Army Awards $35.5M AECSS Contract to Joint Research and Development LLC for Engineering Services

Contract Overview

Contract Amount: $35,535,810 ($35.5M)

Contractor: Joint Research and Development LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2025-04-15

Contract Duration: 1,534 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: U.S. ARMY EVALUATION CENTER (AEC) SUPPORT SERVICES (AECSS) FOR FIRES TASK ORDER AWARD.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to JOINT RESEARCH AND DEVELOPMENT LLC for work described as: U.S. ARMY EVALUATION CENTER (AEC) SUPPORT SERVICES (AECSS) FOR FIRES TASK ORDER AWARD. Key points: 1. The contract is for essential support services for the Army Evaluation Center. 2. Joint Research and Development LLC secured the award. 3. The award was made under full and open competition after exclusion of sources. 4. This is a cost-plus-fixed-fee contract with a duration of over 1500 days. 5. The contract value is approximately $35.5 million.

Value Assessment

Rating: good

The contract value of $35.5 million for engineering services over approximately 4 years appears reasonable given the scope of support for the Army Evaluation Center. Benchmarking against similar large-scale engineering support contracts would provide further validation.

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, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value is obtained.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for essential Army evaluation support services.

Public Impact

Ensures continued critical support for Army testing and evaluation activities. Supports the operational readiness and effectiveness of Army systems. Provides specialized engineering expertise to the Army Evaluation Center. Contributes to the development and validation of military technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends beyond 4 years, potentially leading to scope creep or evolving requirements.
Cost-plus-fixed-fee structure can incentivize higher costs if not closely monitored.
Exclusion of sources in the competition method warrants further review to ensure full market potential was explored.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract supports critical Army evaluation functions.
Long-term nature of the contract provides stability for essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research, development, and evaluation. Spending in this sector is crucial for maintaining technological superiority and operational effectiveness for the military.

Small Business Impact

The data indicates that neither small business nor small disadvantaged business participation was a factor in this award. Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the services inherently favors larger contractors.

Oversight & Accountability

The award was made by the Department of the Army, indicating oversight from a major defense agency. The contract's duration and cost structure will require diligent oversight to ensure performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Long contract duration may lead to evolving requirements and scope creep.
The 'exclusion of sources' clause requires careful scrutiny to ensure full competition.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 million to JOINT RESEARCH AND DEVELOPMENT LLC. U.S. ARMY EVALUATION CENTER (AEC) SUPPORT SERVICES (AECSS) FOR FIRES TASK ORDER AWARD.

Who is the contractor on this award?

The obligated recipient is JOINT RESEARCH AND DEVELOPMENT 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 $35.5 million.

What is the period of performance?

Start: 2021-02-01. End: 2025-04-15.

What specific engineering services are included in the AECSS contract, and how do they directly contribute to the Army's mission objectives?

The AECSS contract provides a range of engineering services essential for the Army Evaluation Center's mission. This includes technical support, test planning and execution, data analysis, and reporting for various Army programs and systems. These services are critical for validating system performance, ensuring reliability, and informing acquisition decisions, ultimately contributing to the Army's overall operational readiness and effectiveness.

Given the 'exclusion of sources' clause, what steps were taken to ensure that the competitive process was truly fair and that all potentially capable vendors were considered?

The 'exclusion of sources' clause typically means that certain previously identified sources were excluded from consideration, often due to specific technical requirements or prior performance issues. To ensure fairness, the Army would have had to clearly document the rationale for exclusion and demonstrate that the remaining pool of potential offerors was sufficient to ensure robust competition. Public notices and opportunities for vendors to challenge exclusions are standard practices.

How will the cost-plus-fixed-fee structure be managed to prevent cost overruns and ensure the government receives the best value for its investment?

Managing a cost-plus-fixed-fee contract requires stringent oversight. The Army will likely implement detailed performance metrics, regular progress reviews, and thorough audits of contractor expenditures. Clear definition of the fixed fee and robust negotiation of indirect cost rates are crucial. Any deviations from the planned scope or unexpected cost increases would need to be justified and approved, with the contractor bearing the risk for costs exceeding the agreed-upon estimate.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91CRB19R0032

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 50 TECH PKWY STE 209, STAFFORD, VA, 22556

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

Financial Breakdown

Contract Ceiling: $56,064,756

Exercised Options: $55,147,070

Current Obligation: $35,535,810

Actual Outlays: $10,568,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB20D0021

IDV Type: IDC

Timeline