Dod's $30.5M Navy Contract for Code 25 LAB O&M Services Awarded to Purvis Systems Inc

Contract Overview

Contract Amount: $30,524,354 ($30.5M)

Contractor: Purvis Systems Inc

Awarding Agency: Department of Defense

Start Date: 2007-08-28

End Date: 2014-09-25

Contract Duration: 2,585 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Engineering Services

Official Description: CODE 25 LAB O&M SERVICES

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $30.5 million to PURVIS SYSTEMS INC for work described as: CODE 25 LAB O&M SERVICES Key points: 1. Contract value of $30.5M over 7 years. 2. Awarded via full and open competition. 3. Risk: Cost Plus Award Fee contract type can lead to higher costs. 4. Sector: Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which offers less price certainty than fixed-price contracts. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure may still allow for cost overruns.

Taxpayer Impact: Taxpayer funds were used for engineering services, with potential for cost efficiencies depending on the award fee structure and contractor performance.

Public Impact

Supports critical laboratory operations for the Department of the Navy. Ensures continuity of essential engineering services. Potential for cost savings through performance incentives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type
Long contract duration (7 years)

Positive Signals

Full and open competition
Performance incentives

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for government infrastructure and defense projects. Spending in this sector can vary significantly based on project scope and complexity.

Small Business Impact

No information available regarding small business participation in this contract.

Oversight & Accountability

The contract was awarded via delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. Oversight would focus on performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Lack of detailed cost breakdown for benchmarking.
Long contract duration may reduce flexibility.
Limited information on specific services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 million to PURVIS SYSTEMS INC. CODE 25 LAB O&M SERVICES

Who is the contractor on this award?

The obligated recipient is PURVIS 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 $30.5 million.

What is the period of performance?

Start: 2007-08-28. End: 2014-09-25.

What specific lab operations are covered by this O&M contract?

The contract details are limited, but 'CODE 25 LAB O&M SERVICES' suggests it pertains to the operation and maintenance of a specific laboratory facility or set of equipment designated as 'CODE 25' within the Department of the Navy. This could encompass routine maintenance, repairs, calibration, and potentially support for specialized testing equipment.

How effectively does the Cost Plus Award Fee structure incentivize cost control?

The effectiveness hinges on the specific metrics and targets set for the award fee. While it aims to reward performance, a poorly designed fee structure could inadvertently incentivize higher costs if the award criteria are not tightly aligned with cost efficiency and value for money. Regular audits and performance reviews are crucial.

What is the long-term strategic value of this engineering services contract?

The long-term value lies in ensuring the sustained operational capability of critical Navy laboratories. Consistent O&M support prevents degradation of facilities and equipment, enabling ongoing research, development, and testing essential for national defense. The contract's duration suggests a need for stable, long-term support.

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: N0002407R3300

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 5225 RT 347 STE11, PORT JEFFERSON STATION, NY, 11776

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,126,679

Exercised Options: $34,679,418

Current Obligation: $30,524,354

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4109

IDV Type: IDC

Timeline