Navy awards $12.2M contract for engineering and technical support services to NDI Engineering Company

Contract Overview

Contract Amount: $12,202,867 ($12.2M)

Contractor: NDI Engineering Company

Awarding Agency: Department of Defense

Start Date: 2020-04-14

End Date: 2026-04-30

Contract Duration: 2,207 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, TECHNICAL, PROGRAMMATIC, LOGISTICS, MAINTENANCES, SHIPS INSTALLATION/ALTERATIONS, AND LIFE CYCLE MANAGEMENT SERVICES AND SUPPORT FOR THE U.S. NAVY AUXILIARY, FLUID, AND MACHINERY CONTROL SYSTEMS

Place of Performance

Location: PAULSBORO, GLOUCESTER County, NEW JERSEY, 08066

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to NDI ENGINEERING COMPANY for work described as: ENGINEERING, TECHNICAL, PROGRAMMATIC, LOGISTICS, MAINTENANCES, SHIPS INSTALLATION/ALTERATIONS, AND LIFE CYCLE MANAGEMENT SERVICES AND SUPPORT FOR THE U.S. NAVY AUXILIARY, FLUID, AND MACHINERY CONTROL SYSTEMS Key points: 1. Contract focuses on critical support for Navy auxiliary, fluid, and machinery control systems. 2. NDI Engineering Company, based in New Jersey, is the primary contractor. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. This award is a delivery order, part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The duration of the contract is substantial, spanning over 2200 days.

Value Assessment

Rating: fair

The contract value of $12.2 million for engineering, technical, and logistics support over approximately six years appears reasonable given the scope of services for complex Navy systems. However, the Cost Plus Fixed Fee (CPFF) pricing structure warrants close monitoring, as it can incentivize contractor spending and potentially lead to costs exceeding initial estimates if not managed diligently. Benchmarking against similar long-term support contracts for naval systems would provide a clearer picture of 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 qualified vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders can influence the final price and the degree of innovation offered.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A competitive process increases the likelihood that the Navy receives high-quality services at a fair market price, minimizing the risk of overpayment.

Public Impact

The U.S. Navy benefits from continued operational readiness and maintenance of critical control systems. Services include engineering, technical, programmatic, logistics, and life cycle management. The contract supports auxiliary, fluid, and machinery control systems essential for ship operations. Geographic impact is primarily centered in New Jersey, where NDI Engineering Company is located, but services likely extend to naval bases and deployed vessels. Workforce implications include employment opportunities for engineers, technicians, and support staff within NDI Engineering Company and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Long contract duration (over 2200 days) increases exposure to potential scope creep or evolving requirements.
Limited public information on specific performance metrics makes it difficult to assess contractor efficiency.
Potential for reliance on a single contractor for critical systems support over an extended period.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
NDI Engineering Company has a track record of supporting defense contracts.
Contract addresses essential maintenance and engineering for critical naval systems, ensuring operational readiness.
Delivery order structure allows for phased execution and potential adjustments over time.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex machinery and control systems. The market for specialized naval engineering and technical support is significant, driven by the ongoing need to maintain and modernize a large fleet. Comparable spending benchmarks would involve analyzing other long-term service contracts awarded by the Navy or other military branches for similar system support, often in the multi-million dollar range annually.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no explicit small business set-aside (ss) mentioned for this contract. This suggests that the primary award was not specifically targeted towards small businesses. However, NDI Engineering Company may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing costs, especially given the CPFF structure. Transparency is facilitated through contract award databases, but detailed performance reports and Inspector General (IG) involvement would depend on specific findings or audits related to cost, schedule, or performance.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Ship Maintenance and Modernization Contracts
Defense Logistics Agency Support Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure
Long contract duration increases risk exposure
Potential for limited competition in specialized niche markets
Reliance on contractor performance for critical system maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to NDI ENGINEERING COMPANY. ENGINEERING, TECHNICAL, PROGRAMMATIC, LOGISTICS, MAINTENANCES, SHIPS INSTALLATION/ALTERATIONS, AND LIFE CYCLE MANAGEMENT SERVICES AND SUPPORT FOR THE U.S. NAVY AUXILIARY, FLUID, AND MACHINERY CONTROL SYSTEMS

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 $12.2 million.

What is the period of performance?

Start: 2020-04-14. End: 2026-04-30.

What is NDI Engineering Company's track record with the U.S. Navy and similar defense contracts?

NDI Engineering Company has a history of securing contracts with the U.S. Navy and other Department of Defense agencies, often related to engineering, technical support, and shipboard systems. Their experience typically involves providing services for complex naval platforms, including maintenance, alterations, and lifecycle management. Reviewing past contract awards and performance evaluations, where publicly available, would offer deeper insights into their reliability, technical proficiency, and ability to manage large-scale defense projects. Specific details on past performance metrics, such as on-time delivery and quality of work, are crucial for a comprehensive assessment.

How does the $12.2 million contract value compare to similar Navy engineering support contracts?

The $12.2 million value for approximately six years of service for auxiliary, fluid, and machinery control systems is within a typical range for specialized, long-term engineering support contracts awarded by the Navy. However, a precise comparison requires benchmarking against contracts with similar scopes of work, duration, and complexity. Factors such as the specific systems supported (e.g., propulsion, power generation, life support), the level of technical expertise required, and the geographic locations of service delivery significantly influence contract values. Without access to detailed breakdowns of services and comparable contract data, it's challenging to definitively state if this represents exceptional value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total cost. For the government, this means potential cost overruns if costs escalate beyond initial projections and if oversight is not rigorous. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong program management to ensure that the contractor operates efficiently and within reasonable cost parameters.

How effective is the 'full and open competition' process in ensuring competitive pricing for this type of specialized engineering support?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that ideally leads to the best value and pricing for the government. For specialized engineering support like that required for naval control systems, the effectiveness depends on the number of qualified contractors capable of performing the work. While this contract had 3 bidders, indicating some competition, the niche nature of the services might limit the pool of truly competitive firms. The government's ability to clearly define requirements and evaluate proposals fairly is crucial to ensuring that the competitive process translates into tangible benefits for taxpayers.

What are the potential implications of the long contract duration (over 2200 days) on service quality and cost?

A long contract duration, such as the 2207 days (over six years) for this contract, presents both opportunities and risks. On the positive side, it allows for continuity of service, deepens the contractor's understanding of the systems, and can lead to efficiencies through long-term planning and workforce stability. However, it also increases the risk of cost escalation due to inflation, potential obsolescence of technology, and the possibility of scope creep if requirements evolve without adequate adjustments. Maintaining service quality and cost control over such an extended period requires proactive contract management, regular performance reviews, and mechanisms for adapting to changing needs and market conditions.

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: N6449819R3506

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 GROVE RD, THOROFARE, NJ, 08086

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,390,548

Exercised Options: $13,390,548

Current Obligation: $12,202,867

Actual Outlays: $1,737,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8168

IDV Type: IDC

Timeline