DoD Awards $12.5M for CVN 74 RCOH Furniture, Facing Limited Competition
Contract Overview
Contract Amount: $12,484,245 ($12.5M)
Contractor: Tecnico Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-16
End Date: 2026-05-12
Contract Duration: 1,334 days
Daily Burn Rate: $9.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-PROPULSION FURNITURE ON CVN 74 REFUELING COMPLEX OVERHAUL (RCOH).
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112
Plain-Language Summary
Department of Defense obligated $12.5 million to TECNICO CORPORATION for work described as: NON-PROPULSION FURNITURE ON CVN 74 REFUELING COMPLEX OVERHAUL (RCOH). Key points: 1. Significant contract value for non-propulsion furniture on a major naval vessel. 2. Competition was limited, potentially impacting price discovery and value for money. 3. Risk of cost overruns exists given the Cost Plus Fixed Fee contract type. 4. Spending falls within the Ship Building and Repairing sector.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type introduces risk for cost overruns. Benchmarking against similar naval furniture contracts is difficult without more specific data, but the value appears substantial for non-propulsion items.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competitive field. This approach may have restricted price discovery and potentially led to a higher overall cost.
Taxpayer Impact: Taxpayer funds are being used for this procurement. The limited competition raises concerns about whether the best possible price was achieved, impacting the overall value for taxpayers.
Public Impact
Ensures essential habitability and operational functionality for the USS Enterprise (CVN 74) during its RCOH. Supports the shipbuilding and repair industry, contributing to jobs and economic activity. Potential for increased costs due to limited competition could divert funds from other critical defense needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Supports critical naval infrastructure
- Contract awarded to TECNICO CORPORATION
Sector Analysis
This contract falls under the Ship Building and Repairing sector, which is a significant part of the defense industrial base. Spending benchmarks for specific furniture components within a refueling overhaul are not readily available, but the overall RCOH process is a multi-billion dollar undertaking.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this specific contract or as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, as the procuring agency, is responsible for oversight. The contract type and limited competition warrant close monitoring to ensure cost control and adherence to specifications throughout the performance period.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to inflated prices.
- Cost Plus Fixed Fee contract increases risk of cost overruns.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for scope creep in furniture requirements.
Tags
ship-building-and-repairing, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to TECNICO CORPORATION. NON-PROPULSION FURNITURE ON CVN 74 REFUELING COMPLEX OVERHAUL (RCOH).
Who is the contractor on this award?
The obligated recipient is TECNICO CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.5 million.
What is the period of performance?
Start: 2022-09-16. End: 2026-05-12.
What specific types of furniture are included in this $12.5M award, and how does their cost compare to industry standards for similar naval applications?
The data specifies 'NON-PROPULSION FURNITURE.' Without a detailed breakdown of furniture types (e.g., berthing, wardroom, office), a precise cost comparison is challenging. However, $12.5 million for furniture alone on a major overhaul suggests a high unit cost, potentially influenced by specialized requirements, durability standards, and the limited competition, warranting further investigation into specific item pricing.
What were the specific reasons for excluding other potential sources, and how did this exclusion impact the final negotiated price?
The justification for 'EXCLUSION OF SOURCES' is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, proprietary technology, or urgent needs. However, excluding sources inherently limits competition, which often leads to higher prices than a fully open bidding process. Understanding the rationale is crucial for assessing value for money.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure the government receives the best value for the funds expended?
Effective management of a Cost Plus Fixed Fee contract requires rigorous oversight of incurred costs, regular audits, and clear communication channels. The Department of the Navy must actively monitor TECNICO CORPORATION's expenditures against the estimated costs and the fixed fee. Robust performance metrics and milestone tracking are essential to ensure the project stays within budget and meets quality standards.
Industry Classification
NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6449822Q3136
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: American Maritime Holdings, Inc.
Address: 831 INDUSTRIAL AVE, CHESAPEAKE, VA, 23324
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,484,245
Exercised Options: $12,484,245
Current Obligation: $12,484,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6449821D4039
IDV Type: IDC
Timeline
Start Date: 2022-09-16
Current End Date: 2026-05-12
Potential End Date: 2026-05-12 00:00:00
Last Modified: 2025-09-16
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