Photographer: Krisztian Bocsi/Bloomberg

Nearly 200 Vendors Win Slots on $37B Army Tech Services Contract

October 24, 2018 Robert Levinson

The U.S. Army announced on Oct. 18 that 198 additional companies had been awarded slots on its $37.4 billion multiple-award contract for professional services, known as Responsive Strategic Sourcing for Services (RS3).

The companies will compete for task orders to provide “knowledge based professional engineering support services for programs with command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) related requirements.”

The RS3 multiple-award, indefinite-delivery/indefinite-quantity contract combines work that had been funded using five previous contracts: CECOM Strategic Service Sourcing (S3); Rapid Response Third Generation; Warrior Enabling Broad Sensor Services; Technical Information Engineering Services; and Technical, Administrative, and Operation Support Services.

The U.S. government spent nearly $22 billion from fiscal 2006 through 2016 on the contracts RS3 is replacing. About 80 percent of that spending, or $17.6 billion, went to the five largest of the 30 contract holders: CACI International Inc., ManTech International Corp., Lockheed Martin Corp., CSRA Inc., and Booz Allen Hamilton Holding Corp.

This is the second tranche of companies to win slots on RS3. In May 2017, 55 companies were granted slots, including ManTech International Corp., Booz Allen Hamilton Holding Corp., BAE Systems Plc, and CSRA Inc. (recently purchased by General Dynamics Corp.) At that time, Bloomberg Government noted that some very large competitors in this space had been shut out — including CACI, Northrop Grumman Corp., and Raytheon Co., all of which are winners of this latest award. Overall, 388 companies bid on the contract and 253 received slots.

In fiscal 2018 the government obligated at least $50 million in on the contract (final figures won’t be available until January because of the Defense Department’s 90-day reporting lag). The leading vendor was NCI Inc., with about $25.6 million in obligations, followed by Booz Allen with $13.6 million. Both NCI and Booz Allen’s contracts were for research and development work in NAICS Code 541712, Research and Development in the Physical, Engineering, and Life Sciences (Except Biotechnology). Obligations reporting for fiscal 2018 is not yet complete, and a much larger total is expected in fiscal 2019.

A variety of contract types will be awarded including cost, cost-plus-fixed-fee, cost-plus-incentive-fee, and firm-fixed-price. The contract will run through May 2022 and can be extended through 2027.

More information on RS3 can be found on the Army website here.

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