DoD's $16.1M contract for engineering services awarded to ManTech Advanced Systems International, Inc. shows potential value concerns

Contract Overview

Contract Amount: $12,105,941 ($12.1M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-07

End Date: 2007-09-29

Contract Duration: 752 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TAS::21 2020::TAS 200512!500720!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !GS23F0122J !C!N! !Y!W909MY05F0040! !20050907!20060930!801008228!801008228!053518312!N!MANTECH TELECOMMUNICATIONS AND!14119-A SULLYFIELD CIRCLE !CHANTILLY !VA!20151!51000!031!51!MELROSE !CAMPBELL !VIRGINIA !+000001924523!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541611!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: TAS::21 2020::TAS 200512!500720!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !GS23F0122J !C!N! !Y!W909MY05F0040! !20050907!20060930!801008228!801008228!053518312!N!MANTECH TELECOMMUNICATIONS AND!14119-A SULLYFIELD CIRCLE !CHANTILLY !VA!20151!51000!031!51!MELROSE… Key points: 1. The contract's duration of 752 days for $16.1M suggests a high daily burn rate, warranting scrutiny of efficiency. 2. Awarded under full and open competition, the pricing structure and final cost should be benchmarked against similar engineering service contracts. 3. The absence of small business set-asides or subcontracting plans may indicate missed opportunities for smaller firms. 4. While the agency is the Department of Defense, the specific service category 'Engineering Services' is broad and requires deeper analysis of the actual work performed. 5. The contract's performance period ended in 2007, making current value-for-money assessments retrospective and dependent on historical data. 6. The use of 'Time and Materials' pricing can sometimes lead to cost overruns if not meticulously managed and monitored.

Value Assessment

Rating: fair

The total award amount of $16.1M over approximately two years for engineering services presents a significant expenditure. Benchmarking this against similar contracts for comparable services within the Department of Defense or other federal agencies is crucial. Without specific details on the scope of work and deliverables, it's challenging to definitively assess value. However, the daily burn rate of approximately $21,300 ($16.1M / 752 days) is substantial and suggests that the services provided must have been highly specialized or resource-intensive to justify the cost. Further investigation into the specific tasks performed and the outcomes achieved would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring that the government receives competitive pricing. The number of bidders is not specified in the provided data, which would offer further insight into the level of competition. A robust competition typically leads to better pricing and service quality for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the government is not overpaying for services and receives the best possible value.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically the Department of the Army, receiving engineering services. The services delivered are categorized under 'Engineering Services,' though the specific nature of these services is not detailed. The geographic impact is centered in Virginia, where the contractor's address is located, and potentially wherever the engineering services were applied within the Army's operations. Workforce implications would include the employment of engineers and technical staff by ManTech Advanced Systems International, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type can pose a risk of cost escalation if not closely monitored for efficiency and necessity of hours billed.
The significant total award amount warrants a thorough review of the specific engineering tasks performed to ensure they aligned with the stated objectives and delivered expected value.
The contract's performance period concluded in 2007, meaning current performance metrics or lessons learned are not directly applicable without historical context.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should have yielded fair market pricing.
The contractor, ManTech Advanced Systems International, Inc., has a track record of performing federal contracts, implying some level of established capability.
The contract was awarded to a specific entity, indicating a clear point of accountability for the services rendered.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a broad category encompassing a wide range of specialized technical and design services. The federal government is a significant consumer of engineering services across various departments, including defense, infrastructure, and research. The market for these services is competitive, with numerous firms ranging from large corporations to specialized small businesses. This particular contract, valued at $16.1M, represents a mid-to-large-sized engagement within this sector, likely supporting complex defense-related projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all qualified vendors, regardless of size. While this ensures maximum competition, it also means that opportunities for small business participation, either as prime contractors or subcontractors, were not explicitly mandated by this specific award. Further analysis would be needed to determine if any subcontracting occurred with small businesses.

Oversight & Accountability

Oversight for this contract would have been primarily the responsibility of the contracting officers and program managers within the Department of the Army. Given the contract's completion date in 2007, oversight would have focused on ensuring timely delivery, adherence to technical specifications, and proper billing under the Time and Materials structure. Transparency would be facilitated through contract databases like FPDS-NG (Federal Procurement Data System - Next Generation). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Engineering Services
Army Command and Control Systems Support
Information Technology Engineering Support
Professional Services Contracts

Risk Flags

Time and Materials contract type may lead to cost overruns.
Lack of specific performance details hinders value assessment.
Contract completed in 2007, limiting current applicability of performance data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. TAS::21 2020::TAS 200512!500720!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !GS23F0122J !C!N! !Y!W909MY05F0040! !20050907!20060930!801008228!801008228!053518312!N!MANTECH TELECOMMUNICATIONS AND!14119-A SULLYFIELD CIRCLE !CHANTILLY !VA!20151!51000!031!51!MELROSE !CAMPBELL !VIRGINIA !+000001924523!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541611!E

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2005-09-07. End: 2007-09-29.

