DCS Corporation awarded $11.2M for Army Ground Vehicle Systems Center technical support

Contract Overview

Contract Amount: $11,194,947 ($11.2M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2023-11-08

End Date: 2027-01-30

Contract Duration: 1,179 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TECHNICAL AND ENGINEERING SERVICES (TES) SUPPORT FOR THE COMBAT CAPABILITIES DEVELOPMENT COMMAND GROUND VEHICLE SYSTEMS CENTER (DEVCOM GVSC) LABORATORIES AND ITS CUSTOMER, ARMY WATERCRAFT SYSTEMS (AWS)

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to DCS CORPORATION for work described as: TECHNICAL AND ENGINEERING SERVICES (TES) SUPPORT FOR THE COMBAT CAPABILITIES DEVELOPMENT COMMAND GROUND VEHICLE SYSTEMS CENTER (DEVCOM GVSC) LABORATORIES AND ITS CUSTOMER, ARMY WATERCRAFT SYSTEMS (AWS) Key points: 1. Contract provides essential engineering and technical services for ground vehicle systems development. 2. Full and open competition suggests a competitive bidding process. 3. Cost-plus-fixed-fee contract type may present cost control challenges. 4. Long duration of 1179 days indicates a significant, ongoing need. 5. Contractor DCS Corporation has a history of performing similar federal contracts. 6. Services support both DEVCOM GVSC laboratories and Army Watercraft Systems. 7. No small business set-aside indicates a focus on larger prime contractors.

Value Assessment

Rating: fair

The total contract value of $11.2 million over approximately three years appears reasonable for specialized engineering and technical support services. Benchmarking against similar contracts for R&D support within the Department of Defense is necessary for a definitive value assessment. The cost-plus-fixed-fee structure requires careful monitoring to ensure costs remain within acceptable parameters and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

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 bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of technical and engineering expertise, suggesting a robust market for these services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to lower overall costs compared to sole-source or limited competition awards.

Public Impact

Benefits the U.S. Army's Combat Capabilities Development Command Ground Vehicle Systems Center (DEVCOM GVSC) by providing critical technical expertise. Supports the development and enhancement of ground vehicle systems, crucial for military readiness. Services extend to Army Watercraft Systems (AWS), contributing to naval and amphibious capabilities. Impacts the defense technology sector by requiring specialized engineering and technical skills. Ensures continued research and development for future military ground vehicle platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed diligently.
The long contract duration requires sustained oversight to ensure performance remains aligned with evolving requirements.
Reliance on a single contractor for critical technical support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potential for value.
DCS Corporation's established presence in federal contracting indicates experience with similar requirements.
The contract supports vital Army R&D functions, contributing to national defense capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting research and development for ground vehicle systems. The market for such specialized technical support is driven by defense spending and the need for advanced technological solutions. Comparable spending benchmarks would typically be found within other Department of Defense R&D contracts for engineering and technical services, often awarded through competitive processes to firms with demonstrated expertise in defense systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most qualified large business contractor. The absence of set-asides means that opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and technical representatives. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Combat Capabilities Development Command (DEVCOM)
Army Watercraft Systems (AWS)
Department of Defense Research and Development
Engineering and Technical Services Contracts
Ground Vehicle Systems Modernization

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for contractor performance issues over the contract lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to DCS CORPORATION. TECHNICAL AND ENGINEERING SERVICES (TES) SUPPORT FOR THE COMBAT CAPABILITIES DEVELOPMENT COMMAND GROUND VEHICLE SYSTEMS CENTER (DEVCOM GVSC) LABORATORIES AND ITS CUSTOMER, ARMY WATERCRAFT SYSTEMS (AWS)

Who is the contractor on this award?

The obligated recipient is DCS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2023-11-08. End: 2027-01-30.

What is DCS Corporation's track record with similar Department of Defense contracts?

DCS Corporation has a significant history of performing contracts for the Department of Defense, often in areas related to engineering, technical support, and program management. Their portfolio includes work on various defense platforms and systems, demonstrating experience with complex government requirements. Analyzing their past performance ratings, contract values, and the types of services rendered on previous DoD contracts would provide further insight into their capabilities and reliability for this specific requirement. Their consistent engagement with federal agencies suggests a strong understanding of government procurement processes and performance expectations.

How does the $11.2 million value compare to similar engineering support contracts for R&D facilities?

The $11.2 million value for approximately three years of technical and engineering support for R&D laboratories is within a typical range for specialized defense contracts. However, a precise comparison requires detailed analysis of contract scope, duration, and the specific technical expertise required. Contracts supporting advanced R&D, particularly for complex systems like ground vehicles, often command higher values due to the specialized knowledge and personnel involved. Benchmarking against contracts for similar functions at other DoD research centers or for comparable weapon system development programs would offer a more accurate assessment of whether this award represents good value for money.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate beyond initial projections, the government bears the increased expense, and the contractor's profit margin can increase proportionally. This structure can sometimes disincentivize cost control by the contractor. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure the government receives good value.

How does the full and open competition impact price discovery and potential savings for taxpayers?

Full and open competition is designed to maximize price discovery by allowing all responsible sources to bid. This broad competition typically drives down prices as contractors vie for the award by offering their best terms and pricing. For taxpayers, this means a higher likelihood of securing services at a competitive market rate, as multiple bidders are incentivized to be cost-conscious. The process allows the government to compare a wider range of technical approaches and price points, increasing the probability of selecting the most cost-effective solution and achieving significant savings compared to limited or sole-source procurements.

What is the strategic importance of supporting DEVCOM GVSC and Army Watercraft Systems?

Supporting DEVCOM GVSC is strategically vital as it is the Army's primary organization for research, development, and engineering of ground combat and support vehicles. Enhancing these capabilities directly impacts the Army's modernization efforts, operational effectiveness, and soldier safety. Similarly, providing support to Army Watercraft Systems (AWS) is crucial for maintaining and advancing the Army's ability to conduct amphibious operations, transport personnel and equipment across water bodies, and support logistical sustainment in diverse operational environments. Both functions are critical components of the Army's overall readiness and strategic deployment capabilities.

Are there any specific performance metrics or KPIs mentioned for this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such metrics would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These metrics are essential for evaluating the contractor's performance, ensuring the delivery of required services, and holding them accountable. Common KPIs for technical support contracts might include timeliness of deliverables, quality of engineering analyses, adherence to project milestones, and responsiveness to technical inquiries.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PARK DR, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $11,194,947

Exercised Options: $11,194,947

Current Obligation: $11,194,947

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $119,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV23D0017

IDV Type: IDC

Timeline