Navy's $23.3M Ship & Shore Electronic Systems Contract Awarded to Compliance Corp

Contract Overview

Contract Amount: $23,317,027 ($23.3M)

Contractor: Compliance Corporation

Awarding Agency: Department of Defense

Start Date: 2014-05-15

End Date: 2019-10-11

Contract Duration: 1,975 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THE SHIP&SHORE BASED ELECTRONIC SYSTEMS (S&SBES) TEAM (CODE 4.5), ST. INIGOES, OF THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION PERFORMS DEVELOPMENT, TESTING, INSTALLATION, AND MAINTENANCE OF SHIPBOARD AND SHORE BASED ELECTRONIC EQUIPMENT. IN SUPPORT OF THIS MISSION, THE MECHANICAL FACILITIES TEAM (4.5.12) PROVIDES RESEARCH AND DEVELOPMENT ASSISTANCE AND MECHANICAL SYSTEMS PRODUCTION AND PROTOTYPING SUPPORT REQUIRED BY THE ENGINEERING DIVISIONS.

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to COMPLIANCE CORPORATION for work described as: THE SHIP&SHORE BASED ELECTRONIC SYSTEMS (S&SBES) TEAM (CODE 4.5), ST. INIGOES, OF THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION PERFORMS DEVELOPMENT, TESTING, INSTALLATION, AND MAINTENANCE OF SHIPBOARD AND SHORE BASED ELECTRONIC EQUIPMENT. IN SUPPORT OF THIS MISSION, THE MECHANI… Key points: 1. Contract supports critical development, testing, and maintenance of naval electronic systems. 2. Compliance Corporation is the sole awardee for this specific delivery order. 3. Potential risk associated with a single awardee for specialized engineering services. 4. Spending falls within the Engineering Services sector (NAICS 541330).

Value Assessment

Rating: good

The contract's total value of $23.3M over approximately 5 years appears reasonable for specialized engineering services. Benchmarking against similar complex naval system development contracts would provide further insight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific delivery order was awarded to a single entity, Compliance Corporation.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense capabilities.

Public Impact

Ensures operational readiness of naval electronic systems. Supports technological advancement in defense electronics. Contributes to the maintenance of critical military infrastructure. Provides specialized engineering expertise to the Department of the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Reliance on a single contractor for a delivery order.
  • Potential for cost overruns in cost-plus contracts.
  • Long contract duration could lead to scope creep.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national defense mission.
  • Experienced contractor likely provides specialized skills.

Sector Analysis

This contract falls under Engineering Services, a sector vital for defense readiness. Spending benchmarks for similar naval electronic systems development and maintenance contracts are typically in the millions to tens of millions, aligning with this award.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The Department of the Navy's oversight is crucial for managing cost-plus contracts and ensuring deliverables meet stringent performance requirements. Audits and regular performance reviews are standard oversight mechanisms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
  • Single awardee for this delivery order may limit future competition.
  • Long contract duration could lead to scope creep or outdated technology.
  • Lack of small business participation data.

Tags

engineering-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to COMPLIANCE CORPORATION. THE SHIP&SHORE BASED ELECTRONIC SYSTEMS (S&SBES) TEAM (CODE 4.5), ST. INIGOES, OF THE NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION PERFORMS DEVELOPMENT, TESTING, INSTALLATION, AND MAINTENANCE OF SHIPBOARD AND SHORE BASED ELECTRONIC EQUIPMENT. IN SUPPORT OF THIS MISSION, THE MECHANICAL FACILITIES TEAM (4.5.12) PROVIDES RESEARCH AND DEVELOPMENT ASSISTANCE AND MECHANICAL SYSTEMS PRODUCTION AND PROTOTYPING SUPPORT REQUIRED BY THE ENGINEERING DIVISIONS.

Who is the contractor on this award?

The obligated recipient is COMPLIANCE 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 $23.3 million.

What is the period of performance?

Start: 2014-05-15. End: 2019-10-11.

What was the competitive landscape during the bidding process for this specific delivery order, given the 'full and open' award type?

While the initial contract type was 'full and open,' this specific delivery order was awarded to a single entity, Compliance Corporation. This suggests that while multiple vendors may have been eligible, Compliance Corporation was selected as the best value or most qualified bidder for this particular tasking. Further details on the evaluation criteria and number of proposals received would clarify the competitive intensity for this order.

How does the cost-plus fixed fee structure impact potential cost overruns and taxpayer risk?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate, introducing some risk of cost overruns for the government if costs exceed initial estimates. Robust oversight and clear definition of scope are essential to mitigate this risk and protect taxpayer interests.

What is the long-term strategic value of this contract for the Navy's electronic systems modernization?

This contract provides essential R&D, testing, installation, and maintenance for ship and shore-based electronic systems. Its long duration (1975 days) suggests a commitment to ongoing support and development, crucial for modernizing and maintaining the technological edge of naval electronic warfare and communication capabilities. This ensures operational readiness and adaptability to evolving threats.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3117

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21617 SOUTH ESSEX DR STE 34, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,896,710

Exercised Options: $25,384,827

Current Obligation: $23,317,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7673

IDV Type: IDC

Timeline

Start Date: 2014-05-15

Current End Date: 2019-10-11

Potential End Date: 2019-10-11 00:00:00

Last Modified: 2023-06-15

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