DoD's $20.2M contract for missile parts awarded to Trident Research, LLC, lacks competition

Contract Overview

Contract Amount: $20,205,602 ($20.2M)

Contractor: Trident Research, LLC

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2029-06-30

Contract Duration: 2,464 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FY23 PILS IN-SERVICE ENGINEERING & MTNC

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78758

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to TRIDENT RESEARCH, LLC for work described as: FY23 PILS IN-SERVICE ENGINEERING & MTNC Key points: 1. Contract awarded on a sole-source basis, raising concerns about price discovery and potential overpayment. 2. The contract's duration of over 6 years suggests a long-term need for these specialized engineering services. 3. Awarded to a single entity, limiting opportunities for smaller businesses to participate in this defense sector. 4. The 'Other Guided Missile and Space Vehicle Parts' NAICS code indicates a niche but critical area of defense manufacturing. 5. Performance is located in Texas, potentially impacting the local economy and workforce in that region. 6. The cost-plus-fixed-fee pricing structure may incentivize higher costs if not closely monitored.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specialized components. Without competitive bids, it's difficult to ascertain if the $20.2 million price reflects fair market value. The cost-plus-fixed-fee structure, while common for R&D or uncertain scope work, can lead to costs exceeding initial estimates if not managed rigorously. Further analysis would require access to detailed cost breakdowns and comparisons with similar sole-source awards for comparable missile systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not solicit bids from multiple vendors. This typically occurs when only one vendor possesses the unique capabilities, proprietary technology, or specialized knowledge required for the service or product. The lack of competition means taxpayers did not benefit from the price reductions that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price, potentially leading to higher costs for taxpayers. It also bypasses opportunities to foster a broader base of qualified suppliers.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Department of the Navy, ensuring the continued in-service engineering and maintenance of critical missile systems. Services delivered include engineering and maintenance crucial for the operational readiness of guided missile systems. The geographic impact is concentrated in Texas, where Trident Research, LLC is located, potentially creating or sustaining jobs in that state. Workforce implications may include specialized engineering and technical roles required for advanced defense manufacturing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing and reduced value for taxpayer dollars.
Cost-plus-fixed-fee contract type can incentivize higher spending if oversight is insufficient.
Sole-source awards limit the government's ability to explore innovative solutions from a wider market.
Long contract duration (over 6 years) increases exposure to potential cost overruns and performance issues.

Positive Signals

Contract addresses a critical need for in-service engineering and maintenance of defense assets.
Awarded to a single entity suggests specialized expertise required for this specific missile system.
Performance is located within the US, supporting domestic defense industrial base.

Sector Analysis

The defense industrial base for guided missile and space vehicle parts is a highly specialized and technologically advanced sector. Companies operating within this space often possess unique intellectual property, advanced manufacturing capabilities, and stringent security clearances. Spending in this area is critical for national security, supporting the development, production, and sustainment of advanced weaponry. Comparable spending benchmarks are difficult to establish due to the proprietary nature of many defense systems and the limited number of qualified suppliers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the sole-source nature of the award limits opportunities for small businesses to participate as prime contractors. Subcontracting opportunities for small businesses may exist, but these are dependent on Trident Research, LLC's procurement practices and the specific needs of the contract. The lack of a set-aside or competitive bidding process means small businesses are less likely to benefit directly from this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is often limited for sole-source defense contracts due to national security considerations and proprietary information. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Missile Systems Procurement
Defense Engineering Services
Guided Missile Parts Manufacturing
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award lacks competition, potentially increasing costs.
Cost-plus-fixed-fee contract type requires diligent oversight to prevent cost overruns.
Long contract duration increases exposure to performance and cost risks over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to TRIDENT RESEARCH, LLC. FY23 PILS IN-SERVICE ENGINEERING & MTNC

Who is the contractor on this award?

The obligated recipient is TRIDENT RESEARCH, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2022-10-01. End: 2029-06-30.

What is Trident Research, LLC's track record with the Department of Defense, particularly on similar sole-source contracts?

Information regarding Trident Research, LLC's specific track record on sole-source contracts with the Department of Defense is not readily available in the provided data. However, the award of a $20.2 million contract for in-service engineering and maintenance of missile systems suggests a level of trust or a perceived unique capability by the Department of the Navy. Further investigation into the company's past performance, contract history, and any reported issues or successes would be necessary for a comprehensive assessment. Sole-source awards often imply a pre-existing relationship or a determination that no other vendor can meet the requirement, but a review of past performance is still crucial to ensure value and mitigate risks.

How does the $20.2 million contract value compare to similar in-service engineering and maintenance contracts for missile systems?

Direct comparison of the $20.2 million contract value is difficult without access to a broader dataset of similar sole-source awards for comparable missile systems. The specialized nature of 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' (NAICS 336419) means that costs can vary significantly based on the specific system, technology involved, and the scope of engineering and maintenance required. Given this is a sole-source award with a cost-plus-fixed-fee structure, there is an inherent risk that the price may not be as competitive as it would be in a fully competed environment. A thorough benchmark analysis would require access to detailed cost breakdowns and a comparison with other sole-source contracts for similar defense platforms, which are often not publicly disclosed.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for defense engineering services?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for defense engineering services are twofold. Firstly, the sole-source nature eliminates competitive pressure, which can lead to higher prices than might be achieved through bidding. The government may not be getting the best value for its money. Secondly, the CPFF structure means the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost is not. This can incentivize the contractor to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total expenditure. Effective oversight and robust cost controls are therefore critical to mitigate these risks and ensure the government does not overpay.

What is the expected program effectiveness or outcome of this contract for the Department of the Navy?

The expected program effectiveness of this contract is to ensure the continued operational readiness and sustainment of specific guided missile systems utilized by the Department of the Navy. By securing in-service engineering and maintenance services from Trident Research, LLC, the Navy aims to maintain the reliability, performance, and longevity of these critical assets. The success of the program will be measured by the contractor's ability to meet performance specifications, deliver services on time, and ensure the systems function as intended throughout their lifecycle. Effective execution of this contract is vital for maintaining naval combat capabilities.

How has historical spending in the 'Other Guided Missile and Space Vehicle Parts' sector trended, and does this contract align with those patterns?

Historical spending trends in the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336419) are generally driven by defense budgets and the lifecycle of various missile programs. Spending typically increases during periods of new development, production ramp-up, or when significant sustainment and upgrade efforts are required for existing platforms. This $20.2 million contract, awarded for in-service engineering and maintenance over approximately six years, aligns with the pattern of ongoing sustainment spending necessary to keep complex defense systems operational. The specific amount reflects the ongoing need for specialized support for these critical components within the broader defense spending landscape.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003022R2010

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2809 LONGHORN BLVD, AUSTIN, TX, 78758

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,453,884

Exercised Options: $22,864,174

Current Obligation: $20,205,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline