OST Inc. contract for Engineering Services awarded by the Department of the Navy for over $20M
Contract Overview
Contract Amount: $20,090,664 ($20.1M)
Contractor: OST Inc
Awarding Agency: Department of Defense
Start Date: 2018-08-16
End Date: 2022-08-15
Contract Duration: 1,460 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF PMW240 MANPOWER AND PERSONNEL SYSTEM
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70122
Plain-Language Summary
Department of Defense obligated $20.1 million to OST INC for work described as: IGF::OT::IGF PMW240 MANPOWER AND PERSONNEL SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can present cost control challenges. 3. The contract duration is 1460 days, indicating a long-term engagement for services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract was awarded to OST Inc., a company with a track record in government contracting.
Value Assessment
Rating: fair
The total award amount is over $20 million. Without specific performance metrics or a detailed breakdown of costs, it is difficult to definitively assess value for money. The CPFF contract type requires careful monitoring to ensure costs remain reasonable and the fixed fee aligns with the scope of work. Benchmarking against similar engineering services contracts would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a moderate level of competition for this engineering services requirement. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and a wider range of innovative solutions.
Public Impact
The Department of the Navy benefits from specialized engineering services to support its operations. This contract likely supports personnel and manpower systems within the Navy. The contract's performance location is Louisiana, indicating a geographic impact on that region's economy. The services provided may involve a workforce of engineers and technical specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve the fixed fee.
- The long duration of the contract may lead to scope creep if not managed tightly.
- Lack of specific performance metrics makes it hard to assess efficiency and effectiveness.
Positive Signals
- Awarded through full and open competition, ensuring a broad base of potential providers.
- The existence of 4 bidders indicates a degree of market interest and engagement.
- The contract is for essential engineering services, crucial for the Navy's mission.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government agencies with specialized expertise. The market for engineering services is substantial, with government contracts forming a significant portion. Comparable spending benchmarks would typically be found within the Department of Defense's overall engineering and technical support expenditures.
Small Business Impact
There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to OST Inc., a company not explicitly identified as a small business in the provided data, suggests it may be a larger entity. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including reporting requirements and performance standards. Transparency is facilitated through contract award databases, but detailed operational oversight information is often internal.
Related Government Programs
- Department of Defense Engineering Services
- Navy IT and Systems Support
- Professional, Scientific, and Technical Services
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost control risks.
- Lack of specific performance metrics makes objective assessment difficult.
- Long contract duration requires sustained oversight to prevent scope creep.
Tags
engineering-services, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, delivery-order, louisiana, professional-scientific-and-technical-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to OST INC. IGF::OT::IGF PMW240 MANPOWER AND PERSONNEL SYSTEM
Who is the contractor on this award?
The obligated recipient is OST 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 $20.1 million.
What is the period of performance?
Start: 2018-08-16. End: 2022-08-15.
What is the track record of OST Inc. with government contracts, particularly within the Department of Defense?
OST Inc. has a history of securing government contracts, including those with the Department of Defense. Analyzing their past performance, including contract values, types, and successful completion rates, is crucial for assessing their reliability and capability for this specific engineering services requirement. Information from contract databases and performance reviews would provide a clearer picture of their track record. Their experience with similar CPFF contracts and long-duration projects would be particularly relevant.
How does the pricing structure (Cost Plus Fixed Fee) compare to other engineering services contracts awarded by the Navy?
Cost Plus Fixed Fee (CPFF) contracts are common for services where the scope is well-defined but costs can fluctuate. Comparing the fixed fee percentage and the estimated cost base for this contract against similar engineering services contracts awarded by the Department of the Navy is essential for value assessment. If the fixed fee is disproportionately high or the estimated costs are significantly above benchmarks for comparable services, it could indicate potential overpricing or inefficient cost management. A detailed cost analysis would be required for a definitive comparison.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
The provided data does not specify the key performance indicators (KPIs) or the methods used to measure the performance of OST Inc. for this contract. For a Cost Plus Fixed Fee contract, performance measurement is critical to ensure the government receives the intended value. Typical KPIs for engineering services might include adherence to project timelines, quality of deliverables, technical accuracy, and responsiveness. Without this information, assessing the contractor's effectiveness and the overall success of the contract is challenging.
What is the historical spending pattern for similar engineering services within the Department of the Navy?
To understand the context of this $20M+ contract, examining historical spending patterns for similar engineering services within the Department of the Navy is important. This involves looking at the total annual expenditure on engineering services, the average contract size, the number of contracts awarded, and the primary contractors. Such analysis can reveal trends, identify areas of significant investment, and provide benchmarks against which current spending can be evaluated for reasonableness and efficiency.
What is the potential risk associated with the Cost Plus Fixed Fee contract type for this specific service?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government reimburses allowable costs plus a fixed fee. For engineering services, this risk can be mitigated through robust oversight, detailed cost tracking, and clear definition of the scope of work. However, if not managed diligently, CPFF contracts can lead to cost overruns. The risk is amplified if the scope is not precisely defined or if there are significant unknowns in the project.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523618R3107
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2010 CORPORATE RDG STE 1000, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,777,218
Exercised Options: $21,777,218
Current Obligation: $20,090,664
Actual Outlays: $4,291,393
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017816D8933
IDV Type: IDC
Timeline
Start Date: 2018-08-16
Current End Date: 2022-08-15
Potential End Date: 2022-08-15 00:00:00
Last Modified: 2025-08-04
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