DoD Awards $23.3M Engineering Services Contract to Scientific Research Corporation for CVN 74 RCOH

Contract Overview

Contract Amount: $23,319,838 ($23.3M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2023-02-09

End Date: 2027-11-30

Contract Duration: 1,755 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LABOR - CVN 74 RCOH - TASK 1

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.3 million to SCIENTIFIC RESEARCH CORPORATION for work described as: LABOR - CVN 74 RCOH - TASK 1 Key points: 1. Contract awarded to Scientific Research Corporation for engineering services. 2. The contract is for Task 1 of the CVN 74 RCOH project. 3. Awarded by the Department of the Navy, part of the Department of Defense. 4. The contract type is Cost Plus Fixed Fee. 5. The period of performance is from February 9, 2023, to November 30, 2027.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts for naval ship repair and overhaul 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 task awarded and the fixed fee structure's impact on price discovery require further analysis.

Taxpayer Impact: Taxpayer funds are being used for essential naval vessel maintenance and modernization. The cost-plus-fixed-fee structure necessitates robust oversight to ensure value for money.

Public Impact

Supports critical naval infrastructure maintenance and readiness. Ensures the long-term operational capability of the USS John C. Stennis (CVN 74). Provides specialized engineering expertise for complex ship overhaul tasks. Contributes to the defense industrial base and skilled labor employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns.
Limited visibility into detailed cost components for Task 1.
Long performance period may increase risk of scope creep or unforeseen issues.

Positive Signals

Awarded under full and open competition.
Supports a critical national defense asset.
Experienced contractor likely involved.

Sector Analysis

This contract falls under Engineering Services, a sector crucial for defense infrastructure maintenance and modernization. Spending in this area is significant, driven by the need to maintain aging military assets and develop new capabilities. Benchmarks are highly project-specific due to the complexity of naval engineering.

Small Business Impact

The contract was awarded under full and open competition, but there is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award. Further analysis would be needed to determine subcontracting opportunities.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure accountability and prevent waste. The number of modifications (3) suggests some level of ongoing adjustments.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee structure
Long performance period (over 4 years)
Potential for scope creep in complex overhauls
Limited cost breakdown visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.3 million to SCIENTIFIC RESEARCH CORPORATION. LABOR - CVN 74 RCOH - TASK 1

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2023-02-09. End: 2027-11-30.

What is the breakdown of the fixed fee and the estimated cost base for this contract, and how does it compare to industry standards for similar naval overhaul tasks?

The provided data does not detail the breakdown of the fixed fee or the estimated cost base. To assess value, this information would need to be compared against industry benchmarks for engineering services on aircraft carrier refueling and complex overhauls (RCOH). Without this, it's difficult to determine if the pricing is competitive or if potential cost efficiencies were overlooked during negotiation.

What specific risks are associated with the Cost Plus Fixed Fee (CPFF) structure for this particular naval overhaul task, and what mitigation strategies are in place?

The primary risk with CPFF is the potential for contractor inefficiency, as costs are reimbursed. For a complex RCOH task, risks include scope creep, unforeseen technical challenges, and inaccurate initial cost estimations. Mitigation strategies should involve rigorous oversight, clear performance metrics, defined scope boundaries, and regular progress reviews by the Department of the Navy to control costs and ensure timely completion.

How effectively does this contract contribute to the overall readiness and modernization goals of the U.S. Navy's carrier fleet?

This contract is crucial for the mid-life refueling and complex overhaul (RCOH) of the USS John C. Stennis (CVN 74), a vital component of the Navy's carrier fleet. Successful execution ensures the ship's extended service life and modernized capabilities, directly contributing to naval readiness. The effectiveness hinges on the contractor's ability to deliver the specified engineering services within budget and schedule.

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: 2300 WINDY RIDGE PKWY STE 400S, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $23,363,575

Exercised Options: $23,363,575

Current Obligation: $23,319,838

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $12,444,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003919D0033

IDV Type: IDC

Timeline