DoD Awards $20M Engineering Services Contract to CRL Technologies, Inc. for Navy Support

Contract Overview

Contract Amount: $20,080,468 ($20.1M)

Contractor: CRL Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $55.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UMCS OPN LABOR

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to CRL TECHNOLOGIES, INC. for work described as: UMCS OPN LABOR Key points: 1. Contract value of $20.08M for engineering services. 2. Awarded to CRL Technologies, Inc. under full and open competition. 3. Potential risk associated with cost-plus-fixed-fee contract type. 4. Services are for the Department of the Navy, indicating a defense sector focus.

Value Assessment

Rating: good

The contract value of $20.08M appears reasonable for engineering services of this duration and scope. Benchmarking against similar contracts for specialized engineering support within the Department of Defense would provide a more precise assessment.

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, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential engineering services.

Public Impact

Ensures continued engineering support for critical Navy operations. Supports technological advancement and maintenance within the naval fleet. Provides employment opportunities within the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize cost overruns.
Limited duration may require future re-competition and transition costs.

Positive Signals

Full and open competition promotes fair pricing.
Award to established firm suggests capability.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense readiness and technological development. Spending in this sector often aligns with national security priorities and infrastructure needs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of the Navy's procurement process, including competitive bidding and contract oversight, is designed to ensure accountability. Post-award monitoring will be key to managing performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost-plus-fixed-fee contract type.
Potential for limited competition if 'exclusion of sources' is broad.
Short contract duration requires timely follow-on procurement.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to CRL TECHNOLOGIES, INC.. UMCS OPN LABOR

Who is the contractor on this award?

The obligated recipient is CRL TECHNOLOGIES, 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 $20.1 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense engineering sector?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the defense engineering sector can vary significantly based on contract complexity, risk, and specific agency guidelines. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific percentages are often proprietary, industry benchmarks suggest fees can range from 5% to 15% of the estimated cost, with higher risk or more complex projects potentially justifying higher fees.

How does the 'exclusion of sources' clause impact competition and pricing?

The 'exclusion of sources' clause, when used in conjunction with 'full and open competition,' typically means that while the competition is open, certain specific sources might be excluded based on predefined criteria (e.g., security clearances, specific technical capabilities). This can narrow the competitive pool, potentially impacting price discovery if the excluded sources represent significant competition. However, if the exclusion is justified and the remaining pool is still robust, fair pricing can still be achieved.

What are the potential risks of a 364-day contract duration for engineering services?

A 364-day contract duration, while common for bridging requirements or initial phases, carries risks. It necessitates a prompt follow-on procurement to ensure continuity of services, potentially leading to increased administrative costs and transition challenges. If the follow-on competition is delayed or unsuccessful, critical services could be interrupted. It also limits the contractor's ability to undertake long-term strategic projects.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: N0042122R0232

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 9426 FERRY LANDING CT, ALEXANDRIA, VA, 22309

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,042,359

Exercised Options: $31,042,359

Current Obligation: $20,080,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042124D0005

IDV Type: IDC

Timeline