DoD Awards $153.9M Engineering Services Contract to Serco Inc. for PEO Ships Amphibious Warfare Program
Contract Overview
Contract Amount: $15,388,575 ($15.4M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2025-05-02
End Date: 2030-05-01
Contract Duration: 1,825 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: PSSIN SUPPORT OF PROGRAM EXECUTIVE OFFICE (PEO) SHIPS AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Defense obligated $15.4 million to SERCO INC for work described as: PSSIN SUPPORT OF PROGRAM EXECUTIVE OFFICE (PEO) SHIPS AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377). Key points: 1. Contract value of $153.9M over 5 years. 2. Competition was full and open, indicating potential for competitive pricing. 3. Risk is moderate due to the cost-plus fixed-fee structure. 4. Sector is Engineering Services, supporting critical naval programs.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. However, the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields more competitive pricing compared to sole-source awards.
Taxpayer Impact: The full and open competition is a positive sign for taxpayer value, as it allows multiple vendors to bid, driving down costs.
Public Impact
Supports critical PEO Ships Amphibious Warfare programs. Ensures continued engineering support for naval vessel development. Potential for long-term impact on naval readiness and capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 84 / 10
Warning Flags
- Cost-plus fixed-fee structure requires careful monitoring to control costs.
- Long contract duration (5 years) may introduce scope creep risks.
Positive Signals
- Awarded under full and open competition.
- Supports a critical defense program (PEO Ships).
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for the design, development, and maintenance of complex systems like naval vessels. Spending in this area is benchmarked against similar large-scale defense engineering contracts.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Therefore, the direct impact on small business participation is unclear, though they may participate as subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Navy, which has established oversight mechanisms for large contracts. The CPFF structure necessitates diligent oversight to ensure cost efficiency and prevent overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus fixed-fee structure
- Long-term contract duration
- Potential for cost overruns if not managed effectively
- Reliance on contractor performance for critical program support
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to SERCO INC. PSSIN SUPPORT OF PROGRAM EXECUTIVE OFFICE (PEO) SHIPS AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377).
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 $15.4 million.
What is the period of performance?
Start: 2025-05-02. End: 2030-05-01.
What is the typical profit margin for CPFF contracts in defense engineering services, and how does Serco's fixed fee compare?
Profit margins for CPFF contracts in defense engineering can vary, but typically range from 7-15% of the total contract cost. Without knowing the specific fixed fee amount or the estimated cost base, a direct comparison is difficult. However, the fixed fee is intended to incentivize efficiency and provide a predictable profit for the contractor, while the government bears the cost risk.
What are the key performance indicators (KPIs) for this contract, and how will they be monitored to ensure effective service delivery?
Key performance indicators would likely include adherence to project timelines, quality of engineering deliverables, cost control against the fixed fee, and overall program support effectiveness. The Department of the Navy would typically establish a formal performance management plan with specific metrics and regular reviews to monitor Serco's performance throughout the contract duration.
How does the $153.9M contract value compare to historical spending on similar amphibious warfare program engineering support?
Benchmarking this $153.9M contract requires comparison with historical data for PEO Ships or similar naval program engineering support contracts. Factors like inflation, program scope changes, and technological advancements influence historical costs. A detailed analysis would involve comparing contract duration, scope of work, and specific services rendered to ensure this award represents fair market value.
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: N0016424R3024
Offers Received: 2
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: $105,214,938
Exercised Options: $105,214,938
Current Obligation: $15,388,575
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $598,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8498
IDV Type: IDC
Timeline
Start Date: 2025-05-02
Current End Date: 2030-05-01
Potential End Date: 2030-05-01 00:00:00
Last Modified: 2026-02-12
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