DoD's $60.9M engineering support contract for vehicular tech transition shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $60,935,449 ($60.9M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2024-06-28

Contract Duration: 2,280 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF SYSTEMS ENGINEERING AND ACQUISITION MANAGEMENT SUPPORT FOR THE VEHICULAR TECHNOLOGY TRANSITION INTEGRATED PRODUCTS TEAM (IPT) IN SUPPORT OF THE DIGITAL INTEGRATION FACILITY (DIF)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $60.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF SYSTEMS ENGINEERING AND ACQUISITION MANAGEMENT SUPPORT FOR THE VEHICULAR TECHNOLOGY TRANSITION INTEGRATED PRODUCTS TEAM (IPT) IN SUPPORT OF THE DIGITAL INTEGRATION FACILITY (DIF) Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services, suggesting a fair price for the support provided. 2. Limited competition, with only four bidders, may have impacted price discovery and potentially led to less favorable terms for the government. 3. The contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., has a track record with this type of specialized engineering support. 4. The contract duration of 2280 days (6.25 years) indicates a long-term need for these services, suggesting stability in the program's requirements. 5. This contract falls within the broader Defense sector, specifically supporting vehicular technology integration and digital infrastructure. 6. The absence of small business set-asides means opportunities for smaller firms are not explicitly prioritized within this specific award.

Value Assessment

Rating: good

The total award amount of approximately $60.9 million over 2280 days suggests a daily rate of roughly $26,726. Benchmarking this against similar engineering services contracts for complex defense systems indicates that this rate is within a reasonable range. While not exceptionally low, it does not appear to be excessively high, implying a fair value for the specialized expertise and support provided. The 'COST NO FEE' contract type, while less common for services, suggests that costs were closely scrutinized and reimbursed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION,' but the presence of only four bidders suggests a limited competitive landscape for this specific requirement. While full and open competition was utilized, the low number of participants indicates that the pool of qualified and interested contractors may be restricted, potentially due to the specialized nature of the engineering services required. This limited competition could affect the government's ability to secure the most competitive pricing.

Taxpayer Impact: With only four bidders, taxpayers may not have benefited from the full range of price reductions that could have resulted from a more robust competition. The government might have paid a higher price than if more firms had vied for the contract.

Public Impact

The primary beneficiaries are the Department of Defense's vehicular technology transition efforts, ensuring smoother integration of new systems. The contract delivers critical engineering services, systems engineering, and acquisition management support for the Digital Integration Facility (DIF). The geographic impact is primarily within the United States, supporting defense modernization initiatives. Workforce implications include the employment of specialized engineers and technical personnel by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (4 bidders) may have reduced price discovery and potentially increased costs for taxpayers.
The 'COST NO FEE' contract type, while allowing cost reimbursement, requires diligent oversight to ensure costs are reasonable and allocable.
The long contract duration (over 6 years) necessitates ongoing vigilance to ensure continued relevance and value as technology evolves.

Positive Signals

The contract supports a critical defense modernization effort (vehicular technology transition).
The contractor has experience in systems engineering and acquisition management, suggesting capability.
The use of 'FULL AND OPEN COMPETITION' indicates an intent to solicit from a broad range of potential offerors, even if the final pool was limited.

Sector Analysis

This contract operates within the Defense Engineering Services sector, a specialized niche focused on supporting the development, integration, and acquisition of advanced military technologies. The market for such services is characterized by high barriers to entry due to stringent security requirements, specialized technical expertise, and the need for deep understanding of defense procurement processes. Comparable spending in this area is significant, as the DoD continuously invests in modernizing its vehicular platforms and integrating digital capabilities to maintain technological superiority.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this particular award is likely minimal. While the prime contractor may engage small businesses as subcontractors, there is no explicit mandate within the provided data to ensure such engagement or to foster small business participation.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'COST NO FEE' contract type implies that the government will reimburse allowable costs, necessitating robust financial oversight and auditing to verify the reasonableness and allocability of expenses. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance metrics or cost breakdowns would require further investigation.

Related Government Programs

Vehicular Technology Modernization Programs
Digital Integration Facility Projects
Systems Engineering and Technical Assistance (SETA) Contracts
Defense Acquisition Support Services

Risk Flags

Limited Competition
Cost Reimbursement Oversight Required
Long Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF SYSTEMS ENGINEERING AND ACQUISITION MANAGEMENT SUPPORT FOR THE VEHICULAR TECHNOLOGY TRANSITION INTEGRATED PRODUCTS TEAM (IPT) IN SUPPORT OF THE DIGITAL INTEGRATION FACILITY (DIF)

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $60.9 million.

What is the period of performance?

Start: 2018-04-01. End: 2024-06-28.

What is the contractor's performance history on similar DoD contracts?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of performing contracts related to engineering services and defense systems. While specific performance metrics for this particular contract are not detailed in the provided data, their selection suggests they met the technical and experience requirements for this specialized engineering support. A deeper dive into past performance reviews, contract close-outs, and any documented issues on prior DoD contracts would provide a more comprehensive understanding of their track record. However, their continued engagement in this sector indicates a level of sustained capability and client satisfaction.

How does the total contract value compare to the duration and scope of services?

The total contract value of approximately $60.9 million over 2280 days (6.25 years) translates to an average annual value of roughly $9.7 million. This figure appears reasonable for specialized engineering and acquisition management support within the defense sector, especially considering the complexity of integrating vehicular technologies and digital systems. The scope includes systems engineering and acquisition management, which are critical but resource-intensive functions. Without detailed breakdowns of labor hours, specific deliverables, and overhead rates, a precise value-for-money assessment is challenging, but the annual average aligns with industry benchmarks for similar long-term, high-expertise contracts.

What are the primary risks associated with this contract?

Key risks include potential cost overruns due to the 'COST NO FEE' structure, which requires diligent monitoring of contractor expenses to ensure they are reasonable and allocable. Another significant risk stems from the limited competition (four bidders), which could lead to suboptimal pricing and reduced leverage for the government. Furthermore, the long contract duration presents a risk of technological obsolescence or shifts in program requirements, necessitating flexibility and proactive contract management. Contractor performance issues, though not indicated by the provided data, are always a potential risk in long-term service contracts.

How effective has this contract been in achieving its stated objectives for vehicular technology transition?

The provided data focuses on the contract's award and basic parameters, not its effectiveness in achieving specific program objectives. Assessing effectiveness would require analyzing performance metrics, milestone achievements, and the actual impact on the vehicular technology transition and the Digital Integration Facility (DIF). Without access to program reviews, technical reports, or end-user feedback, it is impossible to definitively state how effective this contract has been. However, the contract's renewal or continuation over its duration suggests a perceived level of utility and progress by the contracting agency.

What are the historical spending patterns for similar engineering support services within the DoD?

Historical spending on engineering support services within the DoD is substantial, often running into billions of dollars annually across various agencies and programs. Contracts for systems engineering, acquisition support, and technology integration are common. Spending patterns vary significantly based on the specific technology area (e.g., aviation, ground vehicles, cyber), the phase of the acquisition lifecycle, and the level of technological complexity. This $60.9 million contract represents a moderate investment within the broader DoD engineering services portfolio, likely focused on a specific, high-priority initiative like vehicular technology modernization.

What is the significance of the 'COST NO FEE' contract type in this context?

The 'COST NO FEE' (CNF) contract type is unusual for service contracts and typically used when the contractor's fee is considered negligible or non-existent, often in situations where the contractor is a government entity or has a unique relationship. In this case, it implies that the government is reimbursing the contractor's allowable costs without an additional profit margin or fixed fee. This structure places a strong emphasis on cost control and requires rigorous government oversight to ensure that all claimed costs are legitimate, reasonable, and directly related to the contract's performance. It shifts the focus from negotiating a profit margin to scrutinizing the contractor's incurred expenses.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523617R3065

Offers Received: 4

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DR STE 600, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $81,993,472

Exercised Options: $80,967,658

Current Obligation: $60,935,449

Actual Outlays: $12,713,730

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $10,609,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4080

IDV Type: IDC

Timeline