Seaward Services Inc. awarded $25.2M for technical, logistic, and operational support services

Contract Overview

Contract Amount: $25,233,438 ($25.2M)

Contractor: Seaward Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-30

End Date: 2012-04-25

Contract Duration: 1,973 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: TECHNICAL, LOGISTIC AND OPERATIONAL SUPPORT SERVICES

Place of Performance

Location: FORT LAUDERDALE, BROWARD County, FLORIDA, 33316

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to SEAWARD SERVICES, INC. for work described as: TECHNICAL, LOGISTIC AND OPERATIONAL SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1973 days indicates a long-term need for these services. 3. Award type 'Cost Plus Award Fee' suggests performance incentives were part of the agreement. 4. The contract was awarded by the Department of Defense, a major federal spender. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract was awarded in Florida, indicating a specific geographic focus for service delivery.

Value Assessment

Rating: fair

The contract value of $25.2 million over approximately 5.4 years averages to about $4.67 million per year. Without specific benchmarks for similar technical, logistic, and operational support services within the Department of Defense, a precise value-for-money assessment is challenging. The 'Cost Plus Award Fee' structure implies that the final cost could vary based on performance, making direct price comparisons difficult without knowing the award fee amounts. However, the duration suggests a sustained need, and the competitive award process may have helped to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by encouraging multiple companies to offer their best pricing and service terms.

Public Impact

The Department of Defense benefits from the provision of essential technical, logistic, and operational support services. These services likely contribute to the readiness and operational effectiveness of military assets or personnel. The contract's geographic focus in Florida suggests support for military installations or operations within that state. The contract may support a workforce of engineers, logisticians, and operational specialists, potentially creating or sustaining jobs in the relevant sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher overall costs if not managed tightly, as the government pays costs plus a fee that can increase with performance.
The long contract duration (1973 days) could present risks if requirements change significantly over time or if contractor performance degrades.
Without detailed performance metrics and award fee payouts, it's difficult to fully assess if the 'award' aspect truly drove exceptional value or just higher costs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract was awarded to Seaward Services, Inc., suggesting they have the capability to meet the DoD's needs.
The 'award fee' component suggests an incentive for the contractor to perform well, potentially leading to better service delivery.

Sector Analysis

The engineering services sector (NAICS 541330) is a critical component of the defense industrial base, providing specialized expertise for complex military systems and operations. Federal spending in this sector is substantial, supporting everything from design and development to maintenance and logistical support. This contract fits within the broader category of defense support services, where companies like Seaward Services, Inc. offer specialized technical and operational capabilities. Benchmarks for similar contracts would typically be found within defense spending databases, comparing scope, duration, and service type.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete and likely won the contract. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively pursued through subcontracting by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency (Department of Defense) and its respective contract management offices, such as the Defense Contract Management Agency (DCMA). The 'Cost Plus Award Fee' structure necessitates close monitoring of costs and performance to ensure the award fee is justified and that overall spending remains within acceptable parameters. Transparency would be facilitated through contract reporting mechanisms, and any significant issues could be investigated by the DoD Inspector General.

Related Government Programs

Defense Logistics Agency Support Contracts
Naval Sea Systems Command (NAVSEA) Support Services
Department of Defense Engineering Services
Operational Readiness Support Contracts

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to ensure value.
Long contract duration may increase risk of requirement changes or performance degradation.
Limited competition (3 bidders) may not represent the lowest possible price.
Lack of small business set-aside may limit opportunities for smaller enterprises.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to SEAWARD SERVICES, INC.. TECHNICAL, LOGISTIC AND OPERATIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEAWARD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2006-11-30. End: 2012-04-25.

What is the track record of Seaward Services, Inc. with the Department of Defense?

Seaward Services, Inc. has a history of contracting with the Department of Defense, as evidenced by this $25.2 million award for technical, logistic, and operational support services spanning from 2006 to 2012. Further analysis would require examining their complete contract portfolio with the DoD, including the types of services rendered, past performance evaluations, and any history of contract modifications, disputes, or awards. Understanding their performance on previous contracts can provide insights into their reliability and capability to fulfill current and future requirements. Data on their financial stability and any past performance issues would also be crucial for a comprehensive assessment.

How does the $25.2 million contract value compare to similar DoD support service contracts?

Comparing the $25.2 million value requires context regarding the specific technical, logistic, and operational support services provided. Contracts for similar services can vary widely in price based on scope, duration, geographic location, and complexity. This contract, awarded over approximately 5.4 years, represents an average annual value of about $4.67 million. To benchmark effectively, one would need to identify comparable contracts awarded by the DoD for similar services, considering factors like the number of personnel supported, the type of equipment or systems involved, and the level of technical expertise required. Without such direct comparisons, assessing whether this represents a particularly high or low value is difficult.

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

The primary risks with a CPAF contract of this magnitude ($25.2 million) revolve around cost control and performance verification. The government agrees to pay the contractor's allowable costs plus a fee, a portion of which is an award fee based on performance targets. The risk is that the contractor may not achieve exceptional performance, yet still receive a significant award fee, leading to higher-than-expected costs for the government. Conversely, poorly defined performance metrics can lead to disputes. Effective oversight is critical to ensure that the award fee truly reflects superior performance and that costs are reasonable and allocable. The long duration (1973 days) also introduces risk if requirements evolve or if contractor performance falters over time.

How effective is 'full and open competition' in ensuring value for taxpayer money in defense contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in defense contracts. By allowing all responsible sources to compete, it fosters a competitive environment where contractors are incentivized to offer their best prices and innovative solutions to win the contract. This process typically leads to a wider range of proposals, allowing the government to select the offer that provides the best overall value, considering price, technical merit, and past performance. While it requires more upfront effort in solicitation and evaluation, the potential for cost savings and improved quality often outweighs these initial investments. The presence of 3 bidders in this specific case suggests a reasonable level of competition.

What is the historical spending trend for engineering services (NAICS 541330) by the Department of Defense?

The Department of Defense is a significant consumer of engineering services, consistently awarding billions of dollars annually under NAICS code 541330. Historical spending trends show a robust and often increasing demand for these services, driven by the need for design, development, testing, and sustainment of complex military platforms and systems. Factors influencing these trends include geopolitical events, modernization programs, and budget allocations. While this specific $25.2 million contract represents a fraction of the total DoD spending in this category, it aligns with the broader pattern of substantial investment in engineering expertise to maintain military superiority and technological advantage.

What are the implications of the contract's geographic location (Florida) on its execution and oversight?

The contract's execution and oversight being tied to Florida implies that the services are likely being performed at or in support of military installations or operations within that state. This geographic focus can streamline logistical support and personnel management for the contractor. For oversight, it means that contract administration personnel, potentially from the Defense Contract Management Agency (DCMA) or the specific military branch involved, would be physically located or have a strong regional presence to monitor performance, costs, and compliance. This proximity can facilitate more direct communication and quicker issue resolution compared to contracts performed at distant or multiple locations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3209

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 255 EAST DANIA BEACH BLVD, DANIA BEACH, FL, 25

Business Categories: Category Business, Not Designated a Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $278,595,029

Exercised Options: $93,379,996

Current Obligation: $25,233,438

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4554

IDV Type: IDC

Timeline