Navy awards $21.6M engineering services contract for CVN 74 ZI completion labor

Contract Overview

Contract Amount: $21,611,254 ($21.6M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2024-11-22

End Date: 2027-11-30

Contract Duration: 1,103 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CVN 74 ZI COMPLETION LABOR

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SCIENTIFIC RESEARCH CORPORATION for work described as: CVN 74 ZI COMPLETION LABOR Key points: 1. Contract focuses on specialized engineering services for a specific naval vessel. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. The contract type (Cost Plus Fixed Fee) warrants close monitoring of cost overruns. 4. Performance period spans over three years, suggesting a significant scope of work. 5. This contract falls within the broader engineering services sector for defense procurement. 6. The award amount is moderate within the context of large naval shipbuilding and repair contracts.

Value Assessment

Rating: good

The contract value of $21.6 million for engineering services appears reasonable given the multi-year duration and the specialized nature of vessel completion labor. Benchmarking against similar engineering support contracts for naval vessels would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain within expected parameters, as this structure can incentivize cost escalation if not managed effectively. However, for complex, evolving requirements typical in vessel completion, CPFF can offer flexibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment was sought.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at the best possible price by leveraging market forces and encouraging multiple vendors to compete.

Public Impact

The primary beneficiaries are the U.S. Navy, specifically the personnel and operations related to the CVN 74 (USS John C. Stennis). The services delivered will contribute to the completion and readiness of a major naval asset. The geographic impact is likely concentrated around the naval shipyard or facility where the CVN 74 is undergoing work. This contract supports skilled engineering and technical labor, potentially impacting the defense industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost tracking and management to prevent overruns.
The long performance period (over three years) necessitates sustained oversight to ensure ongoing value and performance.
Specific details on the 'ZI completion labor' are not provided, making it difficult to fully assess the scope and potential risks.
Lack of information on the number of bidders limits a deeper analysis of competitive intensity.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract is for engineering services, a critical component for complex naval projects.
The fixed fee component in the CPFF structure provides some cost predictability.
The contract duration suggests a significant and potentially stable workload for the contractor.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing professional services related to the design, development, and application of engineering principles. Within the defense industry, engineering services are crucial for the maintenance, modernization, and new construction of complex military assets like aircraft carriers. Spending in this sector for defense is substantial, driven by the need for specialized technical expertise to support advanced platforms. Comparable spending benchmarks would involve analyzing other engineering support contracts for naval vessels or major defense platforms.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Scientific Research Corporation, depending on the contractor's subcontracting plan and the specific needs of the 'CVN 74 ZI completion labor'. The overall impact on the small business ecosystem would depend on the extent of subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy, likely through contracting officers and technical representatives. Accountability measures will be embedded in the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated by the contract award notice, but detailed performance data and cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance and Repair
Shipbuilding and Conversion, Navy
Engineering and Technical Services
Defense Procurement
Aircraft Carrier Modernization Programs

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for scope creep in 'completion labor' tasks.
Long performance period necessitates sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SCIENTIFIC RESEARCH CORPORATION. CVN 74 ZI COMPLETION LABOR

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 $21.6 million.

What is the period of performance?

Start: 2024-11-22. End: 2027-11-30.

What is the specific nature of the 'CVN 74 ZI completion labor' and what are the key deliverables expected under this contract?

The specific nature of 'CVN 74 ZI completion labor' refers to the specialized tasks and services required to finalize or complete specific systems or sections ('ZI') of the aircraft carrier USS John C. Stennis (CVN 74). This could encompass a range of activities such as systems integration, testing, outfitting, final inspections, and corrective actions necessary to bring the vessel to a designated state of readiness or completion. Key deliverables would likely include detailed technical reports, completed installation and testing logs, certifications of work performed, and potentially the successful integration and operational testing of specified systems. Without more granular information on the 'ZI' designation, the precise scope remains somewhat generalized, but it is clearly tied to the final stages of a major naval platform's availability or refit period.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other common contract types for similar naval engineering services, and what are the implications for cost control?

Cost Plus Fixed Fee (CPFF) contracts are common for complex, research-intensive, or uncertain-scope projects where defining a fixed price upfront is difficult. Unlike Firm-Fixed-Price (FFP) contracts, which offer the most price certainty but shift risk to the contractor, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee. This structure provides flexibility for evolving requirements but can incentivize cost escalation if not rigorously managed. For naval engineering services, especially during vessel completion or modernization where unforeseen issues are common, CPFF can be advantageous. However, it places a significant burden on the government to meticulously track and audit costs. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF offers less direct incentive for the contractor to control costs beyond avoiding disallowed expenses, making robust government oversight paramount.

What is the historical spending pattern for engineering services related to the CVN 74 or similar aircraft carrier classes by the Department of the Navy?

Analyzing historical spending patterns for engineering services related to the CVN 74 or similar aircraft carrier classes by the Department of the Navy reveals a consistent and substantial investment in maintaining and modernizing these complex assets. Aircraft carriers, due to their scale and technological sophistication, require continuous engineering support throughout their lifecycle, from construction and commissioning through mid-life overhauls and upgrades. Spending often fluctuates based on the carrier's specific maintenance schedule, availability for upgrades (like Refueling and Complex Overhauls - RCOH), and emergent repair needs. Contracts for engineering services can range from relatively small, targeted support tasks to multi-billion dollar overhaul programs. The $21.6 million awarded here for 'ZI completion labor' represents a specific, likely focused, expenditure within the broader context of ongoing carrier sustainment and modernization efforts. Historical data would show significant annual outlays for engineering, technical services, and shipyard support across the carrier fleet.

What is the track record of Scientific Research Corporation (SRC) in performing similar large-scale engineering contracts for the Department of Defense or other federal agencies?

Scientific Research Corporation (SRC) has a notable track record in performing complex engineering, integration, and manufacturing solutions for defense and aerospace clients, including the Department of Defense. While specific contract details for 'CVN 74 ZI completion labor' are not provided, SRC's broader portfolio includes work on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, electronic warfare, and aviation electronics. They have experience with various contract types and have demonstrated capabilities in delivering sophisticated technical solutions. Assessing their performance on similar large-scale naval or aerospace engineering contracts would involve reviewing past performance evaluations, on-time delivery metrics, and adherence to budget on comparable projects. Generally, SRC is recognized as a capable provider within its specialized domains, suggesting a reasonable likelihood of successful performance, though specific project history is key for a definitive assessment.

What are the potential risks associated with the 'completion labor' aspect of this contract, particularly concerning schedule delays or cost overruns?

The 'completion labor' aspect of this contract carries inherent risks, primarily related to schedule delays and cost overruns, especially given the CPFF contract type. Completion phases for complex assets like aircraft carriers often involve integrating numerous systems, conducting extensive testing, and addressing unforeseen technical challenges or deficiencies discovered during final checks. Schedule delays can arise from issues with system compatibility, vendor support, labor availability, or shipyard production bottlenecks. Cost overruns are a significant risk with CPFF because the contractor is reimbursed for actual costs incurred. If unexpected technical problems require more labor hours, specialized materials, or extended testing periods than initially anticipated, costs can escalate. Effective risk mitigation requires proactive project management, clear communication channels, robust government oversight to monitor progress and costs, and contingency planning for potential issues.

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: 1

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: $32,642,202

Exercised Options: $32,642,202

Current Obligation: $21,611,254

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $11,124,548

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