Noblis MSD LLC awarded $9.68M for engineering services, with a 5-year performance period
Contract Overview
Contract Amount: $9,684,692 ($9.7M)
Contractor: Noblis MSD LLC
Awarding Agency: Department of Defense
Start Date: 2021-03-11
End Date: 2026-03-31
Contract Duration: 1,846 days
Daily Burn Rate: $5.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92120
Plain-Language Summary
Department of Defense obligated $9.7 million to NOBLIS MSD LLC for work described as: ENGINEERING SERVICES Key points: 1. Contract value of $9.68M over 5 years suggests a moderate annual spend. 2. Full and open competition indicates a potentially competitive bidding process. 3. Cost Plus Fixed Fee (CPFF) contract type may incentivize cost control by the contractor. 4. Performance is located in California, a hub for defense and engineering activities. 5. The contract is for engineering services, a critical support function for defense agencies. 6. No small business set-aside was utilized, suggesting larger prime contractors were targeted.
Value Assessment
Rating: good
The contract value of $9.68M over 1846 days averages to approximately $5,246 per day. Benchmarking this against similar engineering services contracts for the Department of Defense is challenging without more specific service details. However, the CPFF structure, while potentially leading to higher costs than fixed-price contracts, allows for flexibility in complex projects. The fixed fee component provides a baseline profit for the contractor, and the government pays for allowable costs incurred.
Cost Per Unit: $5,246 per day
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought proposals from a wide range of potential contractors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving a fair market price.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its operations. Services delivered are critical for the design, development, and maintenance of naval systems. The geographic impact is concentrated in California, supporting regional economic activity. Workforce implications include employment opportunities for engineers and technical staff in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher overall costs if not carefully managed.
- Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
- The duration of the contract (5 years) requires ongoing monitoring to ensure continued value.
- No small business participation is noted, potentially limiting broader economic impact.
Positive Signals
- Full and open competition suggests a robust selection process.
- Engineering services are essential for maintaining and advancing defense capabilities.
- The fixed fee component provides a predictable profit margin for the contractor.
- The contract is awarded to a single entity (Noblis MSD LLC), implying a focused relationship.
Sector Analysis
Engineering services are a vital component of the defense industrial base, supporting everything from research and development to system sustainment. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services supporting military readiness and technological advancement. Comparable spending benchmarks would depend on the specific engineering disciplines and the scale of the projects undertaken.
Small Business Impact
This contract does not appear to have a small business set-aside. The prime contractor, Noblis MSD LLC, is likely a mid-to-large-sized business. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals, the direct impact on the small business ecosystem from this particular award is likely minimal, though the prime contractor may engage small businesses as part of their overall operations.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, cost reviews, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Engineering Services
- Department of Defense Professional Services Contracts
- Defense Engineering and Technical Support
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential
- Performance Monitoring Challenges
- Lack of Small Business Subcontracting Data
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, noblis-msd-llc, full-and-open-competition, cost-plus-fixed-fee, california, professional-services, delivery-order, large-business, contract-value-medium
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to NOBLIS MSD LLC. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is NOBLIS MSD LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.7 million.
What is the period of performance?
Start: 2021-03-11. End: 2026-03-31.
What is the track record of Noblis MSD LLC with the Department of Defense, particularly in engineering services?
Noblis MSD LLC has a history of performing contracts for the Department of Defense, including various engineering and technical support services. Their performance record can be assessed through contract award data, which often includes past performance evaluations. For this specific contract, the Department of the Navy selected Noblis MSD LLC, suggesting a positive past performance assessment or a strong competitive proposal. Analyzing their portfolio of previous DoD contracts can reveal their experience in similar service areas, their ability to manage complex projects, and their adherence to cost and schedule requirements. A deeper dive into their contract history would involve reviewing performance metrics and any reported issues or commendations on prior awards.
How does the average daily cost of this contract compare to similar engineering services contracts within the Navy?
The average daily cost for this contract is approximately $5,246. Comparing this to similar engineering services contracts within the Navy requires access to a broader dataset of contracts with comparable scopes of work, complexity, and geographic locations. Factors such as the specific engineering disciplines (e.g., naval architecture, systems engineering, electrical engineering), the level of security clearance required, and the criticality of the systems being supported can significantly influence costs. Without specific benchmarks for comparable contracts, it is difficult to definitively state whether $5,246 per day represents a high, low, or average cost. However, for specialized engineering support, this figure may fall within a reasonable range, especially considering the CPFF structure which allows for cost reimbursement.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs incurred. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of increased costs. This can incentivize contractors to be less diligent in cost control compared to fixed-price contracts. For engineering services, risks also include scope creep, where the project's requirements expand beyond the initial agreement, leading to increased costs and potential delays. Ensuring robust oversight, clear definition of allowable costs, and effective change management processes are crucial to mitigate these risks.
How effective is full and open competition in ensuring value for money for engineering services contracts?
Full and open competition is generally considered an effective mechanism for ensuring value for money in engineering services contracts. By maximizing the pool of potential bidders, it increases the likelihood of receiving competitive proposals that offer a balance of technical capability and cost-effectiveness. A larger number of bidders typically leads to better price discovery and can drive down costs as contractors vie for the award. However, the effectiveness also depends on the clarity of the solicitation requirements, the evaluation criteria used, and the agency's ability to assess technical merit alongside price. In complex engineering services, where technical expertise is paramount, ensuring that the lowest price doesn't come at the expense of quality is also critical.
What is the historical spending trend for engineering services by the Department of the Navy?
Historical spending trends for engineering services by the Department of the Navy are substantial, reflecting the complexity and scale of naval operations and platform development. The Navy consistently procures a wide array of engineering support, from conceptual design and R&D to sustainment and modernization of ships, aircraft, and weapon systems. Annual spending can fluctuate based on major acquisition programs, modernization efforts, and readiness requirements. Analyzing historical data from sources like the Federal Procurement Data System (FPDS) would reveal significant year-over-year investments in this category, often in the billions of dollars, underscoring its importance to naval capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6600119R0036
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: ONE CRESCENT DR STE 400, PHILADELPHIA, PA, 19112
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,216,700
Exercised Options: $10,216,700
Current Obligation: $9,684,692
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $39,798
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600121D0008
IDV Type: IDC
Timeline
Start Date: 2021-03-11
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-07
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