EMW, INC. awarded $26.16M for Manas Air Base Communications O&M Support, a cost-plus-fixed-fee contract

Contract Overview

Contract Amount: $26,164,080 ($26.2M)

Contractor: EMW, Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2014-09-27

Contract Duration: 1,460 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MANAS AIR BASE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT

Plain-Language Summary

Department of Defense obligated $26.2 million to EMW, INC for work described as: MANAS AIR BASE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 3. The contract duration of 4 years (1460 days) indicates a significant, long-term need. 4. The award to EMW, INC. represents a substantial commitment for communications O&M. 5. The engineering services NAICS code (541330) points to specialized technical support requirements. 6. The absence of small business set-aside suggests the primary contractor is not a small business, with potential subcontracting implications.

Value Assessment

Rating: fair

The contract's total value of $26.16 million over four years averages to approximately $6.54 million annually. Without specific benchmarks for similar communications O&M support at military installations of comparable size and complexity, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) contract type carries inherent risks of cost escalation compared to fixed-price contracts, requiring diligent oversight to ensure reasonable expenditures. However, CPFF can be appropriate for complex services where cost estimation is difficult upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this requirement. While multiple bidders participated, the exact number is relatively low for a federal contract of this magnitude, which could influence price negotiation and potentially lead to less aggressive pricing than a more crowded field.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better service offerings from contractors vying for the award.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Manas Air Base, Kyrgyzstan, who rely on robust communications infrastructure. The contract delivers essential operations and maintenance services for critical communication systems. The geographic impact is localized to the Manas Air Base, supporting its mission readiness. Workforce implications include employment opportunities for technical personnel, likely both U.S. citizens and local nationals, employed by the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to higher final costs if not managed effectively.
Limited competition (3 bidders) may result in less favorable pricing than a more robust bidding environment.
Reliance on a single prime contractor for critical O&M could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential providers.
The contract duration suggests a stable, long-term requirement, allowing for focused expertise development.
Engineering services NAICS code indicates specialized, potentially high-quality technical support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the operational needs of a military communications infrastructure. The market for defense-related IT and communications O&M is substantial, driven by the need for reliable systems in complex environments. Comparable spending benchmarks are difficult to ascertain without detailed knowledge of the specific technologies and scope of services at Manas Air Base, but such contracts typically represent significant investments in maintaining national security capabilities.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary award was made to a large business or that the competition was open to all, with no specific preference for small entities. There is no explicit information on subcontracting plans, but large federal contracts often include provisions for small business participation, which would need to be monitored to ensure opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS-NG, which record award details. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Communications Infrastructure Support
Air Force Base Operations and Maintenance
Engineering Services for Government Facilities
IT Support Services Contracts
Contingency Operations Support

Risk Flags

Cost-Plus-Fixed-Fee contract type carries inherent risk of cost escalation.
Limited number of bidders (3) may indicate reduced competitive pressure on pricing.
Performance history of EMW, INC. on similar contracts needs thorough review.
Potential for scope creep in O&M contracts requiring diligent government oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to EMW, INC. MANAS AIR BASE COMMUNICATIONS OPERATIONS & MAINTENANCE (O&M) SUPPORT

Who is the contractor on this award?

The obligated recipient is EMW, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2010-09-28. End: 2014-09-27.

What is the track record of EMW, INC. in performing similar communications O&M contracts for the Department of Defense?

Assessing EMW, INC.'s track record requires a deep dive into their past performance evaluations and contract history within the DoD. Publicly available data often includes past performance ratings (e.g., CPARS reports) which can indicate reliability, quality of service, and adherence to schedule and budget on previous contracts. Without specific access to these detailed reports for EMW, INC., it's difficult to definitively state their suitability for this Manas Air Base contract. However, winning a competitive bid for a significant contract like this suggests they met the minimum performance requirements set forth by the DoD during the solicitation process. Further investigation into their portfolio of completed government contracts, particularly those involving communications O&M in overseas or complex environments, would provide a clearer picture of their capabilities and potential risks.

How does the $26.16 million contract value compare to similar communications O&M contracts at other overseas military bases?

Benchmarking this $26.16 million contract against similar communications O&M contracts at other overseas military bases is challenging without specific details on the scope, scale, and technological complexity of the services required at Manas Air Base. Factors such as the size of the base, the number of users, the types of communication systems (e.g., satellite, fiber optic, radio), and the specific O&M tasks (e.g., preventative maintenance, repairs, upgrades, cybersecurity) significantly influence contract value. Generally, contracts for maintaining critical infrastructure at large, active overseas bases can range from several million to tens of millions of dollars annually. The cost-plus-fixed-fee (CPFF) nature of this contract also means the final cost could fluctuate. A comprehensive comparison would necessitate analyzing contracts with similar NAICS codes (541330) and service descriptions awarded to similarly sized installations.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this O&M support?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for communications O&M support is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides an incentive for the contractor to control costs (as it doesn't increase with higher expenses), it doesn't offer the same level of cost certainty as a fixed-price contract. If the contractor's costs escalate due to unforeseen circumstances, inefficiencies, or scope creep, the government bears the burden of these increased expenses, potentially exceeding the initial budget. Effective risk mitigation requires robust government oversight, stringent cost accounting standards, and clear definition of allowable costs to prevent contractor overspending and ensure value for taxpayer money.

What is the expected impact of this contract on the operational readiness and effectiveness of Manas Air Base?

This contract is expected to have a direct and positive impact on the operational readiness and effectiveness of Manas Air Base by ensuring the continuous and reliable functioning of its critical communication systems. Communications infrastructure is the backbone of modern military operations, enabling command and control, intelligence sharing, logistics coordination, and personnel communication. By providing dedicated O&M support, EMW, INC. will help prevent system downtime, address technical issues promptly, and maintain the performance standards necessary for mission success. This sustained operational capability is crucial for the base's ability to execute its assigned missions, support deployed forces, and maintain situational awareness in its operational theater.

How has spending on communications O&M at Manas Air Base evolved over time, and does this contract represent a significant change?

Analyzing historical spending patterns for communications O&M at Manas Air Base prior to this $26.16 million award requires access to historical contract data. Without that specific data, it's difficult to determine if this contract represents a significant change. However, the award amount and 4-year duration suggest a substantial and ongoing commitment to maintaining the base's communication infrastructure. Factors influencing historical spending could include changes in base operations, technological upgrades, geopolitical situations, and shifts in DoD procurement strategies. If previous contracts were smaller, shorter-term, or awarded to different entities, this could indicate a shift in strategy or an increase in the scope or cost of services. Conversely, it might represent a continuation of established support levels.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3200

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11320 RANDOM HILLS RD, FAIRFAX, VA, 11

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $45,739,382

Exercised Options: $38,026,307

Current Obligation: $26,164,080

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017807D5045

IDV Type: IDC

Timeline