DoD's $17.3M C4N Systems Support Contract Awarded to Thor Solutions LLC

Contract Overview

Contract Amount: $17,293,410 ($17.3M)

Contractor: Thor Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2021-08-19

End Date: 2026-08-18

Contract Duration: 1,825 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EXPEDITIONARY COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, NAVIGATION (C4N) SYSTEMS PROGRAM SUPPORT

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.3 million to THOR SOLUTIONS LLC for work described as: EXPEDITIONARY COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, NAVIGATION (C4N) SYSTEMS PROGRAM SUPPORT Key points: 1. Contract provides critical support for expeditionary command, control, communications, computers, and navigation systems. 2. Awarded via full and open competition, suggesting a robust market for these specialized engineering services. 3. The contract duration of 5 years indicates a long-term need for these capabilities. 4. The cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control. 5. The geographic focus on Florida may indicate specific operational or training requirements. 6. The relatively small number of bidders (3) warrants further investigation into market dynamics.

Value Assessment

Rating: good

The contract value of $17.3 million over five years for specialized engineering services appears reasonable within the defense sector. Benchmarking against similar contracts for C4N systems support is challenging without more specific service details. However, the fixed fee component provides some cost predictability for the government. The pricing structure, Cost Plus Fixed Fee (CPFF), allows for flexibility in scope but necessitates diligent oversight to prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and multiple companies were eligible to bid. Three bids were received, which suggests a competitive but potentially concentrated market for these highly specialized C4N systems support services. While competition was present, the limited number of bidders could imply barriers to entry or a niche market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to drive down prices through market forces. The presence of three bidders suggests that the government likely received competitive proposals, potentially leading to a better value than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Navy's expeditionary forces, who will receive enhanced C4N capabilities. Services delivered include engineering support crucial for the operation and maintenance of complex C4N systems. The contract has a geographic impact primarily in Florida, suggesting alignment with naval operations or facilities in that region. Workforce implications include the potential for highly skilled engineering jobs in specialized defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
A limited number of bidders (3) might indicate a lack of broader market competition or high entry barriers.
The specific nature of C4N systems support requires specialized expertise, potentially limiting the pool of qualified contractors.

Positive Signals

Awarded through full and open competition, maximizing potential bidder participation.
The contract duration of 5 years provides stability and allows for long-term planning and relationship building.
The fixed fee component offers some level of cost certainty for the government.

Sector Analysis

The defense sector, particularly within the Department of the Navy, relies heavily on advanced Command, Control, Communications, Computers, and Navigation (C4N) systems. This contract falls within the Engineering Services (NAICS 541330) category, which is a significant segment of the defense industrial base. Spending in this area is driven by the need to maintain and upgrade sophisticated military technology to ensure operational readiness and technological superiority. Comparable spending benchmarks would typically involve other contracts for similar system support, maintenance, and integration services for naval or other military branches.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Thor Solutions LLC, is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Thor Solutions LLC actively seeks small business subcontractors for specialized support roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded in the Cost Plus Fixed Fee (CPFF) structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval C4ISR Systems
Expeditionary Warfare Support
Defense Engineering Services
Military Communications Systems
Navigation Systems Support
DoD IT Services

Risk Flags

Potential for cost overruns in CPFF contract
Limited number of bidders may indicate market concentration
Need for rigorous oversight of specialized engineering services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.3 million to THOR SOLUTIONS LLC. EXPEDITIONARY COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, NAVIGATION (C4N) SYSTEMS PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is THOR SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2021-08-19. End: 2026-08-18.

What is Thor Solutions LLC's track record with the Department of Defense, particularly in C4N systems support?

Thor Solutions LLC has a history of contracts with the Department of Defense, primarily in areas related to engineering services, program support, and specialized technical assistance. While specific details on their C4N systems support experience require deeper database searches, their award on this significant contract suggests they possess the requisite expertise and qualifications. Analyzing past performance reviews, contract modifications, and any past performance issues would provide a more comprehensive understanding of their reliability and capability in delivering complex defense systems support.

How does the $17.3 million contract value compare to similar C4N systems support contracts awarded by the Navy or other DoD branches?

Benchmarking the $17.3 million value requires comparing it against contracts for similar scope, duration, and complexity within the C4N domain. Contracts for system integration, sustainment, modernization, and engineering support for naval C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems can range widely. Factors like the specific technologies involved (e.g., satellite communications, tactical data links, navigation aids), the level of engineering required, and the operational tempo influence pricing. Without more granular data on comparable contracts, it's difficult to definitively state if this represents a high, low, or average value, but it appears within a reasonable range for specialized, long-term defense support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated?

The primary risk with CPFF contracts is the potential for cost overruns if the contractor's actual costs exceed estimates, although the fixed fee provides a ceiling on the profit. Contractors may lack strong incentives to control costs rigorously, as the government typically reimburses allowable costs. Mitigation strategies include robust government oversight, detailed cost tracking and auditing, clear definition of work scope, and performance metrics. The fixed fee itself acts as a form of incentive, as the contractor aims to complete the work within the estimated cost to maximize their profit margin on that fee.

What is the expected impact of this contract on the operational readiness and effectiveness of the Navy's expeditionary forces?

This contract is expected to significantly enhance the operational readiness and effectiveness of the Navy's expeditionary forces by ensuring the reliable functioning and potential modernization of critical C4N systems. These systems are fundamental for situational awareness, command and control, secure communications, and precise navigation in diverse operational environments. By providing specialized engineering support, the contract helps maintain the integrity and performance of these complex systems, reducing downtime and ensuring that warfighters have access to the necessary tools for mission success, especially in deployed scenarios.

How has federal spending on expeditionary C4N systems support evolved over the past five years, and does this contract align with trends?

Federal spending on expeditionary C4N systems support has generally seen consistent investment, driven by ongoing military modernization efforts and the need to maintain technological superiority. While specific aggregate spending figures for this niche category are not readily available without extensive analysis, the Department of Defense consistently allocates substantial resources to C4ISR and related technologies. This $17.3 million contract award aligns with the trend of sustained investment in critical command, control, and communication capabilities necessary for modern warfare, particularly for expeditionary operations which demand robust and adaptable C4N infrastructure.

What are the potential implications of awarding this contract to Thor Solutions LLC given the limited number of bidders?

The award to Thor Solutions LLC, with only two other bidders, suggests a potentially concentrated market for these specialized engineering services. This could imply high barriers to entry, such as significant technical expertise, security clearances, or established relationships within the defense sector. While full and open competition was utilized, the limited number of bids might reduce the government's leverage in price negotiations compared to a market with numerous competitors. It also raises questions about market accessibility for other potential providers and the long-term sustainability of competition in this niche.

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: N6133120R3008

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2900 S QUINCY STREET, SUITE 100, ARLINGTON, VA, 22206

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

Financial Breakdown

Contract Ceiling: $24,588,993

Exercised Options: $24,588,993

Current Obligation: $17,293,410

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,143,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8705

IDV Type: IDC

Timeline