DoD's $11.17M Engineering Services Contract Awarded to TELE-CONSULTANTS, INC. for Systems Engineering Support

Contract Overview

Contract Amount: $11,167,494 ($11.2M)

Contractor: Tele-Consultants, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-02

End Date: 2011-09-30

Contract Duration: 1,642 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE PROCUREMENT, FIELDING AND INTEGRATI

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE (CITY) County, VIRGINIA, 23320, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to TELE-CONSULTANTS, INC. for work described as: SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE PROCUREMENT, FIELDING AND INTEGRATI Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful monitoring of award fee criteria. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The contract duration of over four years indicates a significant, long-term need for these specialized engineering services. 4. The award to TELE-CONSULTANTS, INC. positions them as a key provider within the Defense Contract Management Agency's support ecosystem. 5. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) places this contract within a well-defined professional services sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and award fee payouts. The cost-plus-award-fee (CPAF) structure allows for flexibility but can lead to higher costs if not managed tightly. Comparing it to similar systems engineering support contracts would require detailed analysis of scope, duration, and contractor performance history. The raw dollar amount of $11.17 million over approximately four years suggests a moderate investment for specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bidders, as indicated, suggests a reasonable level of competition, though more bidders could potentially drive prices lower.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider pool of qualified contractors, maximizing the chances of securing services at a fair market value.

Public Impact

The Department of Defense benefits from specialized systems engineering support, crucial for the procurement and fielding of complex systems. This contract supports the operational readiness and technological advancement of defense systems. The services provided likely impact the efficiency and effectiveness of defense procurement processes. The contract supports a workforce skilled in engineering and systems integration within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if award criteria are not strictly managed.
Limited visibility into the specific award fee criteria and how they were applied without further documentation.
The relatively small number of bidders (2) might indicate potential barriers to entry or limited market saturation for this specific niche.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and competitive bidding process.
The contract's duration implies a stable, long-term need, allowing for consistent support and potential for relationship building.
The Cost Plus Award Fee structure, if managed well, can incentivize high performance and successful project outcomes.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional services market supporting government and industry. This sector is characterized by specialized expertise and often involves complex project management. Spending in this area is driven by the need for technical solutions, research and development, and program management across various government agencies, particularly in defense and infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses may not have directly benefited from this specific award. However, the prime contractor, TELE-CONSULTANTS, INC., may engage small businesses for subcontracting opportunities, depending on the scope of work and their own subcontracting plans. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Cost Plus Award Fee (CPAF) structure necessitates robust oversight to ensure that award fees are justified based on performance against defined criteria. Transparency would depend on the agency's policies regarding the release of contract performance details and award fee determinations.

Related Government Programs

Defense Systems Engineering Support
Procurement and Fielding Services
Engineering Consulting Services
Department of Defense IT Support Contracts
Professional Services Contracts

Risk Flags

Potential for cost creep in CPAF contracts.
Limited competition may impact price optimization.
Complexity of systems integration poses technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to TELE-CONSULTANTS, INC.. SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE PROCUREMENT, FIELDING AND INTEGRATI

Who is the contractor on this award?

The obligated recipient is TELE-CONSULTANTS, 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 $11.2 million.

What is the period of performance?

Start: 2007-04-02. End: 2011-09-30.

What specific systems engineering support was provided under this contract?

The contract description indicates 'SYSTEMS ENGINEERING SUPPORT SERVICES FOR THE PROCUREMENT, FIELDING AND INTEGRATI'. This suggests the services encompassed the entire lifecycle of defense systems, from initial procurement planning and acquisition, through the physical fielding and deployment to military units, and finally, integration into existing or new operational environments. This could include activities such as requirements definition, technical analysis, risk management, testing and evaluation, logistics support planning, and ensuring interoperability of various defense assets.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar services?

The CPAF structure is often used when the exact cost is uncertain but performance outcomes can be measured. It allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee and an award amount based on meeting or exceeding performance objectives. This differs from Cost Plus Fixed Fee (CPFF), where the fee is fixed regardless of performance, or Firm-Fixed-Price (FFP), where the price is set upfront. CPAF incentivizes performance more directly than CPFF but can potentially lead to higher total costs than FFP if performance targets are aggressively pursued or if the base fee is substantial. For complex, long-term engineering services like those described, CPAF can be effective in driving desired outcomes.

What is the typical performance expectation for a contract of this duration and value in the defense engineering sector?

For a contract valued at approximately $11.17 million over roughly four years (1642 days), the expectation is for consistent, high-quality systems engineering support. This includes proactive identification and mitigation of technical risks, adherence to stringent defense acquisition regulations, effective collaboration with government program managers, and timely delivery of technical documentation and recommendations. Performance is often measured against milestones, technical reviews, and the successful integration or fielding of systems. The award fee component directly ties contractor compensation to exceeding these baseline expectations, indicating a need for demonstrable value-add beyond standard service delivery.

What does the limited number of bidders (2) suggest about the market for these specific engineering services?

A competition with only two bidders, while still technically competitive, might suggest several possibilities regarding the market for these specific systems engineering services. It could indicate a niche market with a limited number of highly specialized firms capable of meeting the stringent requirements. Alternatively, it might point to high barriers to entry, such as extensive security clearances, specific technical expertise, or significant past performance requirements that exclude many potential competitors. It could also suggest that the contract's scope or structure was not broadly appealing, or that outreach efforts did not reach a wider pool of qualified vendors. This warrants further investigation into the specific requirements and market dynamics.

How has TELE-CONSULTANTS, INC. performed on previous government contracts, particularly within the Department of Defense?

Assessing TELE-CONSULTANTS, INC.'s past performance requires accessing government contract databases (like FPDS or SAM.gov) and reviewing contract award histories, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or terminations. Without direct access to this specific data, it's impossible to definitively state their track record. However, securing a multi-year, multi-million dollar contract with the Department of Defense typically implies a baseline level of satisfactory past performance, as agencies usually vet contractors based on their history. Further due diligence would involve examining CPARS reports for this and similar contracts.

What are the potential risks associated with the 'procurement, fielding, and integration' aspects of this contract?

The 'procurement, fielding, and integration' phases of defense systems are inherently complex and carry significant risks. Procurement risks include cost overruns due to market fluctuations, supply chain disruptions, or inaccurate initial cost estimates. Fielding risks involve challenges in logistics, training personnel, and ensuring operational readiness in diverse environments. Integration risks are often the most substantial, stemming from technical incompatibilities between new and existing systems, software glitches, cybersecurity vulnerabilities, and the need for extensive testing and validation. Successful execution requires robust project management, deep technical expertise, and effective coordination across multiple stakeholders.

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: N0002407R3163

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tele Consultants Inc (UEI: 622345890)

Address: 860 GREENBRIER CIR STE 404, CHESAPEAKE, VA, 23320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $99,897,443

Exercised Options: $37,533,293

Current Obligation: $11,167,494

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4611

IDV Type: IDC

Timeline