DoD awards $15.8M contract for UK Royal Navy technical support to Emcube Inc

Contract Overview

Contract Amount: $15,850,045 ($15.9M)

Contractor: Emcube Inc

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2026-12-13

Contract Duration: 803 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRIDENT TECHNICAL SUPPORT SERVICES FOR UNITED KINGDOM ROYAL NAVY (UK)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22206

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to EMCUBE INC for work described as: TRIDENT TECHNICAL SUPPORT SERVICES FOR UNITED KINGDOM ROYAL NAVY (UK) Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Long duration of 803 days indicates a significant, ongoing need for services. 4. Services are for the United Kingdom Royal Navy, highlighting international defense cooperation. 5. Contractor Emcube Inc. is the sole awardee, limiting opportunities for broader market engagement. 6. The contract falls under Engineering Services, a critical support function for complex defense systems.

Value Assessment

Rating: questionable

The contract value of $15.8 million for 803 days of technical support is difficult to benchmark without specific service details. As a sole-source award, there is no direct comparison to other bids to assess pricing competitiveness. The firm-fixed-price structure provides cost certainty, but the absence of competition means the government may not have secured the best possible value. Further analysis would require understanding the specific technical services provided and comparing them to industry standards for similar support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Department of the Navy identified Emcube Inc. as the only capable provider for these specific technical support services for the UK Royal Navy. The lack of competition limits the government's ability to leverage market forces to drive down prices and potentially explore innovative solutions from a wider range of vendors.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is achieved.

Public Impact

The United Kingdom Royal Navy benefits from specialized technical support for its systems. Ensures the operational readiness and effectiveness of critical defense equipment. Supports a specialized segment of the defense industry through a significant contract award. Potential for highly skilled technical personnel to be engaged in supporting international allies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source nature limits transparency in pricing and service delivery benchmarks.
Dependence on a single contractor for critical support could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract provides cost certainty for the duration of the award.
Long-term nature of the contract suggests a stable and ongoing requirement.
Award to Emcube Inc. indicates confidence in their specialized capabilities for this niche support.

Sector Analysis

This contract falls within the Engineering Services sector, which is a vital component of the broader defense industry. The market for specialized technical support for naval systems is often characterized by high barriers to entry due to the need for specific expertise and security clearances. While the overall size of the engineering services market is substantial, contracts like this represent niche, high-value engagements. Benchmarking would typically involve comparing the daily or hourly rates for similar specialized technical support within the defense sector, adjusted for geographic location and specific system complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. There is also no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and opportunities for small businesses to participate in this specific contract are not apparent from the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, but specific proactive oversight mechanisms beyond standard contract management are not detailed.

Related Government Programs

Naval Systems Support Contracts
Foreign Military Sales Support
Defense Engineering Services
Technical Support Services

Risk Flags

Sole-source award lacks competitive pricing validation.
Limited public information on specific services and performance metrics.
Potential for cost overruns due to absence of market competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to EMCUBE INC. TRIDENT TECHNICAL SUPPORT SERVICES FOR UNITED KINGDOM ROYAL NAVY (UK)

Who is the contractor on this award?

The obligated recipient is EMCUBE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-12-13.

What specific technical services are being provided under this contract to the UK Royal Navy?

The provided data indicates the contract is for 'TRIDENT TECHNICAL SUPPORT SERVICES FOR UNITED KINGDOM ROYAL NAVY (UK)' and falls under the 'Engineering Services' NAICS code (541330). However, the specific nature of these services is not detailed. Typically, 'Trident technical support' could encompass a wide range of activities, including maintenance, repair, system integration, software updates, training, and logistical support for the Trident missile system or related naval platforms. Without further documentation, the precise scope of work remains undefined, making it challenging to fully assess the value and necessity of the contract.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For this contract, the Department of the Navy must have determined that Emcube Inc. was the only entity capable of providing the specialized Trident technical support required by the UK Royal Navy, potentially due to proprietary knowledge, unique expertise, or existing infrastructure. This justification would need to be formally documented by the agency.

How does the $15.8 million contract value compare to similar technical support contracts for naval systems?

Direct comparison of the $15.8 million contract value is challenging without knowing the exact services rendered and their duration. However, for context, major naval system support contracts can range from millions to billions of dollars, depending on the complexity and scale. Contracts for specialized technical support, especially for sensitive or unique systems like those associated with the Trident program, often command higher prices due to the required expertise and limited vendor pool. The firm-fixed-price nature suggests the $15.8 million covers all anticipated costs for the 803-day period, but without a competitive bid process, it's difficult to ascertain if this represents optimal market value.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing, as there is no competitive pressure to ensure the government receives the best value. Taxpayers may end up paying more than if the contract had been competed. Another risk is reduced innovation, as a single provider may have less incentive to develop novel solutions. Furthermore, dependence on a single contractor can create vulnerabilities; if Emcube Inc. experiences performance issues, financial instability, or decides to exit the market, the UK Royal Navy's Trident technical support could be significantly disrupted, potentially impacting operational readiness.

What is Emcube Inc.'s track record with government contracts, particularly in defense or technical support?

The provided data identifies Emcube Inc. as the contractor but does not offer details on their past performance or track record with government contracts. To assess their reliability and capability for this $15.8 million sole-source award, a review of their contract history, past performance evaluations (if available through federal databases like the Contractor Performance Assessment Reporting System - CPARS), and any prior experience with similar technical support for naval systems would be necessary. Without this information, it's difficult to gauge their suitability beyond the agency's determination that they are the sole capable source.

What is the historical spending pattern for Trident technical support services by the Department of the Navy?

The provided data focuses solely on this single $15.8 million contract awarded in 2024. It does not offer any historical spending context for Trident technical support services. To understand historical patterns, one would need to analyze past contracts awarded for similar services, potentially over several fiscal years, identifying the total expenditure, the number of contracts, the types of awards (competitive vs. sole-source), and the contractors involved. This would reveal trends in spending, identify potential increases or decreases in demand, and highlight any shifts in procurement strategies for this critical support function.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003024R6009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY ST STE 430, ARLINGTON, VA, 22206

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $78,507,936

Exercised Options: $23,738,443

Current Obligation: $15,850,045

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline