DoD's $35.6M Engineering Services Contract Awarded to Universal Solutions International, Inc

Contract Overview

Contract Amount: $35,568,714 ($35.6M)

Contractor: Universal Solutions International, Incorporated

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MATERIAL MANAGEMENT TEAM (MMT)

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to UNIVERSAL SOLUTIONS INTERNATIONAL, INCORPORATED for work described as: MATERIAL MANAGEMENT TEAM (MMT) Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 1095 days suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The contract is not set aside for small businesses. 6. The North Carolina location of the contractor may indicate regional service delivery or headquarters.

Value Assessment

Rating: fair

Benchmarking the value of this $35.6 million engineering services contract is challenging without specific service details or comparable contract data. The firm-fixed-price structure is generally favorable for the government, as it caps costs. However, the absence of detailed performance metrics or a clear comparison to similar engineering service contracts makes a definitive value assessment difficult. Further analysis would require understanding the specific engineering tasks performed and their criticality to the Department of the Army's mission.

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. With 5 bidders participating, the competition level appears moderate. This suggests that while multiple companies vied for the contract, the market may not be saturated with providers for these specific engineering services. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages a wider range of potential contractors to bid, potentially driving down costs through competitive pressure and ensuring the government receives the best value.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential engineering services. Services delivered likely include design, analysis, and technical support for military projects. The geographic impact is not specified but may be concentrated in areas where the Army operates or requires engineering support. Workforce implications could involve the employment of engineers and technical specialists by Universal Solutions International, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it hard to assess if the price reflects true market value for the engineering tasks.
The moderate number of bidders (5) could indicate potential limitations in the market for these specialized engineering services.
No small business set-aside was utilized, which might limit opportunities for smaller firms in this contract's value chain.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract duration of nearly three years indicates a stable, ongoing need for the services provided.

Sector Analysis

Engineering services, classified under NAICS code 541330, represent a significant sector within professional, scientific, and technical services. This market encompasses firms that provide specialized engineering expertise for a wide range of projects, from infrastructure development to defense systems. The federal government is a major consumer of these services, particularly the Department of Defense, which relies on engineering support for complex military applications and infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale engineering contracts awarded by DoD or other federal agencies for similar scopes of work.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated by the 'sb: false' flag. This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, may be limited. The absence of a small business focus could mean that larger firms are expected to handle the entirety of the work, potentially impacting the broader small business ecosystem that supports federal contracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award being made under full and open competition, with details likely available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Engineering Support Contracts
Army Professional Services Contracts
Engineering and Architectural Services
Federal Design and Construction Services

Risk Flags

Lack of detailed service scope
Moderate competition level
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to UNIVERSAL SOLUTIONS INTERNATIONAL, INCORPORATED. MATERIAL MANAGEMENT TEAM (MMT)

Who is the contractor on this award?

The obligated recipient is UNIVERSAL SOLUTIONS INTERNATIONAL, INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-02-28.

What specific engineering disciplines are covered under this contract, and how do they align with the Army's current modernization priorities?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. This broad category can encompass a wide range of disciplines, including civil, mechanical, electrical, aerospace, and systems engineering. Without further details on the Statement of Work (SOW), it is impossible to determine the specific disciplines involved. To assess alignment with Army modernization priorities, one would need to cross-reference the contract's specific deliverables with the Army's strategic goals, such as those related to network modernization, long-range precision fires, or next-generation combat vehicles. For instance, if the contract involves advanced materials engineering or cybersecurity engineering, it would likely align with modernization efforts.

How does the awarded amount of $35.6 million compare to the typical cost of similar engineering services contracts awarded by the Department of the Army?

Comparing the $35.6 million award to similar contracts requires access to a broader dataset of Army engineering service procurements. However, based on general market knowledge, $35.6 million for a nearly three-year contract (1095 days) for engineering services is a substantial award, suggesting a significant scope of work. Contracts of this magnitude often involve complex projects, large teams of engineers, or specialized technical expertise. To provide a precise benchmark, one would need to analyze contracts with similar NAICS codes (541330), contract types (firm-fixed-price), and durations awarded by the Army over the past few fiscal years. Factors like geographic location, specific service requirements, and the number of bidders also influence pricing.

What are the key performance indicators (KPIs) or deliverables expected from Universal Solutions International, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or deliverables for this contract. Typically, these would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For engineering services, KPIs might include adherence to project timelines, quality of design documents, accuracy of technical analyses, successful completion of testing phases, or responsiveness to technical queries. Deliverables could range from detailed engineering reports, blueprints, system specifications, feasibility studies, to prototype development or technical support documentation. The firm-fixed-price nature of the contract implies that the contractor is obligated to meet these defined requirements within the agreed budget.

What is the track record of Universal Solutions International, Inc. in performing similar engineering services for the federal government?

Universal Solutions International, Inc. (USI) has a history of federal contracting, though specific details on their engineering services track record require deeper investigation. A review of their past performance, including contract awards, past performance evaluations (if publicly available), and any history of contract disputes or terminations, would be necessary. Federal procurement databases often contain information on a contractor's award history. Assessing their success with similar engineering service contracts, particularly those with the Department of Defense or Army, would involve looking at the size, complexity, and duration of previous engagements to gauge their capability and reliability in delivering comparable services.

Given the $35.6M value and 5 bidders, what is the estimated profit margin for Universal Solutions International, Inc. on this contract?

Estimating the profit margin for Universal Solutions International, Inc. on this $35.6 million contract is speculative without access to the contractor's cost proposal and negotiated terms. However, for firm-fixed-price contracts in the engineering services sector, profit margins can vary significantly based on market competition, contract complexity, and the contractor's efficiency. Industry averages for professional services can range from 5% to 15% net profit. With 5 bidders, the competition suggests that pricing was likely competitive. The actual profit margin would depend on USI's direct costs (labor, materials, overhead) and their bidding strategy, aiming to be competitive while ensuring profitability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11827 CANON BLVD STE 203, NEWPORT NEWS, VA, 23606

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $60,751,206

Exercised Options: $35,568,714

Current Obligation: $35,568,714

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $11,898,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D002G

IDV Type: FSS

Timeline