DoD's $6.4M NDI Engineering contract for IC data networks shows fair competition but requires scrutiny on value

Contract Overview

Contract Amount: $6,432,204 ($6.4M)

Contractor: NDI Engineering Company

Awarding Agency: Department of Defense

Start Date: 2021-10-05

End Date: 2026-10-04

Contract Duration: 1,825 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR THE DESIGN, DEVELOPMENT, INTEGRATION, CONFIGURATION, TESTING, TROUBLESHOOTING, REPAIR, MAINTENANCE AND FLEET SUSTAINMENT OF IC DATA NETWORKS AND ASSOCIATED USER SYSTEMS.

Place of Performance

Location: THOROFARE, GLOUCESTER County, NEW JERSEY, 08086

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $6.4 million to NDI ENGINEERING COMPANY for work described as: ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR THE DESIGN, DEVELOPMENT, INTEGRATION, CONFIGURATION, TESTING, TROUBLESHOOTING, REPAIR, MAINTENANCE AND FLEET SUSTAINMENT OF IC DATA NETWORKS AND ASSOCIATED USER SYSTEMS. Key points: 1. Contract awarded via full and open competition, indicating a broad market approach. 2. The contract type (Cost Plus Fixed Fee) necessitates careful monitoring of costs to ensure value. 3. Delivery Order structure suggests this is part of a larger, potentially indefinite-delivery contract. 4. The duration of 1825 days (5 years) points to a long-term need for these engineering services. 5. The contractor, NDI Engineering Company, has a track record that warrants examination for performance consistency. 6. The specific services encompass a wide range of lifecycle support for critical data networks.

Value Assessment

Rating: fair

Benchmarking the value of this $6.4 million contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure, while common for complex engineering efforts, carries inherent risks of cost overruns if not rigorously managed. Comparing this to similar contracts for intelligence data network sustainment would be necessary to assess if the pricing is competitive and reflects true value for the services rendered. The fixed fee component provides some cost certainty, but the variable cost elements require close oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple bidders were likely solicited and considered. This approach is generally favorable for price discovery and ensuring a wide range of capabilities are evaluated. The presence of 5 offers (implied by 'no': 5) indicates a reasonable level of competition for these specialized engineering services. The specific details of the bidding process and the number of actual proposals received would provide further insight into the robustness of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, increasing the likelihood of securing services at a fair market price.

Public Impact

The Department of the Navy benefits from sustained and reliable intelligence data network operations. End users within the intelligence community receive critical engineering and technical support for their systems. The contract supports specialized engineering jobs, likely in New Jersey where the contractor is based. Fleet sustainment of data networks ensures operational readiness for naval intelligence functions. The services provided are essential for the secure and efficient flow of classified information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require diligent oversight to manage potential cost escalations.
The long contract duration (5 years) necessitates ongoing performance monitoring to ensure sustained quality.
Specific details on the 'associated user systems' are not provided, potentially obscuring the full scope of technical requirements.
The absence of a small business set-aside may limit opportunities for smaller specialized firms in this sector.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, NDI Engineering Company, is tasked with critical intelligence data network sustainment.
The contract covers a comprehensive range of services from design to fleet sustainment.
The fixed fee component provides a degree of cost predictability within the CPFF structure.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for specialized engineering and technical support for intelligence and defense networks is highly competitive, often involving firms with specific security clearances and technical expertise. Spending in this area is driven by the continuous need to upgrade, maintain, and secure complex communication and data infrastructure for national security purposes. Comparable spending benchmarks would typically be found within the Department of Defense's IT and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) budgets.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). While awarded under full and open competition, the lack of specific small business considerations means that opportunities for small businesses to directly participate as prime contractors are limited. However, NDI Engineering Company may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their subcontracting plans and the nature of the work required. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) nature of the award necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Performance metrics and deliverables outlined in the contract will be key to monitoring effectiveness. Transparency is typically managed through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Defense's Inspector General, particularly if cost concerns arise.

