DoD awards $2.9M contract for naval engineering services to Dignitas Technologies, LLC

Contract Overview

Contract Amount: $2,899,536 ($2.9M)

Contractor: Dignitas Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2024-08-08

End Date: 2027-01-07

Contract Duration: 882 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTEGRATED LOGISTICS SUPPORT TRAINING PROGRAM ADMINISTRATION AND INSTRUCTIONAL SUPPORT FOR THE CG 47, AND DDG 51 HM&E MODERNIZATION

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32817

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to DIGNITAS TECHNOLOGIES, LLC for work described as: INTEGRATED LOGISTICS SUPPORT TRAINING PROGRAM ADMINISTRATION AND INSTRUCTIONAL SUPPORT FOR THE CG 47, AND DDG 51 HM&E MODERNIZATION Key points: 1. Contract focuses on integrated logistics support and training for naval vessels. 2. Competition was full and open, indicating a potentially competitive bidding process. 3. The contract duration of 882 days suggests a significant, ongoing need for services. 4. Services are categorized under Engineering Services, aligning with specialized technical support. 5. The award is a delivery order, implying it's part of a larger contract vehicle. 6. The contractor, Dignitas Technologies, LLC, is based in Florida. 7. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 8. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of approximately $2.9 million over 882 days (roughly $3,287 per day) for specialized naval engineering and training services appears within a reasonable range for such complex technical support. Benchmarking against similar contracts for HM&E modernization and logistics support for naval platforms like the CG 47 and DDG 51 is crucial for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D or uncertain scope work, can lead to higher costs if not managed diligently, as the government bears the risk of cost overruns.

Cost Per Unit: $3,287 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bids received. This level of competition is generally positive, suggesting that multiple capable firms had the opportunity to bid, which can drive more competitive pricing and better terms for the government. The presence of five bidders indicates a healthy interest in this requirement within the defense engineering services market.

Taxpayer Impact: Full and open competition with multiple bidders typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will receive enhanced training and support for critical naval platforms (CG 47 and DDG 51). Services delivered include integrated logistics support and instructional support, crucial for maintaining operational readiness of naval vessels. The geographic impact is primarily within Florida, where the contractor is located and likely where services will be performed or managed. Workforce implications include the potential for skilled engineering and training professionals to be employed by Dignitas Technologies, LLC to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type introduces cost overrun risk to the government.
The specific scope of 'instructional support' could be broad, requiring careful monitoring to ensure efficiency.
Reliance on a single delivery order under a potentially larger contract vehicle might obscure the full scope and value of the overall effort.

Positive Signals

Awarded under full and open competition with five bids, suggesting a robust market.
The contractor is providing essential support for critical naval modernization programs.
The contract duration indicates a stable, long-term need for these specialized services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and infrastructure. The total value of $2.9 million is moderate for a defense-related engineering services contract. Comparable spending benchmarks would involve analyzing other contracts for naval vessel modernization, logistics support, and training services, particularly for the DDG 51 and CG 47 classes, to assess cost-effectiveness.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large or mid-sized business, and opportunities for small businesses would likely be through direct subcontracting relationships with Dignitas Technologies, LLC, if they choose to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance and Repair
Defense Logistics Support Services
Military Training and Education Services
Shipbuilding and Repair
Engineering and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk for the government.
Potential for scope creep in 'instructional support' requires diligent oversight.
Limited public information on contractor's specific past performance for these platforms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to DIGNITAS TECHNOLOGIES, LLC. INTEGRATED LOGISTICS SUPPORT TRAINING PROGRAM ADMINISTRATION AND INSTRUCTIONAL SUPPORT FOR THE CG 47, AND DDG 51 HM&E MODERNIZATION

Who is the contractor on this award?

The obligated recipient is DIGNITAS TECHNOLOGIES, 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 $2.9 million.

What is the period of performance?

Start: 2024-08-08. End: 2027-01-07.

What is Dignitas Technologies, LLC's track record with the Department of Defense, particularly in providing integrated logistics support and training?

A review of federal procurement data indicates that Dignitas Technologies, LLC has received multiple awards from the Department of Defense, primarily for engineering and technical services. While specific details on their performance for the CG 47 and DDG 51 HM&E modernization are not fully detailed in the award notice, their history suggests experience in supporting naval programs. Further analysis would require examining past performance evaluations and contract close-out reports for this contractor to ascertain their reliability and effectiveness in similar roles. The current contract's Cost Plus Fixed Fee structure suggests the Navy has some confidence in their ability to perform, but ongoing monitoring of performance metrics will be key.

How does the daily rate of approximately $3,287 compare to market rates for similar naval engineering and training services?

The daily rate of approximately $3,287 for integrated logistics support and instructional support for naval vessels is a key metric for value assessment. To benchmark this effectively, it needs to be compared against industry data for specialized engineering services provided to the U.S. Navy, particularly for complex platforms like the DDG 51 and CG 47 classes. Factors such as the specific skill sets required, the level of security clearance, the geographic location of service delivery, and the overall scope of work influence market rates. Without access to detailed cost breakdowns or comparable contract data, it's difficult to definitively state if this rate is high or low. However, given the specialized nature of naval modernization and training, this rate may be within the expected range, though vigilance against potential cost creep under the CPFF structure is warranted.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific procurement?

The primary risk associated with the CPFF contract type for this procurement is the potential for cost overruns, which are borne by the government. While a fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government pays for all allowable costs incurred by the contractor. If the project scope is not well-defined, or if unforeseen technical challenges arise, costs can escalate beyond initial estimates. This necessitates robust government oversight to ensure that all costs claimed by the contractor are reasonable, allocable, and necessary for the performance of the contract. Effective management of the contractor's performance and diligent review of incurred costs are critical to mitigating this risk and ensuring value for taxpayer money.

What is the historical spending pattern for integrated logistics support and training for the CG 47 and DDG 51 classes?

Historical spending data for integrated logistics support and training for the CG 47 and DDG 51 classes would reveal trends in investment for these critical naval platforms. Analyzing past contracts, including their values, durations, and the types of services procured, can provide context for the current $2.9 million award. Significant fluctuations or consistent high spending in these areas might indicate ongoing modernization efforts, aging fleets requiring extensive support, or evolving training requirements. Understanding this historical context is vital for assessing whether the current contract represents a typical investment or a deviation, and for forecasting future budgetary needs related to these vessel classes.

How does the competition level (5 bidders) impact the potential for cost savings or service quality improvements for the Navy?

A competition level of five bidders for this engineering services contract is generally considered healthy and suggests a reasonably competitive market for this type of support. This level of competition increases the likelihood that the Navy received competitive proposals, potentially leading to better pricing and more favorable terms than if there were fewer bidders. It also provides the Navy with options and leverage during negotiations. Furthermore, a competitive environment often incentivizes contractors to offer higher quality services and innovative solutions to win the contract and secure future business. The Navy's ability to select the best value proposal from these five bids is a key outcome of this competitive process.

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: N6449824R3009

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3626 QUADRANGLE BLVD STE 100, ORLANDO, FL, 32817

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $10,940,286

Exercised Options: $4,185,942

Current Obligation: $2,899,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7522

IDV Type: IDC

Timeline