DoD Awards $32.2M for Submergence Group Concept Design Study, Awarded to Submergence Group LLC

Contract Overview

Contract Amount: $32,196,376 ($32.2M)

Contractor: Submergence Group LLC

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2017-04-19

Contract Duration: 2,392 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PHASE 1. CONCEPT DESIGN STUDY

Place of Performance

Location: CEDAR PARK, TRAVIS County, TEXAS, 78613

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to SUBMERGENCE GROUP LLC for work described as: PHASE 1. CONCEPT DESIGN STUDY Key points: 1. The contract value of $32.2 million is for a concept design study, indicating early-stage development. 2. Competition was full and open, suggesting a robust market for this specialized service. 3. The fixed-price contract type mitigates cost overrun risk for the government. 4. The sector is Ship Building and Repairing, a critical area for defense capabilities.

Value Assessment

Rating: fair

The contract value of $32.2 million for a concept design study appears reasonable given the specialized nature of the work. Benchmarking against similar early-stage design contracts is difficult without more specific project details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The fixed-price nature of the contract further supports price discovery by setting a ceiling.

Taxpayer Impact: Taxpayer funds are being used for a critical defense capability study, with competition aiming to ensure value for money.

Public Impact

Enhances U.S. Special Operations Command's technological capabilities. Supports innovation in maritime defense and sub-surface operations. Potential for future contract awards based on study outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics in the provided data.
  • Potential for scope creep in early-stage design studies.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed price contract type.

Sector Analysis

The Ship Building and Repairing sector is capital-intensive and requires specialized expertise. Spending in this area is often driven by national security needs and technological advancements.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this contract award.

Oversight & Accountability

Oversight is managed by the Department of Defense, specifically U.S. Special Operations Command. The firm fixed-price contract provides a degree of financial accountability.

Related Government Programs

  • Ship Building and Repairing
  • Department of Defense Contracting
  • U.S. Special Operations Command Programs

Risk Flags

  • Potential for technology obsolescence.
  • Dependence on future funding for development.
  • Complexity of specialized sub-surface technology.
  • Limited visibility into specific performance metrics.

Tags

ship-building-and-repairing, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to SUBMERGENCE GROUP LLC. PHASE 1. CONCEPT DESIGN STUDY

Who is the contractor on this award?

The obligated recipient is SUBMERGENCE GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2010-10-01. End: 2017-04-19.

What are the key deliverables and success criteria for this concept design study?

The key deliverables would likely include detailed design concepts, feasibility assessments, and preliminary cost estimates for the proposed sub-surface technology. Success criteria would be tied to meeting the technical requirements outlined by SOCOM, demonstrating the viability of the concept, and providing a solid foundation for potential future development phases.

How does the $32.2 million cost compare to similar concept design studies in the defense sector?

Benchmarking this specific contract is challenging without more granular data on comparable projects. However, for complex, specialized defense systems, early-stage concept design studies can range from a few million to tens of millions of dollars, depending on the novelty and scope of the technology being explored.

What is the potential long-term effectiveness and impact of the technology being studied?

The long-term effectiveness and impact depend entirely on the success of the concept design and subsequent development. If successful, it could significantly enhance U.S. Special Operations Command's capabilities in areas requiring advanced sub-surface operations, potentially providing a strategic advantage.

Industry Classification

NAICS: ManufacturingShip and Boat BuildingShip Building and Repairing

Product/Service Code: SHIPS, SMALL CRAFT, PONTOON, DOCKS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 HERITAGE CENTER CIR STE 127, ROUND ROCK, TX, 78664

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,504,655

Exercised Options: $32,504,655

Current Obligation: $32,196,376

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2010-10-01

Current End Date: 2017-04-19

Potential End Date: 2017-04-19 00:00:00

Last Modified: 2021-02-25

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