimal service delivery. 3. Performance risk indicators will be monitored throughout the contract duration to ensure successful project outcomes. 4. This contract supports the Department of Defense's broader research, development, testing, and evaluation (RDTE) objectives. 5. The engineering services sector is highly competitive, with numerous firms capable of providing these specialized skills. 6. Contract type (Cost Plus Fixed Fee) suggests a need for flexibility in scope while managing contractor profit.

Value Assessment

Rating: good

The contract's value of approximately $19.5 million over five years for RDTE network support appears reasonable given the specialized nature of engineering services. Benchmarking against similar contracts for network engineering and R&D support within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful oversight to ensure costs remain controlled and the fixed fee is appropriate for the effort involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of 14 bidders suggests a robust market for these services, which typically leads to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that the most capable and cost-effective provider is selected.

Public Impact

The primary beneficiaries are the Department of the Navy and its research, development, testing, and evaluation (RDTE) initiatives. Services delivered include critical engineering support for network infrastructure essential for advanced military research. The geographic impact is primarily within Florida, where the contract is being performed. Workforce implications include the potential for skilled engineering jobs in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed diligently.
Scope creep in RDTE projects can increase costs beyond initial estimates.
Reliance on a single contractor for critical network support could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Contract duration of five years provides stability for long-term network development.
The contractor, King Technologies, Inc., is likely experienced in providing engineering services to the federal government.

Sector Analysis

The engineering services sector is a vital component of the federal contracting landscape, supporting a wide array of government functions from R&D to infrastructure. This contract falls within the broader IT and engineering services market, which is characterized by specialized expertise and significant government spending. Comparable spending benchmarks for network engineering and RDTE support contracts within the Department of Defense can range from millions to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside noted, the potential for subcontracting opportunities with small businesses exists. The prime contractor may engage small businesses for specialized support services, contributing to the small business ecosystem. Further analysis of subcontracting plans would clarify the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases and public reporting, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation (RDTE)
Navy Network Modernization Programs
Federal IT Services Contracts
Engineering Services for Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
RDTE projects can be subject to scope changes, impacting budget and timeline.
Dependence on specialized engineering services necessitates careful contractor performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to KING TECHNOLOGIES, INC.. RDTE NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is KING 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 $19.6 million.

What is the period of performance?

Start: 2020-06-11. End: 2025-06-10.

What is King Technologies, Inc.'s track record with federal contracts, particularly within the Department of Defense?

King Technologies, Inc. has a history of performing federal contracts, primarily within the Department of Defense. While specific details on past performance metrics for this exact type of RDTE network support are not publicly detailed in this summary, their award suggests they meet the qualifications and experience required by the Navy. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and capability in delivering complex engineering services. Their experience likely spans various engineering disciplines relevant to network infrastructure and R&D support.

How does the $19.5 million contract value compare to similar RDTE network support contracts awarded by the Navy or other DoD branches?

The $19.5 million contract value for five years of RDTE network support is within a typical range for specialized engineering services supporting complex government initiatives. Similar contracts for network infrastructure development, cybersecurity engineering, or advanced research support within the DoD can range from a few million to tens of millions of dollars. Factors influencing cost include the level of technical expertise required, the duration of the contract, the specific technologies involved, and the competitive landscape. Without direct comparisons of scope and complexity, it's challenging to definitively state if this represents a premium or a discount, but it appears to be a substantial investment commensurate with advanced R&D needs.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDTE network support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDTE network support revolve around cost control and potential for scope creep. For the government, the risk is that the contractor may incur higher costs than anticipated, even though their profit (the fixed fee) is predetermined. This can lead to the total contract value exceeding initial estimates if the 'cost' portion escalates significantly. For the contractor, the risk is that the fixed fee may not adequately compensate them if unforeseen complexities or additional work arise that were not fully anticipated during the proposal phase. Effective oversight, clear definition of work, and robust change management are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money for specialized engineering services like RDTE network support?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for specialized engineering services. By allowing all responsible sources to submit bids, it maximizes the pool of potential providers, fostering a competitive environment that drives down prices and encourages innovation. The presence of 14 bidders in this case suggests a healthy market and increases the likelihood that the government will secure services at a competitive rate. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical capabilities and proposed costs.

What is the historical spending trend for RDTE network support within the Department of the Navy?

Historical spending trends for RDTE network support within the Department of the Navy have generally shown a consistent and often increasing demand, driven by the need to maintain and advance technological superiority. As military operations become more reliant on sophisticated communication and data networks, investments in R&D for these systems are critical. While specific year-over-year figures for 'RDTE Network Support' can fluctuate based on program priorities and budget allocations, the overall trajectory indicates a sustained commitment to enhancing network capabilities. This particular $19.5 million contract aligns with this broader trend of investment in advanced technological infrastructure.

Are there specific performance metrics or KPIs associated with this contract that indicate success?

Specific performance metrics or Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for RDTE network support contracts, typical KPIs would likely include network uptime and availability, data transfer speeds, system response times, successful implementation of new network features or upgrades, cybersecurity compliance, and adherence to project timelines and budgets. The Cost Plus Fixed Fee structure implies that performance will be monitored against defined technical objectives and milestones, with payments contingent upon satisfactory progress and achievement of these goals. The contracting officer's representative (COR) would be responsible for overseeing performance.

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: N6133119R3501

Offers Received: 14

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3760 SPORTS ARENA BLVD, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,778,096

Exercised Options: $20,778,096

Current Obligation: $19,551,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7972

IDV Type: IDC

Timeline