DoD Awards $26.2M Logistics Support Services Contract to SVERDRUP TECHNOLOGY, INC
Contract Overview
Contract Amount: $26,229,130 ($26.2M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-06-01
End Date: 2010-01-31
Contract Duration: 1,340 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200609!SS3885!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4072 !A!N! !Y!NS01 ! !20060601!20070531!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001409306!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00039!0001! !
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $26.2 million to AMENTUM TECHNOLOGY, INC. for work described as: 200609!SS3885!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4072 !A!N! !Y!NS01 ! !20060601!20070531!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract awarded for logistics support services, a critical component of defense operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract's duration of 1340 days indicates a significant, long-term need. 4. The sector is Defense, with significant government spending in this area.
Value Assessment
Rating: fair
The contract value of $26.2 million over approximately 3.7 years results in an average annual value of $7.1 million. This is a moderate-sized contract for specialized logistics support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of potential bidders and can lead to better price discovery. The specific pricing structure (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not managed carefully.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure costs remain reasonable.
Public Impact
Ensures continued operational readiness for naval warfare systems through essential logistics support. Supports a technology company, potentially contributing to the regional economy in Tennessee. The long contract duration suggests a stable, ongoing requirement for these services within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs if not closely monitored.
- Long contract duration may not reflect evolving technological needs or market efficiencies.
- Limited information on specific performance metrics or outcomes.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Contract supports critical defense infrastructure and operations.
- Company is based in Tennessee, potentially supporting local jobs.
Sector Analysis
This contract falls within the Defense sector, specifically for logistics support services. Defense spending on services, particularly for complex systems like naval warfare, is substantial and ongoing. Benchmarks for similar logistics contracts vary widely based on scope and duration.
Small Business Impact
There is no explicit indication in the provided data that small businesses were involved as prime contractors or significant subcontractors on this particular award. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the Cost Plus Fixed Fee structure necessitates robust oversight to control costs and ensure performance standards are met throughout the contract's lifecycle.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration may not be agile enough for changing needs.
- Lack of detailed performance metrics in the summary data.
- Potential for contractor profit to increase with costs under CPFF.
Tags
engineering-services, department-of-defense, tn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to AMENTUM TECHNOLOGY, INC.. 200609!SS3885!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4072 !A!N! !Y!NS01 ! !20060601!20070531!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001409306!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.2 million.
What is the period of performance?
Start: 2006-06-01. End: 2010-01-31.
What specific logistics support services are included, and how do they align with current naval warfare system requirements?
The data identifies the service as 'LOGISTICS SUPPORT SERVICES' under PSC code R706. While the exact scope isn't detailed, it generally encompasses supply chain management, maintenance support, inventory control, and transportation for defense assets. The alignment with current naval warfare needs would require examining the detailed PWS (Performance Work Statement) associated with the contract.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the taxpayer?
The effectiveness of the Cost Plus Fixed Fee (CPFF) structure hinges on rigorous oversight by the contracting agency. While CPFF provides flexibility for evolving requirements, it carries a risk of cost escalation. Without access to performance reports, audit findings, or final cost data, it's difficult to definitively assess cost control effectiveness and taxpayer value achieved.
What was the competitive landscape like for this specific logistics support requirement, and did full and open competition yield optimal pricing?
The contract states 'FULL AND OPEN COMPETITION,' suggesting multiple bids were solicited. This approach generally promotes competitive pricing. However, the actual pricing achieved depends on the number and quality of bids received, the complexity of the service, and the specific evaluation criteria used. A detailed analysis of the bids submitted would be necessary to confirm if optimal pricing was secured.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002406R3261
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4072
IDV Type: IDC
Timeline
Start Date: 2006-06-01
Current End Date: 2010-01-31
Potential End Date: 2010-01-31 00:00:00
Last Modified: 2014-07-16
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