DoD's $42.1M contract for program management services awarded to AMSEC LLC shows potential for cost savings
Contract Overview
Contract Amount: $42,132,330 ($42.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2005-10-01
End Date: 2011-06-20
Contract Duration: 2,088 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200603!060205!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS03 ! !20051001!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000692100!N!N!000000000000!R408!PROGRAM MANAGEMENT/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! ! ! !C!C!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $42.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200603!060205!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS03 ! !20051001!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000692100!N!N!000000000000!R408!PR… Key points: 1. Contract awarded to AMSEC LLC for program management and support services. 2. Significant portion of contract value allocated to engineering services. 3. Contract duration spans over 6 years, indicating long-term support needs. 4. Awarded by the Department of Defense, highlighting critical national security functions. 5. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. Small business status not indicated, suggesting larger prime contractor involvement.
Value Assessment
Rating: good
The total contract value of $42.1 million over approximately 6 years suggests a moderate annual spend. Benchmarking against similar program management contracts within the DoD is crucial for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services, requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial projections. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the duration and scope indicate a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield favorable pricing and innovative solutions. The data does not specify the number of bidders, but the 'full and open' designation suggests a robust bidding environment, which is a positive sign for price discovery and market responsiveness.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging a wider pool of contractors to offer their best pricing and capabilities.
Public Impact
Provides essential program management and support services to the Department of Defense. Supports critical defense initiatives, potentially impacting national security operations. Likely involves a workforce of skilled professionals in program management, engineering, and technical support. Geographic impact is centered around the contracting agency (Defense Contract Management Agency) and potentially the operational areas supported by the services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Long contract duration may reduce flexibility to adapt to changing technological needs or strategic priorities.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contract duration indicates a stable, long-term need for these services.
- Focus on program management and support is critical for efficient defense operations.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on program management and support. The defense sector is a significant consumer of such services, requiring specialized expertise to manage complex projects and acquisitions. The market for defense program management is characterized by a mix of large, established contractors and specialized niche providers. Spending in this area is often driven by evolving geopolitical landscapes and technological advancements, necessitating continuous support and oversight.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or if AMSEC LLC is a small business. Typically, large contracts like this may involve subcontracting opportunities for small businesses, but specific details regarding set-asides or subcontracting plans are not available in this data snippet. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Defense Contract Management Agency (DCMA). These agencies are responsible for ensuring contract compliance, monitoring performance, and managing payments. The CPFF structure necessitates rigorous financial oversight to track costs and ensure they align with the fixed fee. Transparency is generally maintained through contract reporting requirements and audits, though specific IG involvement would depend on identified risks or performance issues.
Related Government Programs
- Defense Program Management Services
- Engineering and Technical Support Contracts
- Department of Defense Acquisition Support
- Naval Warfare Systems Support
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Monitoring Challenges
- Scope Creep Potential
Tags
defense, department-of-defense, program-management, engineering-services, cost-plus-fixed-fee, full-and-open-competition, amsec-llc, virginia-beach, delivery-order, services, contract-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200603!060205!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS03 ! !20051001!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000692100!N!N!000000000000!R408!PROGRAM MANAGEMENT/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! ! ! !C!C!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $42.1 million.
What is the period of performance?
Start: 2005-10-01. End: 2011-06-20.
What is the historical spending trend for AMSEC LLC with the Department of Defense for similar services?
Analyzing historical spending data for AMSEC LLC with the DoD for program management and engineering services would provide crucial context. This includes examining the value and duration of previous contracts, the types of services rendered, and their performance history. A trend of consistent, well-executed contracts would suggest reliability, while a history of cost overruns or performance issues might raise concerns. Understanding their past relationship with the DoD can help benchmark current contract value and assess potential risks associated with contractor performance and financial stability. Without specific historical data, it's difficult to definitively assess AMSEC's track record on this particular contract.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for program management services in the defense sector?
The Cost Plus Fixed Fee (CPFF) contract type is common for complex services where the scope of work may evolve or is difficult to define precisely upfront, such as program management. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost growth if not managed effectively. Cost-Reimbursement contracts with incentive fees can also be used, offering different risk-reward profiles for both the government and the contractor. The choice of CPFF suggests the DoD anticipated uncertainties in the program's execution or requirements.
What are the key performance indicators (KPIs) used to measure the success of this program management contract?
Key Performance Indicators (KPIs) for a program management support services contract typically focus on efficiency, effectiveness, and adherence to project timelines and budgets. Examples could include on-time delivery of project milestones, adherence to budget targets, quality of deliverables (e.g., reports, analyses, recommendations), responsiveness to task orders, and overall client satisfaction. For this specific contract, KPIs might also relate to the successful execution of specific defense programs managed under this support. The effectiveness of the contractor's contribution to achieving the DoD's strategic objectives would be a primary measure. Without access to the contract's Statement of Work (SOW) and performance metrics, these KPIs remain general.
What is the potential impact of this contract on small businesses in the defense contracting ecosystem?
The potential impact on small businesses hinges on whether this contract includes subcontracting requirements or set-asides. If AMSEC LLC is a large business, it may be obligated to subcontract a certain percentage of the work to small businesses, providing them with opportunities. However, if there are no specific small business provisions, the impact could be minimal, with larger firms potentially dominating the supply chain. The nature of program management and engineering services often requires specialized expertise, which could favor larger, established subcontractors. A thorough review of the contract's subcontracting plan, if available, would clarify the extent of small business involvement and its potential economic impact.
How does the geographic location of the contractor (Virginia Beach, VA) influence the performance and oversight of this contract?
The contractor's location in Virginia Beach, VA, places AMSEC LLC within a region with a significant defense presence, potentially facilitating collaboration and communication with relevant DoD entities. However, the contract is managed by the Defense Contract Management Agency (DCMA), which has offices nationwide. The specific location of the contractor is less critical than the proximity of DCMA oversight personnel or the operational sites where the services are being performed. If the services are primarily performed remotely or at a DoD facility elsewhere, the Virginia Beach address might be administrative. Effective oversight relies on the DCMA's ability to monitor performance regardless of the contractor's physical location, utilizing site visits, reporting, and communication channels.
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: N0002405R3317
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4119
IDV Type: IDC
Timeline
Start Date: 2005-10-01
Current End Date: 2011-06-20
Potential End Date: 2011-06-20 00:00:00
Last Modified: 2022-06-29
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