DoD's Littoral Combat Ship Unmanned Vehicle Systems Integration Support contract awarded to EDO Professional Services Inc. for over $16.3M

Contract Overview

Contract Amount: $16,299,927 ($16.3M)

Contractor: EDO Professional Services Inc.

Awarding Agency: Department of Defense

Start Date: 2006-12-12

End Date: 2011-10-31

Contract Duration: 1,784 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: LITTORAL COMBAT SHIP UNMANNED VEHICLE SYSTEMS INTEGRATION SUPPORT

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32408

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to EDO PROFESSIONAL SERVICES INC. for work described as: LITTORAL COMBAT SHIP UNMANNED VEHICLE SYSTEMS INTEGRATION SUPPORT Key points: 1. Contract value of $16.3M for integration support of unmanned vehicle systems for the Littoral Combat Ship. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 4. Duration of 1784 days indicates a long-term need for these specialized engineering services. 5. The contract falls under Engineering Services (NAICS 541330), a critical sector for defense procurement. 6. Geographic location of performance is Florida (ST/SN).

Value Assessment

Rating: fair

The contract value of $16.3M for integration support of unmanned vehicle systems for the Littoral Combat Ship appears reasonable given the specialized nature of defense engineering services. However, without specific benchmarks for similar integration projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, which can drive efficiency, but also carries the risk of cost overruns if not managed carefully. The contract's duration of nearly five years suggests a sustained need, and the pricing would need to be benchmarked against other CPAF contracts for similar services to determine if it represents good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price. The use of full and open competition generally leads to a wider pool of potential contractors, fostering innovation and ensuring that the government receives the best possible solution at a competitive price.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a broader range of contractors to offer their services, potentially leading to more innovative and cost-effective solutions.

Public Impact

The primary beneficiaries are the Department of the Navy and the Littoral Combat Ship program, which will receive enhanced integration support for its unmanned vehicle systems. The services delivered are critical for the operational effectiveness and technological advancement of naval platforms. The geographic impact is primarily in Florida, where the contractor EDO Professional Services Inc. is located and likely where performance will occur. This contract supports specialized engineering roles, contributing to the skilled workforce in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher final costs if award fees are consistently met without stringent cost controls.
The long duration of the contract (1784 days) necessitates ongoing monitoring to ensure continued value and performance.
Integration of complex systems like unmanned vehicles can present unforeseen technical challenges that may impact cost and schedule.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive value.
The Cost Plus Award Fee (CPAF) structure incentivizes contractor performance and efficiency.
The contract supports a critical defense capability, the Littoral Combat Ship's unmanned vehicle systems.

Sector Analysis

The defense engineering services sector is characterized by high technical complexity, long development cycles, and significant government investment. Contracts like this, supporting advanced naval platforms and unmanned systems, are crucial for maintaining technological superiority. The market size for such specialized engineering services is substantial, driven by ongoing modernization efforts across military branches. This contract fits within the broader category of defense systems integration, where companies provide expertise to combine various hardware and software components into functional systems. Comparable spending benchmarks would typically involve analyzing other contracts for similar integration support on major defense platforms.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses through this prime contract is likely minimal unless EDO Professional Services Inc. actively engages in subcontracting with small businesses. The subcontracting plan, if any, would determine the extent of small business participation. Without specific information on subcontracting, it's difficult to assess the broader impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls would be closely monitored to ensure the contractor meets objectives and stays within budget. Transparency is generally maintained through contract reporting mechanisms, and any significant issues or potential fraud could fall under the jurisdiction of the Department of Defense's Inspector General.

Related Government Programs

Littoral Combat Ship Program
Unmanned Maritime Systems
Naval Engineering Services
Defense Systems Integration

Risk Flags

Potential for cost overruns in CPAF contracts if not managed diligently.
Complexity of integrating unmanned vehicle systems may lead to schedule delays.
Need for robust oversight to ensure performance objectives are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to EDO PROFESSIONAL SERVICES INC.. LITTORAL COMBAT SHIP UNMANNED VEHICLE SYSTEMS INTEGRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is EDO PROFESSIONAL SERVICES 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 $16.3 million.

