DoD's Navy Awards $11.8M Engineering Services Contract to Naval Systems, Inc. for Cost Estimating Support
Contract Overview
Contract Amount: $11,820,843 ($11.8M)
Contractor: Naval Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-01-25
End Date: 2026-06-19
Contract Duration: 876 days
Daily Burn Rate: $13.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: COST ESTIMATING/ANALYSIS SUPPORT FOR THE COST AND SCHEDULE ANALYSIS DEPARTMENT (C&SA)
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to NAVAL SYSTEMS, INC. for work described as: COST ESTIMATING/ANALYSIS SUPPORT FOR THE COST AND SCHEDULE ANALYSIS DEPARTMENT (C&SA) Key points: 1. Contract awarded to Naval Systems, Inc. for $11.8M. 2. Services are for cost estimating and analysis support. 3. Competition method was full and open. 4. Contract duration is approximately 2 years.
Value Assessment
Rating: good
The contract value of $11.8M appears reasonable for specialized engineering services over a two-year period. Benchmarking against similar cost estimating contracts would provide further validation.
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. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is expected to yield fair pricing, maximizing taxpayer value for the engineering services procured.
Public Impact
Supports critical cost and schedule analysis for the Department of the Navy. Ensures accurate financial planning and resource allocation for naval systems. Enhances the Department of Defense's ability to manage complex projects effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if fixed fee is not carefully managed.
- Reliance on a single contractor for critical analysis.
Positive Signals
- Full and open competition promotes competitive pricing.
- Clear scope of work for cost estimating support.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government acquisition and program management. Spending in this area supports the development and oversight of complex defense systems.
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 contract is managed by the Department of the Navy's Cost and Schedule Analysis Department, implying internal oversight. The award process under full and open competition suggests adherence to procurement regulations.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for scope creep impacting cost and schedule.
- Contractor's ability to meet evolving analytical needs.
- Adequacy of oversight for a Cost Plus Fixed Fee contract.
- Dependency on contractor's proprietary estimating tools or methodologies.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to NAVAL SYSTEMS, INC.. COST ESTIMATING/ANALYSIS SUPPORT FOR THE COST AND SCHEDULE ANALYSIS DEPARTMENT (C&SA)
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 $11.8 million.
What is the period of performance?
Start: 2024-01-25. End: 2026-06-19.
What is the historical performance of Naval Systems, Inc. in providing cost estimating services to the DoD?
Information on Naval Systems, Inc.'s historical performance is not provided in the data. A review of past contract performance, client feedback, and any past performance evaluations would be necessary to assess their reliability and effectiveness in delivering cost estimating services. This would help determine if they have a proven track record with the DoD or similar agencies.
How does the fixed fee structure compare to industry standards for similar engineering support contracts?
The contract type is Cost Plus Fixed Fee (CPFF). To assess its fairness, the fixed fee amount needs to be benchmarked against the total estimated cost and compared to typical fixed fee percentages in the engineering services sector for contracts of similar scope and complexity. Without this benchmark, it's difficult to determine if the fee is competitive or excessive.
What mechanisms are in place to ensure the quality and accuracy of the cost estimates provided by the contractor?
The Department of the Navy's Cost and Schedule Analysis Department is responsible for overseeing this contract. They likely have quality assurance surveillance plans (QASPs) and technical representatives to monitor the contractor's work. Regular reviews, audits of the contractor's estimating methodologies, and performance metrics would be essential to ensure the accuracy and reliability of the cost estimates.
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: N0042123R3001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 21491 GREAT MILLS RD STE 100, LEXINGTON PARK, MD, 20653
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $29,599,201
Exercised Options: $12,419,959
Current Obligation: $11,820,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8163
IDV Type: IDC
Timeline
Start Date: 2024-01-25
Current End Date: 2026-06-19
Potential End Date: 2029-12-19 00:00:00
Last Modified: 2026-01-12
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