Navy awards $14.16M contract for submarine C4I systems to Scientific Research Corporation

Contract Overview

Contract Amount: $14,161,150 ($14.2M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2023-11-17

End Date: 2026-11-16

Contract Duration: 1,095 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS EFFORT IS TO PROVIDE AFLOAT SUBMARINE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I)

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to SCIENTIFIC RESEARCH CORPORATION for work described as: THIS EFFORT IS TO PROVIDE AFLOAT SUBMARINE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I) Key points: 1. Contract focuses on critical submarine command, control, communications, computers, and intelligence (C4I) systems. 2. Scientific Research Corporation is the sole awardee for this delivery order. 3. The contract duration is 1095 days, indicating a medium-term project. 4. Awarded under a Cost Plus Fixed Fee (CPFF) pricing structure. 5. The contract is a delivery order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. Geographic focus is Georgia, with the contractor based there.

Value Assessment

Rating: fair

The contract's value of $14.16 million for submarine C4I systems appears reasonable given the complexity of such specialized technology. However, without specific benchmarks for similar afloat C4I system development or integration contracts, a definitive value-for-money assessment is challenging. The CPFF structure necessitates close monitoring to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The fact that it is a delivery order against a potential IDIQ contract implies that the initial competition for the IDIQ vehicle was broad. However, the specific number of bidders for this particular delivery order is not detailed, which limits the assessment of the competitive intensity for this specific task.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovative solutions, although the specific impact on this $14.16 million award requires further analysis of the bidding process.

Public Impact

The primary beneficiaries are the U.S. Navy's submarine fleet, which will receive enhanced C4I capabilities. Services delivered include the provision and integration of afloat submarine command, control, communications, computers, and intelligence systems. The geographic impact is primarily within the operational theaters of the U.S. Navy's submarine force, with contractor support likely originating from Georgia. Workforce implications include specialized engineering, technical, and integration roles for Scientific Research Corporation's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
Lack of specific competition details for this delivery order makes it hard to gauge optimal price discovery.
The specialized nature of submarine C4I systems may limit the pool of qualified contractors, potentially impacting future competition.

Positive Signals

Awarded under full and open competition, indicating a broad initial solicitation.
The contract addresses critical national defense capabilities, ensuring the modernization of essential military assets.
Scientific Research Corporation's role in providing these systems suggests a level of expertise and trust from the Navy.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for advanced C4I systems for naval platforms. The market for defense C4I systems is highly specialized, characterized by long development cycles, stringent security requirements, and significant R&D investment. Comparable spending benchmarks would typically be found within other major naval platform modernization programs or similar defense technology procurements, often running into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Scientific Research Corporation, will likely manage the subcontracting needs internally or through its established supply chain, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers responsible for submarine C4I systems. Accountability measures are embedded within the CPFF contract structure, requiring detailed cost reporting and performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details of C4I systems are often classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Submarine Modernization Programs
Naval C4I Systems Development
Defense Communications Infrastructure
Intelligence, Surveillance, and Reconnaissance (ISR) Systems

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost escalations.
Limited public information on the number of bidders for this specific delivery order hinders a full assessment of competition intensity.
The specialized nature of submarine C4I systems may present technical challenges and risks during development and integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to SCIENTIFIC RESEARCH CORPORATION. THIS EFFORT IS TO PROVIDE AFLOAT SUBMARINE COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (C4I)

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 $14.2 million.

What is the period of performance?

Start: 2023-11-17. End: 2026-11-16.

What is the track record of Scientific Research Corporation with the Department of Defense, particularly in C4I systems?

Scientific Research Corporation (SRC) has a significant history of contracting with the Department of Defense, including the Navy. They specialize in areas relevant to C4I, such as advanced electronics, communications systems, and software development. While specific details on their past performance on submarine C4I systems require deeper database searches, SRC's general profile suggests they are a capable provider for complex defense technology requirements. Their involvement in numerous defense contracts indicates a familiarity with government procurement processes and technical demands. Further analysis would involve reviewing past performance evaluations and contract histories for similar projects to assess their reliability and expertise in this specific domain.

How does the $14.16 million value compare to similar afloat submarine C4I system contracts?

Assessing the value of this $14.16 million contract requires comparison with similar procurements, which can be challenging due to the specialized and often classified nature of submarine C4I systems. However, based on publicly available data for naval system upgrades and integration projects, this figure appears to be within a moderate range for a delivery order focused on specific system enhancements or integration efforts. Larger, platform-wide C4I system overhauls or new development programs for submarines typically cost significantly more, often in the hundreds of millions. This award likely represents a specific component or upgrade phase. Without access to detailed cost breakdowns or direct comparisons of scope and complexity, it's difficult to definitively benchmark this award as exceptionally high or low.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for submarine C4I systems?

The primary risk with a CPFF contract structure, especially for complex systems like submarine C4I, is the potential for cost overruns. While the contractor is incentivized by a fixed fee, the 'cost plus' component means the government pays for all allowable costs incurred. If the project encounters unforeseen technical challenges, scope creep, or inefficiencies, the total cost to the government can escalate beyond initial projections. Effective oversight, rigorous cost tracking, and clear definition of work are crucial to mitigate these risks. The fixed fee itself is meant to provide a profit incentive, but the overall cost to the government remains variable until project completion, making budget predictability a concern.

How effective is full and open competition in ensuring optimal pricing for specialized defense systems like submarine C4I?

Full and open competition is generally considered the most effective method for ensuring optimal pricing and value for specialized defense systems. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For submarine C4I systems, however, the highly specialized nature and stringent security requirements can sometimes limit the number of truly capable bidders, even under full and open competition. While it provides the best opportunity for price discovery, the actual effectiveness depends on the number and competitiveness of the bidders who respond to the solicitation. If only a few highly specialized firms can bid, the competitive pressure might be less intense than in broader markets.

What are the implications of this contract award for the future development and integration of submarine C4I capabilities?

This contract award signifies a continued investment by the Navy in maintaining and upgrading the critical C4I capabilities of its submarine fleet. As a delivery order, it suggests that Scientific Research Corporation is contributing to an existing or ongoing larger program, likely an IDIQ contract. This implies a focus on specific enhancements, upgrades, or sustainment activities rather than a complete overhaul. The award contributes to the ongoing evolution of submarine C4I, ensuring that these vital platforms remain technologically relevant and capable of executing complex missions in a contested environment. It also reinforces the role of specialized contractors in supporting the long-term modernization of naval assets.

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: N6523622R3049

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,561,871

Exercised Options: $18,967,000

Current Obligation: $14,161,150

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,913,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8474

IDV Type: IDC

Timeline