DoD Awards $18.4M Engineering Services Contract to SERCO INC for CVN 74 RCOH Task 3

Contract Overview

Contract Amount: $18,390,972 ($18.4M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-13

End Date: 2027-11-30

Contract Duration: 1,813 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CVN 74 RCOH TASK 3

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to SERCO INC for work described as: CVN 74 RCOH TASK 3 Key points: 1. Contract value of $18.4M for engineering services. 2. SERCO INC is the contractor, with the Department of the Navy as the agency. 3. The contract is for a significant duration, spanning from late 2022 to late 2027. 4. This falls under the Engineering Services sector, specifically NAICS 541330.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering service contracts for naval ship maintenance is difficult without more detailed cost breakdowns.

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 award type is a delivery order, which might indicate a pre-existing contract vehicle.

Taxpayer Impact: Taxpayer funds are being used for essential naval maintenance and engineering services, with the expectation of value derived from competitive pricing.

Public Impact

Ensures readiness of a key naval asset (CVN 74). Supports specialized engineering jobs within the defense sector. Contributes to the long-term maintenance and operational capability of the U.S. Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can increase risk of cost overruns.
Long contract duration may require ongoing oversight to ensure efficiency.
Specific task details are limited, making full assessment challenging.

Positive Signals

Awarded under full and open competition.
Supports critical naval infrastructure.
Contractor has a history of performance in defense services.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for supporting complex government projects, particularly in defense. Spending benchmarks for similar naval overhaul projects can vary widely based on ship class and scope of work.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract's duration and cost-plus nature necessitate robust monitoring to ensure cost control and adherence to scope.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Limited detail on specific deliverables and performance metrics.
Potential for cost overruns.
Complexity of RCOH tasks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to SERCO INC. CVN 74 RCOH TASK 3

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 $18.4 million.

What is the period of performance?

Start: 2022-12-13. End: 2027-11-30.

What is the estimated total cost if the fixed fee is applied to the base contract value, and how does this compare to industry benchmarks for similar RCOH tasks?

The contract is Cost Plus Fixed Fee (CPFF), meaning the government pays the actual costs plus a fixed fee. Without knowing the fixed fee amount and the projected cost base, a precise total cost is unknown. However, CPFF contracts are often used when costs are uncertain. Benchmarking is difficult without specific task details, but RCOH (Refueling and Complex Overhaul) is a multi-year, multi-billion dollar endeavor, making this $18.4M task a component of a much larger program.

What are the specific performance metrics and deliverables for this task, and how will SERCO INC's performance be evaluated to mitigate cost overrun risks inherent in CPFF contracts?

Performance metrics and deliverables are not detailed in the provided data. For CPFF contracts, robust oversight is critical. The Department of the Navy should have established key performance indicators (KPIs) related to schedule adherence, quality of engineering work, and cost management. Regular progress reviews and audits are essential to ensure SERCO INC meets requirements and to identify potential cost escalations early.

How does the competitive landscape for CVN 74 RCOH tasks typically look, and did the full and open competition for this specific task result in demonstrably better pricing or technical solutions compa

Full and open competition generally aims to achieve the best value through market forces. For complex naval overhauls like RCOH, the number of qualified contractors can be limited, but competition is still preferred. The fact that this was awarded via full and open competition suggests multiple bids were received. Without access to the bid data, it's impossible to definitively say if it resulted in better pricing or solutions than a sole-source award, but the process itself increases the likelihood of favorable outcomes.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003917R0043

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $21,095,307

Exercised Options: $21,095,307

Current Obligation: $18,390,972

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,889,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003919D0032

IDV Type: IDC

Timeline