DoD's Navy Awards $14.1M for Tech Development, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $14,117,822 ($14.1M)
Contractor: Trenchant Analytics LLC
Awarding Agency: Department of Defense
Start Date: 2021-11-30
End Date: 2026-11-29
Contract Duration: 1,825 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: SEA 05T - TECHNOLOGY DEVELOPMENT AND TRANSITION (TD&T)
Place of Performance
Location: CHANTILLY, LOUDOUN County, VIRGINIA, 20152
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.1 million to TRENCHANT ANALYTICS LLC for work described as: SEA 05T - TECHNOLOGY DEVELOPMENT AND TRANSITION (TD&T) Key points: 1. Contract value is $14.1M over 5 years. 2. Competition was full and open, suggesting potential for good pricing. 3. Risk of cost overruns exists due to Cost Plus Fixed Fee structure. 4. Spending is within the Engineering Services sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns, especially over a 5-year period. Without specific performance data, it's difficult to benchmark against similar contracts, but CPFF often leads to higher final costs than fixed-price agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a wide range of bidders and can drive competitive pricing. However, the CPFF structure may limit the price discovery benefits of competition.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the CPFF pricing structure introduces uncertainty regarding the final cost.
Public Impact
Supports technology development and transition for the Department of the Navy. Aims to advance naval capabilities through innovation. Long-term contract duration suggests ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
- Potential for cost overruns
Positive Signals
- Full and open competition
- Supports critical technology development
Sector Analysis
This contract falls within the Engineering Services sector, which is broad and encompasses a wide range of technical and consulting services. Benchmarks for this sector vary significantly based on specialization and contract type.
Small Business Impact
The data does not indicate if small businesses were involved in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is a Delivery Order under a larger award, suggesting it may be part of a broader contracting vehicle. Oversight would focus on the execution of this specific order and its alignment with the parent contract's objectives.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee pricing
- Long-term contract duration
- Potential for scope creep
- Dependency on contractor performance
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to TRENCHANT ANALYTICS LLC. SEA 05T - TECHNOLOGY DEVELOPMENT AND TRANSITION (TD&T)
Who is the contractor on this award?
The obligated recipient is TRENCHANT ANALYTICS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.1 million.
What is the period of performance?
Start: 2021-11-30. End: 2026-11-29.
What is the expected value realization from this technology development and transition contract?
The value realization hinges on the successful transition of developed technologies into operational naval systems. Given the CPFF structure, effective project management and clear performance metrics are crucial to ensure that the investment yields tangible improvements in naval capabilities and operational effectiveness.
What are the primary risks associated with the Cost Plus Fixed Fee structure in this contract?
The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can lead to the government paying more than initially anticipated if costs escalate. Contractor incentives to control costs may be diminished compared to fixed-price contracts.
How effectively will this contract contribute to the Navy's technological advancement goals?
Effectiveness depends on the contractor's ability to deliver innovative solutions and successfully transition them. The full and open competition is a positive sign for sourcing capable providers. However, ongoing monitoring of milestones and deliverables will be essential to ensure alignment with the Navy's strategic technology objectives.
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: N0017420R3005
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 10835 PATOWMACK DR, GREAT FALLS, VA, 22066
Business Categories: Category Business, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $54,108,613
Exercised Options: $51,392,478
Current Obligation: $14,117,822
Actual Outlays: $994,404
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8736
IDV Type: IDC
Timeline
Start Date: 2021-11-30
Current End Date: 2026-11-29
Potential End Date: 2026-11-29 00:00:00
Last Modified: 2026-02-17
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