State Department awards $525M engineering contract to ManTech Advanced Systems International, Inc

Contract Overview

Contract Amount: $525,051,706 ($525.1M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of State

Start Date: 2017-07-01

End Date: 2025-09-30

Contract Duration: 3,013 days

Daily Burn Rate: $174.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROTECTIVE TECHNOLOGY SERVICES IGF::CT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $525.1 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: PROTECTIVE TECHNOLOGY SERVICES IGF::CT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. A duration of over 3000 days indicates a long-term, strategic engagement. 4. The contract is for engineering services, a critical component of government operations. 5. The awardee has a significant contract value, implying substantial past performance and capability. 6. The contract is not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $525 million over approximately 8 years represents a substantial investment. Benchmarking this specific engineering service contract is challenging without more granular data on the scope of work. However, the Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure costs remain reasonable and the fixed fee aligns with market expectations for similar services. The lack of detailed performance metrics makes a definitive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this significant engineering services contract. While competition is present, the specific number of bidders could be higher for a contract of this magnitude, potentially impacting price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs and improving the quality of services offered.

Public Impact

The Department of State benefits from specialized engineering services crucial for its operations. This contract supports the delivery of essential government functions related to infrastructure, security, or technological development. The contract's impact is likely concentrated within the Washington D.C. metropolitan area, where the Department of State is headquartered, and potentially at various overseas diplomatic facilities. Workforce implications may include employment opportunities for engineers and technical specialists within ManTech Advanced Systems International, Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The long contract duration may reduce flexibility to adapt to changing technological needs or market conditions.
Limited public information on specific deliverables makes it hard to assess performance risks.
The absence of small business set-asides might limit opportunities for smaller, specialized firms.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, ManTech Advanced Systems International, Inc., likely possesses significant experience and a strong track record to secure such a large award.
The definitive contract award suggests a stable, long-term requirement for these engineering services.
The contract is managed by the Department of State, a major federal agency with established oversight processes.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing professional services related to the design, development, and implementation of systems and infrastructure. The federal government is a significant consumer of engineering services, particularly in areas like defense, transportation, and infrastructure development. The market for these services is competitive, with a mix of large prime contractors and specialized small businesses. This specific contract's value places it among substantial government engineering procurements.

Small Business Impact

This contract was not set aside for small businesses, meaning it was competed broadly. While this allows for larger, more established firms like ManTech to compete, it may limit direct subcontracting opportunities for small businesses unless specifically included in the prime contractor's plan. The absence of a small business set-aside does not preclude subcontracting, but it means there was no mandate for it during the initial competition.

Oversight & Accountability

The Department of State is responsible for the oversight of this contract. As a Cost Plus Fixed Fee contract, regular audits and reviews of incurred costs and the fixed fee will be crucial. Transparency will depend on the Department's reporting practices and the availability of contract performance data. Inspector General oversight would typically apply to ensure the integrity of the procurement and contract execution processes.

Related Government Programs

Department of State IT Services Contracts
Federal Engineering and Technical Services
Department of State Facilities Management
Defense Engineering Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration may lead to technological obsolescence or market inflexibility.
Limited public detail on specific deliverables hinders performance risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $525.1 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. PROTECTIVE TECHNOLOGY SERVICES IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $525.1 million.

What is the period of performance?

Start: 2017-07-01. End: 2025-09-30.

What specific types of engineering services are being provided under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services for the Department of State could encompass a wide range, including but not limited to: facility design and construction oversight, security system engineering, IT infrastructure engineering, telecommunications systems, environmental engineering for overseas posts, or specialized technical support for diplomatic operations. Further analysis would require access to the contract's Statement of Work (SOW) or Performance Work Statement (PWS) to understand the precise deliverables and technical requirements.

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

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope is not fully defined at the outset, or where innovation is a key component. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from Fixed Price contracts, where the price is set regardless of costs, and Cost Plus Incentive Fee (CPIF) contracts, which adjust the fee based on performance against targets. For engineering services, CPFF can offer flexibility but requires robust government oversight to manage costs effectively. Compared to a firm-fixed-price contract, CPFF carries more cost risk for the government but can be more appropriate for services with uncertain cost elements.

What is ManTech Advanced Systems International, Inc.'s track record with the Department of State and similar contracts?

ManTech Advanced Systems International, Inc. is a significant government contractor. While specific details of their past performance with the Department of State are not provided in the summary data, their ability to win a $525 million definitive contract suggests a strong track record and positive past performance evaluations. Companies of this size typically have extensive experience across various federal agencies, often holding numerous contracts for IT, engineering, and technical services. A deeper dive into contract databases like FPDS or SAM.gov would reveal the full scope of their work with the State Department and other agencies, including performance ratings and any past issues.

What are the potential risks associated with the long duration of this contract (over 8 years)?

The contract's duration of over 8 years (3013 days) presents several potential risks. Firstly, technological advancements could render the contracted services or systems obsolete before the contract ends, requiring costly modifications or early termination. Secondly, market conditions and pricing for labor and materials can fluctuate significantly over such a long period, potentially impacting the cost-effectiveness of the fixed fee. Thirdly, long-term contracts can sometimes lead to complacency or a reduced sense of urgency from the contractor if not actively managed and monitored. Finally, it reduces the government's flexibility to re-compete and adopt potentially newer, more innovative solutions that may emerge during the contract's term.

How does the $525 million contract value compare to typical engineering services spending by the Department of State?

The $525 million contract value is substantial and indicates a significant, long-term requirement for engineering services by the Department of State. Without historical spending data specific to engineering services for the State Department, a direct comparison is difficult. However, this figure suggests a major program or a consolidation of multiple engineering needs under a single large contract. The Department of State, like other large federal agencies, invests heavily in infrastructure, security, and IT systems, making large engineering contracts a regular feature of its procurement landscape. This award represents a considerable portion of the agency's annual spending on such services.

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

Solicitation ID: SAQMMA16R0014

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 12015 LEE JACKSON MEMORIAL HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $795,061,462

Exercised Options: $623,976,547

Current Obligation: $525,051,706

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $63,310,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline