Navy Awards $8.7M Engineering Services Contract to Serco Inc. for USS Cheyenne Maintenance
Contract Overview
Contract Amount: $8,733,179 ($8.7M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2021-12-13
End Date: 2025-11-19
Contract Duration: 1,437 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: USS CHEYENNE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $8.7 million to SERCO INC for work described as: USS CHEYENNE Key points: 1. Contract awarded to Serco Inc. for engineering services related to the USS Cheyenne. 2. The contract falls under the Engineering Services (NAICS 541330) sector. 3. Full and open competition was utilized for this award. 4. The contract duration is 1437 days, ending November 2025. 5. This award represents a small portion of the Department of Defense's overall spending.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering service contracts for naval vessels is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Incentive Fee structure introduces potential for costs to exceed initial estimates.
Taxpayer Impact: Taxpayer funds are being used for engineering services to maintain a naval vessel. The efficiency of spending will depend on the effective management of the incentive fee structure.
Public Impact
Ensures continued operational readiness of a naval asset. Supports the shipbuilding and repair industry through service contracts. Contributes to the Department of Defense's maintenance and sustainment capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost Plus Incentive Fee structure may lead to higher than anticipated costs.
- Limited visibility into specific cost drivers for engineering services.
- Potential for scope creep in long-term maintenance contracts.
Positive Signals
- Awarded through full and open competition, promoting fairness.
- Supports critical naval asset maintenance.
- Clear end date for contract services.
Sector Analysis
This contract falls within the Engineering Services sector, which includes firms that provide professional services for the design, development, and implementation of engineering solutions. Spending in this sector for the Department of Defense is substantial, covering a wide range of technical support for military assets.
Small Business Impact
The data indicates that the awardee is Serco Inc., a large corporation. There is no specific indication of small business participation in this particular contract award.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. The Cost Plus Incentive Fee structure requires diligent oversight to ensure costs remain reasonable and performance targets are met.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Incentive Fee structure.
- Long contract duration.
- Potential for cost overruns.
- Limited public detail on specific services.
Tags
engineering-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.7 million to SERCO INC. USS CHEYENNE
Who is the contractor on this award?
The obligated recipient is SERCO 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 $8.7 million.
What is the period of performance?
Start: 2021-12-13. End: 2025-11-19.
What specific engineering services are included in this contract, and how do they contribute to the USS Cheyenne's operational readiness?
The contract specifies engineering services for the USS Cheyenne, likely encompassing maintenance, repair, modernization, and technical support. These services are crucial for ensuring the vessel's operational readiness, safety, and effectiveness in its naval missions. Detailed service descriptions would clarify the direct impact on the ship's capabilities and longevity.
How does the Cost Plus Incentive Fee (CPIF) structure mitigate risks associated with long-term naval vessel maintenance contracts?
A CPIF contract aims to incentivize the contractor to control costs while meeting performance targets. The government pays the actual costs plus a fee that is adjusted based on performance. This structure can mitigate risks by aligning contractor and government interests, encouraging efficiency and innovation to reduce overall project expenses and improve outcomes.
What is the benchmark cost for similar engineering service contracts for naval vessels of the USS Cheyenne's class?
Establishing a precise benchmark for similar engineering service contracts is challenging without detailed specifications of the services rendered, the vessel's class and condition, and the specific performance metrics. However, comparing the total contract value ($8.7M) against the duration (1437 days) and the number of delivery orders (4) provides a preliminary cost per day. Further analysis would require access to historical data on comparable naval maintenance contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $8,733,179
Exercised Options: $8,733,179
Current Obligation: $8,733,179
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $587,677
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003919D0024
IDV Type: IDC
Timeline
Start Date: 2021-12-13
Current End Date: 2025-11-19
Potential End Date: 2025-11-19 00:00:00
Last Modified: 2025-12-19
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