DoD Awards $16.4M Engineering Services Contract to Serco Inc. Under GSA OASIS

Contract Overview

Contract Amount: $16,426,765 ($16.4M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-13

End Date: 2026-08-12

Contract Duration: 698 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: REQUIREMENT FOR ASC PROVIDING GLASS UNDER THE GSA OASIS UNRESTRICTED POOL 1, WILL PROVIDE QUALIFIED LABOR NECESSARY TO PERFORM SERVICES IN SUPPORT OF ASC AND ITS SUBORDINATE COMMANDS THROUGHOUT VARIOUS CONUS AND OCONUS LOCATIONS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to SERCO INC for work described as: REQUIREMENT FOR ASC PROVIDING GLASS UNDER THE GSA OASIS UNRESTRICTED POOL 1, WILL PROVIDE QUALIFIED LABOR NECESSARY TO PERFORM SERVICES IN SUPPORT OF ASC AND ITS SUBORDINATE COMMANDS THROUGHOUT VARIOUS CONUS AND OCONUS LOCATIONS. Key points: 1. Contract awarded to Serco Inc. for engineering services supporting Army commands. 2. Utilizes GSA OASIS Unrestricted Pool 1, indicating a broad acquisition vehicle. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract has a duration of 698 days, ending in August 2026. 5. This award falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF contracts for engineering services is recommended to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (CPFF) requires diligent oversight to ensure cost efficiency.

Taxpayer Impact: Taxpayer funds are being used for engineering services. The CPFF structure necessitates robust oversight to prevent unnecessary costs and ensure value for money.

Public Impact

Supports critical Department of the Army operations across CONUS and OCONUS locations. Leverages the GSA OASIS contract vehicle, a common platform for federal agencies. Ensures availability of qualified labor for specialized engineering support. Potential for follow-on work or expansion based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Limited information on specific performance metrics or deliverables.
  • Potential for scope creep in complex engineering support contracts.

Positive Signals

  • Awarded under a competitive GSA schedule.
  • Supports essential defense operations.
  • Clear end date for contract performance.

Sector Analysis

This contract falls within the Engineering Services sector, a critical area for defense operations. Spending benchmarks for similar engineering support contracts under GSA OASIS can provide context for the $16.4 million award.

Small Business Impact

The contract was awarded to Serco Inc., a large business. There is no indication that small businesses were specifically included or subcontracted in this award, which could be an area for improvement.

Oversight & Accountability

Oversight will be crucial given the CPFF contract type. The Department of Defense and GSA should ensure robust monitoring of costs, performance, and adherence to contract terms to maintain accountability.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Lack of specific performance metrics in provided data.
  • No explicit small business participation mentioned.
  • Potential for scope creep in engineering services.

Tags

engineering-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to SERCO INC. REQUIREMENT FOR ASC PROVIDING GLASS UNDER THE GSA OASIS UNRESTRICTED POOL 1, WILL PROVIDE QUALIFIED LABOR NECESSARY TO PERFORM SERVICES IN SUPPORT OF ASC AND ITS SUBORDINATE COMMANDS THROUGHOUT VARIOUS CONUS AND OCONUS LOCATIONS.

Who is the contractor on this award?

The obligated recipient is SERCO 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 $16.4 million.

What is the period of performance?

Start: 2024-09-13. End: 2026-08-12.

What specific engineering services are included in this contract, and how do they align with the Army's strategic objectives?

The contract specifies 'qualified labor necessary to perform services in support of ASC and its subordinate commands.' While the exact services are not detailed, they are intended to support Army operations. A deeper dive into the Statement of Work (SOW) would clarify the alignment with strategic objectives and ensure the services are essential and efficiently procured.

How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns and ensure value for taxpayer money?

Effective management of a CPFF contract requires stringent oversight, detailed cost tracking, and regular performance reviews. The contracting officer must actively monitor expenditures against the fixed fee, scrutinize all costs, and ensure that the contractor is incentivized to control expenses. Clear milestones and performance metrics are essential to validate the value delivered.

What is the potential impact of this contract on the availability and cost of similar engineering services in the future?

This award, utilizing a large contract vehicle like GSA OASIS, could influence market dynamics. If Serco Inc. performs well and manages costs effectively, it could set a benchmark. However, the CPFF structure, if not well-managed, could potentially inflate perceived market rates or lead to less cost-conscious behavior among contractors competing for similar work.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $80,786,434

Exercised Options: $16,426,765

Current Obligation: $16,426,765

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $298,603

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU132

IDV Type: IDC

Timeline

Start Date: 2024-09-13

Current End Date: 2026-08-12

Potential End Date: 2026-08-12 12:08:00

Last Modified: 2025-12-17

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