DoD's $146M Engineering Services Contract with ATAMIR - WSMR LLC Shows Long Duration and Full and Open Competition

Contract Overview

Contract Amount: $146,369,932 ($146.4M)

Contractor: Atamir - Wsmr LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-06

End Date: 2018-06-30

Contract Duration: 3,768 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: BASE YEAR - LABOR/ODCS/BASE FEE

Place of Performance

Location: WHITE SANDS MISSILE RANGE, DONA ANA County, NEW MEXICO, 88002

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $146.4 million to ATAMIR - WSMR LLC for work described as: BASE YEAR - LABOR/ODCS/BASE FEE Key points: 1. The contract's duration of 3768 days (over 10 years) suggests a long-term need for engineering services. 2. Awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process with specific exclusions. 3. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 4. The contract's base year value of approximately $146 million highlights significant investment in engineering support. 5. The geographic location in New Mexico (WSMR) points to specialized testing or operational requirements. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contracts. The Cost Plus Award Fee (CPAF) structure, while common for complex services, can lead to cost overruns if not managed diligently. The long duration suggests a stable, albeit potentially expensive, relationship. Further analysis would require comparing the per-unit labor rates and overhead costs against industry standards for similar engineering services at White Sands Missile Range.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This implies that while the competition was generally open, certain sources were excluded for specific reasons, which could be related to security, specialized capabilities, or prior performance issues. The number of bidders (9) indicates a reasonable level of interest, suggesting that the exclusion did not unduly stifle competition. However, the nature of the exclusions warrants further investigation to ensure fairness and optimal price discovery.

Taxpayer Impact: The competitive nature, despite exclusions, likely provided a degree of price discipline for taxpayers. However, understanding the impact of the exclusions is key to determining if the best possible value was achieved.

Public Impact

The Department of the Army benefits from specialized engineering services crucial for its operations at White Sands Missile Range. The contract supports advanced testing, development, and sustainment activities for military systems. The geographic impact is concentrated in New Mexico, potentially supporting the local economy through employment and related services. Workforce implications include the direct employment of engineers and technical staff by the contractor, ATAMIR - WSMR LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to the Cost Plus Award Fee (CPAF) structure if performance metrics and cost controls are not rigorously enforced.
The 'Exclusion of Sources' in the competition process could limit broader market engagement and potentially higher value options.
Long contract duration may lead to vendor lock-in and reduced flexibility for the agency to adapt to changing technological needs.

Positive Signals

The 'Full and Open Competition' aspect, even with exclusions, suggests an effort to engage multiple capable vendors.
The award to a single entity (ATAMIR - WSMR LLC) implies a potentially strong, specialized capability meeting the agency's requirements.
The contract's long duration indicates a stable and predictable need, allowing for focused development and service provision.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized expertise in design, analysis, and development. The market size for engineering services supporting the Department of Defense is substantial, driven by complex weapon systems and infrastructure needs. This specific contract likely supports unique testing and operational requirements at White Sands Missile Range, a key defense installation.

Small Business Impact

The contract does not appear to have a small business set-aside (ss: false, sb: false). This suggests that the primary focus was on securing specialized engineering capabilities, likely from larger, established firms. While this contract may not directly benefit small businesses through set-asides, there could be subcontracting opportunities. However, the extent of these opportunities and the contractor's commitment to engaging small businesses would require further investigation into subcontracting plans.

Oversight & Accountability

Oversight for this Cost Plus Award Fee (CPAF) contract would typically involve the Department of the Army's contracting officer and administrative contracting officer. Performance metrics and award fee criteria are crucial for ensuring value and accountability. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Support Contracts
White Sands Missile Range Operations Support
Cost Plus Award Fee Contracts
Engineering and Technical Services

Risk Flags

Long contract duration may indicate potential for cost overruns or vendor lock-in.
Cost Plus Award Fee structure requires robust oversight to ensure value for money.
Exclusion of sources in competition warrants scrutiny to ensure fairness and optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $146.4 million to ATAMIR - WSMR LLC. BASE YEAR - LABOR/ODCS/BASE FEE

Who is the contractor on this award?

The obligated recipient is ATAMIR - WSMR LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $146.4 million.

What is the period of performance?

Start: 2008-03-06. End: 2018-06-30.

What is the historical spending trend for engineering services at White Sands Missile Range under similar contract vehicles?