What is the period of performance?

Start: 2006-12-12. End: 2011-10-31.

What is the track record of EDO Professional Services Inc. in delivering similar defense integration services?

EDO Professional Services Inc. has a history of providing professional services, including engineering and technical support, to various government agencies, particularly within the defense sector. While specific details on their performance on prior Littoral Combat Ship (LCS) related contracts or similar unmanned vehicle system integration projects would require a deeper dive into contract databases and performance reviews, their existence as a prime contractor suggests a capacity to handle complex defense requirements. Assessing their track record would involve examining past performance evaluations, any reported issues or successes on comparable contracts, and their overall financial stability and technical expertise in areas relevant to naval systems integration and unmanned technologies. Without direct access to detailed past performance information for this specific contract, a comprehensive assessment remains limited.

How does the $16.3M contract value compare to similar unmanned vehicle system integration contracts within the DoD?

Benchmarking the $16.3M contract value for Littoral Combat Ship (LCS) Unmanned Vehicle Systems Integration Support requires comparison with contracts for similar services on other naval platforms or defense programs. Integration of complex systems, especially those involving unmanned technologies, is inherently costly due to the specialized engineering, software development, testing, and cybersecurity requirements. If this contract covers a significant period (1784 days) and encompasses a broad scope of integration tasks, the value might be considered within a reasonable range for high-complexity defense projects. However, without specific data on the scope, duration, and complexity of comparable contracts, it is difficult to definitively state whether this represents excellent, fair, or questionable value. A detailed analysis would involve identifying contracts with similar NAICS codes (e.g., 541330 - Engineering Services) and service descriptions related to unmanned systems integration across different DoD branches.

What are the primary risks associated with this Cost Plus Award Fee (CPAF) contract?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract, such as the one awarded to EDO Professional Services Inc. for LCS Unmanned Vehicle Systems Integration Support, revolve around cost control and performance definition. CPAF contracts reimburse the contractor for allowable costs and provide a base fee plus an award fee, which is earned based on meeting or exceeding performance objectives. The risk for the government is that the contractor may incur higher costs than anticipated if performance objectives are set too broadly or if cost management is not rigorous, leading to higher overall expenditures to achieve the desired award fee. Conversely, if award fee criteria are too stringent or unclear, it could demotivate the contractor. Effective oversight is crucial to ensure that costs remain reasonable and that the award fee structure genuinely incentivizes desired outcomes without encouraging unnecessary spending.

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

The 'full and open competition' process is designed to maximize competition by allowing all responsible sources to submit offers. This broad participation is intended to drive competitive pricing by exposing the government to a wider range of bids and potentially more innovative, cost-effective solutions. For defense engineering services, where technical expertise and specialized knowledge are paramount, full and open competition can be highly effective in identifying contractors who can meet complex requirements at a fair price. However, the effectiveness is contingent on the clarity of the solicitation, the number of qualified bidders, and the government's ability to properly evaluate proposals. In cases where the market for highly specialized services is limited, even full and open competition might result in fewer bidders than desired, potentially impacting the degree of price competition achieved.

What is the historical spending trend for Littoral Combat Ship Unmanned Vehicle Systems Integration Support or similar services?

Analyzing historical spending trends for Littoral Combat Ship (LCS) Unmanned Vehicle Systems Integration Support requires access to detailed contract databases and program-specific financial data. Generally, spending on advanced naval systems, including unmanned technologies, has been increasing within the Department of Defense as the services seek to modernize and enhance their capabilities. For the LCS program specifically, funding allocations for systems integration, including unmanned components, would fluctuate based on program milestones, technological development phases, and evolving operational requirements. Without specific historical data points for this particular service category within the LCS program, it's challenging to identify a precise trend. However, the overall trend in defense spending on unmanned systems suggests a growing investment area.

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: N0002406R3674

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc (UEI: 004203337)

Address: 12975 WORLDGATE DR, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $504,860,936

Exercised Options: $253,774,835

Current Obligation: $16,299,927

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4040

IDV Type: IDC

Timeline