Navy's $27.5M Engineering Services Contract Awarded to Scientific Research Corporation for Naval Messaging Systems

Contract Overview

Contract Amount: $27,484,520 ($27.5M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2018-05-15

End Date: 2023-04-30

Contract Duration: 1,811 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THIS TASK PROVIDES SERVICES TO ASSIST WITH PROCUREMENT&INTEGRATION, TECHNICAL PUBLICATIONS, LOGISTICS, TRAINING, SOFTWARE ENGINEERING AND DEVELOPMENT, FLEET ENGINEERING, AND PRODUCTION ENGINEERING FOR THE NAVAL MESSAGING IPT. THIS TASK IS IN SUPPORT OF PMW 790, WHO HAS RESPONSIBILITY FOR IMPLEMENTATION OF THE NEW HARDWARE/SOFTWARE PROCURED FOR ALL NAVAL MESSAGING SYSTEMS AT US FLEET AND SHORE SITES.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to SCIENTIFIC RESEARCH CORPORATION for work described as: IGF::OT::IGF THIS TASK PROVIDES SERVICES TO ASSIST WITH PROCUREMENT&INTEGRATION, TECHNICAL PUBLICATIONS, LOGISTICS, TRAINING, SOFTWARE ENGINEERING AND DEVELOPMENT, FLEET ENGINEERING, AND PRODUCTION ENGINEERING FOR THE NAVAL MESSAGING IPT. THIS TASK IS IN SUPPORT OF PMW 790, WHO H… Key points: 1. Contract focuses on critical integration, technical publications, logistics, training, and engineering for Naval Messaging. 2. Supports PMW 790's implementation of new hardware/software for all Naval Messaging Systems. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Contract duration of 1811 days indicates a long-term need for these services. 5. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful cost oversight. 6. Scientific Research Corporation, the contractor, has a significant role in this specialized engineering domain.

Value Assessment

Rating: good

The contract value of approximately $27.5 million over five years for comprehensive engineering and integration services appears reasonable given the scope. Benchmarking against similar large-scale IT and engineering support contracts for naval systems suggests this pricing is within expected ranges. The CPFF structure, while potentially leading to higher costs if not managed tightly, is common for complex R&D and integration projects where final costs are difficult to predict upfront. The absence of specific cost breakdowns makes a precise value-for-money assessment challenging without further detail.

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 specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The government's ability to select from a wide pool of qualified contractors suggests a robust market for these specialized engineering services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

Naval personnel and fleet operations benefit from improved and integrated messaging systems. Services delivered include procurement assistance, integration, technical publications, logistics, training, and software engineering. The geographic impact is nationwide, supporting US Fleet and shore sites. Workforce implications include specialized engineering and technical roles, potentially supporting a skilled labor base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously managed and monitored.
The long duration of the contract (1811 days) necessitates ongoing performance monitoring to ensure continued value.
Dependence on a single contractor for such a critical system integration could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The contract addresses a critical need for modernizing naval messaging systems, enhancing operational readiness.
Scientific Research Corporation's role suggests established expertise in complex engineering and integration projects.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense IT and communication infrastructure. The market for defense engineering services is substantial, driven by the need for continuous modernization and technological advancement in military systems. Comparable spending benchmarks would involve other large-scale system integration and support contracts within the Department of Defense, particularly those focused on communication networks and command and control systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Scientific Research Corporation, may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services required for this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers within PMW 790. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure costs remain reasonable and within the fixed fee parameters. Transparency is generally maintained through contract reporting mechanisms, and while specific IG jurisdiction isn't detailed, the Inspector General for the Department of Defense would have oversight authority for potential fraud, waste, or abuse.

Related Government Programs

Naval Communication Systems Modernization
Defense IT Infrastructure Support
Fleet Readiness Programs
Procurement and Integration Services
Technical Publications and Training

Risk Flags

Cost Overrun Risk (CPFF)
Performance Degradation Risk
Long-Term Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to SCIENTIFIC RESEARCH CORPORATION. IGF::OT::IGF THIS TASK PROVIDES SERVICES TO ASSIST WITH PROCUREMENT&INTEGRATION, TECHNICAL PUBLICATIONS, LOGISTICS, TRAINING, SOFTWARE ENGINEERING AND DEVELOPMENT, FLEET ENGINEERING, AND PRODUCTION ENGINEERING FOR THE NAVAL MESSAGING IPT. THIS TASK IS IN SUPPORT OF PMW 790, WHO HAS RESPONSIBILITY FOR IMPLEMENTATION OF THE NEW HARDWARE/SOFTWARE PROCURED FOR ALL NAVAL MESSAGING SYSTEMS AT US FLEET AND SHORE SITES.

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH 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 $27.5 million.

What is the period of performance?

Start: 2018-05-15. End: 2023-04-30.

What is Scientific Research Corporation's track record with the Department of Defense, particularly in similar large-scale engineering and integration projects?

Scientific Research Corporation (SRC) has a history of performing complex engineering and integration work for the Department of Defense. While specific details on past performance for this exact type of naval messaging system are not provided in the summary data, SRC is known for its work in areas such as command and control, electronic warfare, and intelligence, surveillance, and reconnaissance (ISR) systems. Their experience often involves system design, development, integration, testing, and sustainment. A deeper dive into their contract history with the Navy and other DoD branches would reveal the scale and success of their previous projects, including any relevant experience with communication systems or large software development efforts. This would help assess their capability to successfully execute the current contract.

How does the $27.5 million contract value compare to similar naval messaging system integration projects?

The $27.5 million contract value for five years of engineering and integration services for naval messaging systems appears to be within a reasonable range for such specialized and critical defense IT projects. Large-scale system integration, software development, and ongoing support for military communication networks often involve significant investment. Comparable projects within the Department of Defense, especially those involving the modernization of fleet-wide communication infrastructure, can range from tens to hundreds of millions of dollars over their lifecycle. Factors influencing cost include the complexity of the systems being integrated, the number of platforms and users supported, the required security protocols, and the duration of the support. Without specific details on the scope of work and the number of bidders, a precise benchmark is difficult, but the awarded amount suggests a substantial but not unusually high investment for the described services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one for naval messaging services, is the potential for cost overruns if not managed diligently. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed initial estimates, the government still reimburses those costs, potentially leading to a higher total expenditure than initially anticipated. This risk is amplified in complex engineering and integration projects where unforeseen technical challenges or scope creep can occur. For the government, effective oversight is crucial to ensure that all costs are reasonable, allocable, and allowable, and that the contractor maintains efficiency. The fixed fee itself is negotiated upfront, providing some predictability for the contractor's profit, but the total contract cost remains variable.

How effective are the current naval messaging systems, and what is the expected impact of this contract on fleet operations?

The contract's objective is to support the implementation of new hardware/software for all Naval Messaging Systems, implying that current systems may be outdated, inefficient, or lack necessary integration capabilities. The expected impact of this contract is a significant improvement in the reliability, security, and interoperability of naval communication systems. Enhanced messaging capabilities can lead to better command and control, improved situational awareness for fleet commanders, and more efficient information dissemination across naval platforms and shore installations. This modernization is crucial for maintaining operational readiness and effectiveness in a rapidly evolving threat environment. The success of the contract will directly correlate with the degree to which these improvements are realized in actual fleet operations.

What are the historical spending patterns for naval messaging system support and modernization within the Department of the Navy?

Historical spending patterns for naval messaging system support and modernization within the Department of the Navy typically show consistent investment in communication infrastructure. These investments are driven by the need to maintain secure, reliable, and interoperable messaging capabilities across the global fleet. Spending often fluctuates based on major upgrade cycles, the introduction of new technologies, and evolving cybersecurity requirements. Large-scale modernization efforts, like the one this contract supports, represent significant portions of the Navy's IT and C4ISR (Command, Control, Communications, Computers, and Intelligence, Surveillance, and Reconnaissance) budgets. Analyzing past expenditures on similar programs would reveal trends in contract values, durations, and the types of services procured, providing context for the current $27.5 million award.

What is the role of PMW 790 in this contract, and how does it align with their broader mission?

PMW 790 (Program Management Warfare 790) is responsible for the implementation of new hardware and software for all Naval Messaging Systems across US Fleet and shore sites. This contract directly supports PMW 790's mission by providing the necessary engineering, integration, technical, and logistical services to achieve this implementation. Their role is critical in ensuring that the procured systems are effectively deployed, integrated into the existing naval infrastructure, and fully functional for end-users. The contract essentially operationalizes the hardware and software acquisitions managed by PMW 790, translating technological investments into tangible operational capabilities for the Navy. This alignment ensures that the program's objectives are met through expert technical execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523618R3052

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PARKWAY,, ATLANTA, GA, 30339

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,414,961

Exercised Options: $35,173,839

Current Obligation: $27,484,520

Actual Outlays: $3,869,836

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $2,505,441

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4121

IDV Type: IDC

Timeline