DoD awards $156.6M for engineering services at Picatinny Arsenal, with a 7,843-day duration

Contract Overview

Contract Amount: $15,663,250 ($15.7M)

Contractor: MJ Engineering, Architecture, Landscape Architecture, and Land Surveying P.C.

Awarding Agency: Department of Defense

Start Date: 2021-07-13

End Date: 2026-12-31

Contract Duration: 1,997 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULLTIPLE PROJECTS AT PICATINNY ARSENAL,

Place of Performance

Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to MJ ENGINEERING, ARCHITECTURE, LANDSCAPE ARCHITECTURE, AND LAND SURVEYING P.C. for work described as: MULLTIPLE PROJECTS AT PICATINNY ARSENAL, Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract spans nearly 2000 days, indicating a long-term need for engineering services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. Services are for multiple projects at Picatinny Arsenal, a key defense installation. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering expertise. 6. The awardee, MJ Engineering, Architecture, Landscape Architecture, and Land Surveying P.C., will provide these critical services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project details or comparable contract data. The duration of nearly 2000 days suggests a significant scope of work. The firm fixed price structure provides some cost control, but the overall value for money will depend on the successful execution and delivery of the multiple projects at Picatinny Arsenal.

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. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests a robust process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The Department of the Army benefits from essential engineering, architecture, landscape architecture, and land surveying services. Picatinny Arsenal, a critical defense facility, will see improvements and support through these multiple projects. The contract supports specialized professional services, contributing to the defense infrastructure. The geographic impact is concentrated in New Jersey, where Picatinny Arsenal is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep if not managed effectively.
Reliance on a single contractor for multiple projects may limit flexibility.
Potential for cost overruns if initial fixed price estimates do not account for unforeseen complexities.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Full and open competition suggests a competitive award process.
Awardee has a specific focus on engineering and related services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant component of the broader professional, scientific, and technical services industry. This sector supports various government functions, particularly in infrastructure development, defense, and research. Spending in this area is often driven by long-term capital investments and operational support needs for government facilities and programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, MJ Engineering, Architecture, Landscape Architecture, and Land Surveying P.C., is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm fixed price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon price. Transparency would be enhanced by public reporting of contract performance and any modifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Picatinny Arsenal Operations and Support Contracts
Department of Defense Engineering Services
Army Facilities Engineering
Professional Services Contracts

Risk Flags

Long contract duration may increase risk of scope creep and market irrelevance.
Lack of small business set-aside could limit opportunities for smaller firms.
Performance monitoring is critical to ensure quality and value over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to MJ ENGINEERING, ARCHITECTURE, LANDSCAPE ARCHITECTURE, AND LAND SURVEYING P.C.. MULLTIPLE PROJECTS AT PICATINNY ARSENAL,

Who is the contractor on this award?

The obligated recipient is MJ ENGINEERING, ARCHITECTURE, LANDSCAPE ARCHITECTURE, AND LAND SURVEYING P.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2021-07-13. End: 2026-12-31.

What is the historical spending pattern for engineering services at Picatinny Arsenal?

Analyzing historical spending for engineering services at Picatinny Arsenal requires access to detailed contract databases and procurement records. Without specific data on prior contracts for similar services at this installation, it's difficult to establish a precise spending pattern. However, defense installations like Picatinny Arsenal typically have recurring needs for engineering, architecture, and surveying services to maintain, upgrade, and expand their infrastructure. The current award of $156.6 million over nearly 2000 days suggests a substantial and ongoing requirement. To provide a more accurate historical context, one would need to examine previous awards for engineering services at Picatinny Arsenal, looking at contract values, durations, types of services rendered, and the contractors involved over the past 5-10 years.

How does the awarded amount compare to similar engineering service contracts within the Department of Defense?

Comparing the $156.6 million award for engineering services at Picatinny Arsenal to similar contracts within the Department of Defense (DoD) requires benchmarking against contracts with comparable scope, duration, and service types. The DoD frequently procures engineering services for its numerous installations and projects. Contracts for base operations, infrastructure development, and specialized engineering support can range from a few million to hundreds of millions of dollars. Given the nearly 2000-day duration and the firm fixed price structure, this contract appears to be a significant, long-term commitment. To assess its comparability, one would look for other large-scale, multi-year engineering service contracts awarded to support major DoD installations or complex projects, considering factors like geographic location, specific engineering disciplines required, and the competitive landscape.

What are the key performance indicators (KPIs) likely used to evaluate the contractor's performance?

For a contract of this nature, involving engineering, architecture, landscape architecture, and land surveying services for multiple projects, key performance indicators (KPIs) would likely focus on several critical areas. These would include adherence to project schedules and deadlines, quality of deliverables (e.g., accuracy of designs, completeness of surveys, compliance with codes and standards), cost control within the firm fixed price framework, responsiveness to government requests and feedback, and overall client satisfaction. Specific metrics might involve the number of design revisions required, the timeliness of survey data delivery, the successful completion of project milestones, and adherence to safety protocols during any site-related activities. The government would monitor these KPIs to ensure the contractor is meeting contractual obligations and delivering value.

What is the potential risk associated with the long duration of this contract?

The extended duration of this contract, spanning approximately 1997 days (over 5 years), presents several potential risks. Firstly, there's the risk of 'scope creep,' where the initial project requirements may evolve or expand over time, potentially leading to cost increases if not managed through formal modification processes. Secondly, long-term contracts can sometimes lead to complacency or a decrease in the contractor's urgency if performance management is not rigorous. Thirdly, market conditions, technological advancements, or changes in government priorities could occur during the contract period, potentially making the contracted services or solutions less relevant or cost-effective by the end of the term. Effective contract management, regular performance reviews, and clear communication channels are crucial to mitigate these risks.

How does the firm fixed price (FFP) contract type impact risk allocation between the government and the contractor?

A Firm Fixed Price (FFP) contract type, as used here, primarily allocates risk to the contractor. The contractor agrees to a set price for the defined scope of work, and is responsible for managing their costs to ensure profitability. This means that if the contractor's costs exceed the fixed price due to inefficiencies or unforeseen expenses (within the scope), they absorb the loss. Conversely, if the contractor can complete the work for less than the fixed price, they retain the profit. For the government, the primary benefit is cost certainty; the total price is known upfront, barring any contract modifications. The main risk for the government under an FFP contract is that the contractor might cut corners on quality to protect their profit margin if they underestimate costs, though this is mitigated by performance monitoring and quality assurance clauses.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1533 CRESCENT RD, CLIFTON PARK, NY, 12065

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,663,250

Exercised Options: $15,663,250

Current Obligation: $15,663,250

Actual Outlays: $316,836

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DS20D0006

IDV Type: IDC

Timeline