DoD Awards $6.3M Engineering Services Contract to R3 Strategic Support Group Inc

Contract Overview

Contract Amount: $6,337,989 ($6.3M)

Contractor: R3 Strategic Support Group Inc

Awarding Agency: Department of Defense

Start Date: 2023-04-25

End Date: 2026-06-16

Contract Duration: 1,148 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: EOD INSTRUCTORS SUPPORT SERVICES

Place of Performance

Location: CORONADO, SAN DIEGO County, CALIFORNIA, 92118

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to R3 STRATEGIC SUPPORT GROUP INC for work described as: EOD INSTRUCTORS SUPPORT SERVICES Key points: 1. Contract awarded for instructor support services to the Department of the Navy. 2. R3 Strategic Support Group Inc. secured the contract through full and open competition. 3. The contract has a duration of 1148 days, ending in June 2026. 4. The total award value is $6,337,989.34. 5. The NAICS code 541330 indicates Engineering Services.

Value Assessment

Rating: good

The award value of $6.3M for engineering services appears reasonable given the contract duration of nearly three years. Benchmarking against similar DoD contracts for specialized instructor support would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a fair market price for the required engineering and instructor support services.

Public Impact

Ensures continued operational readiness for naval training programs. Supports specialized instructor roles crucial for complex military systems. Provides essential engineering expertise for ongoing defense initiatives. Contributes to the professional development of military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration.
Dependence on a single contractor for critical support.

Positive Signals

Clear contract type (Firm Fixed Price) limits cost uncertainty.
Awarded through full and open competition.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related training and operational needs. Spending in this sector for the DoD is substantial, driven by the complexity of military technology and the need for specialized expertise.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific set-aside for small businesses. Analysis of the prime contractor's size and any subcontracting plans would be needed to assess small business participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. Standard DoD procurement regulations and contract management practices should ensure accountability and performance monitoring.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Contract duration is lengthy.
Potential for sole-source if follow-on work is needed.
Specific performance metrics not detailed.
No small business subcontracting noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to R3 STRATEGIC SUPPORT GROUP INC. EOD INSTRUCTORS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is R3 STRATEGIC SUPPORT GROUP 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 $6.3 million.

What is the period of performance?

Start: 2023-04-25. End: 2026-06-16.

What specific engineering expertise is required for these instructor support services?

The data indicates the NAICS code is 541330 (Engineering Services), suggesting the instructors likely possess specialized technical and engineering knowledge related to specific defense systems or platforms. This could include expertise in areas like avionics, naval architecture, weapons systems, or cybersecurity, enabling them to effectively train personnel on complex equipment and procedures.

What are the primary risks associated with this long-term engineering support contract?

Key risks include potential cost overruns if the fixed price doesn't account for unforeseen inflation or scope changes, contractor performance issues impacting training quality, and the risk of knowledge transfer if key personnel leave. Additionally, reliance on a single contractor for extended periods can reduce flexibility and potentially lead to vendor lock-in.

How does this contract contribute to the overall effectiveness of naval training programs?

This contract directly enhances the effectiveness of naval training by providing specialized, experienced instructors who can deliver high-quality instruction on complex systems. This ensures that naval personnel are proficient in operating and maintaining critical equipment, thereby improving operational readiness and mission success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018923R3005

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 909 W LAUREL ST, SAN DIEGO, CA, 92101

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

Financial Breakdown

Contract Ceiling: $11,790,953

Exercised Options: $6,337,989

Current Obligation: $6,337,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8389

IDV Type: IDC

Timeline