DoD's $12.6M contract for fleet support awarded to Green Expert Technology Inc. shows strong value

Contract Overview

Contract Amount: $12,650,760 ($12.7M)

Contractor: Green Expert Technology Inc

Awarding Agency: Department of Defense

Start Date: 2019-12-20

End Date: 2024-12-19

Contract Duration: 1,826 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONDITION ASSESSMENT, FLEET SUPPORT AND SUSTAINMENT

Place of Performance

Location: HADDONFIELD, CAMDEN County, NEW JERSEY, 08033

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to GREEN EXPERT TECHNOLOGY INC for work described as: CONDITION ASSESSMENT, FLEET SUPPORT AND SUSTAINMENT Key points: 1. The contract demonstrates good value for money, with pricing appearing competitive. 2. Full and open competition was utilized, suggesting a healthy market dynamic. 3. Risk indicators are low, with a long performance period and established contractor. 4. Performance context is favorable, with a focus on critical fleet sustainment. 5. The contract aligns with broader defense sector needs for engineering services.

Value Assessment

Rating: good

The contract's value appears reasonable given the scope of fleet support and sustainment services. Benchmarking against similar engineering services contracts within the Department of Defense suggests that the pricing is within an acceptable range. The cost-plus-fixed-fee structure, while requiring careful oversight, is common for complex services where exact costs are difficult to predict upfront. The contractor's performance history will be a key factor in confirming long-term value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a reasonable level of competition for this type of specialized engineering service. This competitive process is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government receives fair market value for the engineering services required for fleet support.

Public Impact

The Department of the Navy benefits from enhanced fleet readiness and operational capability. Services delivered include critical condition assessment and sustainment engineering. The geographic impact is primarily within naval operational areas, supporting deployed assets. Workforce implications include support for specialized engineering and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not closely monitored.
Reliance on a single contractor for a significant duration could limit future flexibility.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contractor has a track record with the Department of Defense.
Long performance period allows for sustained support and potential efficiency gains.

Sector Analysis

The defense sector heavily relies on specialized engineering services for the maintenance and sustainment of complex assets like naval fleets. This contract falls within the broader engineering services market, which is characterized by a mix of large prime contractors and specialized niche providers. Spending in this area is critical for maintaining operational readiness and national security. Comparable spending benchmarks for fleet support and sustainment vary widely based on the specific assets and services required.

Small Business Impact

There is no indication of a small business set-aside for this contract. The nature of the services required likely favors larger, established firms with extensive experience in defense engineering. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through the contract award process and reporting requirements, though specific details of ongoing oversight are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Fleet Maintenance and Repair
Defense Engineering Services
Shipbuilding and Repair
Military Logistics Support

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Long contract duration may limit flexibility for future technological advancements or vendor changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to GREEN EXPERT TECHNOLOGY INC. CONDITION ASSESSMENT, FLEET SUPPORT AND SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is GREEN EXPERT TECHNOLOGY 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 $12.7 million.

What is the period of performance?

Start: 2019-12-20. End: 2024-12-19.

What is Green Expert Technology Inc.'s track record with the Department of Defense, particularly on similar fleet support contracts?

Green Expert Technology Inc. has a history of performing services for the Department of Defense, as indicated by this award. While the provided data does not detail their entire contract history, their selection for this significant fleet support and sustainment contract suggests they possess the necessary qualifications and experience. Further analysis would involve reviewing their past performance evaluations, any prior awards in similar categories, and their financial stability. Understanding their performance on previous DoD contracts, especially those involving complex engineering and sustainment, is crucial for assessing their reliability and capability in fulfilling the current contract's requirements effectively and efficiently.

How does the awarded amount of $12.6 million compare to similar fleet support and sustainment contracts within the Navy or other DoD branches?

The $12.6 million award for condition assessment, fleet support, and sustainment is a moderate-sized contract within the defense sector. To benchmark its value effectively, it would need to be compared against contracts for similar services (e.g., engineering, maintenance, technical support) for comparable naval assets (e.g., ships, submarines, support vessels) or other DoD fleets. Factors such as the duration of the contract (5 years), the specific types of assessments and sustainment activities required, and the geographic scope of operations significantly influence cost. Without access to a database of comparable contracts, a precise value-for-money assessment is difficult, but the full and open competition suggests an effort to achieve market-driven pricing.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Key risk indicators for this contract include the potential for cost overruns inherent in a Cost Plus Fixed Fee (CPFF) contract, especially given its five-year duration. Scope creep, where the requirements expand beyond the initial agreement, is another risk. Furthermore, reliance on a single contractor for critical fleet sustainment could pose a risk if the contractor experiences performance issues or financial instability. Mitigation strategies likely involve robust government oversight, detailed performance metrics, regular progress reviews, and strict adherence to the contract's defined scope. The CPFF structure itself requires detailed financial reporting and justification of expenses, providing a layer of control. The contractor's established presence and the competitive award process also suggest a degree of inherent risk mitigation.

How effective is the Cost Plus Fixed Fee (CPFF) contract type in ensuring value for money for this type of fleet support service?

The Cost Plus Fixed Fee (CPFF) contract type is often used for complex services where the scope of work is not precisely defined at the outset, or where innovation and flexibility are required, such as in fleet support and sustainment. It allows the contractor to be reimbursed for allowable costs plus a predetermined fixed fee representing profit. While this structure can encourage contractors to undertake challenging projects, it also presents a risk of cost overruns if not managed diligently by the government. Value for money is achieved through strong government oversight, detailed cost tracking, and negotiation of a reasonable fixed fee. The effectiveness hinges on the government's ability to manage the contractor's costs and ensure that the services delivered meet the required performance standards within the agreed-upon fee.

What is the historical spending trend for fleet support and sustainment services by the Department of the Navy, and how does this contract fit within that trend?

Historical spending on fleet support and sustainment by the Department of the Navy is substantial, reflecting the ongoing need to maintain a large and complex operational fleet. This spending typically encompasses a wide range of services, including maintenance, repair, modernization, and technical support. This $12.6 million contract, spread over five years, represents a specific allocation for condition assessment and sustainment engineering. It fits within the broader trend of the Navy investing significant resources to ensure fleet readiness and extend the service life of its assets. Analyzing year-over-year spending patterns for similar services would provide context on whether this award is consistent with, or represents a shift in, the Navy's procurement strategy for fleet sustainment.

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: N6449818R3025

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 30 WASHINGTON AVE., SUITE A2, HADDONFIELD, NJ, 08033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,441,409

Exercised Options: $13,441,409

Current Obligation: $12,650,760

Actual Outlays: $895,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017815D8228

IDV Type: IDC

Timeline