DoD Awards $12.8M Engineering Services Contract to Naval Systems, Inc. for 2-Year Delivery Order

Contract Overview

Contract Amount: $12,855,123 ($12.9M)

Contractor: Naval Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-13

End Date: 2025-09-12

Contract Duration: 730 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR - APN

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to NAVAL SYSTEMS, INC. for work described as: LABOR - APN Key points: 1. Contract awarded via full and open competition after exclusion of sources. 2. The contract is for engineering services, with a Cost Plus Fixed Fee pricing structure. 3. This award represents a significant investment in naval systems engineering. 4. The duration of the delivery order is 730 days. 5. The contract value is $12,855,123.38.

Value Assessment

Rating: good

The Cost Plus Fixed Fee structure allows for flexibility in scope but requires careful monitoring to ensure costs remain reasonable. Benchmarking against similar engineering service contracts of this size and complexity is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process was utilized. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are being utilized for essential engineering services to support naval systems, with the expectation of value derived from the competitive award.

Public Impact

Supports the Department of the Navy's critical infrastructure and operational readiness. Potential for technological advancements and improvements in naval systems. Creates employment opportunities within the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can lead to cost overruns if not managed diligently.
The 'exclusion of sources' clause warrants further investigation to understand its justification and impact on competition.
Potential for scope creep given the nature of engineering services.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Long-term delivery order provides stability for the contractor and ensures sustained support.
Focus on critical naval systems indicates alignment with national security priorities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's naval systems. Spending in this sector is crucial for maintaining and advancing military technological capabilities.

Small Business Impact

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

Oversight & Accountability

The Department of Defense, specifically the Department of the Navy, is responsible for oversight of this contract. Robust oversight mechanisms are essential to ensure performance, cost control, and adherence to contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of clarity on 'exclusion of sources' could indicate limited competition.
No explicit mention of small business participation.
The specific engineering services are not detailed, making it difficult to assess value comprehensively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to NAVAL SYSTEMS, INC.. LABOR - APN

Who is the contractor on this award?

The obligated recipient is NAVAL SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2023-09-13. End: 2025-09-12.

What specific engineering services are encompassed by this delivery order, and how do they align with the Department of the Navy's strategic objectives?

The delivery order is for engineering services under NAICS code 541330. While the specific services are not detailed, they are crucial for supporting naval systems. These services likely include design, analysis, testing, and integration related to naval platforms, contributing to the Navy's modernization efforts and operational readiness.

What was the rationale behind the 'exclusion of sources' in the full and open competition, and did it limit the competitive landscape?

The 'exclusion of sources' clause suggests that while the competition was open, certain potential sources were intentionally excluded, possibly due to specific technical requirements, security clearances, or prior performance. Understanding this exclusion is key to assessing if it unduly restricted competition and potentially impacted the final price.

How will the Cost Plus Fixed Fee structure be managed to ensure cost-effectiveness and prevent potential overruns for the taxpayer?

Effective management of a Cost Plus Fixed Fee contract requires stringent cost tracking, regular audits, and clear communication between the government and the contractor. The Department of the Navy must implement robust oversight to monitor incurred costs, ensure the fixed fee remains appropriate, and prevent scope creep that could inflate the total price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R0115

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21513 GREAT MILLS RD, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $22,090,676

Exercised Options: $12,900,133

Current Obligation: $12,855,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042122D0084

IDV Type: IDC

Timeline