DoD Awards $113M C-WIPS Task Order to MAG DS Corp for Defense Systems Integration
Contract Overview
Contract Amount: $113,150,042 ($113.2M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2023-03-10
End Date: 2026-03-09
Contract Duration: 1,095 days
Daily Burn Rate: $103.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER W56KGU-23-F-0005 AWARD, ENTITLED C5ISR CENTER WORLDWIDE-DEFENSE-SYSTEM INTEGRATION, PROTOTYPING, AND SECURITY (C-WIPS). IN SUPPORT OF ENGINEERING AND SYSTEMS INTEGRATION (ESI) WITHIN THE PROGRAM INTEGRATION & EXECUTION DIVISION.
Place of Performance
Location: TINTON FALLS, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $113.2 million to MAG DS CORP for work described as: TASK ORDER W56KGU-23-F-0005 AWARD, ENTITLED C5ISR CENTER WORLDWIDE-DEFENSE-SYSTEM INTEGRATION, PROTOTYPING, AND SECURITY (C-WIPS). IN SUPPORT OF ENGINEERING AND SYSTEMS INTEGRATION (ESI) WITHIN THE PROGRAM INTEGRATION & EXECUTION DIVISION. Key points: 1. Significant award for defense systems integration and prototyping. 2. MAG DS Corp secures a major contract in a specialized R&D sector. 3. Potential risks associated with cost-plus fixed-fee contracts and long durations. 4. Focus on engineering and systems integration within the Army's C5ISR Center.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the $113 million investment in defense systems integration.
Public Impact
Enhances critical defense capabilities through advanced systems integration. Supports the Army's C5ISR Center's mission for technological advancement. Long-term contract (3 years) indicates sustained need for these services. Prototyping and security aspects are vital for modern defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Long contract duration may present scope creep risks.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense research and development.
- Clear alignment with stated agency needs.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates that this contract was not awarded to a small business (SB is false). Further analysis would be needed to determine if small business subcontracting opportunities exist within this large prime contract.
Oversight & Accountability
The award is a delivery order under a larger contract, implying some level of pre-award oversight. Ongoing oversight will be critical for managing the CPFF structure and ensuring successful project delivery.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (3 years).
- No specific small business awardee.
- R&D projects inherently carry technical and performance risks.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.2 million to MAG DS CORP. TASK ORDER W56KGU-23-F-0005 AWARD, ENTITLED C5ISR CENTER WORLDWIDE-DEFENSE-SYSTEM INTEGRATION, PROTOTYPING, AND SECURITY (C-WIPS). IN SUPPORT OF ENGINEERING AND SYSTEMS INTEGRATION (ESI) WITHIN THE PROGRAM INTEGRATION & EXECUTION DIVISION.
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 $113.2 million.
What is the period of performance?
Start: 2023-03-10. End: 2026-03-09.
What specific systems or technologies will be integrated and prototyped under this task order, and how do they align with current defense priorities?
The task order focuses on C5ISR Center Worldwide-Defense-System Integration, Prototyping, and Security (C-WIPS) for Engineering and Systems Integration (ESI). While specific systems aren't detailed, C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) implies integration of complex networked systems crucial for modern warfare, including intelligence gathering, communication networks, and cyber defense.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project, and how are they being mitigated?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies typically involve robust government oversight, detailed cost tracking, clear performance metrics, and defined ceilings to prevent unlimited spending. The long duration of the contract amplifies the need for diligent cost management.
How does the $113 million investment in this task order contribute to the Department of the Army's overall R&D effectiveness and long-term strategic goals?
This investment directly supports the Army's modernization efforts by enhancing its C5ISR capabilities, which are foundational for multi-domain operations. Effective systems integration and prototyping are essential for developing and fielding advanced technologies that maintain a strategic advantage. The project's success is key to improving situational awareness, command and control, and overall operational effectiveness.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $243,597,251
Exercised Options: $180,894,773
Current Obligation: $113,150,042
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $185,466,303
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
Start Date: 2023-03-10
Current End Date: 2026-03-09
Potential End Date: 2027-03-09 00:00:00
Last Modified: 2025-12-18
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