DoD's $18.1M contract for SETA support to Command and Control Systems awarded to E.M. Norton Enterprises

Contract Overview

Contract Amount: $18,145,403 ($18.1M)

Contractor: E.M. Norton Enterprises, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-10

End Date: 2026-09-09

Contract Duration: 729 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO COMMAND AND CONTROL SYSTEMS (PMW 150).

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to E.M. NORTON ENTERPRISES, INC. for work described as: THE CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO COMMAND AND CONTROL SYSTEMS (PMW 150). Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 3. The duration of 729 days indicates a medium-term engagement for critical systems engineering support. 4. The award is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The contractor, E.M. Norton Enterprises, Inc., is tasked with providing Systems Engineering and Technical Assistance (SETA). 6. The specific program supported is Command and Control Systems (PMW 150), a key area for defense operations.

Value Assessment

Rating: fair

Benchmarking the value of this $18.1 million contract for SETA support is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. While the total value is significant, its value-for-money depends heavily on the successful delivery of technical expertise and the achievement of program milestones within the defined fee.

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 bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While competition is generally positive, the number of bidders could be higher for a contract of this nature, potentially impacting price discovery and the ultimate value achieved.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation among bidders. However, with only three bidders, there's a possibility that the competitive pressure was not as intense as it could have been, potentially leading to a less optimal price.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical engineering and technical assistance. Services delivered include Systems Engineering and Technical Assistance (SETA) crucial for the development, integration, and sustainment of Command and Control Systems. The geographic impact is likely concentrated within Department of Defense facilities and operational areas where these command and control systems are deployed or managed. Workforce implications may include the direct employment of engineers and technical specialists by E.M. Norton Enterprises, Inc., and indirectly support personnel within the Navy's program management offices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to prevent scope creep and ensure costs remain within reasonable bounds.
The limited number of bidders (3) might indicate potential barriers to entry or a specialized market, warranting further investigation into competition dynamics.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle necessitates robust performance monitoring and change control processes.

Positive Signals

Awarded via full and open competition, which generally promotes a fair and competitive marketplace.
The contractor is tasked with providing essential SETA support, indicating a recognized need for specialized expertise.
The contract is a Delivery Order, suggesting it aligns with a broader strategic acquisition approach.

Sector Analysis

The engineering services sector (NAICS 541330) is a critical component of the defense industrial base, providing specialized technical expertise for complex systems. This contract for SETA support to Command and Control Systems fits within this sector, focusing on high-level technical guidance and program management assistance. The defense sector's reliance on such services is substantial, with billions spent annually on engineering and technical support to maintain technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Therefore, the primary contractor, E.M. Norton Enterprises, Inc., is responsible for managing the entire scope of work. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this specific delivery order. The impact on the small business ecosystem is neutral unless the prime contractor voluntarily engages small businesses for support.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Navy's contracting officers and program managers. They are responsible for monitoring costs, ensuring adherence to the contract terms, and verifying the delivery of required services. Accountability measures are tied to the successful completion of milestones and the effective management of the fixed fee. Transparency is generally maintained through contract reporting requirements, though specific details of cost breakdowns may be proprietary.

Related Government Programs

Systems Engineering and Technical Assistance (SETA)
Command and Control Systems Support
Department of the Navy IT/C4ISR Procurement
Defense Engineering Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost escalations.
Limited number of bidders (3) may indicate reduced competitive pressure, potentially impacting price.
SETA contracts can be complex; ensuring clear deliverables and performance metrics is crucial.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to E.M. NORTON ENTERPRISES, INC.. THE CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT SERVICES TO COMMAND AND CONTROL SYSTEMS (PMW 150).

Who is the contractor on this award?

The obligated recipient is E.M. NORTON ENTERPRISES, 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 $18.1 million.

What is the period of performance?

Start: 2024-09-10. End: 2026-09-09.

What is the track record of E.M. Norton Enterprises, Inc. in providing SETA support to defense programs?

E.M. Norton Enterprises, Inc. has a history of providing various support services to government agencies, including engineering and technical assistance. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations, particularly on similar Command and Control (C2) systems or SETA-related contracts within the Department of Defense (DoD), would be necessary. This would involve reviewing past performance questionnaires (PPQs), CPARS reports, and any available contract award histories to identify trends in their ability to meet cost, schedule, and performance requirements. Without specific data on prior C2 SETA contracts, it's difficult to definitively gauge their expertise in this niche.

How does the $18.1 million value compare to similar SETA contracts for Command and Control Systems?

The $18.1 million value for this 729-day delivery order for SETA support to Command and Control Systems appears to be within a typical range for specialized defense support services. However, a precise comparison requires benchmarking against contracts with similar scope, complexity, and duration. Factors such as the specific C2 systems involved, the level of technical expertise required, and the geographic location of support can significantly influence pricing. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents excellent, fair, or concerning value. Generally, SETA contracts can range from a few million to tens or even hundreds of millions of dollars depending on the program's scale and criticality.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for SETA support?

The primary risks with a CPFF contract for SETA support revolve around cost control and contractor incentive. While the fixed fee provides the contractor with an incentive to control costs (as they cannot exceed the fee), there's a risk that the contractor may not fully disclose all potential cost savings or may prioritize activities that maximize allowable costs rather than overall program efficiency. For the government, the risk lies in potential cost overruns if the 'allowable costs' component escalates beyond initial projections, even with a fixed fee. Effective oversight is crucial to monitor expenditures, validate cost reasonableness, and ensure the contractor is not incentivized to inflate costs to justify the fixed fee.

How effective are the current oversight mechanisms for this contract, given its CPFF structure?

The effectiveness of oversight for this CPFF contract hinges on the diligence of the Department of the Navy's contracting officer representatives (CORs) and program managers. Key oversight activities include rigorous review of incurred costs, validation of the necessity and reasonableness of expenses, and monitoring progress against defined milestones. The fixed fee itself acts as a form of oversight by capping the contractor's profit. However, the true effectiveness depends on the COR's expertise in the technical domain (Command and Control Systems) and their ability to scrutinize cost submissions. Without detailed information on the specific oversight plan and the resources allocated to it, assessing effectiveness remains speculative.

What is the historical spending trend for SETA support to Command and Control Systems within the Department of the Navy?

Analyzing historical spending trends for SETA support to Command and Control Systems within the Department of the Navy (DoN) would require access to historical contract data and budget allocations. Generally, spending in this area tends to be consistent, reflecting the ongoing need for technical expertise in maintaining and evolving complex defense systems. Fluctuations might occur based on major system upgrades, new technology insertions, or shifts in strategic priorities. A detailed analysis would involve examining spending patterns over the last 5-10 fiscal years, identifying key contractors, and understanding the drivers behind significant spending increases or decreases in C2 SETA support.

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: N0003924R3002

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3111 CAMINO DEL RIO NORTH, SUITE 400, SAN DIEGO, CA, 92108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $80,513,166

Exercised Options: $29,674,261

Current Obligation: $18,145,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7553

IDV Type: IDC

Timeline