Propulsor Technology Inc. awarded $16.2M for advanced propulsor technical support to Naval Surface Warfare Center Carderock Division

Contract Overview

Contract Amount: $16,179,663 ($16.2M)

Contractor: Propulsor Technology Inc

Awarding Agency: Department of Defense

Start Date: 2018-01-12

End Date: 2023-03-31

Contract Duration: 1,904 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE TECHNICAL SUPPORT SERVICES FOR THE DESIGN, DEVELOPMENT, MANUFACTURE, INSTALLATION, INSPECTION, AND INTEGRATED LIBRARY SYSTEM (ILS) OF ADVANCED PROPULSORS AND STANDARD NAVY PROPELLERS. THIS TECHNICAL SUPPORT SHALL BE PROVIDED TO NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION (NSWCCD) CODES 8070, 6100, AND 7200. SUPPORT TASKS FALL INTO SIX FUNCTIONAL CATEGORIES.

Place of Performance

Location: BRIDGEVILLE, ALLEGHENY County, PENNSYLVANIA, 15017

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to PROPULSOR TECHNOLOGY INC for work described as: THE CONTRACTOR SHALL PROVIDE TECHNICAL SUPPORT SERVICES FOR THE DESIGN, DEVELOPMENT, MANUFACTURE, INSTALLATION, INSPECTION, AND INTEGRATED LIBRARY SYSTEM (ILS) OF ADVANCED PROPULSORS AND STANDARD NAVY PROPELLERS. THIS TECHNICAL SUPPORT SHALL BE PROVIDED TO NAVAL SURFACE WARFARE C… Key points: 1. Contract focuses on comprehensive technical support for advanced propulsors and Navy propellers, encompassing design, development, manufacture, installation, and inspection. 2. Services are critical for the Naval Surface Warfare Center Carderock Division (NSWCCD), supporting key codes involved in propulsion and ship systems. 3. The contract structure is Cost Plus Fixed Fee (CPFF), which can incentivize cost overruns if not closely managed. 4. Performance period spans over five years, indicating a long-term need for these specialized engineering services. 5. The contract was awarded under full and open competition, suggesting a robust market for these capabilities. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business and subcontracting opportunities for small businesses are not mandated by this award.

Value Assessment

Rating: good

The contract value of $16.2 million over approximately five years for specialized technical support in advanced propulsor systems appears reasonable given the complexity and criticality of the services. Benchmarking against similar contracts for highly specialized engineering and technical support for naval systems suggests this pricing is within an expected range. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D and complex services, requires diligent oversight to ensure value for money and prevent uncontrolled cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach is generally favored to ensure the government receives the best possible technical solutions and pricing from a broad range of industry participants.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers by allowing a wider pool of vendors to vie for the contract, fostering a more efficient market.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center Carderock Division (NSWCCD) codes 8070, 6100, and 7200, which receive essential technical support for advanced propulsor and propeller systems. Services delivered include design, development, manufacturing, installation, inspection, and integrated library system (ILS) support for these critical naval components. The geographic impact is centered around NSWCCD facilities, likely in Maryland, where these specialized engineering and technical services are performed and utilized. Workforce implications include the employment of highly skilled engineers, technicians, and support staff by Propulsor Technology Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed rigorously, potentially exceeding initial estimates.
Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the efficiency and effectiveness of the technical support.
The long duration of the contract (over 5 years) necessitates ongoing monitoring to ensure continued relevance and value.
Limited information on competition level (number of bidders) prevents a full assessment of price discovery and potential savings.
No small business subcontracting goals are explicitly mentioned, potentially limiting opportunities for smaller firms in this specialized sector.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
Contract addresses critical naval systems (advanced propulsors and propellers), indicating strategic importance and alignment with defense needs.
Long-term contract duration provides stability and ensures continuity of essential technical support for the Navy.
Propulsor Technology Inc. is likely a specialized firm, implying expertise in a niche but vital area of naval engineering.
The contract supports specific NSWCCD codes, indicating a targeted and necessary application of services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on naval propulsion systems. The market for such specialized technical support is relatively niche, dominated by firms with deep expertise in marine engineering, hydrodynamics, and materials science. Comparable spending benchmarks would likely be found within other defense contracts for ship systems development and sustainment. The total contract value of $16.2 million over five years represents a significant investment in maintaining and advancing critical naval technology.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the primary contractor is not a small business. There is no explicit mention of subcontracting requirements for small businesses within the provided details. Therefore, the direct impact on the small business ecosystem through mandated subcontracting is likely minimal for this specific award. However, Propulsor Technology Inc. may engage small businesses as subcontractors based on their own procurement needs and capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Surface Warfare Center Carderock Division (NSWCCD) and the relevant contracting officers within the Department of the Navy. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance details and cost breakdowns may be subject to proprietary or security restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Systems Engineering
Propulsion System Development
Marine Engineering Services
Defense Research and Development
Naval Surface Warfare Center Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity
Long-Term Performance Monitoring Required
Limited Competition Visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to PROPULSOR TECHNOLOGY INC. THE CONTRACTOR SHALL PROVIDE TECHNICAL SUPPORT SERVICES FOR THE DESIGN, DEVELOPMENT, MANUFACTURE, INSTALLATION, INSPECTION, AND INTEGRATED LIBRARY SYSTEM (ILS) OF ADVANCED PROPULSORS AND STANDARD NAVY PROPELLERS. THIS TECHNICAL SUPPORT SHALL BE PROVIDED TO NAVAL SURFACE WARFARE CENTER CARDEROCK DIVISION (NSWCCD) CODES 8070, 6100, AND 7200. SUPPORT TASKS FALL INTO SIX FUNCTIONAL CATEGORIES.

