Navy Awards $22.3M Follow-On Contract for Taiwan Life Cycle Support to Forward Slope Inc

Contract Overview

Contract Amount: $22,325,795 ($22.3M)

Contractor: Forward Slope Inc

Awarding Agency: Department of Defense

Start Date: 2021-12-02

End Date: 2026-12-01

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TAIWAN LIFE CYCLE SUPPORT (LCS) FOLLOW-ON

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to FORWARD SLOPE INC for work described as: TAIWAN LIFE CYCLE SUPPORT (LCS) FOLLOW-ON Key points: 1. Contract awarded to Forward Slope Inc. for life cycle support services. 2. Significant value of $22.3 million over 5 years. 3. Full and open competition was utilized. 4. Engineering services sector, NAICS 541330. 5. Contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: good

The contract value of $22.3 million over five years suggests a moderate annual spend. Without specific benchmarks for Taiwan LCS, direct pricing comparison is difficult, but the Cost Plus Fixed Fee structure allows for cost control while incentivizing efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best value for its investment.

Public Impact

Ensures continued operational readiness and support for critical naval assets in Taiwan. Supports a key strategic partner, contributing to regional stability. Provides long-term employment and revenue for the contractor, Forward Slope Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
Reliance on a single contractor for life cycle support may pose long-term supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract duration provides stability and predictability for support services.
Supports critical defense capabilities and strategic partnerships.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting naval systems. Spending in this area is crucial for maintaining complex defense equipment and ensuring operational readiness. Benchmarks for similar life cycle support contracts for naval assets would provide further context.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-aside for small businesses. Therefore, the direct impact on small businesses is not specified in this award notice.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure accountability and prevent overspending.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Dependency on a single contractor for critical support.
Geopolitical risks associated with Taiwan.
Long contract duration may not adapt to rapidly changing technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to FORWARD SLOPE INC. TAIWAN LIFE CYCLE SUPPORT (LCS) FOLLOW-ON

Who is the contractor on this award?

The obligated recipient is FORWARD SLOPE 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 $22.3 million.

What is the period of performance?

Start: 2021-12-02. End: 2026-12-01.

What is the historical cost performance of Forward Slope Inc. on similar Cost Plus Fixed Fee contracts?

Analyzing Forward Slope Inc.'s past performance on similar Cost Plus Fixed Fee contracts is crucial for assessing value. Reviewing their track record for cost overruns, adherence to fixed fees, and overall efficiency will provide insight into their reliability and the potential for this contract to meet its financial objectives. This historical data can inform future pricing negotiations and oversight strategies.

What are the specific risks associated with the 'Taiwan Life Cycle Support' if Forward Slope Inc. fails to perform?

Failure of Forward Slope Inc. to perform on the Taiwan Life Cycle Support contract could lead to significant operational disruptions for naval assets in Taiwan. This could include reduced readiness, extended downtime for critical equipment, and potential security implications. The government would face the challenge of quickly finding and onboarding a replacement contractor, likely at a higher cost and with a learning curve, impacting mission effectiveness.

How does the Cost Plus Fixed Fee structure impact the effectiveness of engineering services for complex naval systems?

The Cost Plus Fixed Fee (CPFF) structure aims to balance cost control with the need for flexibility in complex projects. While the fixed fee provides the contractor with an incentive to manage costs efficiently, the 'cost plus' element allows for reimbursement of actual costs incurred. For complex engineering services like life cycle support, CPFF can be effective by covering unforeseen technical challenges and necessary resources, but it requires robust government oversight to ensure costs remain reasonable and the fixed fee is appropriate.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003921R3004

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2020 CAMINO DEL RIO N STE 400, SAN DIEGO, CA, 92108

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

Financial Breakdown

Contract Ceiling: $25,915,619

Exercised Options: $24,132,258

Current Obligation: $22,325,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017821D9078

IDV Type: IDC

Timeline