DoD awards $127.7M for C5ISR facility support, with MAG DS CORP as prime

Contract Overview

Contract Amount: $127,730,761 ($127.7M)

Contractor: MAG DS Corp

Awarding Agency: Department of Defense

Start Date: 2019-07-18

End Date: 2023-08-10

Contract Duration: 1,484 days

Daily Burn Rate: $86.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS IS TASK ORDER AWARD FOR FABRICATION INTEGRATION FIELDING FACILITY (FIFF) IN SUPPORT OF C5ISR I2WD.

Place of Performance

Location: TINTON FALLS, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $127.7 million to MAG DS CORP for work described as: THIS IS TASK ORDER AWARD FOR FABRICATION INTEGRATION FIELDING FACILITY (FIFF) IN SUPPORT OF C5ISR I2WD. Key points: 1. Contract value of $127.7M for C5ISR integration and fielding facility. 2. MAG DS CORP is the prime contractor for this effort. 3. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 4. Awarded via full and open competition, indicating broad market engagement. 5. This is a delivery order under a larger contract vehicle. 6. The contract duration is approximately 4 years. 7. The facility is located in New Jersey.

Value Assessment

Rating: good

The contract value of $127.7M appears to be within a reasonable range for specialized C5ISR facility support, given the complexity and R&D nature of the work. Benchmarking against similar large-scale facility development and integration projects within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are monitored, but the final price is subject to the contractor's efficiency in managing expenses while achieving the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of 4 bidders (indicated by 'no': 4) demonstrates a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple companies to offer their best terms and innovations to win the contract.

Public Impact

The Department of Defense benefits from enhanced C5ISR capabilities through the development of this facility. Services delivered include fabrication, integration, and fielding support for C5ISR systems. The geographic impact is primarily in New Jersey, where the facility is located. This contract likely supports a specialized workforce in engineering, fabrication, and technical integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely managed.
The duration of the contract (1484 days) requires sustained oversight to ensure performance.
Reliance on a single prime contractor for complex integration may pose risks if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contract supports critical C5ISR capabilities for national defense.
The prime contractor, MAG DS CORP, is likely experienced in this domain.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). The market for C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) systems and supporting infrastructure is a significant segment within the defense industry. Spending in this area is driven by the need for advanced technological capabilities to maintain military superiority. Comparable spending benchmarks would involve other large-scale facility development and integration contracts within defense agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, MAG DS CORP, may engage small businesses as subcontractors for specialized services or supplies, depending on the contract's requirements and the prime's subcontracting plan. The overall impact on the small business ecosystem would depend on whether such subcontracting opportunities are pursued.

Oversight & Accountability

Oversight for this contract would primarily reside with the awarding agency, the Department of the Army, within the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and technical inspections. Accountability measures are embedded in the Cost Plus Fixed Fee structure, which incentivizes cost control. Transparency is generally maintained through contract databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

C5ISR Systems Development
Defense Research and Development
Military Facility Construction and Support
Command and Control Systems Integration

Risk Flags

Cost Overrun Risk (CPFF)
Performance Delays
Technical Challenges in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $127.7 million to MAG DS CORP. THIS IS TASK ORDER AWARD FOR FABRICATION INTEGRATION FIELDING FACILITY (FIFF) IN SUPPORT OF C5ISR I2WD.

Who is the contractor on this award?

The obligated recipient is MAG DS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $127.7 million.

What is the period of performance?

Start: 2019-07-18. End: 2023-08-10.

What is the track record of MAG DS CORP in delivering similar C5ISR integration and facility support contracts?

Assessing MAG DS CORP's track record requires a review of their past performance on contracts with similar scope, complexity, and value, particularly those involving C5ISR systems and facility development for the Department of Defense or other federal agencies. Key indicators would include past performance evaluations, any history of contract disputes or terminations, and the successful delivery of projects on time and within budget. Information on their experience with Cost Plus Fixed Fee (CPFF) contracts and their ability to manage R&D projects would also be crucial. A detailed analysis would involve searching federal procurement databases and performance review systems to gauge their reliability and expertise in this specialized area.

How does the awarded value of $127.7M compare to similar C5ISR facility projects within the DoD?

To benchmark the $127.7M award, one would compare it against the total contract values and scopes of similar C5ISR facility fabrication, integration, and fielding projects awarded by the Department of Defense or other military branches over the past several years. Factors such as facility size, technological complexity, duration, and specific C5ISR capabilities supported would need to be considered for a fair comparison. If this contract represents a significant outlier (either higher or lower) compared to comparable projects, it would warrant further investigation into the specific requirements, market conditions, and competitive landscape at the time of award.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D project?

The primary risks associated with a CPFF contract for R&D projects like this center on cost control and potential for scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, costs can escalate significantly. The government bears the risk of these cost increases, while the contractor is incentivized to manage costs to achieve their fixed fee. Effective oversight is critical to ensure that all costs are reasonable, allocable, and necessary, and that the scope of work remains aligned with the contract objectives.

What is the strategic importance of this C5ISR facility to the Department of Defense?

This C5ISR facility is strategically important as it directly supports the development, integration, and fielding of critical Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance capabilities. These systems are fundamental to modern military operations, enabling effective decision-making, information superiority, and coordinated action across various domains. The facility likely serves as a hub for testing, validating, and preparing advanced C5ISR technologies and platforms before they are deployed to operational units. Its existence ensures that the DoD can maintain a technological edge and adapt to evolving threats in the complex information environment.

How has federal spending on C5ISR-related R&D and facility support evolved over the past five years?

Federal spending on C5ISR-related R&D and facility support has generally seen a consistent or increasing trend over the past five years, driven by the ongoing modernization efforts within the Department of Defense and the increasing importance of information dominance and cyber warfare. Agencies like the DoD, intelligence community, and others are investing heavily in upgrading legacy systems and developing next-generation capabilities to counter emerging threats. This includes significant outlays for research, development, testing, and the infrastructure required to support these advanced technologies. Specific figures would require detailed analysis of budget appropriations and contract awards across relevant agencies and categories.

What is the role of NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) in federal procurement?

NAICS code 541712 is crucial for federal procurement as it identifies contracts specifically for research and development activities in physical sciences (e.g., physics, chemistry, astronomy), engineering sciences (e.g., electrical, mechanical, civil), and life sciences (excluding biotechnology, which has its own code). This code is used by agencies to categorize R&D spending, identify potential contractors with relevant scientific and engineering expertise, and track investments in innovation. Contracts under this code often involve complex, cutting-edge work aimed at advancing scientific knowledge or developing new technologies for government missions, such as defense, energy, or health.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $165,047,024

Exercised Options: $147,978,377

Current Obligation: $127,730,761

Actual Outlays: $9,307,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0100

IDV Type: IDC

Timeline