DoD awards $20.3M engineering services contract to Continental Tide Defense Systems, Inc

Contract Overview

Contract Amount: $20,323,039 ($20.3M)

Contractor: Continental Tide Defense Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-09-05

End Date: 2017-09-04

Contract Duration: 1,095 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF PROVIDE ENGINEERING, TECHNICAL AND ADMINISTRATIVE SERVICES TO NSWCCD-SSES (NAVSEA PHILADELPHIA), AUXILIARY AUTOMATION BRANCH (CODE 925) FOR THE ENGINEERING DEVELOPMENT, MODIFICATION MATERIAL SELECTION/DESIGN, LOGISTICAL SUPPORT, INSTALLATION OF ALTERATIONS, AND PROGRAM MANAGEMENT/ADMINISTRATIVE SERVICES ON VARIOUS NAVY SHIPS.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to CONTINENTAL TIDE DEFENSE SYSTEMS, INC. for work described as: IGF::CT::IGF PROVIDE ENGINEERING, TECHNICAL AND ADMINISTRATIVE SERVICES TO NSWCCD-SSES (NAVSEA PHILADELPHIA), AUXILIARY AUTOMATION BRANCH (CODE 925) FOR THE ENGINEERING DEVELOPMENT, MODIFICATION MATERIAL SELECTION/DESIGN, LOGISTICAL SUPPORT, INSTALLATION OF ALTERATIONS, AND PROGR… Key points: 1. Contract awarded for comprehensive engineering, technical, and administrative support to the Navy. 2. Continental Tide Defense Systems, Inc. is the sole awardee. 3. The contract spans over three years, indicating a need for sustained support. 4. The sector is dominated by large, established defense contractors.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. The total award value of $20.3M over three years suggests a moderate level of spending for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific award mechanism (Delivery Order) suggests it might be part of a larger indefinite-delivery contract, potentially limiting the scope of competition for this specific order.

Taxpayer Impact: Taxpayer funds are being used for essential engineering and technical services to support Navy shipbuilding and modernization efforts.

Public Impact

Ensures continued engineering and technical support for critical Navy programs. Supports the operational readiness and modernization of naval vessels. Provides employment opportunities within the engineering and defense sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPFF contract type.
Limited visibility into specific performance metrics.
Reliance on a single contractor for critical services.

Positive Signals

Awarded through full and open competition.
Supports vital national defense infrastructure.
Long-term contract indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the Engineering Services sector, which is a critical component of the broader defense industrial base. Spending in this area is often driven by modernization programs and maintenance requirements for military assets.

Small Business Impact

The contract was awarded to Continental Tide Defense Systems, Inc., which is not identified as a small business. There is no indication of small business subcontracting goals or participation in this award.

Oversight & Accountability

Oversight would typically be managed by the Department of the Navy's contracting and program management offices. Ensuring proper performance and cost control under the CPFF structure is crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Lack of small business participation.
Contract awarded as a Delivery Order, potentially limiting broader competition.
Limited transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to CONTINENTAL TIDE DEFENSE SYSTEMS, INC.. IGF::CT::IGF PROVIDE ENGINEERING, TECHNICAL AND ADMINISTRATIVE SERVICES TO NSWCCD-SSES (NAVSEA PHILADELPHIA), AUXILIARY AUTOMATION BRANCH (CODE 925) FOR THE ENGINEERING DEVELOPMENT, MODIFICATION MATERIAL SELECTION/DESIGN, LOGISTICAL SUPPORT, INSTALLATION OF ALTERATIONS, AND PROGRAM MANAGEMENT/ADMINISTRATIVE SERVICES ON VARIOUS NAVY SHIPS.

Who is the contractor on this award?

The obligated recipient is CONTINENTAL TIDE DEFENSE SYSTEMS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2014-09-05. End: 2017-09-04.

What is the typical profit margin for CPFF contracts in this sector, and how does this contract's fee structure compare?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the defense engineering sector can vary but are generally negotiated based on risk and complexity. A typical fixed fee might range from 7-15% of the estimated cost. Without specific details on the fee negotiated for this contract, a direct comparison is difficult. However, the 'fixed fee' component aims to provide the contractor with a predictable profit, while the government bears the cost risk.

What specific performance metrics are being tracked to ensure the effectiveness of the engineering services provided?

The provided data does not detail specific performance metrics. Effective oversight would require the Department of the Navy to establish clear Key Performance Indicators (KPIs) related to technical accuracy, timeliness of delivery, adherence to specifications, and overall program support. Regular performance reviews and feedback mechanisms are essential to gauge the contractor's effectiveness and ensure mission objectives are met.

How does the cost of these engineering services compare to similar contracts awarded by other branches of the military or government agencies?

Benchmarking this contract's cost against similar services is challenging without access to detailed cost breakdowns and scope of work for comparable contracts. Factors like geographic location, specific technical requirements, and the level of security clearance needed can significantly influence pricing. A comprehensive cost analysis would require comparing unit costs for specific labor categories or deliverables against industry standards and other government contracts.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002413R3287

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 531 CANAL ST STE 401, READING, PA, 19602

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

Financial Breakdown

Contract Ceiling: $28,477,346

Exercised Options: $28,477,346

Current Obligation: $20,323,039

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017812D6824

IDV Type: IDC

Timeline