LA PLAYA INC OF VIRGINIA awarded $11.2M contract for engineering and technical services by the Department of the Navy

Contract Overview

Contract Amount: $11,234,363 ($11.2M)

Contractor: LA Playa Inc of Virginia

Awarding Agency: Department of Defense

Start Date: 2007-09-20

End Date: 2010-12-31

Contract Duration: 1,198 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SERVICES

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE (CITY) County, VIRGINIA, 23320

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to LA PLAYA INC OF VIRGINIA for work described as: ENGINEERING AND TECHNICAL SERVICES Key points: 1. Contract value of $11.2M for engineering and technical services. 2. Awarded by the Department of the Navy, indicating a focus on maritime defense needs. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. Duration of 1198 days suggests a long-term project requiring sustained effort. 5. The North American Industry Classification System (NAICS) code 336611 points to shipbuilding and repair. 6. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a specific justification for limiting initial bidders. 7. The base award value is $9.38M, with potential for growth. 8. The contract is designated as 'VA' (Virginia) for its place of performance.

Value Assessment

Rating: fair

The contract value of $11.2M for engineering and technical services appears moderate for a Department of Defense contract of this duration. However, the Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns and performance metrics, it's difficult to definitively benchmark value for money. Comparisons to similar engineering services contracts within the shipbuilding and repair sector would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, specific sources were excluded, likely due to unique capabilities or prior performance. The exact number of bidders is not provided, but the 'exclusion of sources' suggests a potentially limited pool of qualified offerors, which could impact price discovery.

Taxpayer Impact: Taxpayers may not have benefited from the broadest possible competition, potentially leading to higher prices than if all qualified sources had been allowed to bid without exclusion.

Public Impact

The Department of the Navy benefits from specialized engineering and technical services crucial for its operations. Services likely support shipbuilding, repair, and maintenance activities, ensuring fleet readiness. The geographic impact is centered in Virginia, where the contractor is located and likely where services are performed. The contract supports a workforce skilled in engineering and technical disciplines within the maritime sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely managed.
The 'exclusion of sources' in the competition method may limit competitive pricing.
Lack of detailed performance metrics makes it difficult to assess efficiency.
The base award value of $9.38M is significantly less than the total potential, indicating substantial future modifications or options.

Positive Signals

Awarded by a major defense agency (Department of the Navy) suggests a recognized need and potential for high-quality service.
The contract duration of over three years indicates a stable, long-term requirement.
The contractor, LA PLAYA INC OF VIRGINIA, has secured a significant contract, implying some level of established capability.
The contract is for engineering and technical services, critical for complex defense systems.

Sector Analysis

The shipbuilding and repair industry (NAICS 336611) is a critical component of the defense industrial base, supporting naval operations. This sector is characterized by high technical complexity, significant capital investment, and often long contract durations. Federal spending in this area is substantial, driven by national security requirements. Comparable contracts would involve other large-scale engineering and technical support services for naval vessels or related infrastructure.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the likely scale of the prime contractor, it is possible that small businesses could be involved as subcontractors, particularly for specialized components or support functions within the broader engineering and technical services scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any associated risks identified.

Related Government Programs

Naval Ship Systems Engineering
Shipbuilding and Repair Services
Defense Engineering Support
Technical Services Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited competition due to 'exclusion of sources' may impact price.
Lack of detailed performance data makes value assessment challenging.
Potential for contractor inefficiency under CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to LA PLAYA INC OF VIRGINIA. ENGINEERING AND TECHNICAL SERVICES

Who is the contractor on this award?

The obligated recipient is LA PLAYA INC OF VIRGINIA.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-09-20. End: 2010-12-31.

What is the track record of LA PLAYA INC OF VIRGINIA with federal contracts, particularly with the Department of Defense?

Information on LA PLAYA INC OF VIRGINIA's track record with federal contracts, specifically with the Department of Defense, is not detailed in the provided data. However, securing an $11.2M contract suggests a demonstrated capability to meet certain requirements. A deeper analysis would involve reviewing past performance evaluations, contract history, and any reported issues or successes on previous government awards. Understanding their history with similar contract types (e.g., CPFF) and service areas (e.g., engineering, shipbuilding) would provide crucial context for assessing their reliability and performance potential on this specific award.

How does the $11.2M contract value compare to similar engineering and technical services contracts for shipbuilding and repair?

The $11.2M contract value for engineering and technical services in shipbuilding and repair is a moderate figure within the defense sector. Large-scale naval shipbuilding and repair contracts can range from tens of millions to billions of dollars. This particular award, with a base of $9.38M and a potential total of $11.2M over nearly four years, suggests a focused scope of work, possibly for specific systems, upgrades, or specialized technical support rather than a full ship construction or overhaul. Benchmarking against contracts for similar services, such as systems integration, design support, or maintenance planning for naval vessels, would provide a clearer picture of its relative value and scope.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services revolve around cost control and potential for contractor inefficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total project expenditure. For the government, the risk is that the final cost could significantly exceed initial estimates if costs are not rigorously monitored and controlled. Effective oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies a two-stage process. Initially, the requirement was intended for full and open competition. However, certain sources were subsequently excluded before the final solicitation or award. This exclusion typically occurs when a contracting officer determines that only a limited number of sources can meet specific, unique requirements, or if there's a justification for restricting the pool based on factors like national security, proprietary data, or specialized expertise. While it aims for competition among the remaining eligible sources, it inherently limits the breadth of competition compared to unrestricted full and open competition, potentially impacting price competitiveness and the range of innovative solutions considered.

What is the significance of the NAICS code 336611 (Ship Building and Repairing) in the context of this contract?

The North American Industry Classification System (NAICS) code 336611 signifies that the primary business activity related to this contract falls within the shipbuilding and repairing industry. This context is crucial as it indicates the contract likely supports the design, construction, conversion, repair, and alteration of ships and other marine vessels. Engineering and technical services procured under this NAICS code would typically involve specialized knowledge of naval architecture, marine engineering, propulsion systems, hull integrity, and related maritime technologies. This specialization is vital for the Department of the Navy's operational readiness and fleet maintenance.

How does the contract's performance location in Virginia (ST: VA) influence its impact?

The contract's performance location in Virginia (ST: VA) suggests a significant economic impact on the state's defense and maritime industrial base. Virginia has a substantial presence of naval facilities, shipyards, and defense contractors, making it a hub for shipbuilding and repair activities. This contract would likely support local jobs in engineering, technical fields, and potentially skilled trades involved in ship maintenance or modification. It also indicates that the associated supply chain and related businesses within Virginia may benefit from this federal expenditure, reinforcing the state's role in national defense.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6554003R0073

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 916 BUSINESS PARK DRIVE, CHESAPEAKE, VA, 90

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,430,980

Exercised Options: $12,430,980

Current Obligation: $11,234,363

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6554004D0022

IDV Type: IDC

Timeline