NIWC Atlantic awards $55.4M engineering support contract to Scientific Research Corporation for USCG IPTS

Contract Overview

Contract Amount: $55,422,150 ($55.4M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2024-12-18

End Date: 2030-01-02

Contract Duration: 1,841 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NIWC ATLANTIC REQUIRES ENGINEERING AND TECHNICAL SUPPORT SERVICES TO THE ASE EQUIPMENT AND THE USCG IPTS.

Place of Performance

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

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $55.4 million to SCIENTIFIC RESEARCH CORPORATION for work described as: NIWC ATLANTIC REQUIRES ENGINEERING AND TECHNICAL SUPPORT SERVICES TO THE ASE EQUIPMENT AND THE USCG IPTS. Key points: 1. Contract focuses on essential engineering and technical support for critical ASE equipment and USCG IPTS. 2. The contract duration of over 5 years suggests a long-term need for these specialized services. 3. Awarded under full and open competition, indicating a potentially competitive bidding process. 4. The Cost Plus Fixed Fee (CPFF) contract type may require close monitoring to manage costs effectively. 5. Scientific Research Corporation has secured this significant award, highlighting its role in defense support. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $55.4 million over approximately 5 years for engineering and technical support appears reasonable given the scope. Benchmarking against similar contracts for specialized technical services to maritime assets suggests this pricing is within expected ranges. The CPFF structure necessitates careful oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically involves soliciting bids from all responsible sources. The number of bidders is not specified, but this approach generally fosters a competitive environment, potentially leading to better pricing and service quality for the government. The open competition suggests that multiple firms were capable of meeting the requirements.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The U.S. Coast Guard (USCG) will benefit from enhanced engineering and technical support for its Integrated Platform Technology System (IPTS). This contract ensures the continued operational readiness and effectiveness of critical ASE equipment. The services delivered are specialized engineering and technical support, crucial for maintaining complex defense systems. The primary geographic impact is likely within the operational areas of the U.S. Coast Guard, with potential implications for naval engineering hubs. Workforce implications include the potential for skilled engineering and technical jobs at Scientific Research Corporation and its subcontractors.

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.
The duration of the contract (over 5 years) requires sustained performance monitoring.
Dependence on a single delivery order under a potential IDIQ structure could indicate specific needs rather than broad program support.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Scientific Research Corporation's selection indicates a level of trust and proven capability in providing engineering services.
The contract supports critical U.S. Coast Guard systems, aligning with national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market focused on providing specialized technical expertise. The market for defense engineering support services is substantial, driven by the continuous need to maintain, upgrade, and develop complex military and maritime systems. This award to Scientific Research Corporation positions them as a key provider for the Department of the Navy's support requirements for the U.S. Coast Guard.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific award. While this contract itself may not directly benefit small businesses through set-asides, Scientific Research Corporation may engage small businesses as subcontractors to fulfill specialized needs, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Navy's contracting officers and technical representatives. Accountability measures will involve performance reviews against contract requirements and adherence to cost controls. Transparency is facilitated through contract award databases, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Engineering Services
Coast Guard Systems Support
Defense Technical Services
ASE Equipment Maintenance
IPTS Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.4 million to SCIENTIFIC RESEARCH CORPORATION. NIWC ATLANTIC REQUIRES ENGINEERING AND TECHNICAL SUPPORT SERVICES TO THE ASE EQUIPMENT AND THE USCG IPTS.

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 $55.4 million.

What is the period of performance?

Start: 2024-12-18. End: 2030-01-02.

What is the track record of Scientific Research Corporation in delivering similar engineering and technical support services to the Department of Defense or U.S. Coast Guard?

Scientific Research Corporation (SRC) has a history of providing complex engineering, technology, and support services to government agencies, including the Department of Defense. Their expertise often spans areas like command and control, intelligence, surveillance, reconnaissance, and electronic warfare systems. For the U.S. Coast Guard specifically, SRC has been involved in various technology integration and support programs. Their ability to secure this contract suggests a demonstrated capability and past performance that aligns with NIWC Atlantic's requirements for the ASE equipment and USCG IPTS. A detailed review of their contract history would reveal specific projects, performance ratings, and any past issues, but their continued presence in the defense contracting space indicates a generally positive track record.

How does the awarded value of $55.4 million compare to similar engineering support contracts for maritime systems?

The $55.4 million contract value for approximately 5 years of engineering and technical support for the USCG IPTS and ASE equipment is within a reasonable range for specialized defense support services. Contracts for similar technical support, system integration, and maintenance for naval or maritime platforms can range from tens to hundreds of millions of dollars, depending on the complexity, duration, and scope of services. Factors influencing cost include the criticality of the systems, the level of technical expertise required, and the number of systems supported. Given the specialized nature of IPTS and ASE equipment, this award appears to be a standard investment for ensuring the operational readiness of U.S. Coast Guard assets.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($55.4M over ~5 years) revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs incurred by the contractor. The main risk is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, potentially leading to higher overall expenditures if not managed effectively. For the government, diligent oversight by contracting officers and technical representatives is crucial to ensure that all costs claimed are reasonable, allocable, and necessary for contract performance. Scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments to the fee or schedule, also poses a risk.

What is the expected impact of this contract on the operational effectiveness of the U.S. Coast Guard's IPTS and ASE equipment?

This contract is expected to significantly enhance the operational effectiveness of the U.S. Coast Guard's Integrated Platform Technology System (IPTS) and ASE (Airborne Systems Equipment) equipment. By providing dedicated engineering and technical support, Scientific Research Corporation will ensure these systems are maintained, updated, and functioning optimally. This includes troubleshooting issues, implementing upgrades, and providing expertise for system integration and lifecycle management. Reliable performance of IPTS and ASE equipment is critical for the Coast Guard's missions, which can range from maritime security and search and rescue to law enforcement and environmental protection. Improved system reliability and performance directly translate to enhanced mission success rates and safety for Coast Guard personnel.

How does current spending on engineering and technical support services for maritime assets compare to historical trends?

Spending on engineering and technical support services for maritime assets has generally seen a steady increase over the past decade, driven by the modernization of naval fleets and the need to maintain aging platforms. Factors such as evolving technological requirements, increased operational tempo, and the complexity of modern systems contribute to this trend. Federal agencies like the Department of the Navy and the U.S. Coast Guard consistently allocate significant portions of their budgets to sustain and upgrade their vessels and related equipment. While specific year-over-year comparisons require detailed historical data analysis, the $55.4 million award to Scientific Research Corporation for USCG IPTS and ASE support aligns with the ongoing investment in maintaining and enhancing the capabilities of maritime defense and security 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: N6523624R3027

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: $216,139,068

Exercised Options: $171,815,697

Current Obligation: $55,422,150

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,865,457

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