Navy awards $10.6M engineering support contract to ROH INC, highlighting need for specialized salvage and diving expertise

Contract Overview

Contract Amount: $10,589,058 ($10.6M)

Contractor: ROH Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2026-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, TECHNICAL, PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES TO SUPERVISOR OF SALVAGE AND DIVING NAVAL SEA SYSTEMS COMMAND (NAVSEA 00C)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.6 million to ROH INC for work described as: ENGINEERING, TECHNICAL, PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES TO SUPERVISOR OF SALVAGE AND DIVING NAVAL SEA SYSTEMS COMMAND (NAVSEA 00C) Key points: 1. Contract addresses critical engineering and technical support for the Supervisor of Salvage and Diving. 2. ROH INC, a single awardee, will provide services over a 4-year period. 3. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost monitoring. 4. Competition was full and open, suggesting a robust market for these specialized services. 5. The contract's duration and value indicate a significant, ongoing requirement for these support functions. 6. Geographic focus is Virginia, aligning with Naval Sea Systems Command (NAVSEA) operations.

Value Assessment

Rating: good

The contract value of $10.6 million over four years appears reasonable for specialized engineering and technical support services. Benchmarking against similar contracts for salvage and diving support within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services where costs are uncertain, necessitates diligent oversight to ensure costs remain within acceptable parameters and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process that should drive price discovery and potentially lead to more favorable pricing for the government. This approach is generally preferred as it maximizes the pool of potential offerors and promotes a wider range of technical solutions.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. It ensures that the government is not limited to a single provider, thereby reducing the risk of price gouging and encouraging innovation among contractors.

Public Impact

The primary beneficiaries are the Supervisor of Salvage and Diving and the Naval Sea Systems Command (NAVSEA), receiving essential engineering and technical support. Services delivered include critical engineering, technical, professional, and administrative support for salvage and diving operations. The geographic impact is concentrated in Virginia, supporting key naval operations and infrastructure. Workforce implications include the potential for skilled engineers and technical professionals to be employed by ROH INC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to manage potential cost overruns and ensure the fixed fee remains appropriate.
The specialized nature of salvage and diving support may limit the pool of qualified contractors, even under full and open competition.
Performance metrics and quality control will be crucial to ensure the effectiveness of the engineering and technical services provided.

Positive Signals

Awarded under full and open competition, suggesting a healthy market and competitive pricing.
The contract duration of four years indicates a stable, long-term need for these critical services.
ROH INC's selection implies they possess the necessary qualifications and expertise for this specialized role.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting specialized maritime operations for the U.S. Navy. The market for such services is characterized by a need for highly skilled professionals with expertise in naval engineering, salvage, and diving. Comparable spending benchmarks would involve analyzing other contracts awarded by the Department of Defense or other maritime agencies for similar technical and engineering support, particularly those related to fleet readiness and specialized operational support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to ROH INC, depending on the company's subcontracting plan and the specific needs of the contract. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Sea Systems Command (NAVSEA), the contracting agency. Accountability measures will be embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency will be facilitated through contract reporting mechanisms and potentially through public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Support Contracts
Department of Defense Engineering Services
Supervisor of Salvage and Diving Operations
Maritime Engineering Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to manage potential cost overruns.
Specialized nature of services may limit contractor pool and increase reliance on specific expertise.
Performance monitoring is crucial to ensure quality and effectiveness of engineering and technical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to ROH INC. ENGINEERING, TECHNICAL, PROFESSIONAL AND ADMINISTRATIVE SUPPORT SERVICES TO SUPERVISOR OF SALVAGE AND DIVING NAVAL SEA SYSTEMS COMMAND (NAVSEA 00C)

Who is the contractor on this award?

The obligated recipient is ROH 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 $10.6 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-07-31.

What is ROH INC's track record with the Department of the Navy and specifically with NAVSEA for similar services?

Assessing ROH INC's track record with the Department of the Navy and NAVSEA is crucial for understanding their past performance and reliability. A review of historical contract data would reveal if ROH INC has previously held contracts for engineering, technical, professional, or administrative support services, particularly those related to salvage and diving. Key performance indicators from past contracts, such as on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes, would provide valuable insights. Understanding their experience with similar contract types (e.g., CPFF) and their ability to manage complex projects within the naval domain would further inform the assessment of their suitability for this current award.

How does the awarded value of $10.6 million compare to similar engineering support contracts for naval salvage and diving operations?

To benchmark the $10.6 million award, a comparative analysis of similar contracts is necessary. This involves identifying other contracts awarded by the Department of the Navy or other defense agencies for engineering, technical, and professional services specifically supporting salvage and diving operations. Factors to consider include the duration of the contract, the scope of work, the specific services provided, and the pricing structure (e.g., CPFF, fixed-price). If comparable contracts have similar durations and scopes but were awarded at significantly lower or higher total values, it could indicate whether this award represents a particularly good or poor value. The complexity and criticality of the services required for the Supervisor of Salvage and Diving mission also play a role in justifying the contract value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these specialized services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for specialized engineering and technical services, such as those for salvage and diving, revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not have a strong incentive to control costs rigorously, as costs are reimbursed, and the profit is fixed. This can lead to potential cost overruns if not managed effectively. For the contractor, the risk lies in accurately estimating the costs to perform the work and ensuring the fixed fee adequately compensates them for their efforts and any unforeseen challenges. Effective government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

How effective are the current oversight mechanisms for ensuring the quality and efficiency of services provided under this contract?

The effectiveness of oversight mechanisms for this contract hinges on the diligence of the Naval Sea Systems Command (NAVSEA) contracting officer's representative (COR) and the established performance management framework. Given the CPFF structure, robust oversight is critical to monitor expenditures, validate costs, and ensure that the services delivered meet the required technical specifications and operational needs of the Supervisor of Salvage and Diving. This includes regular progress reviews, audits of contractor expenditures, and performance evaluations against defined metrics. The transparency of reporting and the responsiveness of the contractor to address any identified issues will also determine the overall effectiveness of the oversight process in ensuring quality and efficiency.

What is the historical spending trend for engineering and technical support services related to naval salvage and diving operations?

Analyzing historical spending trends for engineering and technical support services related to naval salvage and diving operations provides context for the current $10.6 million award. This involves examining aggregate spending by the Department of the Navy and NAVSEA on similar services over the past several fiscal years. Trends might indicate increasing or decreasing demand, shifts in contract types utilized, or changes in average contract values. Understanding these patterns can help assess whether the current award is consistent with historical investment levels, or if it represents a significant deviation, potentially signaling a change in program priorities, operational tempo, or market conditions for these specialized services.

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: N0017422R3003

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Community Health Systems Inc

Address: 2711 RICHMOND HWY STE 300, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $21,789,084

Exercised Options: $16,720,455

Current Obligation: $10,589,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8436

IDV Type: IDC

Timeline