Army awards $32.9M engineering support contract to INDYNE, INC. for 5 years

Contract Overview

Contract Amount: $32,891,998 ($32.9M)

Contractor: Indyne, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2029-01-31

Contract Duration: 1,826 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: UNITED STATES ARMY ELECTRONIC PROVING GROUND SCIENTIFIC ENGINEERING SUPPORT SERVICES CONTRACT

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to INDYNE, INC. for work described as: UNITED STATES ARMY ELECTRONIC PROVING GROUND SCIENTIFIC ENGINEERING SUPPORT SERVICES CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of 1826 days (5 years) indicates a long-term need for these services. 4. The contract is for engineering services, a critical support function for the Army. 5. The awardee, INDYNE, INC., will be providing scientific and engineering support. 6. The contract is not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract's value of approximately $32.9 million over five years averages to about $6.58 million annually. Benchmarking this against similar engineering support contracts for the Department of Defense is challenging without more specific service details. However, the Cost Plus Award Fee structure allows for performance-based adjustments, suggesting an intent to achieve good value if the contractor meets or exceeds performance expectations. The pricing will be further evaluated based on the award fee criteria and actual costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 4 bidders (no=4) indicates a reasonable level of competition for this engineering support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition suggests that taxpayers benefited from a process designed to solicit the best possible offers, potentially leading to cost savings and higher quality services compared to less competitive methods.

Public Impact

The primary beneficiaries are the United States Army, which will receive essential scientific and engineering support. Services delivered include scientific and engineering support, crucial for testing, evaluation, and development. The geographic impact is primarily within Arizona, where the contract is being performed. Workforce implications include the potential for skilled engineering and scientific jobs to be created or sustained by INDYNE, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly, as the contractor is reimbursed for costs plus an award fee.
The lack of specific performance metrics in the provided data makes it difficult to assess the potential for award fee payouts and true value for money.
Long-term contracts can sometimes reduce flexibility for the agency if requirements change significantly over the contract period.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Cost Plus Award Fee structure incentivizes contractor performance and quality.
The contract duration suggests a stable, long-term need for these critical engineering services.
The awardee, INDYNE, INC., is a known entity in providing professional services, implying a degree of established capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government and private industry. The market for engineering services supporting defense agencies is substantial, driven by the need for specialized technical expertise in areas like research, development, testing, and evaluation. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of services.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the requirement was likely deemed too large or specialized for small business set-aside programs, or that larger prime contractors were expected to compete. There is no explicit information on subcontracting plans for small businesses, which could be a point of further inquiry to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and technical representatives within the Department of the Army. The Cost Plus Award Fee structure necessitates close monitoring of performance against defined criteria to determine award fee payouts. Transparency may be enhanced through contract reporting mechanisms, and Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services Contracts
Army Scientific and Technical Support Services
Cost Plus Award Fee Contracts
Engineering Services for Federal Agencies

Risk Flags

Potential for cost growth in CPAF contracts if performance metrics are not tightly managed.
Need for robust oversight to ensure performance targets are met for award fee.
Long-term nature of contract may reduce agency flexibility if requirements evolve.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to INDYNE, INC.. UNITED STATES ARMY ELECTRONIC PROVING GROUND SCIENTIFIC ENGINEERING SUPPORT SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is INDYNE, 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 $32.9 million.

What is the period of performance?

Start: 2024-02-01. End: 2029-01-31.

What is INDYNE, INC.'s track record with the federal government, particularly the Department of Defense?

INDYNE, INC. has a history of performing contracts with the federal government, including various agencies within the Department of Defense. Their past performance often includes providing scientific, engineering, technical, and professional services. A detailed review of their contract history would reveal the types of services rendered, contract values, performance ratings, and any past issues or commendations. This specific contract award suggests they met the government's criteria for technical capability, past performance, and business management necessary for a five-year engineering support role.

How does the $32.9 million contract value compare to similar engineering support contracts awarded by the Army?

The $32.9 million contract value over five years, averaging approximately $6.58 million annually, places this contract in the mid-to-large range for specialized engineering support. To provide a precise comparison, one would need to analyze the scope and duration of other Army engineering support contracts awarded within the last 2-3 years. Factors such as the specific technical disciplines required, the level of security clearance needed, and the geographic location of performance can significantly influence contract value. Without more granular data on comparable contracts, it's difficult to definitively state if this represents exceptional value, but it aligns with the typical scale for long-term, comprehensive engineering support.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?

The primary risks with a CPAF contract of this magnitude revolve around cost control and performance management. While CPAF incentivizes performance through an award fee, there's a risk that the contractor may incur higher costs than anticipated to achieve the performance targets necessary to earn the award fee. Effective oversight is crucial to ensure that costs are reasonable and allocable, and that the performance metrics are clearly defined, measurable, and aligned with the government's actual needs. If the award fee criteria are too easily met or not sufficiently challenging, the government may end up paying a premium without receiving commensurate superior performance. Conversely, poorly defined metrics can lead to disputes.

How effective is the 'full and open competition' approach likely to be in ensuring value for this engineering support contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value in federal contracting, as it allows all responsible sources to compete. This broad competition increases the likelihood of receiving a wide range of proposals, potentially leading to lower prices and innovative solutions. With four bidders identified, there was a reasonable level of competition, which should have driven INDYNE, INC. to offer competitive terms. The effectiveness is further amplified by the Cost Plus Award Fee structure, which ties a portion of the contractor's profit to performance, encouraging efficiency and quality delivery.

What are the historical spending patterns for engineering services within the Department of the Army?

Historical spending patterns for engineering services within the Department of the Army are substantial and consistent, reflecting the continuous need for technical expertise across various domains, including research, development, testing, acquisition, and sustainment. The Army procures a wide array of engineering services, ranging from highly specialized R&D support to broad-based technical assistance. Spending fluctuates based on modernization priorities, operational tempo, and budget allocations. Analyzing historical data would show significant annual outlays, often in the billions, for engineering and technical services, with contracts varying widely in value, duration, and competition levels, similar to this $32.9M award.

What are the implications of this contract being a 'Definitive Contract' awarded as 'Cost Plus Award Fee'?

A 'Definitive Contract' is a fixed-price or cost-reimbursement contract that is fully funded and legally binding. When combined with 'Cost Plus Award Fee' (CPAF), it means the contractor will be reimbursed for all allowable costs incurred, plus a base fee (which may be zero) and an additional award fee based on performance against pre-defined criteria. This structure aims to balance cost reimbursement with performance incentives. The definitive nature means the terms are set, but the award fee component allows for flexibility in the final payment based on how well INDYNE, INC. meets or exceeds performance expectations, making it a common choice for services where performance quality is paramount and difficult to define strictly upfront.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91RUS22R0082

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 46610 EXPEDITION DR STE 103, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $146,873,825

Exercised Options: $146,873,825

Current Obligation: $32,891,998

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $10,043,303

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline