Navy Awards $22.7M Contract for Navigation Systems to Laurel Technologies Partnership
Contract Overview
Contract Amount: $22,676,327 ($22.7M)
Contractor: Laurel Technologies Partnership
Awarding Agency: Department of Defense
Start Date: 2019-09-29
End Date: 2020-07-28
Contract Duration: 303 days
Daily Burn Rate: $74.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: USN TI-20 ENGINEERING, CONTRACT YEAR 1 TASK BOOK
Place of Performance
Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904
Plain-Language Summary
Department of Defense obligated $22.7 million to LAUREL TECHNOLOGIES PARTNERSHIP for work described as: USN TI-20 ENGINEERING, CONTRACT YEAR 1 TASK BOOK Key points: 1. Contract value of $22.7 million for the first year. 2. Awarded under full and open competition. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Focuses on the IT and Defense sectors, specifically navigation systems.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to costs exceeding initial estimates. Benchmarking against similar navigation system contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Incentive Fee structure may not always result in the lowest possible price.
Taxpayer Impact: Taxpayer funds are being used for the development and manufacturing of critical navigation systems. The incentive fee structure aims to control costs, but the final price is subject to performance.
Public Impact
Enhances US Navy's operational capabilities with advanced navigation technology. Supports technological advancement in the maritime navigation industry. Potential job creation within the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Incentive Fee structure carries inherent cost risk.
- Limited insight into specific performance metrics driving incentive fees.
Positive Signals
- Awarded via full and open competition.
- Contract supports critical defense infrastructure.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of navigation systems. Spending in this area is crucial for national security and technological superiority, with benchmarks varying widely based on system complexity and technological innovation.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further investigation would be needed to assess small business participation in this contract.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The Cost Plus Incentive Fee structure requires careful monitoring of performance and costs to ensure accountability and value for taxpayer money.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) structure can lead to cost overruns.
- Lack of detailed cost breakdown for benchmarking.
- Potential for scope creep if not managed tightly.
- Dependence on a single awardee for this specific task book.
Tags
search-detection-navigation-guidance-aer, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.7 million to LAUREL TECHNOLOGIES PARTNERSHIP. USN TI-20 ENGINEERING, CONTRACT YEAR 1 TASK BOOK
Who is the contractor on this award?
The obligated recipient is LAUREL TECHNOLOGIES PARTNERSHIP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $22.7 million.
What is the period of performance?
Start: 2019-09-29. End: 2020-07-28.
What is the projected total cost for the entire contract duration, and how does it compare to similar navigation system procurements?
The provided data only details the first contract year's value ($22.7 million). The total contract duration is 303 days, but the total value beyond the first year is not specified. A comprehensive comparison requires access to detailed cost breakdowns and data on comparable procurements, which is not available here.
What are the key performance indicators (KPIs) tied to the incentive fee, and how are they measured to ensure fair cost escalation?
The specific Key Performance Indicators (KPIs) linked to the incentive fee are not detailed in the provided data. Understanding these metrics and their measurement methodologies is crucial for assessing the effectiveness of the Cost Plus Incentive Fee structure in controlling costs and ensuring desired performance outcomes.
How does the technological advancement in this navigation system compare to current industry standards and potential future requirements?
The data identifies the contract's purpose as 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While this indicates a focus on advanced systems, a detailed assessment of technological advancement relative to industry standards and future needs would require a technical review of the system's specifications and capabilities.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0025318R0002
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leonardo SPA
Address: 246 AIRPORT RD, JOHNSTOWN, PA, 15904
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,676,327
Exercised Options: $22,676,327
Current Obligation: $22,676,327
Actual Outlays: $11,181,538
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $10,099,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0025319D0004
IDV Type: IDC
Timeline
Start Date: 2019-09-29
Current End Date: 2020-07-28
Potential End Date: 2020-07-28 00:00:00
Last Modified: 2025-09-25
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