DoD's $1.56B engineering services contract awarded to Silvus Technologies, Inc. shows potential for value

Contract Overview

Contract Amount: $15,553,056 ($15.6M)

Contractor: Silvus Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-29

End Date: 2012-10-31

Contract Duration: 2,043 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DARPA BAA (05-13)

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90024

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to SILVUS TECHNOLOGIES, INC. for work described as: DARPA BAA (05-13) Key points: 1. Contract value suggests significant scope and potential for long-term impact. 2. Full and open competition indicates a robust bidding process. 3. Engineering services are critical for defense modernization and technological advancement. 4. Fixed-price contract type can offer cost certainty for the government. 5. Contract duration of over 2000 days points to a sustained need for these services. 6. The award to Silvus Technologies, Inc. warrants a closer look at their capabilities and past performance.

Value Assessment

Rating: good

Benchmarking the value of this $1.56 billion contract is challenging without specific deliverables. However, the scale suggests a significant undertaking. The firm fixed-price structure is generally favorable for the government, providing cost predictability. Comparing this to other large-scale engineering services contracts within the Department of Defense would be necessary for a more precise value assessment. The duration of the contract (2043 days) also implies a substantial, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation implies a broad solicitation.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving advanced engineering support. Services delivered are expected to include complex engineering solutions, research, development, and technical support. The geographic impact is likely national, given the scope of defense contracts, with potential for specific project sites. Workforce implications include employment opportunities for engineers, technicians, and support staff within Silvus Technologies and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for a large sum of engineering services carries inherent risk.
Ensuring continued innovation and adaptability throughout the contract's long duration.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests a strong initial selection process.
Long contract duration indicates a sustained and critical need for the services.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, particularly in defense, infrastructure, and research. The market size for defense engineering services is substantial, driven by the need for advanced technological solutions and platform sustainment. This contract represents a significant portion of spending within this specialized niche.

Small Business Impact

The provided 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 set-aside. However, the prime contractor, Silvus Technologies, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the engineering services required. The overall impact on the small business ecosystem would depend on whether they are included in the supply chain.

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 Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is often facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Technical Services Contracts
Defense Advanced Research Projects Agency (DARPA) Contracts
Army Corps of Engineers Contracts
Aerospace Engineering Services

Risk Flags

Contract Duration
Contract Value
Contractor Performance History
Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to SILVUS TECHNOLOGIES, INC.. DARPA BAA (05-13)

Who is the contractor on this award?

The obligated recipient is SILVUS TECHNOLOGIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2007-03-29. End: 2012-10-31.

What is Silvus Technologies, Inc.'s track record with large federal contracts, particularly within the Department of Defense?

Assessing Silvus Technologies, Inc.'s track record requires a deep dive into their contract history. While this $1.56 billion award is substantial, understanding their performance on previous contracts, especially those of similar scale and complexity within the DoD, is crucial. Key indicators include on-time delivery, adherence to budget (even on fixed-price contracts, scope changes can impact overall cost), quality of work, and any past performance issues or disputes. Information from sources like the Federal Procurement Data System (FPDS) or contract award databases can provide insights into their experience, the types of services they've provided, and their success rates. A history of successful, complex engineering projects would bolster confidence in their ability to execute this current contract effectively.

How does the $1.56 billion contract value compare to similar engineering services contracts awarded by the DoD in recent years?

The $1.56 billion value of this contract positions it as a major award within the engineering services domain for the Department of Defense. To benchmark its value, one would compare it against other large-scale engineering and technical services contracts awarded by the DoD or its branches (like the Army) over the past 3-5 years. Factors to consider include the specific services procured (e.g., R&D, systems engineering, infrastructure design), the duration of the contracts, and the number of bidders. If similar contracts for comparable services typically range from hundreds of millions to over a billion dollars, then this award is within the expected range for significant defense engineering needs. Conversely, if it appears unusually high or low relative to benchmarks, it warrants further investigation into the scope and market conditions.

What are the primary risk indicators associated with a contract of this magnitude and duration?

Contracts of this magnitude ($1.56 billion) and duration (2043 days) carry inherent risks. Key indicators include potential for scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to cost overruns despite the fixed-price nature. Contractor performance risk is also significant; a single point of failure or underperformance by Silvus Technologies, Inc. could jeopardize critical defense capabilities. Technological obsolescence is another risk, especially in engineering services for defense, where advancements can outpace project timelines. Furthermore, the long duration increases the likelihood of changes in government requirements, funding fluctuations, or shifts in strategic priorities. Robust oversight, clear change management processes, and contingency planning are essential to mitigate these risks.

What does the 'full and open competition' designation imply about the effectiveness of the bidding process and potential for cost savings?

The 'full and open competition' designation is a positive indicator for the effectiveness of the bidding process. It signifies that the solicitation was broadly advertised, allowing all responsible sources to submit proposals. This maximizes the pool of potential bidders, increasing the likelihood of receiving competitive offers and fostering price discovery. For taxpayers, this generally translates to better value, as competition drives down prices and encourages innovation. The effectiveness is further measured by the number of proposals received and the ultimate award price relative to the government's estimate. A robust competition suggests that the government secured the best possible technical solution at a fair and reasonable price.

How does the firm fixed-price (FFP) contract type influence cost control and risk allocation for this engineering services contract?

The Firm Fixed-Price (FFP) contract type is generally considered the most advantageous for the government in terms of cost control, especially for well-defined requirements. Under an FFP contract, the price is set and not subject to adjustment based on the contractor's cost experience. This places the risk of cost overruns squarely on the contractor, incentivizing them to manage their expenses efficiently and perform the work within the agreed-upon budget. For this $1.56 billion engineering services contract, the FFP structure provides significant budget certainty for the Department of Defense. However, it also means that if unforeseen technical challenges arise that genuinely increase costs beyond the contractor's control, they may be less willing or able to absorb them, potentially leading to disputes or a reluctance to perform certain tasks.

What are the potential implications of this contract on the broader defense engineering services market and its key players?

An award of this magnitude ($1.56 billion) to Silvus Technologies, Inc. can have significant implications for the defense engineering services market. It signals that Silvus is a capable and competitive player in securing large government contracts. This could enhance their market position, attract talent, and potentially lead to further contract awards. For competitors, it underscores the need to maintain strong technical capabilities and competitive pricing. The contract's success or failure could also influence future procurement strategies by the DoD. Furthermore, it may impact the ecosystem of subcontractors and suppliers involved in defense engineering, potentially creating opportunities or shifting market dynamics depending on Silvus's sourcing strategies.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 999

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11835 W OLYMPIC BLVD #745, LOS ANGELES, CA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,503,535

Exercised Options: $15,553,056

Current Obligation: $15,553,056

Contract Characteristics

Cost or Pricing Data: YES

Timeline