Related Government Programs

Intelligence Community Information Technology Services
Naval Network Operations and Sustainment
Defense Information Systems Agency (DISA) Contracts
C4ISR Engineering Support
IT Infrastructure Modernization Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in complex engineering services.
Reliance on specialized security clearances for personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.4 million to NDI ENGINEERING COMPANY. ENGINEERING AND TECHNICAL SERVICES REQUIRED FOR THE DESIGN, DEVELOPMENT, INTEGRATION, CONFIGURATION, TESTING, TROUBLESHOOTING, REPAIR, MAINTENANCE AND FLEET SUSTAINMENT OF IC DATA NETWORKS AND ASSOCIATED USER SYSTEMS.

Who is the contractor on this award?

The obligated recipient is NDI ENGINEERING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2021-10-05. End: 2026-10-04.

What is the track record of NDI Engineering Company with similar Department of Defense contracts, particularly those involving intelligence data networks?

NDI Engineering Company has a history of performing contracts for the Department of Defense, including work related to naval systems and engineering services. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations, any contract disputes or awards, and their experience with intelligence community (IC) data networks and associated security requirements would be necessary. Examining data from sources like the Federal Procurement Data System (FPDS) or contract award databases could reveal patterns in their performance, on-time delivery, and adherence to budget on comparable projects. Understanding their specific expertise in designing, developing, integrating, and sustaining complex data networks under stringent security protocols is crucial for evaluating their capability to meet the demands of this $6.4 million contract.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar engineering and technical services for intelligence data networks?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, research-intensive, or developmental projects where the final costs are difficult to estimate precisely upfront. For intelligence data network engineering and sustainment, where requirements can evolve and technical challenges are significant, CPFF allows for flexibility. However, it places a strong emphasis on government oversight to ensure costs remain reasonable and the fixed fee adequately compensates the contractor for their effort without incentivizing excessive spending. Benchmarking this contract's fixed fee against the total estimated cost and comparing it to the fixed fees on similar CPFF contracts for comparable services (e.g., network design, integration, sustainment for defense agencies) would be essential. A higher-than-average fixed fee percentage relative to the total contract value, or a history of cost overruns on similar CPFF contracts, could indicate potential value concerns.

What are the key performance indicators (KPIs) used to measure the success and value of this contract, and how has the contractor performed against them?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, typical KPIs for intelligence data network engineering and sustainment would likely include network uptime/availability, data transfer speeds, latency, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), successful integration of new systems, security compliance adherence, and user satisfaction. The value derived from this contract is directly tied to the contractor's ability to meet or exceed these performance standards. Without access to performance reports, quality assurance surveillance plan (QASP) data, or contract close-out information, a definitive assessment of NDI Engineering Company's performance and the overall value delivered is not possible. Regular performance reviews and adherence to the contract's technical requirements are critical for ensuring value.

What is the historical spending trend for similar engineering and technical services supporting intelligence data networks within the Department of the Navy or broader DoD?

Historical spending on engineering and technical services for intelligence data networks within the Department of the Navy and the broader Department of Defense (DoD) has been substantial and is generally on an upward trend, driven by the increasing reliance on secure, high-speed data communication for intelligence gathering and dissemination. This specific $6.4 million contract represents a portion of that larger spending. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) for NAICS code 541330 (Engineering Services) awarded by the Department of the Navy or related intelligence agencies over the past 5-10 years would reveal spending patterns. This analysis could identify trends in contract values, types of services procured, dominant contractors, and average contract durations, providing context for the current award and helping to identify potential outliers in terms of cost or scope.

Are there any identified risks associated with the contractor's technical capabilities or financial stability relevant to fulfilling this long-term contract?

The provided data does not explicitly detail risks associated with NDI Engineering Company's technical capabilities or financial stability for this specific contract. However, standard risk assessment for a contract of this nature and duration (5 years) would involve reviewing the contractor's past performance ratings, financial health reports (e.g., Dun & Bradstreet scores), any history of litigation or contract disputes, and their demonstrated experience with the specific technologies and security protocols required for intelligence data networks. The Cost Plus Fixed Fee structure itself introduces a risk of cost escalation if not managed properly. A thorough review by the contracting officer would have assessed these risks prior to award, but ongoing monitoring is essential throughout the contract's life.

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: N6449821R3015

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 GROVE RD, THOROFARE, NJ, 08086

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

Financial Breakdown

Contract Ceiling: $8,798,603

Exercised Options: $8,798,603

Current Obligation: $6,432,204

Actual Outlays: $70,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8168

IDV Type: IDC

Timeline