Navy Awards $927.7M Contract for Submarine Auxiliary Systems R&D to Noesis, Inc
Contract Overview
Contract Amount: $10,251,796 ($10.3M)
Contractor: Defense Holdings, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-03-13
End Date: 2010-09-16
Contract Duration: 3,109 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200207!021944!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2906 !A!N! !N!P00002 !20020313!20020630!927784546!927784546!927784546!N!NOESIS, INC !10530 LINDEN LAKE PLAZA !MANASSAS !VA!20109!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000000303762!N!N!000000000000!AJ45!RDTE/ENGINEERING SCIENCES - ENG/MANUF DEVELOP !A3 !SHIPS !2SLL!SUBMARINE AUXILARY-AGSS(R+D) !335999!E! !3! ! !C! ! !99990909!B! ! !N!B!B!U!U!1!001!N!5A!A!Y!Z! ! !N!A!N!N!Z! ! ! !D!A!000!A!B!N! ! ! !Y! ! !0001!
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to DEFENSE HOLDINGS, INC. for work described as: 200207!021944!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2906 !A!N! !N!P00002 !20020313!20020630!927784546!927784546!927784546!N!NOESIS, INC !10530 LINDEN LAKE PLAZA !MANASSAS !VA!20109!48952!683!51!MANASSAS !MANAS… Key points: 1. The contract value of $927.7 million represents a significant investment in submarine technology. 2. Noesis, Inc. secured this award, indicating a competitive landscape for specialized defense R&D. 3. The 'Cost Plus Fixed Fee' contract type introduces potential cost overruns, a risk factor. 4. This spending falls within the 'Defense' sector, specifically focusing on shipbuilding and R&D.
Value Assessment
Rating: fair
The contract value of $927,784,546 is substantial. Without specific benchmarks for similar R&D contracts for submarine auxiliary systems, a precise pricing assessment is difficult. However, the 'Cost Plus Fixed Fee' structure suggests potential for costs to exceed initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning competition was limited or nonexistent. This limits price discovery and potentially leads to higher costs for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition for this large contract may result in taxpayers paying more than necessary for the research and development services.
Public Impact
Enhances U.S. Navy's submarine capabilities through advanced auxiliary systems. Supports critical defense research and development, contributing to national security. Potential for technological advancements with broad applications in naval warfare. Job creation in specialized engineering and manufacturing fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type carries inherent risk of cost overruns.
- Long contract duration (over 3000 days) increases exposure to changing requirements and economic factors.
Positive Signals
- Focus on critical submarine technology development.
- Potential for significant technological advancement.
- Award to a single entity may streamline project management.
Sector Analysis
This contract falls under the Defense sector, specifically R&D for shipbuilding. Defense R&D spending is a significant portion of the federal budget, with contracts often being large and complex due to the specialized nature of the technology involved.
Small Business Impact
The data does not indicate any specific involvement or subcontracting opportunities for small businesses in this contract award. The primary contractor, Noesis, Inc., is not identified as a small business in this record.
Oversight & Accountability
The 'Cost Plus Fixed Fee' contract type requires robust oversight to manage costs and ensure the contractor meets performance objectives. The Department of Defense's Defense Contract Management Agency (DCMA) is responsible for contract administration.
Related Government Programs
- All Other Miscellaneous Electrical Equipment and Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type increases risk of budget overruns.
- Long contract duration presents challenges for scope management.
- Lack of small business participation noted.
Tags
all-other-miscellaneous-electrical-equip, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to DEFENSE HOLDINGS, INC.. 200207!021944!1700!BZ002 !NAVAL SEA SYSTEMS COMMAND !N0002401C2906 !A!N! !N!P00002 !20020313!20020630!927784546!927784546!927784546!N!NOESIS, INC !10530 LINDEN LAKE PLAZA !MANASSAS !VA!20109!48952!683!51!MANASSAS !MANASSAS (CITY) !VIRGINIA !+000000303762!N!N!000000000000!AJ45!RDTE/ENGINEERING SCIENCES - ENG/MANUF DEVELOP !A3 !SHIPS !2SLL!SUBMARINE AUXILARY-AGSS(R+D) !335999!E! !3! ! !C! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DEFENSE HOLDINGS, 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 $10.3 million.
What is the period of performance?
Start: 2002-03-13. End: 2010-09-16.
What specific technological advancements are expected from this R&D contract, and how will they enhance submarine capabilities?
The contract focuses on 'SUBMARINE AUXILIARY-AGSS(R+D)', implying research and development into systems that support submarine operations, such as power generation, life support, or environmental control. Expected advancements could include increased efficiency, enhanced reliability, reduced acoustic signatures, or improved survivability. These advancements are crucial for maintaining the U.S. Navy's technological edge in submarine warfare and ensuring the effectiveness of its submarine fleet in complex operational environments.
Given the sole-source nature of the award, what mechanisms are in place to ensure the government is receiving fair value for the $927.7 million investment?
While a sole-source award limits upfront competition, the government relies on robust negotiation strategies, detailed cost proposals, and ongoing oversight. The 'Cost Plus Fixed Fee' structure requires the contracting officer to negotiate a fair and reasonable fixed fee based on the estimated cost and the contractor's performance risk. The Defense Contract Management Agency (DCMA) will monitor costs and performance closely throughout the contract's life to ensure adherence to the agreement and prevent unnecessary expenditures.
What is the long-term strategic importance of investing in submarine auxiliary R&D, and how does this contract align with broader defense objectives?
Investing in submarine auxiliary R&D is critical for maintaining the stealth, endurance, and operational effectiveness of the U.S. Navy's submarine force, which is a cornerstone of national security. This contract aligns with broader defense objectives by ensuring that U.S. submarines remain technologically superior to potential adversaries. Advancements in auxiliary systems can lead to longer submerged deployments, reduced maintenance needs, and improved crew habitability, all contributing to the strategic advantage and global presence of the U.S. submarine fleet.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10530 LINDEN LAKE PLAZA, MANASSAS, VA, 10
Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-03-13
Current End Date: 2010-09-16
Potential End Date: 2010-09-16 00:00:00
Last Modified: 2010-06-06
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