DoD awards $28.3M for Ground Vehicle Systems Center engineering support, with a 3-year duration

Contract Overview

Contract Amount: $28,325,980 ($28.3M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2023-12-11

End Date: 2026-12-30

Contract Duration: 1,115 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

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

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.3 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 CUSTOMERS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The contract duration of 1115 days (approx. 3 years) indicates a medium-term need for these services. 4. The primary agency is the Department of the Army, supporting the Combat Capabilities Development Command Ground Vehicle Systems Center. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. No small business set-aside was indicated, suggesting the primary awardee is not a small business.

Value Assessment

Rating: fair

The total award amount is $28.3 million over approximately three years. Benchmarking this against similar engineering services contracts for defense laboratories is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while common in R&D and complex services, carries inherent risks of cost overruns if not managed diligently. The fixed fee component provides some incentive for the contractor to manage costs, but the government bears the majority of the cost risk.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a broader pool of contractors to vie for government work.

Public Impact

The Combat Capabilities Development Command Ground Vehicle Systems Center (DEVCOM GVSC) will benefit from continued technical and engineering support. Services delivered will support the research, development, and sustainment of ground vehicle systems for the U.S. Army. The geographic impact is primarily within Virginia, where the contract is administered, and potentially at various Army testing and development facilities. The contract supports a specialized workforce of engineers and technical professionals within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain reasonable and the fixed fee is justified.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
The duration of the contract (over 3 years) necessitates ongoing monitoring of performance and contractor capabilities.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified contractors.
The contract supports critical R&D functions for ground vehicle systems, aligning with defense modernization efforts.
The fixed fee component of the CPFF contract provides a defined profit margin, potentially aiding in budget predictability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense research and development. The market for defense engineering services is substantial, driven by the continuous need for modernization and technological advancement in military systems. Comparable spending benchmarks would typically involve analyzing other contracts for similar R&D support at defense laboratories, focusing on the scope of work and contract type. The $28.3 million award over three years represents a significant, but not exceptionally large, investment in specialized engineering expertise for a critical defense function.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SS: false, SB: false). This suggests that the competition was open to all responsible sources, and the primary awardee is likely a larger entity. While there's no direct small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem within the defense industrial base.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Army's contracting officers and technical representatives. Robust oversight will be crucial to monitor contractor performance, ensure adherence to the scope of work, and scrutinize costs to ensure the fixed fee remains reasonable and the overall value is achieved. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Combat Vehicle Research and Development
Army Research and Development Support
Engineering and Technical Services
Defense Systems Development

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited information on the number of bidders in the full and open competition.
Performance metrics and specific deliverables need close monitoring over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.3 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 CUSTOMERS

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 $28.3 million.

What is the period of performance?

Start: 2023-12-11. End: 2026-12-30.

What is the track record of DCS CORPORATION in providing similar technical and engineering services to the Department of Defense?

DCS Corporation has a significant history of contracting with the Department of Defense, often providing a range of technical, engineering, and professional services. Their portfolio typically includes support for various defense agencies and commands, focusing on areas like systems engineering, research and development, and program management. To assess their specific track record for this contract, a deeper dive into their past performance on similar Cost Plus Fixed Fee contracts, particularly those involving ground vehicle systems or R&D laboratories, would be necessary. This would involve reviewing past performance evaluations, any documented issues or successes, and their ability to manage costs and schedules effectively within the defense sector. Their established presence suggests they possess the necessary clearances and expertise, but specific performance metrics related to this type of work are key.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services in the defense sector?

The Cost Plus Fixed Fee (CPFF) contract type is common for research, development, and complex services where the scope of work is not precisely defined at the outset, or where innovation is a key component. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. Compared to Firm-Fixed Price (FFP) contracts, CPFF shifts more cost risk to the government but allows for greater flexibility in adapting to evolving requirements. Cost-Plus-Incentive-Fee (CPIF) contracts, another alternative, offer shared cost savings or overruns between the government and contractor, providing stronger incentives for cost control than CPFF. For highly uncertain R&D, CPFF can be appropriate, but it necessitates stringent government oversight to manage costs effectively and ensure the fixed fee remains a fair profit for the work performed.

What are the potential risks associated with a 3-year Cost Plus Fixed Fee contract for engineering services?

A significant risk with a 3-year Cost Plus Fixed Fee (CPFF) contract is the potential for cost growth beyond initial estimates, as the government bears the risk of actual costs incurred. The fixed fee, while set, might not adequately reflect the effort if the scope expands significantly or unforeseen challenges arise. Contractor performance is another risk; if DCS Corporation underperforms, the government may not receive the full value of the services, despite paying costs and the fixed fee. There's also a risk of 'scope creep,' where requirements evolve, leading to increased costs without a corresponding adjustment to the fixed fee or a formal contract modification. Effective oversight, clear communication, and robust performance metrics are essential to mitigate these risks and ensure the government receives the intended value.

What is the typical annual spending for engineering services at the DEVCOM GVSC laboratories, and how does this award compare?

Determining the typical annual spending for engineering services specifically at DEVCOM GVSC laboratories requires access to historical budget data and contract awards specific to that facility. This $28.3 million award, spread over approximately three years, averages around $9.4 million per year. This figure represents a substantial investment in specialized engineering support. Without specific historical data for GVSC's internal engineering budgets or prior contracts of similar scope, it's difficult to definitively state if this award is higher or lower than typical annual spending. However, it indicates a significant commitment to external engineering expertise for their ground vehicle systems development efforts.

How does the 'full and open competition' award mechanism impact the potential for innovation and cost savings for this contract?

Awarding this contract through 'full and open competition' theoretically maximizes the potential for both innovation and cost savings. By allowing all responsible sources to bid, the Department of the Army can access a wider pool of talent, potentially uncovering novel approaches or technologies from diverse contractors. This broad competition also drives down prices as contractors vie to offer the most compelling value proposition. While the CPFF structure itself doesn't inherently drive innovation or cost savings as much as FFP might, the competitive process leading to the award increases the likelihood that the selected contractor, DCS Corporation, will be motivated to perform efficiently and effectively to secure future work and maintain a positive performance record.

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: $28,325,980

Exercised Options: $28,325,980

Current Obligation: $28,325,980

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $4,524,971

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