NAVWAR awards $17M logistics and technical support contract to Integrites Corp

Contract Overview

Contract Amount: $16,991,157 ($17.0M)

Contractor: Integrits Corp

Awarding Agency: Department of Defense

Start Date: 2022-08-29

End Date: 2026-08-28

Contract Duration: 1,460 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVWAR 4.0 LOGISTICS AND TECHNICAL SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to INTEGRITS CORP for work described as: NAVWAR 4.0 LOGISTICS AND TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risk. 3. The duration of 1460 days (4 years) indicates a long-term need for these services. 4. The award is a Delivery Order, implying it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 5. The contractor, Integrites Corp, is relatively new to federal contracting based on available data. 6. The contract is for Engineering Services, aligning with NAICS code 541330.

Value Assessment

Rating: fair

Benchmarking the value of this specific $16.99 million contract is challenging without knowing the scope of services and the specific deliverables. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee. While this can be appropriate for research and development or when costs are uncertain, it offers less incentive for cost savings compared to fixed-price contracts. Comparing this to similar logistics and technical support contracts within the Department of the Navy or for similar engineering services would provide better context on whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While more bidders would generally be preferred to ensure the best possible pricing and terms, three offers indicate that the opportunity was known and pursued by multiple firms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially leading to lower prices and higher quality services.

Public Impact

The Department of the Navy benefits from enhanced logistics and technical support services. This contract supports critical engineering services for naval operations. The primary geographic impact is in California, where the contract is registered. The contract likely supports a workforce of engineers and logistics professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to higher costs if not managed closely.
Limited track record for Integrites Corp in federal contracting requires careful performance monitoring.
The specific scope of 'logistics and technical support' is broad and requires clear definition of deliverables to ensure value.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
The contract duration suggests a stable, long-term need, allowing for potential relationship building and efficiency gains.
The contract is for engineering services, a critical area for defense operations.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and infrastructure. The Department of Defense, particularly the Navy, is a major consumer of such services, often requiring specialized technical and logistical support for complex systems and operations. Spending in this category is driven by the need for technical expertise in areas like system design, maintenance, and operational support. Benchmarks for similar engineering services contracts within the DoD can vary widely based on specialization and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Integrites Corp, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous oversight of incurred costs and adherence to the fixed fee is crucial. Transparency is facilitated through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction isn't detailed here, the DoD IG typically has oversight over defense contracts to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Logistics Support Services
Technical Support Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited public information on contractor's past performance.
Potential for scope creep in 'logistics and technical support' services.
Delivery Order implies potential for future task orders, requiring ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to INTEGRITS CORP. NAVWAR 4.0 LOGISTICS AND TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTEGRITS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.0 million.

What is the period of performance?

Start: 2022-08-29. End: 2026-08-28.

What is the past performance and track record of Integrites Corp with federal contracts, particularly within the Department of Defense?

Based on the provided data, Integrites Corp appears to be a relatively new entrant or has a limited visible federal contracting history. The award of this $16.99 million contract by the Department of the Navy is a significant undertaking. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the full extent of their past performance, including any prior awards, contract values, performance ratings, and any history of disputes or terminations. For a contract of this size and duration, a robust past performance record is typically a key evaluation factor, and its apparent limited visibility warrants close monitoring of Integrites Corp's execution on this NAVWAR contract.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to industry standards for similar logistics and technical support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not clearly defined, involves significant research and development, or when cost uncertainties are high. For logistics and technical support services, fixed-price contracts (like Firm-Fixed Price or Fixed-Price Incentive) are generally preferred by the government as they provide greater cost certainty and incentivize contractor efficiency. However, CPFF can be appropriate if the services involve novel engineering challenges or require flexibility. The 'fixed fee' component aims to provide the contractor with a profit margin. Benchmarking this against similar NAVWAR or DoD contracts would reveal if CPFF was the most appropriate choice or if other contract types might have offered better value for money, considering the potential for cost overruns inherent in CPFF arrangements.

What are the specific deliverables and performance metrics associated with this $16.99 million contract?

The provided data identifies the contract as 'NAVWAR 4.0 LOGISTICS AND TECHNICAL SUPPORT SERVICES' and categorizes it under 'Engineering Services.' However, it does not detail the specific deliverables or performance metrics. For a contract of this magnitude ($16.99 million over 4 years), clear performance standards, Key Performance Indicators (KPIs), and measurable outcomes are essential for effective oversight and ensuring value for taxpayer money. These would typically be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this information, it's difficult to assess the contractor's expected performance and the government's ability to measure success.

What is the historical spending trend for logistics and technical support services by the Department of the Navy, and how does this award fit within that trend?

The Department of the Navy consistently spends billions of dollars annually on logistics, technical support, and engineering services to maintain its vast fleet and operational readiness. Awards like this $16.99 million contract for NAVWAR are part of a larger, ongoing investment in these critical support functions. Historical spending data would show fluctuations based on modernization programs, operational tempo, and budget allocations. This specific award, being a delivery order under a potential IDIQ, suggests it aligns with established procurement strategies for these types of services. Understanding the broader spending context helps determine if this award represents a typical investment or a deviation, and whether the allocated funds are consistent with previous similar procurements.

What are the potential risks associated with a Cost Plus Fixed Fee contract for engineering services, and what mitigation strategies are in place?

The primary risk with a CPFF contract is the potential for cost overruns, as the government bears the cost of performance. The contractor has less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the final cost. For engineering services, scope creep or unforeseen technical challenges can significantly increase costs. Mitigation strategies typically include robust government oversight of contractor expenditures, detailed cost monitoring, clear definition of the Statement of Work (SOW) to limit scope creep, and strong contract management practices. The fixed fee itself acts as a ceiling on the contractor's profit, but not on the total cost to the government. Regular audits and performance reviews are also critical.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003922R3005

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5205 KEARNY VILLA WAY STE 200, SAN DIEGO, CA, 92123

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,873,459

Exercised Options: $19,891,455

Current Obligation: $16,991,157

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,643,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7859

IDV Type: IDC

Timeline