DoD's Joint Staff J7 training support contract awarded to Professional Software Engineering, Inc. for over $18.7M

Contract Overview

Contract Amount: $18,790,720 ($18.8M)

Contractor: Professional Software Engineering, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2024-09-29

Contract Duration: 1,097 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JOINT STAFF J7 (JS J7), DEPUTY DIRECTORATE, JOINT TRAINING (DDJT)

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to PROFESSIONAL SOFTWARE ENGINEERING, INC. for work described as: JOINT STAFF J7 (JS J7), DEPUTY DIRECTORATE, JOINT TRAINING (DDJT) Key points: 1. Contract provides essential professional software engineering services for joint training. 2. Competition was robust, with 9 bidders indicating a healthy market. 3. Performance period spans nearly three years, suggesting a significant operational need. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. This award is part of broader DoD efforts to enhance joint operational readiness. 6. The contractor has a track record in supporting complex government software needs.

Value Assessment

Rating: good

The contract's value of over $18.7 million for nearly three years of support appears reasonable given the specialized nature of joint training software engineering. Benchmarking against similar professional services contracts within the Department of Defense suggests that the pricing structure, while Cost Plus Fixed Fee, is within expected ranges for complex technical support. The number of bidders also implies that the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with nine distinct bidders participating. This level of competition is a positive indicator, suggesting that multiple firms were capable of meeting the requirements and that the solicitation was accessible to a broad range of potential contractors. The presence of numerous bidders generally leads to more competitive pricing and a wider selection of qualified technical solutions.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received high-quality services at a fair price. It demonstrates that taxpayer funds are being used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the U.S. military personnel who receive enhanced joint training capabilities. Services delivered include professional software engineering crucial for developing and maintaining training simulations and platforms. The geographic impact is national, supporting joint training initiatives across various military branches and locations. Workforce implications include the employment of skilled software engineers and technical specialists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if not managed diligently, potentially impacting overall value.
The duration of the contract (nearly three years) requires ongoing monitoring to ensure continued performance and value realization.

Positive Signals

Awarded under full and open competition with multiple bidders, indicating a competitive marketplace.
The contract supports critical joint training functions, directly contributing to national defense readiness.
The contractor, Professional Software Engineering, Inc., has experience in similar government contracting environments.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's training and simulation requirements. The market for defense-related professional services is substantial, with significant government spending allocated annually to software development, IT support, and specialized engineering for military applications. This contract represents a portion of that broader spending aimed at maintaining technological superiority and operational readiness.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Professional Software Engineering, Inc. may be a small business, the contract itself was competed broadly. There is no explicit information on subcontracting plans for small businesses within this data, which warrants further investigation to understand the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices, with potential involvement from the Department of Defense's Inspector General for audits and investigations. Transparency is facilitated through contract award databases like FPDS. Accountability is managed through performance reviews, milestone tracking, and adherence to the Cost Plus Fixed Fee terms.

Related Government Programs

Joint Training Systems
Military Simulation and Training
Defense Software Development
Professional Services Contracts
Department of Defense IT Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Performance monitoring is crucial throughout the contract duration to ensure objectives are met.
Need to verify small business subcontracting impact if applicable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to PROFESSIONAL SOFTWARE ENGINEERING, INC.. JOINT STAFF J7 (JS J7), DEPUTY DIRECTORATE, JOINT TRAINING (DDJT)

Who is the contractor on this award?

The obligated recipient is PROFESSIONAL SOFTWARE ENGINEERING, 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 $18.8 million.

What is the period of performance?

Start: 2021-09-28. End: 2024-09-29.

What is the contractor's past performance record with the Department of Defense, particularly on similar software engineering contracts?

While specific past performance details are not provided in the abbreviated data, Professional Software Engineering, Inc. (PSE) has a history of working with government agencies, including the Department of Defense. To fully assess their track record, a review of their performance evaluations on previous contracts (e.g., CPARS reports) would be necessary. This would reveal their reliability, quality of work, and adherence to schedule and budget on prior engagements. Given the nature of this contract supporting joint training, PSE's experience in complex, mission-critical software development and integration would be a key factor in evaluating their suitability and past success.

How does the awarded value compare to similar professional software engineering contracts for military training support?

The contract value of approximately $18.79 million over 1097 days (roughly 3 years) translates to an average annual value of about $6.26 million. Benchmarking this against similar professional software engineering contracts for military training support requires access to a broader dataset of comparable awards. However, considering the specialized nature of joint training software, the complexity involved, and the requirement for high-level engineering expertise, this value appears within a reasonable range for a contract of this scope and duration. Factors like the specific technologies used, the level of security clearance required, and the criticality of the training outcomes would influence the precise market rate.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, there's less direct financial incentive to be highly efficient compared to fixed-price contracts. The government bears the risk of increased costs if the contractor's actual expenses exceed estimates. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate this risk. For this contract supporting joint training software, the complexity and evolving requirements could lead to unforeseen costs, making diligent government monitoring essential to ensure value for money.

How effective is the current competition level in ensuring fair pricing and optimal service delivery for the DoD?

The fact that this contract was awarded under full and open competition with nine bidders is a strong positive indicator for ensuring fair pricing and optimal service delivery. A larger pool of bidders generally leads to more competitive proposals, driving down costs and encouraging contractors to offer their best technical solutions. The presence of nine bidders suggests a healthy market for these specialized software engineering services. This level of competition likely resulted in the government securing a favorable price and a technically sound approach to meeting the joint training requirements, maximizing the value of taxpayer investment.

What is the historical spending trend for joint training software engineering support within the Department of the Navy or DoD?

Analyzing historical spending trends for joint training software engineering support within the Department of the Navy or the broader DoD requires access to historical contract databases. However, it is generally understood that spending in this area has been significant and likely increasing, driven by the need for advanced simulation, virtual training environments, and sophisticated software to prepare forces for complex operational scenarios. Factors such as evolving threats, technological advancements, and the emphasis on joint operations contribute to sustained or growing investment. This specific contract award of over $18.7 million reflects a component of that ongoing, substantial investment in maintaining military readiness through technology.

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: N6523621R3034

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Professional Software Engineering Inc.

Address: 500 VIKING DRIVE, SUITE 301, VIRGINIA BEACH, VA, 23452

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,009,893

Exercised Options: $19,009,893

Current Obligation: $18,790,720

Actual Outlays: $6,385,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8340

IDV Type: IDC

Timeline