DoD's $59M I2O Technical Support Contract Awarded to Schafer Government Services

Contract Overview

Contract Amount: $59,274,503 ($59.3M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2014-06-13

End Date: 2017-09-30

Contract Duration: 1,205 days

Daily Burn Rate: $49.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE SCOPE OF THIS EFFORT IS TO PROVIDE TECHNICAL AND SUBJECT MATTER EXPERTISE SUPPORT TO I2O FOR EXISTING AND PLANNED PROGRAMS, NEW START EFFORTS, SCIENTIFIC RESEARCH, AND TECHNOLOGY TRANSITION.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $59.3 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: THE SCOPE OF THIS EFFORT IS TO PROVIDE TECHNICAL AND SUBJECT MATTER EXPERTISE SUPPORT TO I2O FOR EXISTING AND PLANNED PROGRAMS, NEW START EFFORTS, SCIENTIFIC RESEARCH, AND TECHNOLOGY TRANSITION. Key points: 1. Contract supports existing and planned programs, research, and technology transition. 2. Awarded by the Department of the Navy under full and open competition. 3. Significant funding allocated for technical and subject matter expertise. 4. Long-term engagement spanning over 3 years.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms are not detailed, making it hard to assess optimal price realization.

Taxpayer Impact: Taxpayer funds are being used to procure specialized technical and subject matter expertise for critical defense programs.

Public Impact

Ensures continued support for advanced defense programs and research. Facilitates the transition of new technologies into operational use. Provides essential expertise for the Department of the Navy's I2O initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher costs.
Limited transparency on specific cost drivers and profit margins.
Long duration could lead to scope creep or evolving requirements.

Positive Signals

Full and open competition promotes a competitive environment.
Award to a single contractor ensures continuity of expertise.
Supports critical national defense research and development.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense and technology development. Spending in this area is often high due to the specialized nature of the work and the need for cutting-edge solutions.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Schafer Government Services, LLC, is a small business itself, which is a positive signal for small business participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract's duration and complexity necessitate robust monitoring to ensure performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of contractor performance not meeting specialized expertise needs.
Dependency on a single contractor for critical support functions.
Evolving technological landscape may outpace contract scope.
Adequacy of oversight for complex technical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.3 million to SCHAFER GOVERNMENT SERVICES, LLC. THE SCOPE OF THIS EFFORT IS TO PROVIDE TECHNICAL AND SUBJECT MATTER EXPERTISE SUPPORT TO I2O FOR EXISTING AND PLANNED PROGRAMS, NEW START EFFORTS, SCIENTIFIC RESEARCH, AND TECHNOLOGY TRANSITION.

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $59.3 million.

What is the period of performance?

Start: 2014-06-13. End: 2017-09-30.

What specific metrics are used to evaluate the technical and subject matter expertise provided under this contract?

The contract likely includes performance work statements (PWS) with defined deliverables and key performance indicators (KPIs). These would typically involve technical reviews, milestone achievements, and adherence to project timelines. The Department of the Navy's contracting officer's representative (COR) would be responsible for monitoring these metrics and ensuring the contractor meets the required standards of expertise and support.

How does the Cost Plus Fixed Fee structure mitigate risks associated with undefined technical requirements?

A Cost Plus Fixed Fee (CPFF) contract aims to provide flexibility for evolving requirements while capping the contractor's profit. The fixed fee is negotiated upfront, and the government pays the actual allowable costs incurred. This structure is often used when the scope of work is not fully defined at the outset, allowing for adjustments. However, it requires diligent oversight to prevent cost overruns and ensure the fixed fee remains reasonable.

What is the long-term strategic value of this continuous technical support for the I2O programs?

Continuous technical and subject matter expertise is vital for the sustained success and evolution of I2O programs. It ensures that ongoing projects maintain technical integrity, incorporates the latest advancements, and facilitates the smooth transition of new technologies. This consistent support helps the Department of the Navy maintain a technological edge and achieve its strategic objectives in complex and rapidly changing environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002414R3163

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Belcan Corporation (UEI: 055105399)

Address: 101 BILLERICA AVENUE, BUILDING 5, SUITE 201, NORTH BILLERICA, MA, 01862

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

Financial Breakdown

Contract Ceiling: $59,274,504

Exercised Options: $59,274,504

Current Obligation: $59,274,503

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7914

IDV Type: IDC

Timeline