DoD's $14.5M Engineering Services Contract with Micro Systems, Inc. Awarded in 2009 for Florida Support

Contract Overview

Contract Amount: $14,494,644 ($14.5M)

Contractor: Micro Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-30

End Date: 2015-03-15

Contract Duration: 2,084 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIELD ENGINEERING SUPPORT TTCS/TICU ENGINEERING SERVICES

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to MICRO SYSTEMS, INC for work described as: FIELD ENGINEERING SUPPORT TTCS/TICU ENGINEERING SERVICES Key points: 1. The contract's duration of over 2000 days suggests a long-term need for engineering services. 2. A single award for a definitive contract indicates a specific, defined scope of work. 3. The firm-fixed-price structure aims to control costs for the government. 4. The contract was awarded under full and open competition, suggesting a robust bidding process. 5. The engineering services sector is critical for defense infrastructure and operational readiness. 6. The contract's value, while significant, needs to be benchmarked against similar long-term engineering support contracts.

Value Assessment

Rating: fair

The total award amount of $14.5 million over approximately 5.7 years represents an average annual spend of roughly $2.5 million. Without specific deliverables or performance metrics, it's challenging to definitively assess value for money. However, the firm-fixed-price contract type suggests an attempt to cap costs. Benchmarking against similar long-term, broad engineering support contracts within the Department of Defense would be necessary for a more precise value assessment.

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. The presence of two bids suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids would typically lead to more competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include technical analysis, design, and support for military systems or infrastructure. The contract's geographic focus is Florida, impacting the local economy and workforce in that region. The contract supports a segment of the engineering and technical services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term definitive contracts if not managed tightly.
Dependence on a single contractor for extended periods can reduce flexibility.
Ensuring continued cost-effectiveness over the contract's multi-year duration requires ongoing oversight.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a fair and transparent procurement process.
Award to Micro Systems, Inc. indicates a potentially established relationship or capability in engineering services.

Sector Analysis

The engineering services sector is a vital component of the defense industrial base, providing essential technical expertise for the design, development, and maintenance of military systems and infrastructure. This contract falls within the broader professional, scientific, and technical services market, which is characterized by specialized knowledge and skilled labor. Comparable spending benchmarks would involve analyzing other large, long-term engineering support contracts awarded by the DoD or other federal agencies for similar types of services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless Micro Systems, Inc. voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting reports would be needed to confirm any small business participation.

Oversight & Accountability

The primary oversight mechanism for this contract would be through the Department of the Army's contracting officers and program managers, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency would be facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Army Corps of Engineers Support Contracts
Technical and Engineering Support Services
Professional Services Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Potential for contractor performance issues over an extended period.
Need for robust government oversight to ensure value and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to MICRO SYSTEMS, INC. FIELD ENGINEERING SUPPORT TTCS/TICU ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is MICRO SYSTEMS, 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 $14.5 million.

What is the period of performance?

Start: 2009-06-30. End: 2015-03-15.

What specific engineering services were provided under this contract, and how did they contribute to the Department of the Army's mission in Florida?

The contract, identified by NAICS code 541330 (Engineering Services), was awarded to Micro Systems, Inc. for 'FIELD ENGINEERING SUPPORT TTCS/TICU ENGINEERING SERVICES'. While the exact nature of 'TTCS/TICU' is not detailed in the provided data, it likely refers to specific technical systems or units requiring specialized engineering support. These services could encompass a range of activities such as system design, integration, testing, maintenance, and operational support for military equipment or infrastructure located in Florida. The contribution to the Army's mission would depend on the specific systems supported; for instance, it could involve ensuring the readiness of communication systems, logistical platforms, or training facilities critical for military operations and personnel stationed in the region.

How does the $14.5 million award compare to other long-term engineering support contracts awarded by the Department of the Army during the 2009-2015 period?

The $14.5 million total award for Micro Systems, Inc. over approximately 5.7 years (2009-2015) translates to an average annual value of roughly $2.5 million. To benchmark this, one would need to analyze similar definitive contracts for engineering services awarded by the Department of the Army within that timeframe. Contracts with similar NAICS codes (e.g., 541330) and durations exceeding one year would be relevant. If the average annual value of comparable contracts was significantly higher or lower, it could indicate whether this contract was priced competitively or represented a substantial investment. Factors like the specific technical domain (e.g., aerospace, civil, electrical engineering) and geographic scope also influence pricing, necessitating a nuanced comparison.

What were the key performance indicators (KPIs) or deliverables expected from Micro Systems, Inc. under this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for a firm-fixed-price contract of this nature, performance is typically measured against adherence to the defined scope of work, delivery timelines, quality standards, and potentially specific technical milestones. The Department of the Army's contracting officer's representative (COR) or program manager would likely have been responsible for monitoring progress, conducting inspections, and evaluating the contractor's performance against the contract requirements. Formal performance reviews or acceptance criteria for specific engineering tasks would have been documented in the contract's statement of work or associated performance work statements.

Given the contract's duration and value, what are the potential risks associated with contractor performance and cost overruns?

The primary risks associated with a long-term, firm-fixed-price contract like this include potential contractor underperformance or failure to meet evolving technical requirements, especially if the scope was not precisely defined initially. While the fixed-price nature caps cost overruns for the government, the contractor might face profitability issues if costs escalate unexpectedly due to unforeseen technical challenges or market changes. There's also a risk of 'scope creep' if the government requires additional work not originally envisioned, potentially leading to contract modifications or disputes. Ensuring adequate government oversight to monitor performance, manage changes, and verify quality is crucial to mitigate these risks.

What is the historical spending pattern for engineering services by the Department of the Army in Florida, and how does this contract fit within that pattern?

Analyzing historical spending patterns for engineering services by the Department of the Army in Florida would require accessing comprehensive federal procurement data over an extended period. This contract represents a $14.5 million investment over roughly 5.7 years, averaging about $2.5 million annually. To understand its place within the broader pattern, one would need to identify other contracts awarded to various entities for similar engineering services within Florida during and around the 2009-2015 period. This analysis would reveal whether this contract was a significant outlier, a typical expenditure, or part of a larger trend in Army engineering support within the state. Factors like the specific military installations or projects in Florida during that time would also provide context.

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

Solicitation ID: W31P4Q09R0181

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Undersea Sensor Systems Inc (UEI: 349084822)

Address: 35 HILL AVE NW, FORT WALTON BEACH, FL, 32548

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,139,144

Exercised Options: $14,494,644

Current Obligation: $14,494,644

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline