Navy's $87M IT Software R&D Contract Awarded to ManTech TSG-2 Joint Venture

Contract Overview

Contract Amount: $86,944,732 ($86.9M)

Contractor: Mantech TSG-2 Joint Venture

Awarding Agency: Department of Defense

Start Date: 2020-06-24

End Date: 2025-12-23

Contract Duration: 2,008 days

Daily Burn Rate: $43.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NAVY MARITIME MAINTENANCE ENTERPRISE SOLUTION (NMMES) IT SOFTWARE RESEARCH, DEVELOPMENT AND ENGINEERING FOR NAVAL SEA SYSTEMS COMMAND (NAVSEA) O4I PROGRAM MANAGEMENT OFFICE FOR INFORMATION TECHNOLOGY (PMO-IT)

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23513

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $86.9 million to MANTECH TSG-2 JOINT VENTURE for work described as: NAVY MARITIME MAINTENANCE ENTERPRISE SOLUTION (NMMES) IT SOFTWARE RESEARCH, DEVELOPMENT AND ENGINEERING FOR NAVAL SEA SYSTEMS COMMAND (NAVSEA) O4I PROGRAM MANAGEMENT OFFICE FOR INFORMATION TECHNOLOGY (PMO-IT) Key points: 1. Significant investment in IT software R&D for naval systems. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk may stem from the complexity of maritime maintenance IT solutions. 4. Sector focus is R&D, with potential for broad application.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing compared to limited or sole-source awards.

Taxpayer Impact: Taxpayer funds are being used for critical IT R&D for naval systems, aiming for long-term efficiency and capability improvements.

Public Impact

Enhances IT capabilities for naval maintenance operations. Supports technological advancement within the Department of Defense. Potential for improved efficiency and cost savings in future naval operations. Invests in specialized R&D for a critical defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overruns due to R&D complexity
  • Scope creep in software development
  • Integration challenges with existing systems

Positive Signals

  • Innovation in maritime IT solutions
  • Potential for enhanced operational readiness
  • Strong competitive award process

Sector Analysis

This contract falls within the Research and Development sector, specifically for IT software. Spending in this area is crucial for maintaining technological superiority but can be prone to cost fluctuations due to the inherent uncertainties of R&D.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting larger prime contractors are involved. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The contract is managed by NAVSEA PMO-IT, implying established oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring to ensure cost control and prevent inefficiencies.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost Plus Fixed Fee contract type requires close monitoring.
  • R&D projects carry inherent uncertainty and risk of failure.
  • Potential for integration challenges with legacy systems.
  • Lack of small business participation as prime contractor.

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.9 million to MANTECH TSG-2 JOINT VENTURE. NAVY MARITIME MAINTENANCE ENTERPRISE SOLUTION (NMMES) IT SOFTWARE RESEARCH, DEVELOPMENT AND ENGINEERING FOR NAVAL SEA SYSTEMS COMMAND (NAVSEA) O4I PROGRAM MANAGEMENT OFFICE FOR INFORMATION TECHNOLOGY (PMO-IT)

Who is the contractor on this award?

The obligated recipient is MANTECH TSG-2 JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $86.9 million.

What is the period of performance?

Start: 2020-06-24. End: 2025-12-23.

What specific performance metrics will be used to evaluate the success of this R&D effort and ensure value for taxpayer money?

Success metrics for this R&D effort should focus on tangible outcomes like the successful development and testing of new software modules, demonstrable improvements in maintenance efficiency, and the achievement of specific technological advancements outlined in the contract's statement of work. Regular progress reviews and independent validation of results will be crucial to ensure value and accountability.

How will the Navy mitigate the inherent risks associated with R&D, such as technological obsolescence or failure to meet performance requirements?

Mitigation strategies should include phased development with clear go/no-go decision points, continuous market research to stay abreast of emerging technologies, and robust testing protocols. The contract's structure should allow for flexibility to pivot if initial approaches prove unviable, and strong technical expertise within the government oversight team is essential to identify and address risks proactively.

What is the long-term strategy for integrating and sustaining the developed IT software to maximize its effectiveness and return on investment?

A clear integration and sustainment plan is vital. This includes defining how the new software will interface with existing systems, planning for ongoing maintenance and updates, and ensuring adequate training for end-users. The Navy should also consider the total lifecycle cost, including sustainment, when assessing the overall effectiveness and ROI of this R&D investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTOTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12015 LEE JACKSON HWY, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $87,055,504

Exercised Options: $87,055,504

Current Obligation: $86,944,732

Actual Outlays: $406,288

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $59,022,070

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0011

IDV Type: IDC

Timeline

Start Date: 2020-06-24

Current End Date: 2025-12-23

Potential End Date: 2025-12-23 00:00:00

Last Modified: 2025-08-28

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