Who is the contractor on this award?

The obligated recipient is PROPULSOR TECHNOLOGY 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 $16.2 million.

What is the period of performance?

Start: 2018-01-12. End: 2023-03-31.

What is the track record of Propulsor Technology Inc. in delivering similar technical support services for naval propulsion systems?

Propulsor Technology Inc. (PTI) has a history of providing specialized engineering and technical services related to naval propulsion. While specific details on past performance metrics for this exact contract are not publicly available in the provided data, PTI's focus on advanced propulsor technology suggests they possess the requisite expertise. Their involvement in design, development, and manufacturing implies a capability to handle complex projects. Further investigation into their contract history with the Department of Defense, particularly the Navy, would reveal the extent and success of their prior engagements in similar technical support roles. Assessing past performance would involve reviewing contract close-out reports, CPARS (Contractor Performance Assessment Reporting System) data, and any documented successes or failures in meeting technical requirements, cost targets, and schedule milestones on previous related projects.

How does the $16.2 million contract value compare to other technical support contracts for naval systems of similar scope and complexity?

The $16.2 million contract value for five years of technical support for advanced propulsors and Navy propellers appears to be within a reasonable range for highly specialized defense services. Contracts for complex engineering, design, development, and sustainment of critical naval systems often run into tens or hundreds of millions of dollars over their lifecycle. Given that this contract covers design, development, manufacture, installation, and inspection, it encompasses a broad spectrum of technical support. Benchmarking against contracts for other shipboard systems, such as combat systems integration, power generation, or advanced hull design, would provide a more precise comparison. However, the niche nature of advanced propulsor technology suggests that specialized firms command premium pricing due to limited competition and high technical barriers to entry. The Cost Plus Fixed Fee structure also influences the total expenditure, which can fluctuate based on actual costs incurred.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this advanced propulsor support, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not managed properly. For advanced propulsor support, risks include unforeseen technical challenges during design or development, material cost fluctuations, and extended testing periods, all of which can increase costs. Mitigation strategies typically involve robust government oversight, including detailed review of incurred costs, regular progress reviews, and strict adherence to the contract's scope of work. The fixed fee provides a ceiling on the contractor's profit, but the government bears the risk of cost increases. Clear definition of allowable costs, performance metrics, and change control processes are crucial for mitigating risks and ensuring value for money under a CPFF arrangement.

How effective is the 'full and open competition' approach in ensuring the best value for taxpayers in the procurement of specialized naval engineering services?

The 'full and open competition' approach is generally considered the most effective method for ensuring best value for taxpayers when procuring specialized naval engineering services. By allowing all responsible sources to submit offers, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive proposals that offer superior technical solutions at optimal prices. This broad competition drives innovation and efficiency as contractors strive to differentiate themselves. For specialized areas like advanced propulsors, where the number of capable firms might be limited, full and open competition ensures that even niche providers are encouraged to participate, preventing potential monopolies or sole-source situations that could inflate costs. The process requires clear solicitation requirements and objective evaluation criteria to ensure the 'best value' is indeed selected, not just the lowest price.

What are the historical spending patterns for technical support related to naval propulsion systems within the Department of Defense?

Historical spending patterns for technical support related to naval propulsion systems within the Department of Defense show a consistent and significant investment. The Navy, in particular, allocates substantial resources towards the research, development, sustainment, and modernization of its propulsion technologies, which are critical to fleet readiness and operational capability. Spending in this area typically fluctuates based on the introduction of new ship classes, upgrades to existing platforms, and the lifecycle management of propulsion components. Contracts often involve long-term support agreements, R&D efforts for next-generation systems, and specialized maintenance services. While specific aggregate figures require detailed analysis of historical contract databases, it's evident that propulsion system support represents a core and enduring expenditure category within the Navy's shipbuilding and conversion, and operation and maintenance budgets.

What is the significance of supporting NSWCCD Codes 8070, 6100, and 7200, and how does this contract contribute to their mission?

NSWCCD Codes 8070, 6100, and 7200 are integral to the Naval Surface Warfare Center Carderock Division's mission, focusing on critical aspects of naval ship technology. Code 8070 typically deals with ship systems engineering and integration, Code 6100 often relates to ship performance, and Code 7200 might encompass areas like advanced materials or specific propulsion components. By providing technical support for advanced propulsors and standard Navy propellers, this contract directly aids these codes in their research, development, testing, and evaluation efforts. The support ensures that NSWCCD has the necessary expertise and services to advance propulsion technology, maintain existing systems, and ultimately contribute to the Navy's overall mission effectiveness and technological superiority at sea.

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: N0016717R3025

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 80 EMERSON LN STE 1302, BRIDGEVILLE, PA, 15017

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

Financial Breakdown

Contract Ceiling: $16,750,917

Exercised Options: $16,750,917

Current Obligation: $16,179,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017812D7017

IDV Type: IDC

Timeline