DoD's $5.3M NTI Corp. contract for propulsion engineering services awarded under full and open competition

Contract Overview

Contract Amount: $5,297,442 ($5.3M)

Contractor: NTI Corporation

Awarding Agency: Department of Defense

Start Date: 2021-07-22

End Date: 2026-07-21

Contract Duration: 1,825 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROPULSOR HYDRO & TEST TASK ORDER

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to NTI CORPORATION for work described as: PROPULSOR HYDRO & TEST TASK ORDER Key points: 1. Contract awarded to NTI Corporation for specialized engineering services. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. Services are for propulsion systems testing and development. 4. Contract duration spans five years, indicating a long-term need. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. Awarded by the Department of the Navy, a major defense procurement agency. 7. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of the underlying IDIQ contract and the specific tasks performed. The CPFF contract type means costs are reimbursed plus a fixed fee, which can be efficient for research and development but carries inherent risk of cost growth. Comparing the per-unit cost is not feasible without more detailed task breakdowns. However, the total value of $5.3 million over five years suggests a moderate investment in specialized engineering expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the open competition. This approach aims to ensure that the government receives the best value by considering a range of qualified contractors.

Public Impact

The Department of the Navy benefits from specialized engineering support for its propulsion systems. Services delivered include testing and development tasks crucial for naval technology advancement. The contract's primary geographic impact is likely within Maryland, where the contractor is located. The contract supports a workforce of engineers and technical specialists in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited information on the specific performance metrics and deliverables makes assessing overall value difficult.
The duration of the contract (5 years) requires ongoing oversight to ensure continued relevance and efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract supports critical defense capabilities related to naval propulsion systems.
NTI Corporation is a known entity in the engineering services sector, implying some level of established capability.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing specialized expertise for complex weapon systems. This contract falls within the broader category of professional, scientific, and technical services, with a specific focus on mechanical and aerospace engineering related to propulsion. The market for such services is competitive, with numerous firms capable of supporting defense requirements. Spending in this area is often driven by modernization efforts and the need for advanced technological solutions.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no specific mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem through this particular award is likely minimal, though the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The CPFF structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency is generally maintained through contract reporting requirements, though specific details of performance and cost are often considered sensitive defense information.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Research and Development
Engineering and Technical Services Contracts
Propulsion System Development Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage cost risks.
Limited public data on specific performance metrics and deliverables.
Long contract duration necessitates sustained monitoring for relevance and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to NTI CORPORATION. PROPULSOR HYDRO & TEST TASK ORDER

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 $5.3 million.

What is the period of performance?

Start: 2021-07-22. End: 2026-07-21.

What is NTI Corporation's track record with the Department of Defense, particularly in propulsion engineering?

NTI Corporation has a history of performing contracts for the Department of Defense, including work related to engineering and technical services. While specific details on their propulsion engineering track record require deeper analysis of past performance reports and contract awards, their selection for this task order suggests they possess the requisite capabilities and experience. Further investigation into their past performance ratings, any past issues or commendations, and the types of propulsion systems they have supported would provide a more comprehensive understanding of their suitability and reliability for this critical function.

How does the pricing structure (Cost Plus Fixed Fee) compare to other propulsion engineering contracts of similar scope?

Cost Plus Fixed Fee (CPFF) contracts are common for research, development, and complex services where the final cost is uncertain. This structure reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers flexibility but can lead to higher overall costs if not managed diligently, as the government bears more of the cost risk. For propulsion engineering, where innovation and unforeseen technical challenges are frequent, CPFF can be appropriate. However, it necessitates robust government oversight to control costs and ensure the fixed fee remains reasonable relative to the effort expended. Benchmarking against similar CPFF contracts would involve analyzing the fee percentages and the total cost growth experienced on comparable projects.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, for engineering services contracts, particularly those involving testing and development, typical KPIs would likely include adherence to project timelines, successful completion of testing protocols, accuracy and completeness of technical reports, achievement of specified performance parameters for propulsion systems, and effective management of project costs within the allocated budget. The Department of the Navy would establish these metrics based on the Statement of Work (SOW) to ensure the contractor meets the required technical and programmatic objectives. Regular performance reviews would assess NTI Corporation's progress against these KPIs.

What is the historical spending trend for propulsion engineering services within the Department of the Navy?

Historical spending on propulsion engineering services within the Department of the Navy is substantial, reflecting the critical nature of naval power and the continuous need for maintenance, modernization, and development of advanced propulsion systems. While precise figures for 'propulsion engineering services' as a distinct category can fluctuate based on reporting and specific program needs, the Navy consistently invests billions annually in shipbuilding, ship maintenance, and related research and development, a significant portion of which directly or indirectly supports propulsion technology. This includes funding for engine development, testing, lifecycle support, and upgrades across various vessel classes, from submarines to aircraft carriers and surface combatants.

Are there any identified risks associated with NTI Corporation's performance on this contract?

Without access to detailed performance reviews or past performance information, specific risks associated with NTI Corporation's performance on this particular contract cannot be definitively identified. However, general risks inherent in CPFF contracts include potential for cost overruns if expenditures are not closely monitored and managed. Additionally, the complexity of propulsion systems means that technical challenges or delays in testing could impact project timelines and overall cost. The government's risk mitigation strategies would involve rigorous oversight, clear performance metrics, and regular progress reviews to identify and address any emerging issues proactively.

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: N0016720R3012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6701 DEMOCRACY BLVD, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $36,933,205

Exercised Options: $36,933,205

Current Obligation: $5,297,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8199

IDV Type: IDC

Timeline