DoD Navy awards $5.98M for AN/USQ-144L(V)2 ADNS equipment to SERCO INC
Contract Overview
Contract Amount: $5,982,075 ($6.0M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2022-07-12
End Date: 2023-11-09
Contract Duration: 485 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENCLAVE, AN/USQ-144L(V)2, ADNS, SP4
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.0 million to SERCO INC for work described as: ENCLAVE, AN/USQ-144L(V)2, ADNS, SP4 Key points: 1. Contract awarded for specialized communication equipment. 2. SERCO INC. is the sole awardee. 3. Risk is moderate due to specialized nature of equipment. 4. Sector is IT/Defense communications.
Value Assessment
Rating: fair
The contract value of $5.98M for AN/USQ-144L(V)2 ADNS equipment appears to be within a reasonable range for specialized defense communication systems. Benchmarking against similar complex electronic systems is difficult without more detailed specifications.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of the AN/USQ-144L(V)2 ADNS system may limit the number of capable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are used for essential defense communication infrastructure, with competition aiming for cost-effectiveness.
Public Impact
Ensures operational readiness for naval communication systems. Supports advanced network capabilities for the Department of the Navy. Potential for future upgrades and sustainment contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of potential bidders for specialized equipment.
- Potential for cost overruns if system complexity is underestimated.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense communication infrastructure.
Sector Analysis
This contract falls within the IT and Defense sector, specifically for advanced communication systems. Spending benchmarks for such specialized equipment are highly variable and depend on technological sophistication and required quantities.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Standard DoD oversight mechanisms would apply to this contract, including contract performance monitoring and financial accountability. The award process itself is subject to federal procurement regulations.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for limited competition due to specialized nature.
- Risk of cost escalation if contractor underbid.
- Dependence on a single supplier for critical components.
- Long-term sustainment and upgrade costs not detailed.
Tags
telephone-apparatus-manufacturing, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.0 million to SERCO INC. ENCLAVE, AN/USQ-144L(V)2, ADNS, SP4
Who is the contractor on this award?
The obligated recipient is SERCO 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 $6.0 million.
What is the period of performance?
Start: 2022-07-12. End: 2023-11-09.
What is the specific function and criticality of the AN/USQ-144L(V)2 ADNS system to naval operations?
The AN/USQ-144L(V)2 ADNS (Automated Digital Network System) is a critical component for establishing and managing secure digital communication networks aboard naval vessels. Its functionality is essential for transmitting and receiving data, supporting command and control, intelligence, and operational coordination, thereby directly impacting mission effectiveness and readiness.
How does the 'full and open competition' ensure optimal value for this specialized defense equipment?
While 'full and open competition' is the preferred method, its effectiveness in ensuring optimal value for highly specialized equipment like the AN/USQ-144L(V)2 ADNS depends on the number of truly capable bidders. If only a few companies possess the necessary technical expertise and certifications, the competitive pressure might be less intense, potentially leading to higher prices than if a broader market existed.
What are the potential risks associated with the firm fixed price contract type for this equipment?
A firm fixed price contract, while providing cost certainty for the government, can pose risks if the contractor significantly underestimates the complexity or cost of producing the AN/USQ-144L(V)2 ADNS. This could lead to the contractor seeking change orders, experiencing financial distress, or delivering a product that doesn't fully meet specifications if they prioritize profit over quality.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003916R0028
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $7,376,065
Exercised Options: $5,982,075
Current Obligation: $5,982,075
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $4,985,211
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003917D0009
IDV Type: IDC
Timeline
Start Date: 2022-07-12
Current End Date: 2023-11-09
Potential End Date: 2023-11-09 00:00:00
Last Modified: 2026-01-08
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