DoD's $131M Engineering Services Contract Awarded to Sentar, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $131,433,158 ($131.4M)
Contractor: Sentar, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2024-09-26
Contract Duration: 1,826 days
Daily Burn Rate: $72.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SEE GENERAL INFORMATION SECTION.
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $131.4 million to SENTAR, INC. for work described as: SEE GENERAL INFORMATION SECTION. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract has a duration of 1826 days, indicating a long-term need for engineering services. 3. The award type is a Delivery Order, which is a common mechanism for tasking under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts. 4. The contract is for engineering services, a critical component for defense operations and infrastructure. 5. The contractor, Sentar, Inc., has secured a significant award, highlighting its role in the defense sector. 6. The contract's cost-plus-fixed-fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can incentivize efficiency but also carries some risk of cost overruns.
Value Assessment
Rating: fair
Benchmarking the value of this $131 million contract over nearly five years is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) pricing structure, while common, requires careful oversight to ensure costs remain reasonable and the fixed fee provides adequate incentive for efficient performance. Without detailed breakdowns of labor categories, overhead, and the fixed fee percentage, a precise value-for-money assessment is difficult. However, the duration and scope suggest a substantial investment in engineering capabilities.
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 7 bidders suggests a healthy level of competition for this engineering services requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers, as multiple companies vied to win the contract by offering their best terms and pricing.
Public Impact
The Department of Defense benefits from specialized engineering services to support its operational and infrastructural needs. This contract likely supports various defense projects requiring engineering expertise, potentially including design, analysis, and technical support. The geographic impact is likely concentrated around the Department of the Navy's operational areas or specific project sites. Workforce implications may include employment opportunities for engineers and technical staff within Sentar, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not closely monitored.
- Long contract duration (1826 days) may reduce flexibility to adapt to changing technological needs or requirements.
- Reliance on a single contractor for a significant duration could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Multiple bidders (7) suggest a competitive environment that could drive better performance and pricing.
- Engineering services are critical for defense, indicating a strategic investment.
Sector Analysis
The engineering services sector supporting the federal government is substantial, encompassing a wide range of disciplines from civil and mechanical to electrical and systems engineering. This contract falls within the broader professional, scientific, and technical services category, which is a significant portion of federal procurement. The Department of Defense is a major consumer of these services, utilizing them for everything from weapons system development to infrastructure maintenance and modernization. Comparable spending benchmarks would typically be found within specific engineering sub-disciplines and agency-specific procurement histories.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Sentar, Inc., may still engage small businesses as subcontractors to fulfill portions of the contract requirements, depending on their own subcontracting strategies and the nature of the engineering services needed.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs and ensure they align with the contract's objectives and budget. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Naval Sea Systems Command (NAVSEA) Contracts
- Professional, Scientific, and Technical Services Procurement
- Cost Plus Fixed Fee Contracts
- Indefinite Delivery/Indefinite Quantity (IDIQ) Task Orders
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to manage costs.
- Long contract duration may present risks related to technological obsolescence or changing requirements.
- Potential for scope creep in complex engineering projects.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, sentar-inc, full-and-open-competition, delivery-order, cost-plus-fixed-fee, professional-scientific-and-technical-services, south-carolina, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.4 million to SENTAR, INC.. SEE GENERAL INFORMATION SECTION.
Who is the contractor on this award?
The obligated recipient is SENTAR, 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 $131.4 million.
What is the period of performance?
Start: 2019-09-27. End: 2024-09-26.
What is Sentar, Inc.'s track record with the Department of Defense, particularly in engineering services?
Sentar, Inc. has a history of contracting with the Department of Defense, often providing IT and cybersecurity services. While this specific award is for engineering services, their broader experience within the defense sector suggests familiarity with DoD's operational environment and procurement processes. Analyzing their past performance on similar-sized or technically related contracts would provide further insight into their capabilities and reliability. Reviewing past performance evaluations, if publicly available, would be key to assessing their track record beyond just contract awards. Their ability to successfully execute this $131 million engineering services contract will depend on their demonstrated expertise in the specific engineering disciplines required by the Navy.
How does the $131 million value of this contract compare to similar engineering services contracts awarded by the Department of the Navy?
The $131 million value for a nearly five-year engineering services contract is substantial, placing it in the mid-to-large tier for such procurements within the Department of the Navy. To benchmark effectively, one would need to compare it against contracts for similar engineering disciplines (e.g., naval architecture, systems engineering, mechanical engineering) awarded over comparable timeframes. The Navy procures a wide array of engineering support, and while $131 million is significant, it's not uncommon for major platform support or complex system development contracts. Without specific details on the exact engineering services rendered, direct comparison is difficult, but it represents a considerable investment in specialized technical expertise for naval operations.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks with a CPFF contract of this size and duration revolve around cost control and potential for scope creep. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of reimbursing all allowable costs. This necessitates robust oversight to ensure costs are reasonable, allocable, and necessary. Scope creep, where requirements expand beyond the original intent without corresponding adjustments to the fee or schedule, can inflate costs significantly. Furthermore, the long duration (1826 days) increases the risk of the contracted services becoming outdated or misaligned with evolving technological needs or strategic priorities, potentially leading to inefficiencies or the need for costly modifications.
How effective is full and open competition in ensuring value for money for engineering services contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for engineering services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices, encourages innovation, and promotes efficiency. The presence of multiple bidders, as indicated by the 7 bidders in this case, increases the likelihood that the government will receive competitive proposals. This process allows the government to select the offer that provides the best overall value, considering not only price but also technical approach, past performance, and other evaluation factors. While oversight is still necessary, the competitive nature of the award significantly enhances the probability of a cost-effective outcome.
What are the potential implications of this contract on the small business ecosystem within the defense engineering sector?
As this contract was not a small business set-aside, its direct impact on the small business ecosystem is limited to potential subcontracting opportunities. While the prime contractor, Sentar, Inc., is not mandated to subcontract with small businesses, they may choose to do so to leverage specialized expertise or meet broader corporate social responsibility goals. The success of small businesses in securing subcontracts would depend on Sentar's subcontracting plan and the specific needs of the engineering services required. If Sentar actively seeks out small business subcontractors, it could provide valuable experience and revenue streams for them. Conversely, if they rely solely on their own resources or larger partners, the direct benefit to the small business ecosystem from this specific award would be minimal.
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: N6523619R3507
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sentar Inc.
Address: 675 DISCOVERY DR NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $164,439,205
Exercised Options: $164,439,205
Current Obligation: $131,433,158
Actual Outlays: $2,949,984
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8496
IDV Type: IDC
Timeline
Start Date: 2019-09-27
Current End Date: 2024-09-26
Potential End Date: 2024-09-26 00:00:00
Last Modified: 2026-02-12
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