DoD's $6.3M contract for logistic data services awarded to EHS Technologies Corp

Contract Overview

Contract Amount: $6,306,564 ($6.3M)

Contractor: EHS Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2023-01-30

End Date: 2027-01-29

Contract Duration: 1,460 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CODE 312 LOGISTIC DATA SERVICES WITH PROGRAM MGMT, APP SYSTEM ADMIN, DATABASE ADMIN, SOFTWARE AND APP DEVELOPMENT, CYBERSECURITY AND RISK MGMT AND TECHNICAL DATASME FOR TM, EOSS, MODEL BASED PRODUCT SUPPORT, CSOSS, AND PMS DATABASES WITHIN NAVLOGTD.

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to EHS TECHNOLOGIES CORP for work described as: CODE 312 LOGISTIC DATA SERVICES WITH PROGRAM MGMT, APP SYSTEM ADMIN, DATABASE ADMIN, SOFTWARE AND APP DEVELOPMENT, CYBERSECURITY AND RISK MGMT AND TECHNICAL DATASME FOR TM, EOSS, MODEL BASED PRODUCT SUPPORT, CSOSS, AND PMS DATABASES WITHIN NAVLOGTD. Key points: 1. Contract focuses on critical logistic data services, including program management and cybersecurity. 2. EHS Technologies Corp, a small business, is the awardee. 3. The contract is for a duration of 4 years, ending in January 2027. 4. Spending is categorized under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award value is $6,306,563.55.

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, the specific price discovery mechanisms within the Cost Plus Fixed Fee structure warrant scrutiny.

Taxpayer Impact: Taxpayer funds are being used for essential logistic data services supporting the Department of the Navy.

Public Impact

Ensures continued operation and support for critical Navy databases and systems. Supports cybersecurity and risk management for sensitive logistic information. Provides technical expertise for model-based product support and system administration. Contributes to the efficiency of naval logistics and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Potential for scope creep in complex IT and data management services.
Reliance on a single awardee for critical systems.

Positive Signals

Awarded under full and open competition.
Supports critical defense infrastructure.
Includes cybersecurity and risk management components.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval logistics and data management. Benchmarks for similar IT and data services contracts within the Department of Defense can vary widely based on complexity and scope.

Small Business Impact

While EHS Technologies Corp is listed as a small business, the contract details do not specify any small business set-aside provisions. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy awarded this contract, implying oversight from this agency. The Cost Plus Fixed Fee structure necessitates robust oversight to control costs and ensure value for taxpayer money.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Complexity of IT and data management services.
Reliance on a single awardee for critical systems.
Cybersecurity risks associated with sensitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to EHS TECHNOLOGIES CORP. CODE 312 LOGISTIC DATA SERVICES WITH PROGRAM MGMT, APP SYSTEM ADMIN, DATABASE ADMIN, SOFTWARE AND APP DEVELOPMENT, CYBERSECURITY AND RISK MGMT AND TECHNICAL DATASME FOR TM, EOSS, MODEL BASED PRODUCT SUPPORT, CSOSS, AND PMS DATABASES WITHIN NAVLOGTD.

Who is the contractor on this award?

The obligated recipient is EHS TECHNOLOGIES CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2023-01-30. End: 2027-01-29.

What is the estimated profit margin for EHS Technologies Corp under this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar services?

Cost Plus Fixed Fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Without detailed cost breakdowns, the exact profit margin is not discernible from the award data alone. However, typical fixed fees in such contracts range from 7-15% of the estimated cost. Benchmarking against industry standards would require access to the contractor's proposed costs and the government's cost analysis.

What specific metrics are in place to measure the effectiveness and performance of EHS Technologies Corp in providing logistic data services, cybersecurity, and technical support?

Effectiveness is typically measured through performance work statements (PWS) with defined deliverables, service level agreements (SLAs), and key performance indicators (KPIs). For this contract, metrics likely include system uptime, response times for database administration, successful cybersecurity incident mitigation, and timely completion of software development tasks. The government's quality assurance surveillance plan (QASP) would detail how performance is monitored and evaluated.

Given the critical nature of the databases supported (TM, EOSS, CSOSS, PMS), what are the contingency plans and risk mitigation strategies if EHS Technologies Corp fails to perform or experiences a se

Contingency plans would involve the government's ability to transition services to another contractor or an internal team, potentially invoking contract termination clauses for default. Risk mitigation strategies include rigorous cybersecurity requirements, background checks for personnel, regular audits, and data backup/recovery protocols. The contract likely includes clauses for breach notification and remediation, with penalties for non-compliance.

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: N6449822R3205

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 400 N. CHURCH STREET, MOORESTOWN, NJ, 08057

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,212,509

Exercised Options: $8,048,304

Current Obligation: $6,306,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7566

IDV Type: IDC

Timeline