DoD Awards $43.8M for Naval Warfare Center R&D, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $43,771,961 ($43.8M)
Contractor: Mantech TSG-2 Joint Venture
Awarding Agency: Department of Defense
Start Date: 2020-09-21
End Date: 2026-03-31
Contract Duration: 2,017 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OPERATION TEST PROGRAM SET DEVELOPMENT FOR NAVAL SURFACE WARFARE CENTER CRANE
Place of Performance
Location: CRANE, MARTIN County, INDIANA, 47522
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to MANTECH TSG-2 JOINT VENTURE for work described as: OPERATION TEST PROGRAM SET DEVELOPMENT FOR NAVAL SURFACE WARFARE CENTER CRANE Key points: 1. The contract focuses on R&D in physical and engineering sciences, a critical but complex sector. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces risk for cost overruns. 4. The award is for a Delivery Order under a larger contract, indicating ongoing program needs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility, can lead to higher costs if not managed tightly. Benchmarking against similar R&D contracts is difficult without specific deliverables and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes competitive pricing. However, the CPFF structure can still allow costs to escalate beyond initial expectations.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D. While the specific impact is unclear, the CPFF structure necessitates careful oversight to ensure value for money.
Public Impact
Supports advanced research and development for naval surface warfare capabilities. Potential for technological advancements that could enhance national security. The contract duration extends to March 2026, indicating a long-term research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases cost overrun risk.
- Lack of specific performance metrics makes value assessment difficult.
- Long contract duration requires sustained oversight.
Positive Signals
- Full and open competition utilized.
- Supports critical naval R&D.
Sector Analysis
This contract falls under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). Spending in this sector is high, driven by defense and technological innovation, but often involves complex, long-term projects with inherent cost uncertainties.
Small Business Impact
The contract was awarded to MANTECH TSG-2 JOINT VENTURE. Information on small business participation within this joint venture or subcontracting is not provided, making it difficult to assess small business impact.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to monitor costs and ensure the contractor is performing efficiently. The long duration necessitates ongoing review of progress and expenditures.
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.
- Long contract duration.
- Limited visibility into specific deliverables.
- Potential for cost escalation.
- Uncertainty inherent in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to MANTECH TSG-2 JOINT VENTURE. OPERATION TEST PROGRAM SET DEVELOPMENT FOR NAVAL SURFACE WARFARE CENTER CRANE
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 $43.8 million.
What is the period of performance?
Start: 2020-09-21. End: 2026-03-31.
What specific research objectives and deliverables are outlined in the contract to ensure the $43.8M investment yields tangible advancements in naval surface warfare?
The contract details are limited in the provided data. However, for a CPFF contract of this magnitude in R&D, specific research objectives and measurable deliverables are crucial. These would typically include defined phases of research, prototype development milestones, testing protocols, and final reports or demonstrations. Without these, assessing the value and effectiveness of the spending becomes challenging, relying heavily on the contractor's internal reporting and the government's oversight.
How will the Department of Defense mitigate the inherent cost overrun risks associated with the Cost Plus Fixed Fee (CPFF) contract structure for this long-term R&D program?
Mitigation strategies for CPFF contracts typically involve stringent government oversight, including regular audits of contractor costs, detailed progress reviews, and clear performance metrics. Establishing realistic cost ceilings and incentives for efficiency can also help. For this specific contract, the government must actively monitor expenditures against planned milestones and be prepared to renegotiate terms or adjust scope if costs begin to significantly deviate from projections without commensurate progress.
What is the anticipated impact of this R&D program on future naval capabilities and technological superiority, beyond the immediate contract deliverables?
The anticipated impact hinges on the success of the research in areas like advanced materials, propulsion, sensor technology, or combat systems relevant to naval surface warfare. Successful outcomes could lead to next-generation platforms, improved operational effectiveness, and a strategic advantage. However, R&D inherently carries uncertainty; the true long-term impact will only be evident years after the program's completion and subsequent technology integration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $86,309,230
Exercised Options: $86,309,230
Current Obligation: $43,771,961
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $32,157,829
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: 2020-09-21
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-09-18
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