NDI Engineering Company awarded $21M for naval engineering support, spanning ship design, modification, and testing

Contract Overview

Contract Amount: $21,060,191 ($21.1M)

Contractor: NDI Engineering Company

Awarding Agency: Department of Defense

Start Date: 2017-04-04

End Date: 2023-04-04

Contract Duration: 2,191 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF NAVAL SURFACE WARFARE CENTER PHILADELPHIA DIVISION (NSWCPLD) REQUIRES CONTRACTOR ENGINEERING, TECHNICAL AND PROJECT MANAGEMENT SUPPORT FOR EMERGENT WORK IN THE AREAS OF DESIGN, MODIFICATION, AND TESTING OF; ELECTRIC POWER GENERATION/DISTRIBUTION, MACHINERY CONTROL, FLUID SYSTEMS AND MECHANICAL SYSTEMS IN EXECUTION OF NSWCPLD SURFACE COMBATANT, EXPEDITIONARY AND AMPHIBIOUS CLASS SHIP PROGRAMS; USCG AND INTERNATIONAL PROGRAM (FOREIGN NAVAL PROGRAM INITIATIVES).

Place of Performance

Location: WEST DEPTFORD, GLOUCESTER County, NEW JERSEY, 08086

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to NDI ENGINEERING COMPANY for work described as: IGF::OT::IGF NAVAL SURFACE WARFARE CENTER PHILADELPHIA DIVISION (NSWCPLD) REQUIRES CONTRACTOR ENGINEERING, TECHNICAL AND PROJECT MANAGEMENT SUPPORT FOR EMERGENT WORK IN THE AREAS OF DESIGN, MODIFICATION, AND TESTING OF; ELECTRIC POWER GENERATION/DISTRIBUTION, MACHINERY CONTROL, F… Key points: 1. Contract provides critical engineering and technical support for naval ship programs, impacting fleet readiness. 2. The duration of the contract suggests a long-term need for specialized naval engineering expertise. 3. Focus on electric power, machinery control, and fluid systems highlights key areas of naval technological development. 4. Support extends to USCG and international naval programs, indicating broad application of services. 5. The contract's value, while significant, needs benchmarking against similar long-term naval support contracts. 6. Performance context is crucial to understand the effectiveness of engineering services in complex shipbuilding and modernization efforts.

Value Assessment

Rating: fair

The contract value of $21 million over approximately 6 years for engineering services is moderate. Without specific details on the scope of work or deliverables, a direct comparison to similar contracts is challenging. However, the cost-plus-fixed-fee (CPFF) pricing structure suggests that costs are monitored, but it can also lead to cost overruns if not managed tightly. Benchmarking against industry standards for naval engineering support would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and a selection of the most capable contractor. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment that can drive down costs and ensure the government receives the best value for its investment.

Public Impact

Naval Surface Warfare Center (NSWC) Philadelphia Division benefits from specialized engineering and technical support. Services directly support the design, modification, and testing of electric power, machinery control, and fluid systems for naval vessels. Impacts surface combatant, expeditionary, and amphibious class ship programs. Workforce implications include the need for skilled engineers and technical personnel in specialized naval systems. Geographic impact is centered around NSWC Philadelphia Division, but the services support national defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to higher overall costs if not meticulously managed.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Dependence on a single contractor for critical engineering support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract addresses essential engineering needs for naval modernization and readiness.
NDI Engineering Company's role in supporting multiple naval programs indicates a level of established expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's naval segment. The market for naval engineering support is characterized by high technical barriers to entry and a limited number of specialized firms. Spending in this area is driven by the need for modernization, maintenance, and development of naval platforms. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the Department of the Navy or other defense agencies for similar vessel types or systems.

Small Business Impact

This contract does not appear to have a small business set-aside. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's subcontracting plan, if any. The absence of a specific set-aside may limit direct opportunities for small businesses on this particular contract, though they may participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily reside with the Naval Surface Warfare Center (NSWC) Philadelphia Division, the contracting activity. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract awards databases, but detailed performance reports and cost breakdowns are often not publicly available.

