DoD's $36M contract for engineering support awarded without competition, raising value-for-money questions

Contract Overview

Contract Amount: $36,071,857 ($36.1M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2010-11-24

End Date: 2012-01-23

Contract Duration: 425 days

Daily Burn Rate: $84.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 385 WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT

Plain-Language Summary

Department of Defense obligated $36.1 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: 385 WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT Key points: 1. The contract's value proposition is unclear due to the lack of competitive bidding. 2. Limited competition suggests potential for overpayment and reduced innovation. 3. The firm-fixed-price structure aims to control costs, but without benchmarks, its effectiveness is uncertain. 4. The contract duration of 425 days is relatively short for complex engineering services. 5. The undisclosed domestic awardee prevents assessment of contractor past performance. 6. The absence of small business set-asides or subcontracting plans is noted.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to benchmark the $36 million price against market rates or similar contracts. The firm-fixed-price (FFP) contract type is generally favorable for cost control, but the lack of competition means there's no external validation that this price represents good value for the engineering services provided. The contract's value is further obscured by the undisclosed awardee, preventing a comparison of their specific capabilities and pricing against potential alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. The data indicates it was 'NOT COMPETED.' This significantly limits price discovery and the potential for achieving the best possible price through market forces. Without a competitive process, it's impossible to know how many other qualified vendors might have bid or at what price points.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the cost savings typically achieved through competitive bidding.

Public Impact

The primary beneficiaries are the undisclosed domestic awardee, which received a significant contract. The services provided are engineering support, crucial for military operations and readiness. The geographic impact is likely domestic, given the awardee is domestic, but specific locations are not detailed. Workforce implications include employment for engineers and technical staff at the awarded company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about fair pricing and potential overspending.
Undisclosed awardee prevents assessment of contractor's track record and capabilities.
No transparency on the justification for sole-source award.
Absence of small business participation opportunities.

Positive Signals

Firm-fixed-price contract type offers cost certainty to the government.
Awardee is a domestic entity, potentially supporting the domestic industrial base.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the defense industrial base. The market for defense engineering services is substantial, often characterized by specialized expertise and long-term relationships. This specific contract for 'WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT' suggests a need for specialized technical and operational assistance. Without competitive benchmarks, it's hard to place this $36 million award within the broader sector spending context, but it represents a significant investment in a niche area.

Small Business Impact

The contract data indicates no specific small business set-aside was applied (ss: false, sb: false). Furthermore, there is no information provided regarding subcontracting plans. This suggests that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were not explicitly prioritized or mandated within the award process.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a sole-source award, the justification and approval process would typically be subject to specific federal acquisition regulations. Accountability would primarily rest with the Department of the Army to ensure the contractor meets the terms of the firm-fixed-price agreement. Transparency is limited due to the undisclosed awardee and the non-competitive nature of the award.

Related Government Programs

Department of Defense Engineering Services
Army Logistics Support Contracts
Field Service Representative Contracts
Wolfhound Systems Support

Risk Flags

Sole-source award
Undisclosed awardee
Lack of competition
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.1 million to DOMESTIC AWARDEES (UNDISCLOSED). 385 WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $36.1 million.

What is the period of performance?

Start: 2010-11-24. End: 2012-01-23.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was 'NOT COMPETED' and awarded as a 'SOLE SOURCE'. However, the specific justification or rationale behind this decision is not detailed. Typically, sole-source awards are made when only one responsible source is available, or in cases of urgent and compelling need, or when specific capabilities are uniquely held by a single contractor. Without further documentation from the Department of the Army, the precise reason for bypassing the competitive bidding process remains unknown. This lack of transparency is a significant concern for ensuring fair and efficient use of taxpayer funds.

How does the $36 million contract value compare to similar engineering support contracts for defense systems?

Benchmarking the $36 million contract value against similar engineering support contracts is challenging due to the lack of specific details about the services rendered and the undisclosed awardee. Generally, the cost of engineering services can vary widely based on complexity, duration, required expertise, and the specific defense system involved. Without knowing the exact nature of 'WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT,' it's difficult to find precise comparables. However, for major defense systems, multi-million dollar contracts for specialized engineering and field support are not uncommon, but the absence of competition here prevents a definitive value assessment.

What are the potential risks associated with awarding a contract of this magnitude without competition?

The primary risk associated with awarding a $36 million contract without competition is the potential for inflated pricing and suboptimal value for money. When a contract is not competed, the government loses the benefit of competitive pressure, which typically drives down costs and encourages innovation. There's also a risk that the chosen contractor may not be the most capable or efficient provider, as their qualifications haven't been vetted against other potential bidders. Furthermore, the lack of transparency regarding the awardee and the justification for the sole-source award increases the risk of perceived or actual impropriety.

What is the track record of the undisclosed contractor for similar services?

The contractor for this $36 million contract is listed as 'DOMESTIC AWARDEES (UNDISCLOSED)'. Consequently, there is no available information regarding their track record, past performance, or experience in providing similar engineering support services. This lack of transparency prevents any assessment of their reliability, quality of work, or ability to successfully execute the contract requirements. A thorough review of a contractor's history is a standard part of the procurement process, and its absence here is a notable gap.

What is the historical spending pattern for 'WOLFHOUND SYSTEMS' or similar engineering support within the Department of the Army?

The provided data focuses on a single contract awarded in 2010 for 'WOLFHOUND SYSTEMS, FIELD SERVICE REPRESENTATIVES, AND NON-RECURRING-ENGINEERING SUPPORT'. It does not offer historical spending patterns for this specific system or for similar engineering support categories within the Department of the Army. To analyze historical spending, one would need access to broader contract databases covering multiple years and various contracts related to Wolfhound systems or comparable defense engineering services. This single data point does not provide sufficient context to establish a trend or pattern.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $36,071,857

Exercised Options: $36,071,857

Current Obligation: $36,071,857

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline