DoD's $12.3M Engineering Services Contract Awarded to Serco-IPS Corporation for Tactical Tomahawk Support

Contract Overview

Contract Amount: $12,282,167 ($12.3M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2006-02-14

End Date: 2011-06-24

Contract Duration: 1,956 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200606!SS1798!1700!N63394!PORT HUENEME DIVISION !N0017804D4066 !A!N! !Y!L601 ! !20060214!20070213!035274158!035274158!102106952!N!IDENTIX PUBLIC SECTOR, INC !3975 FAIR RIDGE DRIVE !FAIRFAX !VA!22033!58296!111!06!PORT HUENEME !VENTURA !CALIFORNIA!+000000150000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !289 !TACTICAL TOMAHAWK !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! !1700!N63394!0001! !

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to SERCO-IPS CORPORATION for work described as: 200606!SS1798!1700!N63394!PORT HUENEME DIVISION !N0017804D4066 !A!N! !Y!L601 ! !20060214!20070213!035274158!035274158!102106952!N!IDENTIX PUBLIC SECTOR, INC !3975 FAIR RIDGE DRIVE !FAIRFAX !VA!22033!58296!111!06!PORT HUENEME !VENT… Key points: 1. Contract awarded for engineering and technical services related to the Tactical Tomahawk weapon system. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is substantial, spanning over 1900 days, suggesting a long-term need for these services. 4. The award amount of $12.3 million represents a significant investment in defense engineering capabilities. 5. The contractor, Serco-IPS Corporation, has a track record in providing defense-related services. 6. The services are categorized under Engineering Services, a critical sector for defense system maintenance and development.

Value Assessment

Rating: fair

The contract value of $12.3 million for engineering services over approximately 5 years appears to be within a reasonable range for specialized defense support. Benchmarking against similar contracts for weapon system engineering and technical support is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) contract type suggests that while the fee is fixed, the costs are reimbursable, which can introduce some cost variability. Further analysis would require comparing the labor rates and overhead applied by Serco-IPS to industry standards for similar engineering roles within the defense sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, meaning all responsible sources were permitted to submit bids. The data indicates there were two bids received for this contract. A competitive process with multiple bidders generally promotes price discovery and can lead to more favorable pricing for the government. The presence of two bidders suggests a degree of competition, though the exact level of competition and its impact on the final price would depend on the specific requirements and the number of technically acceptable proposals.

Taxpayer Impact: A full and open competition, even with only two bidders, is generally beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, potentially leading to cost savings compared to non-competitive awards.

Public Impact

The primary beneficiaries are the U.S. Navy's Tactical Tomahawk program, ensuring continued operational readiness and support. Services delivered include engineering and technical support crucial for the maintenance, upgrade, and sustainment of the weapon system. The geographic impact is likely concentrated around naval bases and operational areas where the Tactical Tomahawk is deployed or supported. Workforce implications include employment opportunities for engineers, technicians, and support staff within Serco-IPS Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed tightly.
The duration of the contract (over 5 years) necessitates ongoing performance monitoring to ensure continued value.
Dependence on a single contractor for critical engineering services could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contractor, Serco-IPS Corporation, is an established entity in defense contracting.
The contract supports a critical defense asset, the Tactical Tomahawk, indicating strategic importance.

Sector Analysis

The defense engineering services sector is a vital component of the broader aerospace and defense industry. This contract falls under engineering services (NAICS 541330), which encompasses firms providing professional engineering services. The market is characterized by specialized expertise, long-term relationships, and significant government spending. Comparable spending benchmarks would involve analyzing other contracts for weapon system support, technical services, and research and development within the Department of Defense, particularly for major platforms like the Tomahawk missile.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. However, the prime contractor, Serco-IPS Corporation, may choose to engage small businesses as subcontractors for specific components or services, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this Department of Defense contract would typically be managed by the contracting officer and the program executive office responsible for the Tactical Tomahawk program. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Tactical Tomahawk Weapon System
Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost-plus-fixed-fee contract type requires careful monitoring to control costs.
Long contract duration necessitates sustained performance oversight.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to SERCO-IPS CORPORATION. 200606!SS1798!1700!N63394!PORT HUENEME DIVISION !N0017804D4066 !A!N! !Y!L601 ! !20060214!20070213!035274158!035274158!102106952!N!IDENTIX PUBLIC SECTOR, INC !3975 FAIR RIDGE DRIVE !FAIRFAX !VA!22033!58296!111!06!PORT HUENEME !VENTURA !CALIFORNIA!+000000150000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !289 !TACTICAL TOMAHAWK !541330!E! !5!B!M! !A!D!200

Who is the contractor on this award?

The obligated recipient is SERCO-IPS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2006-02-14. End: 2011-06-24.

What is the specific nature of the engineering and technical services provided under this contract?

The contract data specifies 'ENGINEERING TECHNICAL SERVICES' for 'TACTICAL TOMAHAWK'. While the exact scope is not detailed, this typically involves a range of activities such as systems engineering, design support, integration, testing, logistics support analysis, maintenance planning, and technical documentation for the Tactical Tomahawk weapon system. These services are crucial for ensuring the system's operational effectiveness, reliability, and maintainability throughout its lifecycle. The services are procured by the Department of the Navy, indicating a focus on naval applications of the Tomahawk missile.

How does the awarded amount of $12.3 million compare to similar contracts for defense engineering services?

Comparing the $12.3 million award requires context regarding the contract duration and scope. This contract has a duration of 1956 days (approximately 5.36 years). For specialized engineering and technical support of major defense systems, this value is not unusually high, especially considering the complexity and criticality of weapon systems like the Tomahawk. However, without detailed service breakdowns and labor hour estimates, a precise benchmark is difficult. Similar contracts for weapon system sustainment, upgrades, or R&D support can range from a few million to hundreds of millions of dollars depending on the system's maturity, technological complexity, and the breadth of services required.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?

The Cost Plus Fixed Fee (CPFF) contract type, used here, means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of the actual costs incurred. If costs escalate beyond initial estimates, the government still pays the actual costs plus the agreed-upon fixed fee. Effective oversight, detailed cost tracking, and robust performance metrics are essential to mitigate the risk of cost overruns and ensure value for money under a CPFF arrangement.

What is the track record of Serco-IPS Corporation in providing defense engineering services?

Serco-IPS Corporation, as part of the larger Serco Group, has a significant presence in the defense sector, providing a wide array of services to government clients, including the U.S. Department of Defense. Their experience often includes logistics, training, technical support, and systems integration for various defense platforms. While specific performance details for this particular contract are not available in the provided data, Serco's general track record suggests they possess the necessary capabilities and experience to handle complex defense engineering and technical support requirements. Past performance evaluations and contract histories would provide a more granular view of their reliability and effectiveness.

How has federal spending on engineering services for naval weapon systems evolved over time?

Federal spending on engineering services for naval weapon systems has generally been substantial and consistent, driven by the need to maintain and modernize a large and complex fleet. Spending fluctuates based on program lifecycles, new platform development, and modernization initiatives. For systems like the Tomahawk, which has undergone upgrades and requires ongoing support, consistent funding for engineering services is critical. Historical data would show periods of increased investment during major upgrades or new development phases and steady spending for sustainment and lifecycle support. The overall trend reflects the U.S. Navy's commitment to technological superiority and operational readiness.

What is the significance of the 'Tactical Tomahawk' program in the context of naval warfare?

The Tactical Tomahawk (TACTOM) is a key component of the U.S. Navy's surface and submarine warfare capabilities. It is a long-range, all-weather, precision-guided cruise missile designed for use against high-value land targets. Its versatility allows it to be launched from surface ships and submarines, providing significant offensive power projection. The continued investment in engineering and technical services for TACTOM underscores its strategic importance in naval operations, enabling the Navy to address a wide range of threats and maintain a credible deterrent posture. Support for this program is vital for its ongoing effectiveness and modernization.

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: N0002405R3404

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 10 WEST 35TH ST, CHICAGO, IL, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4066

IDV Type: IDC

Timeline