DoD's SMWDC Spends $18.4M on SME Support for Naval Warfare Readiness

Contract Overview

Contract Amount: $18,442,177 ($18.4M)

Contractor: Solute

Awarding Agency: Department of Defense

Start Date: 2021-05-28

End Date: 2025-05-27

Contract Duration: 1,460 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NAVAL SURFACE AND MINE WARFIGHTING DEVELOPMENT CENTER (SMWDC) REQUIRES SUBJECT MATTER EXPERT IN SUPPORT OF SURFACE, AIR, AND MINE WARFARE MISSION AREAS TO ENHANCE WARFIGHTING READINESS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92155

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to SOLUTE for work described as: NAVAL SURFACE AND MINE WARFIGHTING DEVELOPMENT CENTER (SMWDC) REQUIRES SUBJECT MATTER EXPERT IN SUPPORT OF SURFACE, AIR, AND MINE WARFARE MISSION AREAS TO ENHANCE WARFIGHTING READINESS. Key points: 1. Contract supports critical surface, air, and mine warfare mission areas. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to the complexity of subject matter expertise. 4. The sector is Engineering Services, vital for defense modernization.

Value Assessment

Rating: good

The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can be appropriate for complex services where cost estimation is difficult. Benchmarking CPFF contracts in Engineering Services requires detailed analysis of scope and overhead, but the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes competitive pricing and ensures the government receives the best value by selecting from a range of qualified offerors.

Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it drives down costs through market forces, ensuring funds are used efficiently for essential defense capabilities.

Public Impact

Enhances warfighting readiness for the Navy's surface and mine warfare capabilities. Provides specialized expertise crucial for developing and implementing advanced warfare strategies. Supports the Naval Surface and Mine Warfighting Development Center's mission to advance naval technology and tactics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts.
Reliance on specific subject matter expertise can create single points of failure if key personnel depart.

Positive Signals

Full and open competition promotes value.
Contract duration aligns with strategic planning needs.
Focus on critical warfighting readiness.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense agencies requiring specialized technical and analytical support. Spending benchmarks for this category vary widely based on the specific engineering discipline and complexity, but defense-related engineering services often represent a significant portion of the federal budget.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). While this specific award may not directly benefit small businesses, the overall defense procurement ecosystem often includes opportunities for small businesses as subcontractors or in other contract vehicles.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for oversight. The contract type (CPFF) necessitates careful monitoring of costs and performance to ensure value and prevent overruns. Delivery orders under a larger contract vehicle require diligent management.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely managed.
Reliance on specialized Subject Matter Experts (SMEs) poses a risk if key personnel are lost.
The 'Engineering Services' NAICS code is broad; specific expertise details are crucial for full risk assessment.
Contract duration extends into 2025, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to SOLUTE. NAVAL SURFACE AND MINE WARFIGHTING DEVELOPMENT CENTER (SMWDC) REQUIRES SUBJECT MATTER EXPERT IN SUPPORT OF SURFACE, AIR, AND MINE WARFARE MISSION AREAS TO ENHANCE WARFIGHTING READINESS.

Who is the contractor on this award?

The obligated recipient is SOLUTE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2021-05-28. End: 2025-05-27.

How does the fixed fee component of this CPFF contract compare to industry standards for similar SME support services, and what is the rationale for its specific value?

Assessing the fixed fee's competitiveness requires benchmarking against similar contracts for subject matter expertise in naval warfare. Factors influencing the fee include the perceived risk, the criticality of the services, and the contractor's overhead structure. A higher fixed fee might be justified if the expertise is highly specialized and difficult to source, or if the contractor assumes significant risk in delivering the required outcomes.

What specific mechanisms are in place to mitigate the risk of key personnel departing, given the reliance on subject matter experts for warfighting readiness?

Mitigation strategies could include contractual clauses requiring personnel continuity plans, incentives for retaining key staff, or requirements for the contractor to maintain a pool of qualified personnel. The government may also conduct regular performance reviews and maintain open communication channels to identify potential staffing issues early and work with the contractor to address them proactively.

Beyond readiness enhancement, what are the measurable outcomes or performance metrics used to evaluate the effectiveness of the subject matter expertise provided under this contract?

Effectiveness is likely measured through the successful development and implementation of new warfighting tactics, improved training methodologies, successful integration of new technologies, and positive feedback from operational units. Key Performance Indicators (KPIs) might include the timeliness of expert advice, the impact of recommendations on mission success rates, and the successful transfer of knowledge to naval personnel.

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: N0024421R3008

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1455 FRAZEE ROAD, SAN DIEGO, CA, 92108

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

Financial Breakdown

Contract Ceiling: $28,886,743

Exercised Options: $28,607,835

Current Obligation: $18,442,177

Actual Outlays: $9,889,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8534

IDV Type: IDC

Timeline