DoD Awards $34.3M for Field Engineering Support to Micro Systems, Inc
Contract Overview
Contract Amount: $34,334,412 ($34.3M)
Contractor: Micro Systems, Inc
Awarding Agency: Department of Defense
Start Date: 2014-06-30
End Date: 2019-12-31
Contract Duration: 2,010 days
Daily Burn Rate: $17.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF BASIC CONTRACT AWARD FOR FIELD ENGINEERING SUPPORT AND OPTIONS FOR ENGINEERING SERVICES HOURS.
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $34.3 million to MICRO SYSTEMS, INC for work described as: IGF::OT::IGF BASIC CONTRACT AWARD FOR FIELD ENGINEERING SUPPORT AND OPTIONS FOR ENGINEERING SERVICES HOURS. Key points: 1. Contract value of $34.3M for engineering services. 2. Awarded under full and open competition. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Services are in the Engineering Services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always result in the lowest possible price.
Taxpayer Impact: Taxpayer funds are utilized for engineering services, with the final cost influenced by the efficiency of service delivery and contract oversight.
Public Impact
Provides essential engineering support for Department of the Army operations. Supports technological advancement and infrastructure maintenance. Ensures operational readiness through specialized engineering expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed cost breakdown for benchmarking
- Potential for scope creep
Positive Signals
- Full and open competition
- Long-term contract duration
- Essential engineering services
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending in this sector can vary significantly based on national priorities and ongoing projects.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight is critical for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of the Army's contracting officers and IG are responsible for monitoring performance and expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of detailed cost breakdown
- No small business award
Tags
engineering-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.3 million to MICRO SYSTEMS, INC. IGF::OT::IGF BASIC CONTRACT AWARD FOR FIELD ENGINEERING SUPPORT AND OPTIONS FOR ENGINEERING SERVICES HOURS.
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 $34.3 million.
What is the period of performance?
Start: 2014-06-30. End: 2019-12-31.
What is the typical profit margin for Cost Plus Fixed Fee engineering contracts in the defense sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the defense sector can vary, but are generally regulated. The 'fixed fee' portion is negotiated upfront and represents the contractor's profit. This fee is typically a percentage of the estimated cost, often ranging from 7% to 15%, depending on the complexity, risk, and nature of the services provided. However, the total contract cost can exceed initial estimates, impacting the effective profit rate.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs compared to fixed-price contracts?
The Cost Plus Fixed Fee (CPFF) structure shifts cost risk to the government. While the fee (profit) is fixed, the government pays all allowable costs incurred by the contractor. This can lead to higher total costs if the contractor is inefficient or if the initial cost estimates are inaccurate. Fixed-price contracts, conversely, provide greater cost certainty for the government as the contractor bears the risk of cost overruns.
What are the key performance indicators (KPIs) used to assess the effectiveness of engineering services provided under this contract?
Key performance indicators for engineering services often include adherence to project timelines, quality of deliverables (e.g., designs, reports, analyses), technical accuracy, cost control within the estimated budget, and responsiveness to government requests. For this specific contract, KPIs might also relate to the successful completion of field engineering tasks, the effectiveness of engineering solutions proposed, and compliance with safety and regulatory standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W31P4Q14R0112
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kratos Defense & Security Solutions, Inc.
Address: 35 HILL AVE, 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: $73,297,660
Exercised Options: $34,334,412
Current Obligation: $34,334,412
Actual Outlays: $-147,633
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-06-30
Current End Date: 2019-12-31
Potential End Date: 2019-12-31 00:00:00
Last Modified: 2025-04-22
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