Naval Surface Warfare Center contract awarded to Tracor Informations Systems for $62.7M for quality control and inspection services

Contract Overview

Contract Amount: $13,889,944 ($13.9M)

Contractor: Tracor Informations Systems CO

Awarding Agency: Department of Defense

Start Date: 1998-05-01

End Date: 2003-03-15

Contract Duration: 1,779 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199812!1700!1007!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2025 !A!*!* !19980501!19990430!627491400!614764918!210116406!N!99789!TRACOR INFORMATIONS SYSTEMS CO!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000278600!N!N!000000000000!H999!OTHER QUALITY CNTL, TESTING & INSPECTION SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!2!002!B!* !A!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to TRACOR INFORMATIONS SYSTEMS CO for work described as: 199812!1700!1007!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2025 !A!*!* !19980501!19990430!627491400!614764918!210116406!N!99789!TRACOR INFORMATIONS SYSTEMS CO!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!21008!099!51!DAHLGREN !KING G… Key points: 1. Contract awarded for quality control, testing, and inspection services, indicating a need for specialized technical support. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. The duration of the contract (over 4 years) implies a long-term need for these services. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can introduce cost-overrun risks if not managed carefully. 5. The contractor, Tracor Informations Systems, has a track record with this type of service, as evidenced by this award. 6. The geographic location of the awardee in Rockville, MD, may have implications for local economic impact and workforce.

Value Assessment

Rating: fair

The contract value of $62.7 million over approximately 4.5 years suggests an average annual value of around $13.9 million. Benchmarking this against similar contracts for quality control, testing, and inspection services within the Department of Defense is challenging without more specific service details. However, the CPFF contract type can lead to higher final costs compared to fixed-price contracts if costs are not tightly controlled. The number of bids received (2) is on the lower side for full and open competition, which might suggest less aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. This limited number of bidders could indicate a specialized market or potential barriers to entry for other firms. While competition was sought, the low number of offers might have constrained the price discovery process and potentially led to a less competitive outcome than if more bidders had participated.

Taxpayer Impact: Taxpayers benefit from the opportunity for a competitive process, which theoretically drives down costs. However, with only two bidders, the potential for significant cost savings may have been limited compared to a scenario with numerous competitive offers.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center and the Department of Defense, which receive essential quality control, testing, and inspection services. These services are critical for ensuring the reliability and safety of naval systems and equipment. The contract supports the operational readiness of the U.S. Navy. The awardee, Tracor Informations Systems, benefits through revenue generation and continued business. There may be indirect workforce implications in the Rockville, MD area, where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns if not meticulously managed and monitored.
With only two bids received under full and open competition, the potential for truly competitive pricing may have been constrained.
The contract's duration of over four years necessitates ongoing oversight to ensure continued value and performance.
Lack of specific details on the 'Other Quality Control, Testing & Inspection Services' makes it difficult to benchmark performance and cost-effectiveness precisely.

Positive Signals

The contract was awarded through full and open competition, adhering to principles of fair opportunity.
The contractor, Tracor Informations Systems, has experience in providing these types of services, suggesting a level of established capability.
The contract duration indicates a sustained need and likely a successful prior relationship or demonstrated capability.
The award supports critical defense functions related to quality assurance for naval systems.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting naval operations and readiness. The market for quality control, testing, and inspection services is specialized, often requiring deep technical expertise and security clearances. Spending in this area is crucial for maintaining the integrity and performance of military hardware and systems. Comparable spending benchmarks would typically be found within the broader defense logistics and technical support categories, where significant government investment is directed towards ensuring operational effectiveness.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The awardee, Tracor Informations Systems, is likely a larger entity. Further investigation would be needed to determine if any subcontracting plans were mandated or voluntarily pursued to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, although detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center Operations
Defense Contract Management
Quality Assurance Services
Technical Inspection Contracts
Department of Defense Procurement

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition (2 bidders) may impact price discovery
Broad service description requires detailed oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to TRACOR INFORMATIONS SYSTEMS CO. 199812!1700!1007!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017898C2025 !A!*!* !19980501!19990430!627491400!614764918!210116406!N!99789!TRACOR INFORMATIONS SYSTEMS CO!1601 RESEARCH BLVD !ROCKVILLE !MD!20850!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000278600!N!N!000000000000!H999!OTHER QUALITY CNTL, TESTING & INSPECTION SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!2!0

Who is the contractor on this award?

The obligated recipient is TRACOR INFORMATIONS SYSTEMS CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 1998-05-01. End: 2003-03-15.

What specific types of quality control, testing, and inspection services were provided under this contract?

The contract description 'OTHER QUALITY CNTL, TESTING & INSPECTION SERVICES' is broad. Typically, such services for the Naval Surface Warfare Center could encompass a wide range of activities including material testing, system performance validation, calibration of equipment, non-destructive testing, quality assurance audits of manufacturing processes, and inspection of components or finished systems. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. These services are crucial for ensuring that naval systems meet stringent military specifications and safety standards before deployment or integration.

How does the $62.7 million contract value compare to similar contracts for quality control and inspection services within the Navy or DoD?

Without specific details on the scope and duration of comparable contracts, a direct comparison is difficult. However, $62.7 million over approximately 4.5 years represents a significant investment in specialized support services. Larger, more complex platforms or systems (like aircraft carriers or submarines) might have contracts in the hundreds of millions or even billions for integrated logistics and support, including quality assurance. For specific component testing or specialized inspection, this value could be substantial. The key is understanding the criticality and complexity of the systems being supported by Tracor Informations Systems.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The CPFF structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The primary risk for the government is that the final cost can exceed initial estimates if the contractor's costs increase beyond projections. While the fee is fixed, the total contract price is not. This necessitates robust government oversight to monitor costs, ensure efficiency, and prevent unnecessary expenditures. If not managed diligently, CPFF contracts can become more expensive than fixed-price alternatives, especially if the scope is well-defined upfront.

What was the track record of Tracor Informations Systems prior to this contract award?

The data indicates Tracor Informations Systems was awarded this definitive contract in 1998. This suggests they had a history of doing business with the government or possessed the necessary qualifications to compete. To fully assess their track record, one would need to examine their contract history across various agencies, including past performance evaluations, any disputes or claims, and their financial stability. The fact that they were awarded a contract of this magnitude implies they met the government's requirements for capability and responsibility at the time of award.

How did the limited number of bidders (2) impact the government's ability to achieve optimal value?

A low number of bidders, even under full and open competition, can limit price discovery and potentially reduce competitive pressure. While the government received proposals, having only two offers means the government's negotiating position might be weaker compared to a scenario with multiple competing bids. It raises questions about why more firms did not participate – perhaps due to specialized requirements, high barriers to entry, or market concentration. This could mean the government did not secure the lowest possible price or the most innovative solutions available in the market.

What is the significance of this contract being a 'Definitive Contract'?

A definitive contract is a standard, long-term contract that is fully funded and specifies all terms and conditions. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in order quantities over time, a definitive contract typically has a fixed scope, price, and delivery schedule. This suggests that the requirements for quality control, testing, and inspection were well-defined and stable enough at the time of award to be established in a single, comprehensive contract.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1601 RESEARCH BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline