DoD Awards $21.3M Engineering Services Contract to MAG DS CORP via Full and Open Competition

Contract Overview

Contract Amount: $21,300,002 ($21.3M)

Contractor: MAG DS Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-09-24

Contract Duration: 1,095 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JTAC PROGRAM SUPPORT BASE YEAR-

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to MAG DS CORP for work described as: JTAC PROGRAM SUPPORT BASE YEAR- Key points: 1. Contract awarded for engineering services to support the JTAC Program. 2. MAG DS CORP is the awardee, with a contract value of $21.3 million. 3. The contract was awarded using full and open competition. 4. The contract duration is 1095 days, ending in September 2026.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which allows for flexibility in project scope. The awarded amount of $21.3 million for a 3-year engineering services contract appears reasonable given the nature of the services and the competitive award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the engineering services provided.

Public Impact

Supports the Department of the Army's JTAC Program, crucial for military operations. The contract award signifies continued investment in defense engineering capabilities. MAG DS CORP's selection through competition highlights its standing in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
  • Specific details on the 'JTAC Program' are limited, impacting a full understanding of the service's criticality.

Positive Signals

  • Awarded via full and open competition, suggesting competitive pricing.
  • Long-term contract provides stability for program support.
  • Clear end date for contract performance.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for defense infrastructure and operational support. Spending in this sector is often driven by government procurement needs, with competitive bidding being a common practice.

Small Business Impact

The data does not indicate if small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Defense, specifically the Department of the Army, is responsible for oversight. The contract type and competitive award suggest standard oversight mechanisms are in place.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Limited public information on the specific JTAC Program.
  • Potential for cost escalation if not managed properly.

Tags

engineering-services, department-of-defense, nj, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to MAG DS CORP. JTAC PROGRAM SUPPORT BASE YEAR-

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 $21.3 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-09-24.

What specific engineering services are required for the JTAC Program, and how do they contribute to mission effectiveness?

The JTAC (Joint Terminal Attack Controller) program likely requires specialized engineering support for communication systems, targeting pods, software integration, and potentially training simulation technologies. These services are critical for enabling effective close air support coordination, ensuring pilots and ground forces can accurately and safely engage targets, thereby directly enhancing combat effectiveness and reducing collateral damage.

What are the potential risks associated with a Cost Plus Fixed Fee contract for engineering services in a defense context?

A primary risk with CPFF contracts is the potential for cost overruns if the contractor's actual costs exceed initial estimates, even with a fixed fee. In a defense context, scope creep, unforeseen technical challenges, or changes in requirements can escalate costs. Effective government oversight and robust contract management are crucial to mitigate these risks and ensure the program stays within budget.

How does the competitive nature of this award impact the overall value and efficiency of the JTAC Program support?

The award through full and open competition is a strong indicator of value and efficiency. It implies that multiple qualified vendors had the opportunity to bid, driving down prices and encouraging innovation. This competitive pressure likely resulted in a more cost-effective solution for the government and ensures that the selected contractor, MAG DS CORP, offers a competitive blend of capability and price for the JTAC Program.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Solicitation ID: W911NF23R0004

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: $43,943,167

Exercised Options: $23,004,276

Current Obligation: $21,300,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU121

IDV Type: IDC

Timeline

Start Date: 2023-09-25

Current End Date: 2026-09-24

Potential End Date: 2029-03-24 00:00:00

Last Modified: 2025-09-12

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