Navy Awards $20.8M for Navigation Systems to Laurel Technologies Partnership

Contract Overview

Contract Amount: $20,818,357 ($20.8M)

Contractor: Laurel Technologies Partnership

Awarding Agency: Department of Defense

Start Date: 2020-08-14

End Date: 2021-07-28

Contract Duration: 348 days

Daily Burn Rate: $59.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: USN TI-20 ENGINEERING, YEAR 2

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to LAUREL TECHNOLOGIES PARTNERSHIP for work described as: USN TI-20 ENGINEERING, YEAR 2 Key points: 1. The contract is for engineering services related to navigation systems. 2. Laurel Technologies Partnership is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns. 4. The sector is IT/Defense, specifically navigation and guidance systems.

Value Assessment

Rating: fair

The award amount of $20.8M for a 348-day duration appears reasonable for specialized engineering services. However, without more detailed cost breakdowns or benchmarks for similar navigation system development contracts, a definitive assessment of value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates a single delivery order to Laurel Technologies Partnership, which warrants further investigation into the bidding and selection process to ensure optimal price discovery.

Taxpayer Impact: The full and open competition aims to ensure taxpayer funds are used efficiently. However, the specific pricing and cost controls within the Cost Plus Incentive Fee structure will ultimately determine the precise taxpayer impact.

Public Impact

This contract supports the Department of the Navy's operational capabilities through advanced navigation systems. The funding contributes to technological advancements in search, detection, and guidance systems. The duration of the contract impacts the timeline for potential upgrades or new system deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee contract type can incentivize higher costs.
Lack of specific per-unit cost data makes benchmarking difficult.
Sole awardee for this delivery order may indicate limited competition at this stage.

Positive Signals

Awarded under full and open competition.
Supports critical defense navigation systems.
Contract duration is clearly defined.

Sector Analysis

This contract falls within the IT/Defense sector, specifically focusing on the manufacturing and development of navigation and guidance systems for nautical and aeronautical applications. Spending in this area is critical for national security and technological advancement.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of the Navy is responsible for oversight of this contract. The Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain within reasonable bounds and performance targets are met.

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) contract type can lead to cost overruns if not managed tightly.
Limited visibility into specific performance metrics for the incentive fee.
Potential for limited competition at the delivery order level despite initial full and open solicitation.
Lack of clear per-unit cost data hinders independent value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to LAUREL TECHNOLOGIES PARTNERSHIP. USN TI-20 ENGINEERING, YEAR 2

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 $20.8 million.

What is the period of performance?

Start: 2020-08-14. End: 2021-07-28.

What specific performance metrics are tied to the incentive fee structure, and how are they measured?

The incentive fee structure is designed to motivate the contractor to achieve specific performance objectives, potentially related to cost savings, schedule adherence, or technical performance. Detailed metrics are typically outlined in the contract's Statement of Work and performance clauses. The Navy's contracting officers would monitor progress against these metrics and adjust payments accordingly, ensuring alignment with program goals and taxpayer value.

How does the $20.8M award compare to historical spending on similar navigation system engineering contracts?

Benchmarking this $20.8M award requires comparing it against contracts for similar scope, complexity, and duration within the navigation system engineering domain. Factors like technological sophistication, specific system requirements (e.g., military-grade vs. commercial), and contractor experience influence costs. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if this represents a competitive price point or potential overspending.

What is the rationale for awarding this specific delivery order to Laurel Technologies Partnership under full and open competition?

The rationale likely stems from Laurel Technologies Partnership's unique qualifications, past performance, or specialized capabilities relevant to the specific navigation system requirements outlined in the delivery order. Even under full and open competition, a single award can occur if only one offeror meets all technical requirements, offers the best value, or if subsequent phases of a larger contract are being awarded. The contracting agency would need to justify this selection based on established criteria.

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: $20,976,865

Exercised Options: $20,976,865

Current Obligation: $20,818,357

Actual Outlays: $754,738

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $11,615,768

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