DoD Awards $34.8M Engineering Services Contract to Serco Inc. via Full and Open Competition

Contract Overview

Contract Amount: $34,779,082 ($34.8M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2021-07-22

End Date: 2026-02-28

Contract Duration: 1,682 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SERVICES IN THE AREAS OF TECHNICAL PROJECT MANAGEMENT SUPPORT, PROGRAM DOCUMENTATION, INTEGRATED LOGISTICS ENGINEERING, SYSTEMS ENGINEERING, TECHNICAL ENGINEERING, FLEET SYSTEMS ENGINEERING, MAINTENANCE CENTER SUPPORT.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.8 million to SERCO INC for work described as: SERVICES IN THE AREAS OF TECHNICAL PROJECT MANAGEMENT SUPPORT, PROGRAM DOCUMENTATION, INTEGRATED LOGISTICS ENGINEERING, SYSTEMS ENGINEERING, TECHNICAL ENGINEERING, FLEET SYSTEMS ENGINEERING, MAINTENANCE CENTER SUPPORT. Key points: 1. Contract awarded for comprehensive technical and engineering support services. 2. Serco Inc. is the prime contractor for this significant DoD award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans multiple years, indicating a long-term need for these services. 5. The sector is dominated by large, established engineering and defense contractors.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the presence of full and open competition suggests that pricing was likely scrutinized against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a fair market price, although the Cost Plus Fixed Fee structure warrants careful oversight to control costs.

Public Impact

Ensures continued technical and engineering support for critical Navy programs. Supports national defense initiatives through specialized engineering expertise. Provides employment opportunities within the engineering and defense sectors. The long-term nature of the contract offers stability for the contractor and its employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost creep.
Potential for scope creep given the broad range of services.
Reliance on a single contractor for critical support functions.

Positive Signals

Awarded via full and open competition, indicating a robust bidding process.
Long contract duration suggests a sustained need and potential for efficiency gains.
Contractor has a history of providing similar services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of the Navy. Spending in this sector is substantial, driven by defense needs and complex project management requirements. Benchmarks for similar contracts vary widely based on scope and duration.

Small Business Impact

The data indicates the prime contractor is Serco Inc., a large business. There is no explicit mention of small business participation in this award notice, suggesting potential for subcontracting opportunities but no direct award to small businesses as prime.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial monitoring and performance management to ensure accountability and prevent cost overruns.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee structure requires vigilant oversight.
Potential for undefined scope leading to cost increases.
Lack of explicit small business participation mentioned.
Contract duration extends into 2026, requiring sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.8 million to SERCO INC. SERVICES IN THE AREAS OF TECHNICAL PROJECT MANAGEMENT SUPPORT, PROGRAM DOCUMENTATION, INTEGRATED LOGISTICS ENGINEERING, SYSTEMS ENGINEERING, TECHNICAL ENGINEERING, FLEET SYSTEMS ENGINEERING, MAINTENANCE CENTER SUPPORT.

Who is the contractor on this award?

The obligated recipient is SERCO 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 $34.8 million.

What is the period of performance?

Start: 2021-07-22. End: 2026-02-28.

What is the projected cost efficiency of this Cost Plus Fixed Fee contract compared to other contract types for similar engineering services?

Cost Plus Fixed Fee contracts can be less cost-efficient than fixed-price contracts if not managed rigorously, as they allow for cost reimbursement plus a fixed fee. However, they are often used when the scope is not fully defined. Efficiency here will depend heavily on the Navy's oversight, performance metrics, and Serco's ability to manage costs within the agreed-upon fee structure.

What are the specific performance metrics used to evaluate Serco Inc.'s delivery of technical project management and engineering support?

The provided data does not detail specific performance metrics. Typically, such contracts would include Service Level Agreements (SLAs), Key Performance Indicators (KPIs) related to project timelines, budget adherence, technical accuracy, and client satisfaction. The Department of the Navy would be responsible for defining and monitoring these metrics throughout the contract's duration.

How does the $34.8 million award compare to the typical annual spending for engineering services within the Department of the Navy?

The $34.8 million award represents a significant, multi-year investment. While precise annual spending benchmarks for the Navy's engineering services are not provided, this figure suggests a substantial requirement for specialized support, likely covering a critical program or a portfolio of projects. It aligns with the considerable budgets allocated for defense acquisition and sustainment.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660421R3001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $44,063,089

Exercised Options: $40,553,141

Current Obligation: $34,779,082

Actual Outlays: $1,809,749

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $12,954,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8498

IDV Type: IDC

Timeline