Related Government Programs

Naval Ship Systems Engineering Support
Defense Engineering Services
Shipbuilding and Repair Services
Naval Electric Power Systems Support
Machinery Control Systems Engineering

Risk Flags

Potential for cost overruns with CPFF contract type.
Long contract duration requires sustained performance monitoring.
Dependence on contractor for critical naval systems expertise.
Need for robust oversight to ensure adherence to technical specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to NDI ENGINEERING COMPANY. IGF::OT::IGF NAVAL SURFACE WARFARE CENTER PHILADELPHIA DIVISION (NSWCPLD) REQUIRES CONTRACTOR ENGINEERING, TECHNICAL AND PROJECT MANAGEMENT SUPPORT FOR EMERGENT WORK IN THE AREAS OF DESIGN, MODIFICATION, AND TESTING OF; ELECTRIC POWER GENERATION/DISTRIBUTION, MACHINERY CONTROL, FLUID SYSTEMS AND MECHANICAL SYSTEMS IN EXECUTION OF NSWCPLD SURFACE COMBATANT, EXPEDITIONARY AND AMPHIBIOUS CLASS SHIP PROGRAMS; USCG AND INTERNATIONAL PROGRAM (FOREIGN NAVAL PROGRAM INITIATIVES).

Who is the contractor on this award?

The obligated recipient is NDI ENGINEERING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2017-04-04. End: 2023-04-04.

What is NDI Engineering Company's track record with similar naval engineering contracts?

NDI Engineering Company has a history of providing engineering, technical, and project management support to various government agencies, including the Department of Defense. Their experience often involves complex systems for naval vessels, aligning with the scope of this contract. While specific details on past performance metrics for similar contracts are not publicly detailed in this award notice, their continued engagement in this sector suggests a satisfactory performance history. Further analysis would involve reviewing past performance evaluations and any contract modifications or disputes associated with their previous government contracts to fully assess their track record.

How does the $21 million contract value compare to industry benchmarks for similar naval engineering services?

Benchmarking the $21 million contract value requires a detailed understanding of the specific engineering services rendered, the duration, and the complexity of the naval platforms supported. The contract spans approximately six years, making the annual value around $3.5 million. This figure needs to be compared against the average cost of similar long-term engineering support contracts awarded by the Department of the Navy or other defense entities for surface combatants, expeditionary, and amphibious class ships. Factors such as the level of security clearance required, the specialized nature of the systems (e.g., electric power generation, machinery control), and the geographic location of service provision also influence pricing. Without access to a comprehensive database of comparable contract values and scopes, a precise benchmark is difficult, but the value appears moderate for a multi-year, specialized defense engineering contract.

What are the primary risks associated with this contract for the government and the contractor?

For the government, key risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, contractor performance issues that could delay critical naval programs, and the risk of knowledge loss if the contractor's key personnel depart. For NDI Engineering Company, risks involve the potential for scope creep, challenges in meeting stringent performance requirements, and the possibility of contract termination if performance is unsatisfactory. Both parties face risks related to evolving technological requirements in naval systems and potential budget fluctuations within the Department of Defense.

How effective is the Cost Plus Fixed Fee (CPFF) pricing structure in ensuring value for money in this context?

The Cost Plus Fixed Fee (CPFF) pricing structure aims to provide a balance between contractor incentive and government control. The government pays the actual allowable costs incurred by the contractor plus a fixed fee, which represents the contractor's profit. This structure is often used when the scope of work is not precisely defined at the outset, as is common in complex engineering projects. While it allows for flexibility, it carries a risk of cost overruns if the contractor's costs escalate beyond initial estimates, as the government bears the burden of these increased costs. The fixed fee, however, provides a predictable profit margin for the contractor. Effective management and oversight by the contracting agency are crucial to ensure that costs remain reasonable and that the fixed fee adequately compensates the contractor for the defined scope, thereby maximizing value for money.

What is the historical spending trend for engineering services at NSWC Philadelphia Division?

Analyzing historical spending trends for engineering services at the Naval Surface Warfare Center (NSWC) Philadelphia Division would require access to historical contract databases and procurement reports. This specific contract, valued at approximately $21 million over six years, represents a portion of the division's overall expenditure on engineering support. To understand trends, one would need to examine the total annual spending on engineering services by NSWC Philadelphia over several fiscal years, identify the primary service providers, and note any significant increases or decreases in contract values or volumes. This would help contextualize the current award within the division's long-term procurement strategy and budget allocations for engineering and technical support.

What are the implications of supporting international naval programs for this contract?

Supporting international naval programs introduces several implications. It requires adherence to potentially different technical standards, export control regulations (like ITAR), and security protocols. The contractor may need to navigate international business practices and potentially provide support across different geographic locations. For the U.S. Navy, this aspect of the contract can enhance interoperability with allied forces and strengthen international partnerships. It also means that the engineering solutions developed must be adaptable and potentially meet the requirements of multiple navies, adding complexity to the design and testing phases.

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: N0002416R3077

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 GROVE ROAD, THOROFARE, NJ, 08086

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $29,990,898

Exercised Options: $29,990,898

Current Obligation: $21,060,191

Actual Outlays: $2,366,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4089

IDV Type: IDC

Timeline