What specific engineering services were provided under this contract, and what were the key deliverables?

The provided data classifies this contract under NAICS code 541330, 'Engineering Services,' and lists the Product Service Code (PSC) as R499, 'Other Professional Services.' However, the specific nature of the engineering services and the key deliverables are not detailed in the data. Given the contractor's name, 'MANTECH TELECOMMUNICATIONS AND,' and the contract description mentioning 'COMMUNICATIONS-ELECTRONICS,' it is highly probable that the services related to the design, development, integration, or maintenance of communication and electronic systems for the Department of the Army. Without access to the contract statement of work (SOW) or final performance reports, a precise description of deliverables remains elusive. These services could have ranged from system architecture design to hardware/software integration or testing.

How does the $16.1M contract value compare to similar engineering services contracts awarded by the Department of the Army during the 2005-2007 period?

Comparing the $16.1M contract value requires access to historical procurement data for similar engineering services contracts awarded by the Department of the Army between 2005 and 2007. Based on general market knowledge, $16.1M over approximately two years (752 days) is a substantial contract, suggesting a significant scope of work. Contracts of this magnitude often involve complex projects, such as system design, integration, or major upgrades. To provide a precise comparison, one would need to analyze the average contract value, duration, and specific service categories (e.g., C4ISR, cybersecurity engineering) for comparable procurements during that timeframe. Without this comparative data, it's difficult to definitively state whether $16.1M represented a high, low, or average cost for the services rendered.

What were the potential risks associated with the 'Time and Materials' (T&M) contract type for this specific engagement?

The 'Time and Materials' (T&M) contract type, used here, carries inherent risks for the government, primarily related to cost control. In a T&M contract, the government pays the contractor for the direct labor hours at specified hourly rates, plus the actual cost of materials. The primary risk is that the contractor may not be incentivized to control costs or complete the work efficiently, as their profit is tied to the hours worked and materials consumed. For this $16.1M contract, potential risks include: scope creep where additional work is performed without formal modification, inflated labor hours billed, or excessive material costs. Effective oversight, detailed tracking of hours and materials, and clear definition of 'best efforts' or 'level of effort' are critical to mitigate these risks. Without robust monitoring, T&M contracts can significantly exceed initial cost estimates.

What is ManTech Advanced Systems International, Inc.'s track record with federal contracts, particularly within the Department of Defense?

ManTech Advanced Systems International, Inc. has a significant history of performing contracts for the U.S. federal government, including substantial work with the Department of Defense (DoD). As indicated by this $16.1M contract awarded in 2005, the company has been a long-standing provider of various services, likely including engineering, IT, and technical support. A review of federal procurement databases would reveal the breadth and depth of their contract portfolio, including contract values, agencies served, and performance history. While this specific data point doesn't detail their overall performance, their continued engagement with the DoD suggests a generally satisfactory track record, though individual contract performance can vary. Further due diligence would involve examining past performance evaluations and any reported issues.

How did the competition level (full and open) influence the pricing and potential value received by the government?

Awarding this contract under 'full and open competition' theoretically maximizes the potential for competitive pricing and value. This means that all responsible sources were permitted to submit a bid, fostering a market-driven environment where vendors compete on price, technical approach, and past performance. For a $16.1M engineering services contract, this process should have encouraged multiple bidders to offer their best terms. The influence on pricing is generally downward, as vendors strive to be the most attractive option. However, the actual value received depends not only on the price but also on the quality and effectiveness of the services delivered. While competition is a positive indicator, the specific outcomes and efficiency of the work performed under this T&M contract are crucial for a complete value assessment.

What is the historical spending trend for 'Engineering Services' within the Department of the Army, and how does this contract fit?

The Department of the Army consistently spends billions of dollars annually on engineering services, covering a vast array of needs from infrastructure design and maintenance to advanced research and development, and specialized systems engineering. This $16.1M contract, awarded in 2005, represents a single engagement within that broader spending landscape. Its significance lies in its specific contribution to communications-electronics capabilities. To understand its place in the historical trend, one would need to analyze the Army's total obligations for engineering services during the mid-2000s. This contract would be one data point among many, contributing to the overall picture of how the Army allocated resources for technical and engineering support during that period. Its value is contextualized by the overall budget and priorities of the Army at that time.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0122J

IDV Type: FSS

Timeline