DoD's $13.3M Lab Hardware Contract Awarded to Laurel Technologies Partnership for Navigation Systems

Contract Overview

Contract Amount: $13,325,127 ($13.3M)

Contractor: Laurel Technologies Partnership

Awarding Agency: Department of Defense

Start Date: 2023-04-02

End Date: 2025-05-21

Contract Duration: 780 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TI-24 LAB HARDWARE

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to LAUREL TECHNOLOGIES PARTNERSHIP for work described as: TI-24 LAB HARDWARE Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract type (Cost Plus Fixed Fee) which may allow for cost overruns. 4. Performance context is within the Department of the Navy's need for advanced navigation instruments. 5. Sector positioning is within the specialized field of navigation system manufacturing.

Value Assessment

Rating: fair

The contract's value of $13.3 million for lab hardware is difficult to benchmark without specific details on the hardware procured. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not closely managed. Comparing this to similar procurements for navigation system components would be necessary for a more precise value assessment. The fixed fee component provides some cost certainty for the contractor's effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages contractors to offer their best terms. The Department of the Navy's decision to use full and open competition indicates a belief that a robust market exists for these specialized lab hardware needs.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is expected to result in more competitive pricing and a wider range of innovative solutions, potentially leading to better value for the government's investment.

Public Impact

The Department of the Navy benefits from access to specialized lab hardware essential for research and development in navigation systems. This contract supports the advancement of search, detection, navigation, guidance, aeronautical, and nautical systems. The geographic impact is primarily within Pennsylvania, where Laurel Technologies Partnership is located, potentially supporting local jobs. Workforce implications include the need for skilled technicians and engineers to develop and test advanced navigation hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of specific details on the hardware procured makes independent value assessment challenging.
The duration of the contract (780 days) requires sustained oversight to ensure timely delivery and performance.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Contractor is a partnership, potentially indicating a focused and specialized team.
The contract supports critical defense capabilities in navigation and guidance systems.

Sector Analysis

The contract falls within the broader Information Technology and Defense sectors, specifically focusing on the manufacturing of sophisticated navigation and guidance instruments. This niche market requires specialized expertise and often involves significant research and development. Comparable spending benchmarks would likely be found within defense procurements for electronic warfare, sensor technology, and advanced avionics, where precision and reliability are paramount.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. As a full and open competition, the primary focus was likely on technical capability and price from all eligible offerors, rather than specific small business participation goals. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the CPFF structure, requiring the contractor to justify costs and meet performance milestones. Transparency is facilitated through contract award databases, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Navy Navigation System Procurement
Advanced Sensor Technology Contracts
Guidance and Control Systems Manufacturing

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of detailed public information on specific hardware procured limits independent value assessment.
Potential for long development cycles and technological obsolescence in advanced navigation systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to LAUREL TECHNOLOGIES PARTNERSHIP. TI-24 LAB HARDWARE

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 $13.3 million.

What is the period of performance?

Start: 2023-04-02. End: 2025-05-21.

What is the specific nature of the 'Lab Hardware' being procured under this contract, and how does it relate to navigation systems?

The contract data indicates the procurement is for 'TI-24 LAB HARDWARE' and falls under NAICS code 334511, which covers 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' While the exact specifications of 'TI-24 LAB HARDWARE' are not publicly detailed, it is reasonable to infer that this hardware consists of specialized equipment, testing apparatus, calibration tools, or components necessary for the research, development, testing, and manufacturing of advanced navigation and guidance systems. This could include anything from sophisticated simulators and signal generators to precision measurement devices and prototyping equipment crucial for ensuring the accuracy and reliability of the final navigation products developed or manufactured by Laurel Technologies Partnership for the Department of the Navy.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar procurements, and what are the implications for cost control?

Cost Plus Fixed Fee (CPFF) contracts are common in research and development (R&D) or complex projects where the scope of work is not fully defined at the outset, or where innovation is a primary objective. In such scenarios, the government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the contractor to adapt to unforeseen technical challenges and allows the government to benefit from contractor innovation without pre-defining every technical detail. However, CPFF contracts carry a higher risk of cost overruns for the government, as the final cost is not capped. Effective cost control relies heavily on robust government oversight, detailed cost reporting from the contractor, and clear definition of allowable costs. For procurements where the end product is well-defined and risks are minimal, FFP contracts are generally preferred for better cost certainty.

What is Laurel Technologies Partnership's track record with the Department of Defense, particularly in navigation systems?

Laurel Technologies Partnership has a history of contracts with the Department of Defense, though specific details on their track record in navigation systems require deeper database analysis. Publicly available data indicates they have received awards related to defense contracting. To fully assess their track record, one would need to examine past performance evaluations, the types and values of previous contracts, and their success in delivering on time and within budget for similar navigation or guidance system components. A review of contract databases like FPDS or SAM.gov, along with any available CPARS (Contractor Performance Assessment Reporting System) reports, would provide a more comprehensive understanding of their experience and reliability in this specialized field.

How does the $13.3 million contract value compare to historical spending on navigation system hardware by the Department of the Navy?

The $13.3 million contract value for navigation system lab hardware represents a specific investment within the broader Department of the Navy's budget for R&D and procurement of advanced systems. To contextualize this amount, it would be necessary to analyze historical spending trends for similar hardware, components, or R&D efforts related to navigation and guidance systems over the past several fiscal years. This comparison would reveal whether this award is typical, an increase, or a decrease in spending for such items. Factors such as technological advancements, evolving military requirements, and the number of active contracts at any given time would influence these historical spending patterns.

What are the potential risks associated with the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, and how might they impact this contra

The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is characterized by high technological complexity, long development cycles, stringent performance requirements, and significant regulatory oversight. Potential risks include rapid technological obsolescence, difficulties in achieving required precision and reliability, supply chain vulnerabilities for specialized components, and challenges in attracting and retaining highly skilled engineering talent. For this specific contract, these risks could manifest as delays in hardware delivery, performance issues with the procured lab equipment, cost overruns due to unforeseen technical hurdles, or the need for contract modifications to adapt to new technological requirements. The CPFF contract type offers some buffer against technical risks but does not eliminate the possibility of schedule delays or budget increases.

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 FIXED FEE (U)

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: $13,325,127

Exercised Options: $13,325,127

Current Obligation: $13,325,127

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $10,611,933

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