DoD's $3.57M MTUAS Labor contract awarded to CRL Technologies, Inc. for engineering services

Contract Overview

Contract Amount: $3,573,622 ($3.6M)

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: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MTUAS LABOR

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to CRL TECHNOLOGIES, INC. for work described as: MTUAS LABOR Key points: 1. Value for money appears fair given the cost-plus-fixed-fee structure and 364-day duration. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. Risk indicators include the cost-plus-fixed-fee pricing type, which can incentivize cost overruns. 4. Performance context is engineering services for the Department of the Navy, a critical defense function. 5. Sector positioning is within defense engineering services, a specialized and high-demand field. 6. The contract's value is modest within the broader defense engineering services market.

Value Assessment

Rating: fair

The contract's value of approximately $3.57 million for a 364-day period of performance is difficult to benchmark precisely without more granular data on the specific engineering services provided. The cost-plus-fixed-fee (CPFF) contract type suggests that the government is paying for the actual costs incurred by the contractor, plus a fixed fee for profit. While CPFF contracts can be useful for research and development or when costs are uncertain, they carry a higher risk of cost growth compared to fixed-price contracts. Without comparable contracts for similar MTUAS labor services, a definitive value-for-money assessment is challenging. However, the fixed fee component provides some level of cost control.

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.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for exclusion are not detailed here but could relate to specialized capabilities or prior performance. The number of bidders is not specified, but the 'full and open' designation implies a broad solicitation effort. The exclusion of sources might limit the breadth of competition, potentially impacting price discovery.

Taxpayer Impact: The exclusion of sources, even within a full and open competition framework, could mean that taxpayers did not benefit from the lowest possible price if highly competitive firms were inadvertently or deliberately excluded.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential engineering services for MTUAS programs. The services delivered are critical for the development, maintenance, and enhancement of Maritime Tactical Unmanned Aircraft Systems. The geographic impact is likely concentrated within naval aviation facilities and supporting research centers, primarily in Maryland. Workforce implications include employment for specialized engineers and technical personnel at CRL Technologies, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost overruns if not closely monitored.
Exclusion of sources in a full and open competition could limit competitive pressure on pricing.
Lack of specific performance metrics makes it difficult to assess the efficiency of labor provided.

Positive Signals

Award to an established company (CRL Technologies, Inc.) suggests a degree of reliability.
The contract duration of nearly a year indicates a sustained need for these services.
The fixed fee component in the CPFF contract provides a defined profit margin, limiting unlimited profit potential.

Sector Analysis

The defense engineering services sector is characterized by high technical complexity, stringent security requirements, and significant government investment. This contract for MTUAS labor fits within the broader aerospace and defense industry, specifically focusing on unmanned systems technology. The market size for defense engineering services is substantial, with numerous firms competing for government contracts. Comparable spending benchmarks would involve analyzing other contracts for similar engineering support related to unmanned aerial vehicles or specialized defense systems, which often run into millions or tens of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated within this award. This means that opportunities for small businesses to participate as prime contractors or subcontractors may be limited unless they are part of a larger subcontracting plan initiated by the prime contractor, CRL Technologies, Inc.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General for the Department of Defense may have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

Unmanned Aircraft Systems (UAS) Procurement
Naval Aviation Engineering Services
Defense Research and Development
Maritime Systems Support

Risk Flags

Cost-plus-fixed-fee contract type carries inherent risk of cost escalation.
Exclusion of sources may limit competitive pricing.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to CRL TECHNOLOGIES, INC.. MTUAS 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 $3.6 million.

What is the period of performance?

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

What is the track record of CRL Technologies, Inc. in performing similar engineering services for the Department of Defense?

CRL Technologies, Inc. has a history of performing various engineering and technical services for the Department of Defense. While specific details on their MTUAS labor experience require deeper investigation into past performance reviews and contract history, their presence as a recipient of this contract suggests they possess the requisite qualifications and experience. Analyzing their past performance on similar cost-plus-fixed-fee contracts, especially those involving complex systems like unmanned aircraft, would provide further insight into their reliability, cost control capabilities, and ability to meet performance expectations. A review of their contract awards and completion records within the defense sector would be necessary for a comprehensive assessment.

How does the pricing structure (Cost Plus Fixed Fee) compare to other MTUAS labor contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for contracts involving research, development, or services where cost estimation is difficult. For MTUAS labor, CPFF can be advantageous when the scope of work is evolving or involves significant uncertainty, allowing the contractor to cover actual costs while incentivizing efficiency through a fixed profit margin. However, it carries a higher risk of cost growth compared to fixed-price contracts. Benchmarking this specific contract's fee against similar CPFF contracts for engineering services in the defense sector would reveal if the fee is competitive. Without access to a broader dataset of comparable MTUAS labor contracts and their pricing structures, it's challenging to definitively state if this specific CPFF arrangement represents optimal value.

What are the key performance indicators (KPIs) for this contract, and how are they measured?

The provided data does not specify the key performance indicators (KPIs) for this MTUAS Labor contract. Typically, for engineering services contracts, KPIs might include metrics related to technical accuracy, timeliness of deliverables, adherence to project milestones, innovation, and effective problem-solving. The performance of CRL Technologies, Inc. would likely be assessed against these defined KPIs throughout the contract period. The Department of the Navy's contracting officer and technical representatives would be responsible for monitoring performance and ensuring compliance with the contract's requirements. A thorough review of the contract's Statement of Work (SOW) and Performance Work Statement (PWS) would be necessary to identify the specific KPIs and their measurement methodologies.

What is the historical spending trend for MTUAS labor services by the Department of the Navy?

Historical spending on Maritime Tactical Unmanned Aircraft Systems (MTUAS) labor services by the Department of the Navy has likely seen a significant upward trend over the past decade, driven by the increasing strategic importance and technological advancements in unmanned aviation. While the specific figure of $3.57 million for this single contract is a snapshot, broader analysis of defense budgets and procurement data would reveal substantial investments in UAS programs. This includes funding for research and development, acquisition, sustainment, and the specialized labor required to support these complex systems. Understanding these trends provides context for the current contract's value and the Navy's ongoing commitment to expanding its unmanned capabilities.

What is the potential impact of excluding certain sources on the overall cost-effectiveness for taxpayers?

The exclusion of sources, even within a 'Full and Open Competition After Exclusion of Sources' framework, can potentially impact cost-effectiveness for taxpayers. If the excluded sources possessed unique capabilities or could have offered more competitive pricing, their exclusion might lead to a higher overall cost for the government. The rationale behind excluding sources is critical; if it's based on legitimate technical requirements or past performance issues with specific vendors, then the exclusion might be justified to ensure program success and mitigate risks. However, if the exclusion is arbitrary or overly restrictive, it could stifle competition, reduce price discovery, and ultimately result in taxpayers paying more than necessary for the required services.

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: $3,836,322

Exercised Options: $3,836,322

Current Obligation: $3,573,622

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