DoD's $172M Engineering Services Contract with ANSOL Inc. awarded in 2006, spanning over 5 years

Contract Overview

Contract Amount: $17,233,294 ($17.2M)

Contractor: Ansol Inc.

Awarding Agency: Department of Defense

Start Date: 2006-01-01

End Date: 2011-12-15

Contract Duration: 2,174 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200604!060776!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017805D4180 !A!N! !Y!NS01 ! !20060101!20061231!040446127!040446127!040446127!N!ANSOL, INC !13766 TORREY GLENN ROAD !SAN DIEGO !CA!92129!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000144541!N!N!000000000000!R414!SYSTEMS ENGINEERING 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!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N00039!0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92129

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to ANSOL INC. for work described as: 200604!060776!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017805D4180 !A!N! !Y!NS01 ! !20060101!20061231!040446127!040446127!040446127!N!ANSOL, INC !13766 TORREY GLENN ROAD !SAN DIEGO !CA!92129!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000144541!N!N!000000000000!R414!S… Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was competed full and open, suggesting a competitive bidding process. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was used, which can incentivize cost control but requires careful oversight. 4. The contract duration of over 5 years suggests a long-term requirement for the services provided. 5. The primary place of performance was San Diego, California, aligning with major defense industry hubs. 6. The contract was not set aside for small businesses, indicating it was likely too large or specialized for typical small business set-aside criteria.

Value Assessment

Rating: fair

The total award amount of $172,332,940 over approximately 5 years for engineering services suggests a significant investment. Benchmarking this against similar large-scale engineering contracts within the Department of Defense is crucial for a precise value assessment. The CPFF contract type, while common for complex services, carries inherent risks of cost overruns if not managed diligently. Without specific performance metrics or comparison to industry standards for similar engineering tasks, it's challenging to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates 21 offers were received, suggesting a robust level of competition for this engineering services requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition for this contract likely resulted in a more competitive price for taxpayers, as multiple companies vied to win the award.

Public Impact

The primary beneficiaries are likely the Department of Defense agencies requiring specialized engineering support for naval systems. Services delivered include systems engineering, which is critical for the design, development, and integration of complex defense platforms. The geographic impact is concentrated in San Diego, California, supporting the local defense industry and workforce. Workforce implications include employment opportunities for engineers and technical professionals in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require vigilant oversight to prevent cost escalation and ensure the fixed fee remains appropriate.
The long contract duration (over 5 years) necessitates ongoing performance monitoring to ensure continued relevance and effectiveness of services.
Lack of specific details on performance metrics makes it difficult to assess the contractor's effectiveness beyond basic delivery.
The absence of small business subcontracting data means the full economic impact on smaller businesses is not immediately clear.

Positive Signals

Awarded under full and open competition with 21 offers, indicating a healthy and competitive market for these services.
The contract was awarded to ANSOL, Inc., a known entity in the defense contracting space.
The services provided (Systems Engineering) are critical for defense system development and modernization.
The primary place of performance in San Diego aligns with established defense industry infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military platforms and systems. Companies like ANSOL, Inc. provide specialized expertise that government agencies often cannot replicate in-house. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of services.

Small Business Impact

This contract was not awarded as a small business set-aside. The substantial value and specialized nature of the engineering services likely made it unsuitable for such a designation. There is no explicit data provided regarding small business subcontracting goals or achievements, which limits the assessment of its impact on the small business ecosystem. Future analysis could explore subcontracting reports if available.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management structure, likely through the Defense Contract Management Agency (DCMA) given the location. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, including performance reviews and financial audits. Transparency is facilitated by the contract award data, but detailed performance reports or Inspector General findings are not provided here.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Systems Engineering Support
Defense Contract Management Agency (DCMA) Oversight
Federal Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates ongoing performance monitoring.
Lack of detailed performance metrics in summary data.
No explicit small business subcontracting data provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to ANSOL INC.. 200604!060776!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017805D4180 !A!N! !Y!NS01 ! !20060101!20061231!040446127!040446127!040446127!N!ANSOL, INC !13766 TORREY GLENN ROAD !SAN DIEGO !CA!92129!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000144541!N!N!000000000000!R414!SYSTEMS ENGINEERING 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!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! !1700!N00039!0001! !

Who is the contractor on this award?

The obligated recipient is ANSOL 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 $17.2 million.

What is the period of performance?

Start: 2006-01-01. End: 2011-12-15.

What is the track record of ANSOL, Inc. in performing similar engineering services contracts for the DoD?

ANSOL, Inc. has a history of performing various services for the Department of Defense, including engineering and technical support. This specific contract, valued at over $172 million and spanning more than five years, indicates a significant engagement. While the data provided confirms the award and basic details, a deeper dive into past performance reviews, any contract modifications, and the successful completion of deliverables for this and other DoD contracts would be necessary to fully assess their track record. Examining their performance on other large-scale, complex engineering projects would provide further context on their capabilities and reliability as a contractor.

How does the $172 million award compare to typical spending on engineering services by the DoD?

The $172 million awarded to ANSOL, Inc. for engineering services represents a substantial investment. The Department of Defense consistently spends billions annually on engineering and technical support services, essential for the development, maintenance, and modernization of its vast array of systems. This particular contract, awarded in 2006, falls within the range of significant, multi-year service contracts. To provide a precise comparison, one would need to benchmark it against the average award size for similar systems engineering contracts during that period and analyze the overall DoD budget allocation for such services. The duration of over five years also suggests a long-term, critical need.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($172 million) revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. This structure can incentivize contractors to incur higher costs, as their fee is fixed regardless of the total cost incurred. Therefore, robust government oversight is critical to scrutinize allowable costs, prevent inefficiencies, and ensure the contractor is motivated to perform the work as cost-effectively as possible. Scope creep and inadequate definition of 'allowable costs' are significant risks that can lead to budget overruns.

How effective was the competition for this contract in driving down costs for the government?

The contract was awarded under full and open competition, with 21 offers received. This level of competition is generally considered strong and is typically effective in driving down costs for the government. A larger pool of bidders increases the likelihood that competitive pricing will be offered, as companies vie to win the contract. While the CPFF structure has its own cost implications, the competitive bidding process likely ensured that the initial fixed fee and the anticipated cost base were established at a reasonable level relative to the market. Without access to the bid prices, a definitive statement on cost savings is difficult, but the competitive landscape is a positive indicator.

What is the historical spending trend for engineering services by the agency that awarded this contract?

The agency that awarded this contract is the Department of Defense, specifically through Space and Naval Warfare Systems Command (SPAWAR), indicated by the N00039 code. Historically, the DoD, and particularly naval systems commands, have consistently allocated significant portions of their budgets to engineering and technical services. Spending in this category is driven by the continuous need for research, development, acquisition, and sustainment of complex military platforms and technologies. Trends would likely show a steady or increasing demand for such services over the years, reflecting the evolving nature of defense requirements and technological advancements. Analyzing SPAWAR's specific budget allocations for engineering services over time would reveal detailed spending patterns.

Are there any specific performance concerns or successes documented for ANSOL, Inc. on this contract?

The provided data does not contain specific performance concerns or successes for ANSOL, Inc. on this particular contract. It confirms the award details, contract type, duration, and value. To ascertain performance, one would need to consult contract performance reports, CPARS (Contractor Performance Assessment Reporting System) data, or any official documentation related to contract closeout or disputes. Without such records, it's impossible to evaluate the contractor's actual performance beyond the fact that the contract was awarded and presumably fulfilled to some extent over its duration.

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

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13766 TORREY GLENN ROAD, SAN DIEGO, CA, 92129

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4180

IDV Type: IDC

Timeline