DoD's $78M Network Modernization Support Contract Awarded to MAG DS CORP Under Full and Open Competition
Contract Overview
Contract Amount: $78,164,387 ($78.2M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2019-09-03
End Date: 2026-03-07
Contract Duration: 2,377 days
Daily Burn Rate: $32.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PRODUCT TECHNICAL SUPPORT SERVICES FOR SYSTEMS AND EQUIPMENT BEING PRODUCED, FIELDED, MODIFIED OR SUPPORTED BY PRODUCT MANAGER (PDM) NETWORK MODERNIZATION AND PDM MISSION NETWORK
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $78.2 million to MAG DS CORP for work described as: PRODUCT TECHNICAL SUPPORT SERVICES FOR SYSTEMS AND EQUIPMENT BEING PRODUCED, FIELDED, MODIFIED OR SUPPORTED BY PRODUCT MANAGER (PDM) NETWORK MODERNIZATION AND PDM MISSION NETWORK Key points: 1. Contract awarded to MAG DS CORP for product technical support services. 2. Services cover systems and equipment for Network Modernization and Mission Network. 3. Contract duration is approximately 2377 days. 4. Awarded under a full and open competition. 5. Contract type is Cost Plus Fixed Fee. 6. The North American Industry Classification System (NAICS) code is 541712, indicating Research and Development in Physical, Engineering, and Life Sciences. 7. The contract has a total value of $78,164,387.29. 8. The primary agency is the Department of the Army, under the Department of Defense.
Value Assessment
Rating: fair
The contract's value of $78.16 million over nearly 6.5 years for technical support services in R&D is substantial. Benchmarking this specific type of support is challenging without more granular data on the services provided and the complexity of the systems. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed carefully, as it incentivizes the contractor to incur costs to achieve a certain fee. Further analysis would be needed to compare the per-unit cost or labor rates against similar support contracts for complex defense systems.
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 offers. The presence of 3 offers suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the number of bidders can influence the final price. A higher number of bidders typically leads to more competitive pricing.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition. However, the actual value for money depends on the effectiveness of the competition and the contractor's performance in managing costs under the CPFF structure.
Public Impact
The primary beneficiaries are the Department of the Army and the Department of Defense, receiving technical support for critical network modernization and mission network systems. Services delivered include product technical support for systems and equipment. The geographic impact is likely concentrated within the operational areas of the Department of the Army, potentially worldwide. Workforce implications may involve specialized technical personnel employed by MAG DS CORP to support these defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
- The specific technical support services are broad, requiring detailed oversight to ensure efficiency.
- Long contract duration necessitates sustained performance monitoring.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- The contractor, MAG DS CORP, is providing essential technical support for critical defense systems.
- The contract aims to modernize and support vital network infrastructure.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The Department of Defense is a major investor in R&D, particularly for advanced technologies like network modernization. Comparable spending benchmarks in this sub-sector are difficult to pinpoint without more specific details on the technology and services, but the overall R&D spending by the DoD is in the tens of billions annually. This contract represents a portion of that investment aimed at enhancing communication and operational capabilities.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, MAG DS CORP, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to ensure that costs incurred are reasonable and allocable to the contract, and that the fixed fee is earned appropriately. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Network Modernization Initiatives
- Defense Information Technology Support Contracts
- Mission Network Infrastructure Support
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Need for robust oversight to ensure efficient cost management.
- Complexity of 'Network Modernization' and 'Mission Network' systems requires specialized expertise.
- Long contract duration necessitates sustained performance monitoring.
Tags
department-of-defense, department-of-the-army, research-and-development, technical-support, network-modernization, mission-network, cost-plus-fixed-fee, full-and-open-competition, mag-ds-corp, maryland, large-contract, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.2 million to MAG DS CORP. PRODUCT TECHNICAL SUPPORT SERVICES FOR SYSTEMS AND EQUIPMENT BEING PRODUCED, FIELDED, MODIFIED OR SUPPORTED BY PRODUCT MANAGER (PDM) NETWORK MODERNIZATION AND PDM MISSION NETWORK
Who is the contractor on this award?
The obligated recipient is MAG DS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $78.2 million.
What is the period of performance?
Start: 2019-09-03. End: 2026-03-07.
What is the specific nature of the 'Product Technical Support Services' provided under this contract?
The contract specifies 'Product Technical Support Services for Systems and Equipment Being Produced, Fielded, Modified or Supported by Product Manager (PDM) Network Modernization and PDM Mission Network.' This suggests a broad range of support activities, potentially including help desk operations, troubleshooting, maintenance, repair, software updates, documentation, and training related to the PDM's network modernization and mission network systems. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. These services are critical for ensuring the operational readiness and effectiveness of complex defense communication and IT infrastructure.
How does the $78.16 million contract value compare to similar R&D technical support contracts within the DoD?
Direct comparison of the $78.16 million value is challenging without knowing the specific technologies and the depth of support required. However, for large-scale, long-term technical support of complex defense systems, this value is within a typical range. The DoD frequently awards multi-year contracts in the tens to hundreds of millions for sustainment and technical support of major programs. The key differentiator would be the complexity of the 'Network Modernization' and 'Mission Network' systems, the number of users or fielded units, and the criticality of the support. A CPFF contract structure also influences the total cost, as it allows for cost reimbursement plus a fixed fee.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for technical support?
The primary risk with a CPFF contract is that the contractor has less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the actual costs incurred (within contract limits). This can lead to potential cost overruns if the government does not maintain rigorous oversight of the contractor's expenditures and performance. For technical support, risks include scope creep, inefficient labor utilization, and the contractor potentially incurring higher-than-necessary costs to maximize their fee indirectly through higher base costs. Effective government oversight, clear performance metrics, and detailed cost accounting are crucial to mitigate these risks.
What is MAG DS CORP's track record with similar DoD technical support contracts?
Information on MAG DS CORP's specific track record with similar DoD technical support contracts is not detailed in the provided data. To assess their performance, one would need to review their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contract awards in similar service areas, and any history of contract disputes or issues. A thorough review would involve examining their experience with network modernization, mission networks, and the specific technologies involved, as well as their financial stability and capacity to handle a contract of this magnitude and duration.
How does the competition level (3 bidders) impact the value for money for taxpayers?
Having 3 bidders under a full and open competition suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices, three offers indicate that the requirement was attractive enough to elicit interest from multiple firms. This level of competition is often sufficient to drive competitive pricing, especially if the bidders were well-qualified and the evaluation criteria were robust. However, it is less competitive than if there were, for example, 5 or more bidders, which might have driven prices down further. The government's negotiation strategy and the clarity of the solicitation are also critical factors in achieving value for money.
What are the potential implications of the 'Research and Development' NAICS code for the type of services rendered?
The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' suggests that the technical support services may extend beyond routine maintenance and troubleshooting. It implies that the support could involve assisting with the development, testing, integration, or modification of new or evolving systems related to network modernization and mission networks. This could include providing feedback on prototypes, assisting with experimental setups, analyzing performance data from R&D efforts, or supporting the transition of R&D outcomes into fielded systems. This R&D focus often involves higher levels of technical expertise and potentially more complex problem-solving than standard operational support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,683,580
Exercised Options: $87,683,580
Current Obligation: $78,164,387
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $49,247,277
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0100
IDV Type: IDC
Timeline
Start Date: 2019-09-03
Current End Date: 2026-03-07
Potential End Date: 2026-03-07 00:00:00
Last Modified: 2026-01-22
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