DoD's SPAWAR awards $25.7M engineering services contract to COMGLOBAL SYSTEMS, INC
Contract Overview
Contract Amount: $25,763,589 ($25.8M)
Contractor: Comglobal Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2007-10-10
End Date: 2024-01-25
Contract Duration: 5,951 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SPAWAR 054 OFFICE OF THE CHIEF ENGINEER, TECHNICAL AUTHORITY EXECUTION DEPT
Place of Performance
Location: LANCASTER, ERIE County, NEW YORK, 14086
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to COMGLOBAL SYSTEMS, INC for work described as: SPAWAR 054 OFFICE OF THE CHIEF ENGINEER, TECHNICAL AUTHORITY EXECUTION DEPT Key points: 1. Contract value of $25.7M over 18 years indicates long-term engagement. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Engineering Services sector spending is significant within the DoD. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract spans nearly 18 years, making direct price comparisons difficult. The Cost Plus Fixed Fee structure carries inherent risk of cost escalation compared to fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and Cost Plus Fixed Fee structure may limit the effectiveness of price discovery over time.
Taxpayer Impact: The extended duration and cost-plus nature of this contract warrant scrutiny to ensure taxpayer funds are used efficiently and effectively.
Public Impact
Long-term engineering support for critical defense functions. Potential for cost growth due to contract type and duration. Lack of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (nearly 18 years)
- No small business participation
Positive Signals
- Full and open competition utilized
- Consistent engineering support provided
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the Department of Defense's operational capabilities. Spending in this area is substantial, supporting complex technical requirements.
Small Business Impact
The contract data indicates no small business participation. This suggests that larger, established firms were the primary bidders and awardees, potentially limiting opportunities for smaller businesses in this specific procurement.
Oversight & Accountability
The long duration of this contract necessitates ongoing oversight to ensure performance standards are met and costs remain controlled. Regular reviews of the Cost Plus Fixed Fee elements are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may lead to scope creep or obsolescence
- Lack of small business participation
- Limited transparency on specific services provided
Tags
engineering-services, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to COMGLOBAL SYSTEMS, INC. SPAWAR 054 OFFICE OF THE CHIEF ENGINEER, TECHNICAL AUTHORITY EXECUTION DEPT
Who is the contractor on this award?
The obligated recipient is COMGLOBAL SYSTEMS, 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 $25.8 million.
What is the period of performance?
Start: 2007-10-10. End: 2024-01-25.
What specific engineering services are being provided, and how do they align with current technological needs?
The contract is for engineering services under NAICS code 541330. While the specific services aren't detailed, they likely encompass design, development, testing, and technical support for SPAWAR systems. Given the contract's long duration, ensuring these services remain relevant to evolving defense technologies is paramount for continued value.
What measures are in place to mitigate cost overruns inherent in a Cost Plus Fixed Fee contract over an 18-year period?
Mitigation strategies for Cost Plus Fixed Fee contracts typically involve robust cost tracking, detailed audits, and clear performance metrics. For this long-term contract, the Defense Contract Management Agency (DCMA) would likely conduct regular reviews to ensure costs are reasonable and allocable, and that the fixed fee remains appropriate for the effort.
How effectively did the 'full and open competition' process ensure the best value for taxpayers given the contract's structure?
Full and open competition is designed to maximize the pool of potential bidders, theoretically leading to better pricing. However, the Cost Plus Fixed Fee structure and the nearly 18-year duration can complicate direct value assessment. While competition likely drove initial pricing, the long-term cost-effectiveness depends heavily on ongoing oversight and efficient service delivery.
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: N0002407R3437
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Comglobal Systems Inc
Address: 4250 PACIFIC HWY STE # 225, SAN DIEGO, CA, 92110
Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $50,744,713
Exercised Options: $31,224,688
Current Obligation: $25,763,589
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4247
IDV Type: IDC
Timeline
Start Date: 2007-10-10
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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