DoD awards $18.6M for Search, Detection, Navigation Systems to Laurel Technologies Partnership

Contract Overview

Contract Amount: $18,608,123 ($18.6M)

Contractor: Laurel Technologies Partnership

Awarding Agency: Department of Defense

Start Date: 2022-11-17

End Date: 2024-06-07

Contract Duration: 568 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: BYG-1 LA SSN 753

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to LAUREL TECHNOLOGIES PARTNERSHIP for work described as: BYG-1 LA SSN 753 Key points: 1. Contract awarded under full and open competition, indicating a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. 3. The award value is significant, requiring scrutiny for value for money. 4. The sector is IT/Defense, a high-spending area with potential for innovation and risk.

Value Assessment

Rating: fair

The contract value of $18.6M is substantial. Benchmarking against similar contracts for navigation and guidance systems is necessary to assess if the pricing is competitive, especially given the Cost Plus Incentive Fee structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Incentive Fee structure requires careful monitoring to ensure costs remain reasonable and performance targets are met.

Taxpayer Impact: Taxpayer funds are being used for advanced navigation systems. Ensuring cost efficiency and effective delivery is crucial for maximizing the value of this investment.

Public Impact

Enhances naval capabilities with advanced search and navigation technology. Supports a key defense contractor in the specialized systems manufacturing sector. Potential for technological advancements in maritime operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive Fee structure can incentivize higher costs.
Contract duration and delivery order nature may lead to scope creep.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Supports critical defense capabilities.
Contractor is based in Pennsylvania.

Sector Analysis

This contract falls within the IT/Defense sector, specifically manufacturing advanced navigation and guidance systems for the Navy. Spending in this area is often high due to the specialized nature and critical requirements of defense technology.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical to manage the Cost Plus Incentive Fee structure, ensuring the contractor meets performance targets and cost controls. Regular reviews of delivery orders and expenditures are essential for accountability.

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) can lead to cost overruns.
Potential for scope creep due to delivery order contract.
Lack of specific performance metrics in provided data.
Significant contract value requires close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to LAUREL TECHNOLOGIES PARTNERSHIP. BYG-1 LA SSN 753

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 $18.6 million.

What is the period of performance?

Start: 2022-11-17. End: 2024-06-07.

How does the final cost compare to the initial estimates and industry benchmarks for similar navigation systems, considering the incentive fee structure?

Assessing the final cost against initial estimates and industry benchmarks is crucial for evaluating value. The Cost Plus Incentive Fee (CPIF) structure means the final price is tied to performance targets. If the contractor exceeds performance expectations, costs could rise, but the government benefits from improved capabilities. Conversely, if targets are missed, costs might be lower, but the intended benefits may not be fully realized. A thorough post-award analysis comparing actual costs to budgeted amounts and similar contracts is necessary.

What are the specific performance metrics tied to the incentive fee, and how are they measured to ensure effective delivery of the navigation systems?

The effectiveness of this contract hinges on clearly defined and measurable performance metrics linked to the incentive fee. Without knowing these specific metrics (e.g., accuracy, reliability, integration success), it's difficult to assess if the fee structure truly drives desired outcomes. The Department of the Navy's oversight process must rigorously track and verify the contractor's performance against these metrics to ensure taxpayer value and operational effectiveness.

What is the long-term strategic value of these navigation systems to the Department of the Navy, beyond the immediate contract scope?

The long-term strategic value lies in the potential for these systems to enhance the Navy's operational capabilities, improve mission success rates, and potentially provide a technological edge. Understanding how these systems integrate with existing platforms and future modernization plans is key. Furthermore, assessing if the technology developed has broader applications or can be leveraged for other naval assets will determine its enduring strategic importance and return on investment.

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: $18,608,123

Exercised Options: $18,608,123

Current Obligation: $18,608,123

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $9,222,431

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