Naval Air Systems Command awards $11.3M contract for program management and technical support services

Contract Overview

Contract Amount: $11,269,609 ($11.3M)

Contractor: Naval Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2023-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR), INTERNATIONAL PROGRAMS DEPARTMENT (AIR-1.4), ALSO KNOWN AS THE SYSTEMS COMMAND SECURITY COOPERATION OFFICE (HEREINAFTER, SSCO), IS RESPONSIBLE FOR OVERSEEING NAVAIR INTERNATIONAL PROGRAMS AND ADVOCATES ON BEHALF OF THE SAME. THE REQUIREMENT WILL PROVIDE SUPPORT FOR PROGRAM MANAGEMENT, FINANCIAL MANAGEMENT, TRAINING SUPPORT, POLICY SUPPORT, INFORMATION TECHNOLOGY COORDINATION, TECHNICAL SUPPORT SERVICES REQUIRED BY SSCO.

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to NAVAL SYSTEMS, INC. for work described as: THE NAVAL AIR SYSTEMS COMMAND (NAVAIR), INTERNATIONAL PROGRAMS DEPARTMENT (AIR-1.4), ALSO KNOWN AS THE SYSTEMS COMMAND SECURITY COOPERATION OFFICE (HEREINAFTER, SSCO), IS RESPONSIBLE FOR OVERSEEING NAVAIR INTERNATIONAL PROGRAMS AND ADVOCATES ON BEHALF OF THE SAME. THE REQUIREMENT… Key points: 1. Contract provides essential support for international programs, including program management, financial management, and technical services. 2. Services are critical for the Systems Command Security Cooperation Office (SSCO) in overseeing international programs. 3. The contract duration of five years indicates a long-term need for these specialized support functions. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contractor, Naval Systems, Inc., has a track record in providing engineering and technical services to the DoD. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility while managing costs for complex services.

Value Assessment

Rating: good

The contract value of $11.3 million over five years averages approximately $2.25 million annually. This appears reasonable for specialized program management and technical support services within the defense sector. Benchmarking against similar contracts for program management support within the Department of Defense would provide a more precise value-for-money assessment. However, the scope of services, including IT coordination and policy support, suggests a comprehensive requirement that justifies the allocated funding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of qualified contractors, potentially leading to better value.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation among contractors.

Public Impact

The primary beneficiaries are the Naval Air Systems Command (NAVAIR) and its International Programs Department (AIR-1.4), enabling them to effectively manage and advocate for international programs. Services delivered include program management, financial management, training support, policy support, IT coordination, and technical support. The geographic impact is primarily within the Department of Defense's operational sphere, supporting international defense cooperation efforts. Workforce implications include the potential for employment opportunities within Naval Systems, Inc. to fulfill these support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for critical program management and technical support functions.
The long duration of the contract could lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor has experience in providing similar services to the Department of Defense.
Clear definition of services required, reducing ambiguity in performance expectations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense program management and technical functions. The market for defense contracting services is substantial, with significant government spending allocated to program support, logistics, and technical expertise. This contract represents a portion of the broader spending on defense acquisition and sustainment programs, where specialized firms provide critical support to government agencies like NAVAIR.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Naval Systems, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting strategies and the availability of qualified small business vendors.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. They are responsible for ensuring contractor performance, compliance with contract terms, and proper financial management. Transparency is facilitated through contract reporting mechanisms within the federal procurement system. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NAVAIR International Programs
Defense Security Cooperation Agency
Department of Defense Program Management Support
Engineering and Technical Services Contracts

Risk Flags

Potential for cost overruns in CPFF contract
Long contract duration may limit flexibility
Reliance on contractor for critical support functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to NAVAL SYSTEMS, INC.. THE NAVAL AIR SYSTEMS COMMAND (NAVAIR), INTERNATIONAL PROGRAMS DEPARTMENT (AIR-1.4), ALSO KNOWN AS THE SYSTEMS COMMAND SECURITY COOPERATION OFFICE (HEREINAFTER, SSCO), IS RESPONSIBLE FOR OVERSEEING NAVAIR INTERNATIONAL PROGRAMS AND ADVOCATES ON BEHALF OF THE SAME. THE REQUIREMENT WILL PROVIDE SUPPORT FOR PROGRAM MANAGEMENT, FINANCIAL MANAGEMENT, TRAINING SUPPORT, POLICY SUPPORT, INFORMATION TECHNOLOGY COORDINATION, TECHNICAL SUPPORT SERVICES REQUIRED BY SSCO.

Who is the contractor on this award?

The obligated recipient is NAVAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2018-04-01. End: 2023-03-31.

What is the track record of Naval Systems, Inc. in performing similar contracts for the Department of Defense?

Naval Systems, Inc. has a history of providing engineering and technical services to the Department of Defense. While specific details on past performance for contracts of this exact scope and value are not provided in the summary data, their designation within the 'Engineering Services' category (NAICS 541330) suggests a relevant background. Further analysis would involve reviewing past performance evaluations and contract histories to assess their reliability, quality of work, and adherence to schedules and budgets on previous DoD engagements. This would provide a clearer picture of their capabilities in managing complex program support functions.

How does the annual value of this contract compare to similar program management support contracts within the Navy or DoD?

The annual value of this contract, averaging approximately $2.25 million ($11.3M / 5 years), needs to be benchmarked against comparable contracts for program management and technical support services within the Department of Defense. Without access to a broader database of contract awards, a precise comparison is difficult. However, for specialized support functions requiring expertise in areas like international program management, financial coordination, and IT, this annual figure appears within a reasonable range. Factors such as the specific technical requirements, security clearances, and the contractor's overhead structure would influence the final pricing. A detailed comparison would involve identifying contracts with similar scopes of work, durations, and agencies.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This requires robust oversight from the contracting officer and administrative team to monitor expenditures, ensure that costs are reasonable and allocable, and prevent scope creep. For complex services like program management and technical support, where the exact effort can be difficult to predict upfront, CPFF offers flexibility but necessitates diligent financial management and performance monitoring to ensure value for taxpayer money.

How effective is the full and open competition process in ensuring competitive pricing for specialized defense support services?

The full and open competition process is generally considered the most effective method for ensuring competitive pricing for specialized defense support services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The fact that 5 bids were received for this contract suggests that the competition was meaningful. This process fosters price discovery and encourages contractors to offer their best pricing and technical solutions to win the award. However, the effectiveness can be influenced by the clarity of the solicitation, the complexity of the requirements, and the number of truly capable bidders in the market.

What is the historical spending trend for similar program management and technical support services within NAVAIR or the broader DoD?

Historical spending trends for program management and technical support services within NAVAIR and the broader DoD are generally characterized by consistent and significant investment. These services are crucial for the acquisition, sustainment, and operational readiness of complex defense systems. Spending in this category typically fluctuates based on defense budgets, modernization priorities, and the number of active programs requiring support. While specific historical data for this precise contract is not provided, the overall trend indicates a sustained demand for such expertise, reflecting the ongoing need for skilled personnel to manage intricate defense projects and international collaborations.

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: N0042117R3099

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21491 GREAT MILLS ROAD STE 100, LEXINGTON PARK, MD, 20653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,541,391

Exercised Options: $20,099,720

Current Obligation: $11,269,609

Actual Outlays: $54,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7851

IDV Type: IDC

Timeline