DoD Awards $29.1M for Stealth Tech & Submarine Support to NTI Corporation

Contract Overview

Contract Amount: $29,109,464 ($29.1M)

Contractor: NTI Corporation

Awarding Agency: Department of Defense

Start Date: 2017-12-08

End Date: 2024-04-07

Contract Duration: 2,312 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FOR SCIENTIFIC, ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT FOR STEALTH TECHNOLOGY DEVELOPMENT, SHIP DESIGN APPLICATIONS, AND FLEET SUPPORT IMPLEMENTATION UNDER THE VIRGINIA CLASS, OHIO REPLACEMENT PROGRAM, ADVANCED TACTICAL SUBMARINE DEVELOPMENT, SURFACE AND ADVANCED NAVAL VEHICLES, ADVANCED SHIP CONCEPTS, STEALTH/SURVIVABILITY PROGRAMS AND OTHER TECHNICAL NAVY PROGRAMS ASSOCIATED WITH THE NAVAL SURFACE WARFARE CENTER, CARDEROCK DIVISION (NSWCCD).

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to NTI CORPORATION for work described as: FOR SCIENTIFIC, ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT FOR STEALTH TECHNOLOGY DEVELOPMENT, SHIP DESIGN APPLICATIONS, AND FLEET SUPPORT IMPLEMENTATION UNDER THE VIRGINIA CLASS, OHIO REPLACEMENT PROGRAM, ADVANCED TACTICAL SUBMARINE DEVELOPMENT, SURFACE AND ADVANCED NAVAL V… Key points: 1. Significant award for critical naval defense programs, including stealth technology and submarine development. 2. NTI Corporation is the sole awardee for this specific delivery order. 3. The contract spans over 6 years, indicating a long-term need for these specialized services. 4. Engineering services (NAICS 541330) are a key component of this spending.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility in research and development, but requires careful oversight to manage costs. The total award value of $29.1M over 2312 days suggests a substantial investment in specialized engineering support.

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, this specific delivery order was awarded to NTI Corporation, indicating they were the selected vendor among potential bidders.

Taxpayer Impact: Taxpayer funds are supporting critical advancements in naval technology and defense capabilities, aiming for enhanced national security.

Public Impact

Supports the development of advanced naval technologies, including stealth capabilities. Contributes to the modernization and sustainment of key submarine programs like Virginia Class and Ohio Replacement. Ensures continued technical support for the Naval Surface Warfare Center, Carderock Division. Impacts the readiness and effectiveness of the U.S. Navy's fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts can lead to cost overruns if not managed tightly.
Long-term contracts require ongoing performance monitoring.
Reliance on a single vendor for this delivery order warrants attention to ensure continued competition in future awards.

Positive Signals

Supports critical national defense initiatives.
Long contract duration suggests stable demand for these services.
Awarded under full and open competition, indicating a structured procurement process.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced naval and defense technologies. Spending benchmarks in this area are highly variable, depending on the complexity and scale of research and development projects.

Small Business Impact

The data indicates this contract was not awarded to small businesses (SB: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The Department of the Navy, through the Naval Surface Warfare Center, Carderock Division, is responsible for overseeing this contract. Robust oversight is crucial for CPFF contracts to ensure cost efficiency and effective delivery of services.

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.
Sole awardee for this delivery order.
No small business set-aside indicated.
Complex R&D and technical support requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to NTI CORPORATION. FOR SCIENTIFIC, ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT FOR STEALTH TECHNOLOGY DEVELOPMENT, SHIP DESIGN APPLICATIONS, AND FLEET SUPPORT IMPLEMENTATION UNDER THE VIRGINIA CLASS, OHIO REPLACEMENT PROGRAM, ADVANCED TACTICAL SUBMARINE DEVELOPMENT, SURFACE AND ADVANCED NAVAL VEHICLES, ADVANCED SHIP CONCEPTS, STEALTH/SURVIVABILITY PROGRAMS AND OTHER TECHNICAL NAVY PROGRAMS ASSOCIATED WITH THE NAVAL SURFACE WARFARE CENTER, CARDEROCK DIVISION (NSWCCD).

Who is the contractor on this award?

The obligated recipient is NTI 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 $29.1 million.

What is the period of performance?

Start: 2017-12-08. End: 2024-04-07.

What is the projected cost efficiency of this CPFF contract given the R&D nature of the work?

Assessing cost efficiency for CPFF contracts in R&D is challenging due to inherent uncertainties. While the fixed fee provides some cost control, the government must diligently monitor expenditures and contractor performance to ensure value. Benchmarking against similar R&D contracts and requiring detailed cost breakdowns will be essential for effective oversight and to mitigate potential cost overruns.

What are the specific risks associated with NTI Corporation's sole award for this delivery order?

The primary risk is reduced competition for this specific task order, potentially leading to less favorable pricing than if multiple vendors competed. While the overall contract may have been competed, this delivery order's sole award necessitates close monitoring of NTI's performance and cost management. Future solicitations should explore opportunities to broaden the competitive base.

How effectively will this contract contribute to the stated goals of stealth technology development and fleet support?

The effectiveness hinges on NTI Corporation's technical expertise and the Naval Surface Warfare Center's program management. The long duration and specific focus suggest a commitment to achieving these goals. Success will be measured by the successful integration of new technologies, improvements in ship design applications, and enhanced fleet operational capabilities.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016717R3026

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6539 WINDERMERE CIR, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $33,109,563

Exercised Options: $33,109,563

Current Obligation: $29,109,464

Actual Outlays: $1,787,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4093

IDV Type: IDC

Timeline