DoD Awards $16.15M Engineering Services Contract to Serco Inc. for Fleet Readiness
Contract Overview
Contract Amount: $16,149,715 ($16.1M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2022-12-08
End Date: 2026-12-20
Contract Duration: 1,473 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTEGRATED READINESS MODELING, TECHNICAL AND PROFESSIONAL SUPPORT SERVICES FOR FLEET READINESS DIVISION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $16.1 million to SERCO INC for work described as: INTEGRATED READINESS MODELING, TECHNICAL AND PROFESSIONAL SUPPORT SERVICES FOR FLEET READINESS DIVISION Key points: 1. Contract value of $16.15 million for engineering services. 2. Awarded to Serco Inc. under full and open competition. 3. Supports the Department of the Navy's Fleet Readiness Division. 4. Contract duration extends to December 2026.
Value Assessment
Rating: good
The contract value of $16.15 million appears reasonable for specialized engineering and technical support services. Benchmarking against similar large-scale DoD contracts for engineering services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages multiple bidders to offer competitive pricing for the services.
Public Impact
Ensures continued operational readiness for naval fleets through essential technical support. Supports critical engineering functions within the Department of the Navy. Potential for follow-on work or expansion based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not closely managed.
- Reliance on a single contractor for critical readiness modeling.
Positive Signals
- Awarded via full and open competition, indicating competitive pricing.
- Clear scope of work for fleet readiness support.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of defense spending. Benchmarks for similar contracts often range from millions to tens of millions, depending on scope and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Serco Inc. is a large corporation. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
The Department of the Navy's oversight will be crucial in managing the Cost Plus Fixed Fee contract to ensure cost efficiency and adherence to performance requirements. Regular performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- Lack of transparency regarding small business subcontracting.
- Dependence on a single contractor for critical modeling services.
- Need for robust government oversight to ensure value for money.
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.1 million to SERCO INC. INTEGRATED READINESS MODELING, TECHNICAL AND PROFESSIONAL SUPPORT SERVICES FOR FLEET READINESS DIVISION
Who is the contractor on this award?
The obligated recipient is SERCO 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 $16.1 million.
What is the period of performance?
Start: 2022-12-08. End: 2026-12-20.
What is the specific breakdown of services provided under this contract and how do they directly contribute to fleet readiness?
The contract provides "INTEGRATED READINESS MODELING, TECHNICAL AND PROFESSIONAL SUPPORT SERVICES." These services likely encompass data analysis, system maintenance, software development, and expert consultation aimed at optimizing the operational availability and lifecycle management of naval fleets. This ensures that ships and associated systems are maintained at peak performance, minimizing downtime and maximizing mission effectiveness.
What are the key performance indicators (KPIs) used to measure Serco Inc.'s success in delivering these services?
Key performance indicators would likely include metrics related to the accuracy and timeliness of readiness modeling, the effectiveness of technical support in resolving issues, adherence to project milestones, and overall contractor performance ratings. The Department of the Navy would establish specific, measurable, achievable, relevant, and time-bound (SMART) goals to track the contractor's contribution to fleet readiness objectives.
How does the Cost Plus Fixed Fee (CPFF) contract structure incentivize efficiency and cost control for Serco Inc.?
A CPFF contract covers allowable costs plus a fixed fee representing profit. While the fixed fee incentivizes completion, it doesn't directly reward cost savings as much as other structures. Effective oversight by the Navy is paramount to scrutinize costs and ensure the fixed fee remains appropriate for the services rendered, preventing potential cost overruns.
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: N0018922R3045
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $23,753,946
Exercised Options: $18,753,918
Current Obligation: $16,149,715
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $439,116
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8498
IDV Type: IDC
Timeline
Start Date: 2022-12-08
Current End Date: 2026-12-20
Potential End Date: 2027-12-20 00:00:00
Last Modified: 2026-02-12
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