DoD's $57M Rapid Response Engineering Services Contract Awarded Sole-Source in 2011

Contract Overview

Contract Amount: $57,151,726 ($57.2M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2011-12-09

End Date: 2012-12-08

Contract Duration: 365 days

Daily Burn Rate: $156.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: RAPID RESPONSE

Plain-Language Summary

Department of Defense obligated $57.2 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: RAPID RESPONSE Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant value suggests a critical need for engineering services. 3. Awarded as a Time and Materials contract, which can pose cost control risks. 4. Duration of one year with a potential for follow-on work. 5. Engineering services sector is broad, requiring specific context for benchmarking. 6. Lack of disclosed awardees hinders direct comparison of contractor performance.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of specific service details and the sole-source award. Time and Materials contracts, by nature, can lead to higher costs if not closely managed, as they reimburse actual labor and material costs plus a fee. Without comparable sole-source awards for similar rapid response engineering needs, it's difficult to definitively assess if the $57 million represents fair value. The absence of competition is a primary driver of this questionable value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Defense did not solicit bids from multiple potential contractors. This approach is typically used when only one contractor possesses the unique capabilities or resources required for the specific need, or in urgent situations. The lack of competition means that taxpayers did not benefit from the price reductions typically achieved through a competitive bidding process.

Taxpayer Impact: Sole-source awards generally result in higher prices for taxpayers compared to competitively awarded contracts, as the government lacks leverage to negotiate the lowest possible cost.

Public Impact

The primary beneficiaries are likely Department of Defense personnel requiring rapid engineering support. Services delivered are engineering solutions, potentially for urgent operational needs. Geographic impact is likely within areas of DoD operational focus. Workforce implications would involve specialized engineering talent, potentially sourced by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to overpayment.
Time and Materials contract type carries inherent risk of cost escalation.
Lack of disclosed awardee details prevents assessment of contractor's past performance.
Limited transparency on specific services rendered hinders performance evaluation.

Positive Signals

Awarded to address a 'RAPID RESPONSE' need, indicating potential urgency and critical mission support.
Engineering services are vital for complex defense operations.
Contract duration suggests a defined period of support, allowing for focused execution.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing establishments primarily engaged in providing architectural, engineering, and related services. The federal government is a significant consumer of these services, particularly for defense, infrastructure, and research projects. Benchmarking requires comparison to other sole-source or competitively awarded engineering contracts within the DoD, focusing on the nature of 'rapid response' and the specific engineering disciplines involved.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not available for this contract. As a sole-source award, it is less likely to have been specifically targeted for small business participation unless the sole source itself was a small business, which is not indicated. Further analysis would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers, and potentially inspectors general within the Department of Defense. The Time and Materials (T&M) contract type necessitates rigorous oversight of labor hours and material costs to ensure reasonableness and allocability. Transparency is limited by the sole-source nature and the lack of publicly available performance reports or detailed service descriptions.

Related Government Programs

Department of Defense Engineering Services Contracts
Rapid Response Procurement Vehicles
Time and Materials Contract Spending
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award
Time and Materials contract type
Lack of disclosed awardee
Limited performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.2 million to DOMESTIC AWARDEES (UNDISCLOSED). RAPID RESPONSE

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.2 million.

What is the period of performance?

Start: 2011-12-09. End: 2012-12-08.

What specific engineering services were procured under this $57 million contract, and what was the justification for the sole-source award?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330, awarded under the 'RAPID RESPONSE' designation. However, the specific nature of these engineering services (e.g., mechanical, electrical, civil, software) and the precise justification for awarding it sole-source are not detailed. Typically, sole-source justifications are required when only one responsible source is available or capable of meeting the agency's needs, often due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without this detailed justification, it's impossible to fully assess the necessity of bypassing competition.

How does the Time and Materials (T&M) contract type potentially impact cost control and value for money compared to fixed-price contracts for similar engineering services?

Time and Materials (T&M) contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or profit. This contract type offers flexibility and is often used when the scope of work is not clearly defined or is expected to change. However, it carries a higher risk of cost overrun for the government compared to fixed-price contracts, as the final cost is not predetermined. Effective cost control relies heavily on robust government oversight of labor hours, rates, and material costs. For engineering services where scope can be well-defined, a fixed-price contract might offer better value by incentivizing contractor efficiency and predictability.

What is the typical cost range for similar 'Rapid Response' engineering services contracts awarded by the Department of Defense, and how does this $57 million award compare?

Benchmarking this $57 million award is difficult without more specific details on the services rendered and the contract's duration or scope. 'Rapid Response' contracts can vary significantly in value depending on the urgency and complexity of the need. However, $57 million for a one-year contract (365 days) is a substantial amount, suggesting a significant or broad requirement. Comparable data would ideally include other sole-source or competitively awarded engineering support contracts within DoD that were also designated for rapid response, allowing for a comparison of total value, duration, and potentially labor rates or project complexity.

What are the potential risks associated with awarding a large engineering services contract on a sole-source, Time and Materials basis?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source award eliminates the competitive pressure that typically drives down prices, potentially leading to a higher cost than if multiple bids were solicited. Secondly, the Time and Materials (T&M) pricing model, while flexible, lacks a cost ceiling unless specifically negotiated and can incentivize longer task durations or higher labor hours if not meticulously monitored. This combination increases the risk of cost overruns and reduces the government's ability to ensure it is receiving the best possible value for taxpayer dollars without stringent oversight.

Given the contract was awarded in 2011 and completed in 2012, what insights can be gleaned about historical spending patterns for rapid response engineering services within the DoD?

This contract provides a snapshot of DoD's approach to procuring rapid response engineering services over a decade ago. The use of a sole-source, T&M contract suggests that in 2011-2012, the DoD prioritized speed and flexibility over competitive pricing for certain urgent engineering needs. Analyzing this contract in the context of other DoD procurements from that era could reveal trends in how critical support functions were being acquired. It might also inform current procurement strategies by highlighting potential areas where competition could be increased or where T&M contracts might still be appropriate, albeit with enhanced oversight measures.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

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

Financial Breakdown

Contract Ceiling: $57,151,726

Exercised Options: $57,151,726

Current Obligation: $57,151,726

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline