DoD's $13.9M PMW 750 Program Support contract awarded to SOLUTE for engineering services
Contract Overview
Contract Amount: $13,942,620 ($13.9M)
Contractor: Solute
Awarding Agency: Department of Defense
Start Date: 2007-08-01
End Date: 2014-09-04
Contract Duration: 2,591 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PMW 750 PROGRAM SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108
Plain-Language Summary
Department of Defense obligated $13.9 million to SOLUTE for work described as: PMW 750 PROGRAM SUPPORT Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of over 7 years suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The cost-plus-fixed-fee (CPFF) structure can incentivize contractor efficiency while managing risk. 5. The contract was awarded by the Defense Contract Management Agency, a key oversight body. 6. The specific NAICS code (541330) points to a focus on engineering consulting.
Value Assessment
Rating: good
The contract's value of approximately $13.9 million over seven years for engineering services appears reasonable given the duration and scope. Benchmarking against similar long-term engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. The CPFF pricing structure, while common, requires careful monitoring to ensure costs remain within expected parameters and that the fixed fee is justified by the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 5 bidders indicates a healthy level of competition for this engineering services requirement. This competitive environment is generally expected to drive more favorable pricing and service quality for the government.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best value proposals.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its programs. Services delivered likely include technical analysis, design support, and program management assistance. The contract's performance in California suggests a focus on regional defense initiatives or facilities. The contract supports a workforce of engineers and technical specialists, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
- Long contract duration may lead to scope creep if not rigorously overseen.
- Reliance on a single contractor for an extended period could reduce flexibility.
- Ensuring continued alignment with evolving DoD requirements over the contract's lifespan.
Positive Signals
- Awarded through full and open competition, indicating a fair and broad selection process.
- The contract duration suggests a stable, long-term need being met effectively.
- The specific NAICS code indicates a focus on specialized engineering services.
- Awarded by a specialized agency (DCMA) suggests robust oversight capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized technical knowledge for project development and execution. The market for engineering services supporting defense is substantial, driven by the continuous need for modernization and operational support of military systems and infrastructure.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of engineering services and the contract value, it is likely that larger, established firms were the primary bidders. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific needs of the program.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for contract administration and oversight, ensuring compliance with terms and conditions. The Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific details of performance and cost breakdowns may be sensitive.
Related Government Programs
- Defense Engineering Services
- Program Management Support Contracts
- Department of Defense IT and Technical Services
- Naval Sea Systems Command (NAVSEA) Support Contracts
Risk Flags
- Potential for cost escalation in CPFF contracts.
- Long contract duration requires sustained oversight.
- Need for clear performance metrics to ensure value.
Tags
defense, engineering-services, department-of-defense, solute, full-and-open-competition, cost-plus-fixed-fee, delivery-order, california, program-support, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to SOLUTE. PMW 750 PROGRAM SUPPORT
Who is the contractor on this award?
The obligated recipient is SOLUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2007-08-01. End: 2014-09-04.
What specific engineering services were provided under the PMW 750 Program Support contract?
While the provided data indicates 'Engineering Services' under NAICS code 541330, the specific nature of services for the PMW 750 Program Support contract is not detailed. Typically, such contracts within the Department of Defense could encompass a wide range of activities including systems engineering, technical analysis, design support, integration, testing, and program management assistance for naval platforms or related systems. The 'PMW 750' designation likely refers to a specific Program Management Office within the Navy, suggesting the services were tailored to their unique requirements, potentially involving ship design, modernization, or acquisition support.
How does the $13.9 million contract value compare to similar engineering support contracts for the DoD?
The $13.9 million contract value, spread over approximately seven years, averages around $2 million per year. This figure is moderate for long-term, specialized engineering support within the Department of Defense. Larger, more complex programs can involve hundreds of millions or even billions of dollars. However, for specific program support offices like PMW 750, this level of funding suggests a focused, albeit significant, requirement for engineering expertise. A direct comparison would require analyzing contracts with similar scope, duration, and specific service requirements within the naval or broader DoD engineering support landscape.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?
The primary risks with a CPFF contract of this seven-year duration include potential cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise, although the fixed fee provides a ceiling on contractor profit. There's also a risk of scope creep, where the project's objectives expand beyond the original agreement without adequate adjustments to cost and schedule. For the government, ensuring robust oversight to validate costs and prevent inefficiencies is crucial. The contractor, while incentivized to control costs to protect their fixed fee, may also face risks if they underestimate the effort required.
What does the fact that this contract was awarded under 'Full and Open Competition' with 5 bidders imply for taxpayers?
Awarding this contract under 'Full and Open Competition' with five bidders is a positive signal for taxpayers. It indicates that the Department of Defense sought proposals from all responsible sources, fostering a competitive environment. The presence of multiple bidders suggests that the government had options and was not limited to a single provider. This competition typically drives down prices, encourages innovation, and leads to better overall value for the services rendered, ensuring that taxpayer funds are used more efficiently compared to sole-source or limited competition awards.
What is the historical spending pattern for engineering services by the Defense Contract Management Agency (DCMA)?
The provided data focuses on a single contract awarded by the DCMA. To assess historical spending patterns for engineering services by the DCMA, a broader dataset encompassing multiple contracts over several fiscal years would be necessary. Generally, the DCMA, as a contract management agency, oversees a vast array of contracts across different service types and sectors for the Department of Defense. Their spending on engineering services would fluctuate based on the specific needs of the programs they manage and the overall defense budget allocation. Analyzing trends would require looking at aggregate spending data for NAICS codes related to engineering services managed by the DCMA.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002407R3246
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4250 PACIFIC HIGHWAY, STE, SAN DIEGO, CA, 92110
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $112,072,733
Exercised Options: $31,052,749
Current Obligation: $13,942,620
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4565
IDV Type: IDC
Timeline
Start Date: 2007-08-01
Current End Date: 2014-09-04
Potential End Date: 2014-09-04 00:00:00
Last Modified: 2017-09-06
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