DoD's $11.6M contract for engineering services awarded to AMSEC LLC, with a significant portion allocated to San Diego

Contract Overview

Contract Amount: $11,660,367 ($11.7M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of Defense

Start Date: 2006-06-12

End Date: 2024-01-25

Contract Duration: 6,436 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200609!SS4157!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS06 ! !20060612!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000783213!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!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00039!0001! !

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: 200609!SS4157!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS06 ! !20060612!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000783213!N!N!000000000000!R414!SY… Key points: 1. Value for money is difficult to assess without detailed performance metrics and cost breakdowns. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract type (Cost Plus Fixed Fee) potentially leading to cost overruns. 4. Performance context is broad, covering systems engineering services for naval warfare systems. 5. Sector positioning is within the defense services industry, a large and competitive market.

Value Assessment

Rating: fair

The total contract value of $11.6 million over its duration appears reasonable for systems engineering services. However, a direct comparison to similar contracts is challenging without more specific details on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost escalation, as contractor incentives are aligned with cost incurrence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process generally supports price discovery and can lead to more favorable pricing for the government. The specific number of bidders is not detailed, but the award method suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and potentially lower prices due to market forces.

Public Impact

The primary beneficiary is the Department of Defense, specifically naval warfare systems. Services delivered include systems engineering and technical assistance. Geographic impact is noted in San Diego, California, where a significant portion of the contract value is associated. Workforce implications include employment for engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns.
Limited transparency on specific performance metrics makes value assessment difficult.
Potential for contractor to maximize profit by increasing costs under CPFF.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor has experience in defense contracting.
Services are critical for naval warfare systems.

Sector Analysis

This contract falls within the Defense Engineering Services sector, a significant segment of the broader federal contracting market. The market is characterized by high barriers to entry, specialized expertise requirements, and substantial government spending. Comparable spending benchmarks for systems engineering services can vary widely based on complexity and duration, but this contract's value is within a typical range for specialized support.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. The prime contractor, AMSEC LLC, is not identified as a small business. Subcontracting opportunities for small businesses may exist, but are not detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. Accountability measures would be tied to contract performance clauses and reporting requirements. Transparency is moderate, with basic award details available, but in-depth performance and cost data may be restricted.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Systems Engineering and Technical Assistance (SETA) Contracts
Department of Defense Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Limited public data on specific performance metrics.
Contract duration is lengthy, increasing potential for scope creep or changing requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. 200609!SS4157!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4119 !A!N! !Y!NS06 ! !20060612!20060930!072581718!072581718!054781240!N!AMSEC LLC !2829 GUARDIAN LANE !VIRGINIA BEACH !VA!23452!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000783213!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!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00039!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 $11.7 million.

What is the period of performance?

Start: 2006-06-12. End: 2024-01-25.

What is the track record of AMSEC LLC in performing similar systems engineering contracts for the Department of Defense?

AMSEC LLC, now part of Huntington Ingalls Industries (HII), has a substantial history of providing engineering and technical services to the U.S. Navy and other Department of Defense entities. Their expertise typically spans areas like naval architecture, marine engineering, combat systems, and cybersecurity. While specific performance metrics for this particular contract are not detailed, AMSEC's long-standing presence and numerous contract awards suggest a generally positive track record. However, a deeper dive into past performance reviews, any past performance issues, or specific contract awards with similar scope and value would provide a more comprehensive understanding of their capabilities and reliability in executing complex systems engineering tasks.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is a high degree of uncertainty in the costs. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee, which represents their profit. This structure can incentivize contractors to incur costs, as their profit is fixed regardless of the total cost. Compared to Fixed Price contracts, CPFF offers less cost certainty for the government. However, it can be advantageous for complex, research-intensive, or evolving projects where defining a fixed price upfront would be impractical or lead to excessively high bids to cover risk. For systems engineering, the implications for value are mixed: it allows for flexibility but requires robust government oversight to manage costs effectively and ensure the fixed fee remains a fair profit for the work performed.

What are the key performance indicators (KPIs) typically used to measure the success of systems engineering services in a naval warfare context?

Key performance indicators (KPIs) for systems engineering services in a naval warfare context often focus on technical performance, schedule adherence, and cost control. Technical KPIs might include system reliability, maintainability, interoperability, and adherence to specified performance parameters (e.g., speed, range, accuracy). Schedule adherence is critical, measured by on-time completion of milestones and overall project delivery. Cost control KPIs would involve staying within budget, managing the fixed fee effectively, and providing accurate cost projections. Additionally, factors like the quality of documentation, successful integration of subsystems, and the effectiveness of risk management processes are crucial. The government's contract administration and quality assurance teams would typically monitor these KPIs through regular reporting and technical reviews.

What is the historical spending trend for systems engineering services within the Department of Defense, and how does this contract fit?

The Department of Defense consistently allocates significant funding towards systems engineering and technical assistance (SETA) services, often running into billions of dollars annually. This spending is driven by the complexity and long lifecycle of defense systems, from initial design and development through sustainment and modernization. Spending trends are influenced by geopolitical factors, technological advancements, and specific platform acquisition programs. This $11.6 million contract, while substantial for a single award, represents a small fraction of the overall DoD spending on engineering services. It fits within the broader category of support services essential for maintaining and advancing naval capabilities, reflecting the ongoing need for specialized expertise in areas like combat systems integration and platform modernization.

Are there any specific risks associated with the geographic concentration of contract work in San Diego, California?

The geographic concentration of contract work in San Diego, California, does not inherently present unique risks beyond those typical for any project site. San Diego is a major hub for naval operations and defense contracting, meaning there is a readily available pool of skilled labor and established infrastructure to support such work. Potential risks could include localized increases in labor costs due to high demand, or logistical challenges if the work requires extensive coordination with geographically dispersed teams or assets. However, these are generally manageable risks within the defense contracting environment. The primary consideration is ensuring that the concentration of effort in one location does not create a single point of failure or dependency that could be disrupted by local events.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

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

Parent Contract

Parent Award PIID: N0017804D4119

IDV Type: IDC

Timeline