Analyzing historical spending trends for engineering services at White Sands Missile Range (WSMR) requires accessing detailed contract databases and financial reports. While this specific contract (ID: [Contract ID if available]) spans from 2008 to 2018 with a base year value of approximately $146 million, understanding broader trends involves looking at multiple contracts over extended periods. Factors influencing spending include the scale of ongoing test and evaluation programs, modernization efforts, and shifts in defense priorities. Comparing the average annual spend on engineering services at WSMR over the last decade, adjusted for inflation, would reveal whether this contract represents a typical investment or a significant deviation. Furthermore, examining the types of engineering services procured (e.g., R&D support, systems integration, maintenance) can highlight evolving needs and technological advancements driving contract values. Without access to specific historical data beyond this single contract, a comprehensive trend analysis is not feasible, but it is a crucial area for further investigation to contextualize current spending.

How does the Cost Plus Award Fee (CPAF) structure of this contract compare to industry benchmarks for similar engineering services?

The Cost Plus Award Fee (CPAF) structure is common for complex service contracts where performance outcomes are difficult to define precisely upfront, such as advanced engineering and R&D. Benchmarking CPAF involves examining the typical fee structures, award criteria, and the ratio of base fee to award fee in comparable contracts. For engineering services, particularly those supporting defense installations like White Sands Missile Range, CPAF aims to incentivize contractor performance beyond basic requirements. Industry benchmarks often show that the award fee component should represent a significant portion of the total potential profit, motivating contractors to exceed expectations. However, the effectiveness of CPAF hinges on well-defined performance metrics and objective evaluation processes. If the award criteria are vague or the evaluation process is subjective, it can lead to disputes or inflated fees. Comparing the specific award fee criteria and evaluation methodology used in this ATAMIR - WSMR LLC contract against established best practices and similar DoD engineering contracts would reveal its alignment with industry norms and its potential for driving optimal value.

What specific 'exclusions of sources' were applied during the competition, and what was their justification?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, certain potential bidders were deliberately excluded. The specific reasons for these exclusions are typically documented in the contract file and procurement justification. Common justifications include national security concerns, contractor responsibility issues (e.g., past performance problems, financial instability), or the need for highly specialized, proprietary technology or expertise possessed by only a limited number of firms. In the context of defense engineering services at a sensitive site like White Sands Missile Range, exclusions might relate to security clearances, access to classified information, or unique testing capabilities. Understanding the nature and justification of these exclusions is critical for assessing whether the competition, despite being 'full and open' in principle, was truly optimized for achieving the best value and widest possible participation from qualified sources. Without access to the specific contract file documentation detailing these exclusions, a definitive answer cannot be provided.

What is the track record of ATAMIR - WSMR LLC in delivering engineering services under similar government contracts?

Assessing the track record of ATAMIR - WSMR LLC requires a review of their past performance on government contracts, particularly those involving engineering services for the Department of Defense or similar agencies. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the successful completion of projects similar in scope and complexity to the one awarded. Databases like the Federal Procurement Data System (FPDS) and the Contractor Performance Assessment Reporting System (CPARS) are primary sources for this information, though access may be restricted. A positive track record would indicate consistent delivery, adherence to schedule and budget, and high levels of customer satisfaction. Conversely, a history of performance issues, cost overruns, or unresolved disputes would raise concerns about their capability to successfully execute this long-term, high-value contract. Given the contract's duration (over 10 years), a thorough review of their performance history is essential for confidence in their ability to meet the Department of the Army's ongoing engineering needs.

How does the total estimated value of this contract compare to the average contract value for engineering services procured by the Department of the Army?

The total estimated value of this contract, based on its base year value of approximately $146 million and a duration of over 10 years, suggests a significant investment. To compare this against the average contract value for engineering services procured by the Department of the Army (DoA), one would need to analyze aggregate spending data. The DoA procures a vast array of engineering services across numerous commands and installations, ranging from small, specialized support tasks to large-scale infrastructure projects and R&D initiatives. The average contract value can vary widely depending on the scope and duration. If this contract represents a single, long-term support requirement for a specific installation like White Sands Missile Range, its value might be substantial relative to smaller, task-order-based contracts. However, compared to major system acquisition engineering support or large-scale construction engineering contracts, it might fall within a more moderate range. A comprehensive analysis would involve calculating the mean and median contract values for engineering services awarded by the DoA over a relevant period, considering contract type and scope, to accurately benchmark this specific award.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: W9124Q07R0005

Offers Received: 9

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 1300 BRITT ST SE, ALBUQUERQUE, NM, 87123

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $190,638,839

Exercised Options: $190,638,839

Current Obligation: $146,369,932

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline