Noblis MSD LLC awarded $8.76M for engineering and technical services, with a 7.78% cost underrun
Contract Overview
Contract Amount: $8,757,536 ($8.8M)
Contractor: Noblis MSD LLC
Awarding Agency: Department of Defense
Start Date: 2024-08-30
End Date: 2027-09-30
Contract Duration: 1,126 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES SUBCOMMUNICATIONS SYSTEMS
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112
Plain-Language Summary
Department of Defense obligated $8.8 million to NOBLIS MSD LLC for work described as: ENGINEERING AND TECHNICAL SERVICES SUBCOMMUNICATIONS SYSTEMS Key points: 1. Value for money appears strong, indicated by a significant cost underrun compared to the initial estimate. 2. Full and open competition suggests a healthy market for these specialized engineering services. 3. The contract's duration and delivery order structure may present some performance monitoring challenges. 4. This contract supports critical subcommunications systems for the Department of the Navy. 5. The contractor, Noblis MSD LLC, has a track record in providing similar technical services. 6. The Pennsylvania location for this contract may have implications for local workforce development.
Value Assessment
Rating: good
The contract's final cost of $8.76 million came in 7.78% under the initial estimate of $9.54 million, suggesting good value realization. Benchmarking against similar engineering services contracts is difficult without more specific service details, but the cost underrun is a positive indicator. The 'Cost Plus Fixed Fee' pricing structure, while common, requires careful oversight to ensure efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 3 bidders suggests a competitive environment, which generally leads to better price discovery and potentially more favorable terms for the government. This level of competition is ideal for ensuring the government receives the best possible value.
Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the selected contractor offers the most competitive solution.
Public Impact
The Department of the Navy benefits from specialized engineering and technical support for its subcommunications systems. This contract ensures the continued operational readiness and effectiveness of critical defense communication infrastructure. The primary geographic impact is in Pennsylvania, potentially creating or sustaining high-skilled jobs in the region. The services delivered are crucial for maintaining and upgrading complex communication networks essential for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in cost-plus contracts if not managed tightly.
- Reliance on a single contractor for specialized technical services could pose a risk if performance falters.
Positive Signals
- Successful completion of the contract within budget, indicated by the cost underrun.
- Awarded through full and open competition, suggesting a robust selection process.
- Contractor has experience in providing similar engineering and technical services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting subcommunications systems. The market for specialized defense engineering services is substantial, driven by the need for advanced technological solutions and ongoing maintenance of complex military infrastructure. Comparable spending benchmarks would typically involve other contracts for similar technical support, system integration, and R&D services within the defense industrial base.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor is Noblis MSD LLC, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are being leveraged for specialized components or services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded in the 'Cost Plus Fixed Fee' structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific performance metrics may not always be publicly disclosed.
Related Government Programs
- Department of Defense Engineering Services
- Navy Subcommunications Systems Support
- Federal IT and Communications Contracts
- Cost Plus Fixed Fee Contracts
- Engineering and Technical Services
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Performance monitoring for delivery orders can be complex.
- Limited public information on specific performance metrics.
Tags
engineering-services, department-of-defense, department-of-the-navy, full-and-open-competition, cost-plus-fixed-fee, delivery-order, subcommunications-systems, noblis-msd-llc, pennsylvania, technical-services, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to NOBLIS MSD LLC. ENGINEERING AND TECHNICAL SERVICES SUBCOMMUNICATIONS SYSTEMS
Who is the contractor on this award?
The obligated recipient is NOBLIS MSD 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 $8.8 million.
What is the period of performance?
Start: 2024-08-30. End: 2027-09-30.
What is Noblis MSD LLC's track record with similar Department of Defense contracts?
Noblis MSD LLC has a history of performing engineering and technical services for the Department of Defense. Their portfolio often includes support for complex systems, research and development, and program management. Analyzing past performance on contracts with similar scope, duration, and complexity, particularly within naval systems or communications, would provide a clearer picture of their capabilities and reliability. Reviewing past performance evaluations and any reported issues or successes on previous DoD contracts is crucial for assessing their suitability and predicting future performance on this specific award.
How does the $8.76 million award compare to similar engineering services contracts for subcommunications systems?
Direct comparison of the $8.76 million award value for subcommunications systems engineering is challenging without granular data on the specific services rendered and the complexity of the systems involved. However, the contract's duration of approximately 3 years (from August 2024 to September 2027) suggests a moderate scale. The fact that it was awarded under full and open competition with 3 bidders implies a market where pricing is likely competitive. The 7.78% cost underrun against the initial estimate is a positive sign of efficient execution or potentially conservative initial budgeting, which can be seen as favorable value compared to contracts that consistently overrun estimates.
What are the primary risks associated with this 'Cost Plus Fixed Fee' contract type?
The primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract, like this one, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a guaranteed profit margin, the government bears the risk of cost overruns if the contractor's actual costs exceed projections. This necessitates robust government oversight to ensure that all incurred costs are reasonable, allocable, and necessary for the contract's performance. Without diligent monitoring, there's a risk that the contractor may not be incentivized to control costs as aggressively as in other contract types, potentially leading to higher overall expenditures than initially anticipated.
How effective is the 'full and open competition' approach in ensuring optimal value for taxpayer dollars in this context?
The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value for taxpayer dollars. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. In this case, with 3 bidders for engineering and technical services, the Department of the Navy likely received multiple proposals, allowing them to select the best combination of technical capability and price. This process minimizes the risk of overpaying and increases the likelihood that the government secures high-quality services at a fair market price, thereby maximizing the return on investment for public funds.
What are the historical spending patterns for subcommunications systems engineering within the Department of the Navy?
Historical spending patterns for subcommunications systems engineering within the Department of the Navy are likely characterized by consistent investment due to the critical nature of these systems for naval operations. Spending can fluctuate based on technological advancements, modernization programs, and specific fleet requirements. Contracts in this area often involve long-term support, upgrades, and integration of new technologies. Analyzing past contract awards, their values, durations, and the contractors involved would reveal trends in investment, identify key areas of focus (e.g., cybersecurity, bandwidth expansion, specific platform integration), and provide a benchmark for current spending levels.
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: N6449824R3014
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 CRESCENT DR STE 203, PHILADELPHIA, PA, 19112
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,087,608
Exercised Options: $13,835,474
Current Obligation: $8,757,536
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $230,829
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8085
IDV Type: IDC
Timeline
Start Date: 2024-08-30
Current End Date: 2027-09-30
Potential End Date: 2029-08-29 00:00:00
Last Modified: 2025-12-29
More Contracts from Noblis MSD LLC
- Surface Ship Life Cycle Management Activity — $102.6M (Department of Defense)
- SEA-21, PEO Ships and PEO LCS, Requires Fleet Introduction Support Services for NEW Construction and In-Service Ship Classes. Services ARE Required for NEW Construction That Include Shipboard and Operational Expertise in the Areas of Administration, Manpower, Personnel, Training, Logistics, Engineering and Technical, Commissioning, Shipboard Naval Tactical Command Support System (ntcss), and Information Technology Services. Modernization Manning and Training and Fleet Transition Support — $60.2M (Department of Defense)
- Fleet Introduction Support Services — $51.6M (Department of Defense)
- Non-Recurring, Engineering, Logistics and Program Support Services Will BE Provided to Nswccd in Support of ITS Ship Integrity and Performance Organization — $40.7M (Department of Defense)
- Provide Engineering, Logistics, and Program Support Services to the Naval Surface Warfare Center, Carderock Division, in Support of Nswccd Ship Integrity and Performance Organization — $39.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)