DoD awards $12M+ for land-based engineer design and planning across 3 test sites

Contract Overview

Contract Amount: $12,007,026 ($12.0M)

Contractor: NDI Engineering Company

Awarding Agency: Department of Defense

Start Date: 2023-03-31

End Date: 2028-09-30

Contract Duration: 2,010 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LAND BASED ENGINEER DESIGN AND PLANNING FOR 3 TEST SITES.

Place of Performance

Location: THOROFARE, GLOUCESTER County, NEW JERSEY, 08086

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to NDI ENGINEERING COMPANY for work described as: LAND BASED ENGINEER DESIGN AND PLANNING FOR 3 TEST SITES. Key points: 1. Contract awarded to NDI Engineering Company for essential design and planning services. 2. Services are critical for the development and enhancement of Department of the Navy test site infrastructure. 3. The contract duration spans over five years, indicating a long-term need for these specialized engineering services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost oversight. 6. The geographic focus is New Jersey, potentially impacting local engineering and construction sectors.

Value Assessment

Rating: good

The contract value of over $12 million for engineering design and planning services for three test sites appears reasonable given the five-year duration. Benchmarking against similar large-scale engineering projects for defense infrastructure suggests that costs are within expected ranges. The Cost Plus Fixed Fee structure, while common for complex projects, necessitates diligent monitoring to ensure costs remain controlled and provide value for money. Further analysis would require detailed cost breakdowns and comparison to specific project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of 5 bids suggests a healthy level of competition for this specialized engineering service. A competitive bidding process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple firms vied for the contract, driving down costs and improving the quality of proposals.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to improve its test site infrastructure. The services delivered will support the development and modernization of critical defense testing facilities. The geographic impact is concentrated in New Jersey, potentially creating opportunities for local engineering firms and skilled labor. The contract supports the defense industrial base by engaging engineering service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The long duration of the contract requires ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for design and planning over an extended period could limit future flexibility.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
The contract supports critical defense infrastructure, aligning with national security objectives.
The five-year duration suggests a stable, long-term need and commitment to the project.

Sector Analysis

The engineering services sector is a vital component of the defense industrial base, providing essential design, planning, and technical support for complex infrastructure projects. This contract falls within the broader category of professional, scientific, and technical services, which is a significant market for government contracting. Comparable spending benchmarks for large-scale defense infrastructure design and planning projects often run into the tens of millions of dollars, making this award consistent with industry norms for similar scope and duration.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature and potential value of the engineering services required, it is possible that larger, established firms would be the primary bidders. Further investigation into subcontracting opportunities would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency will be facilitated through contract award databases and potentially through public reporting on project milestones. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Engineering Services
Test and Evaluation Infrastructure Support
Defense Base Development Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for scope creep in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to NDI ENGINEERING COMPANY. LAND BASED ENGINEER DESIGN AND PLANNING FOR 3 TEST SITES.

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 $12.0 million.

What is the period of performance?

Start: 2023-03-31. End: 2028-09-30.

What is NDI Engineering Company's track record with the Department of Defense and similar contracts?

NDI Engineering Company has a history of contracting with the U.S. government, particularly within the Department of Defense. While specific details of their past performance on similar land-based engineer design and planning contracts for test sites would require deeper database analysis, their selection for this significant $12M+ award suggests they possess the requisite experience and capabilities. Reviewing their contract history for past performance ratings, any disputes, or contract terminations would provide a more comprehensive understanding of their reliability and expertise in delivering complex engineering solutions for defense clients. Their ability to secure this multi-year contract indicates a generally positive standing with the awarding agency.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex services where the scope of work is not precisely defined at the outset, allowing for flexibility. In this case, it permits NDI Engineering Company to incur costs deemed necessary for the project while receiving a predetermined fixed fee. Compared to fixed-price contracts, CPFF offers less upfront price certainty for the government but can be advantageous when unforeseen technical challenges arise, preventing costly scope changes. However, it places a greater burden on the government to meticulously track and audit costs to ensure they are reasonable and allocable, directly impacting the value realization for taxpayers. Effective oversight is crucial to mitigate the risk of cost overruns inherent in CPFF arrangements.

What are the key risks associated with a five-year engineering design and planning contract, and how are they mitigated?

Key risks for a five-year engineering design and planning contract include potential scope creep, technological obsolescence, contractor performance degradation over time, and unforeseen site-specific challenges. Scope creep can inflate costs and extend timelines if not managed through rigorous change control processes. Technological obsolescence is a risk if the design plans do not account for future advancements in testing equipment or methodologies. Contractor performance can wane over long durations, necessitating continuous monitoring and performance evaluations. Site-specific challenges, such as environmental or geological issues, require proactive identification and contingency planning. Mitigation strategies typically involve detailed contract clauses, phased performance reviews, clear communication channels, robust project management, and potentially incorporating incentives for efficiency and adherence to budget.

What is the historical spending pattern for land-based engineer design and planning services by the Department of the Navy?

Historical spending by the Department of the Navy on land-based engineer design and planning services is substantial, reflecting the continuous need to maintain, upgrade, and develop its extensive network of bases and test facilities. While specific figures for 'land-based engineer design and planning' as a distinct category can vary based on how it's classified in procurement databases, the overall spending on engineering and architectural services by the Navy runs into billions of dollars annually. This includes a wide range of activities from preliminary site assessments and environmental impact studies to detailed architectural and engineering designs for new construction and renovations. The $12M+ award to NDI Engineering Company for three test sites aligns with the Navy's ongoing investment in its operational infrastructure, suggesting this is a recurring and necessary expenditure.

How does the competition level (5 bidders) for this contract influence the potential for cost savings or innovation?

A competition level of five bidders for this engineering services contract is generally considered healthy and suggests a reasonably competitive market. This level of competition typically provides the government with a good range of technical approaches and pricing options, increasing the likelihood of securing a fair market price. The presence of multiple bidders incentivizes each firm to offer their best value proposition, potentially leading to cost savings through competitive pricing and innovative solutions designed to meet the specific requirements of the test sites. While more bidders could theoretically drive prices lower, five is often sufficient to prevent a lack of competition from inflating costs, and it allows for thorough evaluation of each proposal.

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: N6449823Q3043

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: $15,492,989

Exercised Options: $15,492,986

Current Obligation: $12,007,026

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6449822D4010

IDV Type: IDC

Timeline