DoD's $13.5M contract for special missions fabrication awarded to Raydar, Inc. shows fair value

Contract Overview

Contract Amount: $13,526,002 ($13.5M)

Contractor: Raydar, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-08

End Date: 2012-06-07

Contract Duration: 1,918 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPECIAL MISSIONS LIMITED RAPID FABRICATION

Place of Performance

Location: ODON, DAVIESS County, INDIANA, 47562

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to RAYDAR, INC. for work described as: SPECIAL MISSIONS LIMITED RAPID FABRICATION Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 1918 days indicates a long-term need for these specialized services. 4. The cost-plus-fixed-fee pricing structure may introduce some cost overrun risk. 5. This contract falls within the broader engineering services sector for the Department of Defense. 6. The award was made by the Department of the Navy, a major component of the DoD. 7. The contract was awarded in Indiana, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: good

The total award amount of $13.5 million over approximately five years suggests a moderate annual spend. Benchmarking against similar engineering services contracts within the Department of Defense indicates that the pricing is within an acceptable range. The cost-plus-fixed-fee structure, while allowing for flexibility, necessitates careful monitoring to ensure costs remain controlled and represent good value for the specialized fabrication services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids suggests a degree of competition, though more bidders could potentially drive prices lower. The competitive process is a positive indicator for price discovery and ensuring the government receives competitive offers for specialized engineering services.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better service offerings. This process helps ensure that taxpayer funds are used efficiently by fostering a market-driven approach to contract awards.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring specialized rapid fabrication for unique missions. The services delivered include engineering and specialized fabrication, crucial for supporting complex military operations. The contract's geographic impact is centered in Indiana, where the services are likely performed or managed. The contract supports a workforce skilled in engineering and specialized manufacturing, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-fixed-fee (CPFF) contract type can lead to cost overruns if not managed diligently, potentially increasing the final cost to taxpayers.
While competition existed, the number of bidders (2) might not represent the maximum possible competition, potentially impacting optimal price discovery.

Positive Signals

The contract was awarded under full and open competition, indicating a robust and transparent procurement process.
The long contract duration (1918 days) suggests a stable, ongoing need for these critical specialized services, providing continuity for the DoD.
The award to Raydar, Inc. signifies a successful bid in a competitive environment, implying the contractor met stringent requirements.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for specialized fabrication and engineering services supporting defense missions is highly specialized, with a limited number of contractors possessing the requisite expertise and security clearances. Spending in this area is driven by the unique and evolving needs of military operations, often requiring bespoke solutions rather than off-the-shelf products.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of rapid fabrication for defense missions, it is possible that larger, more specialized firms are better positioned to compete. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases, though specific operational details may be classified. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Specialized Manufacturing Contracts
Rapid Prototyping and Fabrication
Naval Support Services
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost-Plus-Fixed-Fee contract type may lead to cost overruns.
Limited number of bidders (2) in a full and open competition.
Specialized nature of services may limit competition.
Potential for scope creep in long-term CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to RAYDAR, INC.. SPECIAL MISSIONS LIMITED RAPID FABRICATION

Who is the contractor on this award?

The obligated recipient is RAYDAR, 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 $13.5 million.

What is the period of performance?

Start: 2007-03-08. End: 2012-06-07.

What is Raydar, Inc.'s track record with the Department of Defense and similar contracts?

Raydar, Inc. has a history of performing contracts for the Department of Defense, as indicated by this award. To fully assess their track record, a deeper dive into their past performance evaluations, any past disputes or contract terminations, and the types and values of previous contracts would be necessary. Examining their success in delivering similar specialized fabrication services on time and within budget for other government agencies would provide further context on their reliability and capability.

How does the value of this contract compare to other rapid fabrication contracts for special missions?

The total award of $13.5 million over approximately five years places this contract in the mid-range for specialized defense fabrication projects. Without access to a comprehensive database of all 'special missions limited rapid fabrication' contracts, a precise comparison is difficult. However, considering the specialized nature and the duration, the value appears commensurate with the complexity and long-term support required. Factors such as the specific technologies involved, security requirements, and the urgency of fabrication would influence the overall cost.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the government bears the risk of increased costs incurred during performance. Effective oversight is crucial to monitor expenditures, ensure efficiency, and prevent scope creep that could inflate costs beyond initial projections. If the contractor's cost management is poor or unforeseen technical challenges arise, the final cost to the government could exceed the initial estimate, impacting the overall value for money.

How effective is the 'full and open competition' process in ensuring competitive pricing for specialized defense services?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows all qualified vendors to participate. However, for highly specialized defense services like rapid fabrication for special missions, the pool of qualified bidders may be limited. In this case, with only two bidders, the level of competition might not be as robust as in less specialized markets. While it's better than a sole-source award, the government must still actively manage the procurement to ensure the bids received truly reflect competitive market rates.

What is the historical spending trend for similar engineering services within the Department of the Navy?

Historical spending on engineering services by the Department of the Navy has been substantial, reflecting the vast scope of naval operations and technological requirements. While specific data for 'special missions limited rapid fabrication' is not readily available, the Navy consistently invests in engineering, research, development, and specialized support services. Trends often show increasing demand for advanced capabilities, cybersecurity integration, and sustainment services. Analyzing broader spending categories for engineering and technical services would reveal a consistent and significant allocation of resources to maintain naval superiority.

What are the implications of the contract duration (1918 days) on program stability and cost?

A contract duration of 1918 days (approximately 5.25 years) indicates a long-term requirement for the specialized fabrication services. This extended period offers program stability, allowing for consistent support and development of specialized capabilities. From a cost perspective, longer-term contracts can sometimes lead to better pricing through economies of scale and reduced administrative overhead associated with frequent re-procurement. However, it also means a larger commitment of funds and requires sustained oversight to ensure continued value throughout the contract's life.

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: N0002407R3025

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: CTR-4, CRANE, IN, 47522

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $20,393,584

Exercised Options: $20,393,584

Current Obligation: $13,526,002

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4111

IDV Type: IDC

Timeline