DoD's Navy Awards $742M SATCOM C5ISR Support Contract to Centurum Information Technology Inc

Contract Overview

Contract Amount: $7,422,644 ($7.4M)

Contractor: Centurum Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-05

End Date: 2030-05-04

Contract Duration: 1,825 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SATELLITE COMMUNICATION (SATCOM)-C5ISR PROGRAMS AND CAPABILITY BASED IN-SERVICE ENGINEERING ACTIVITY (CB-ISEA) SUPPORT

Place of Performance

Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to CENTURUM INFORMATION TECHNOLOGY INC for work described as: SATELLITE COMMUNICATION (SATCOM)-C5ISR PROGRAMS AND CAPABILITY BASED IN-SERVICE ENGINEERING ACTIVITY (CB-ISEA) SUPPORT Key points: 1. The contract focuses on critical SATCOM, C5ISR programs, and in-service engineering support for the Navy. 2. Centurum Information Technology Inc. secured this significant award, indicating strong performance or competitive positioning. 3. The contract's duration of five years suggests a long-term need for these specialized engineering services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control and value. 5. This award falls under Engineering Services (NAICS 541330), a sector vital for defense modernization.

Value Assessment

Rating: good

The contract is a Delivery Order under a larger IDIQ, making direct price comparisons difficult. However, the CPFF structure necessitates robust oversight to ensure costs align with the fixed fee and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers by leveraging market forces for specialized engineering services.

Public Impact

Ensures continued operational readiness and technological advancement for Navy's C5ISR and SATCOM capabilities. Supports critical defense infrastructure, contributing to national security and global communication networks. Provides specialized engineering expertise, fostering innovation in complex defense systems. The five-year term offers stability for both the service provider and the Navy's long-term planning.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

CPFF pricing requires diligent cost tracking and management to prevent overruns.
Long-term contract duration necessitates ongoing performance monitoring and potential adjustments.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Supports critical defense capabilities, aligning with national security objectives.
Long-term engagement provides continuity for essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced C5ISR and SATCOM capabilities for the Department of the Navy. Spending in this sector is crucial for maintaining technological superiority and operational effectiveness in defense.

Small Business Impact

While the contract was awarded through full and open competition, there is no specific indication of small business participation in this particular delivery order. Future efforts should explore opportunities for small business subcontracting.

Oversight & Accountability

The Cost Plus Fixed Fee (CPFF) structure requires stringent oversight from the Department of the Navy to manage costs effectively and ensure the contractor meets performance expectations throughout the contract's duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Dependency on a single contractor for critical support services.
Need for continuous monitoring of technological advancements in SATCOM/C5ISR.
Ensuring effective knowledge transfer and sustainment post-contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to CENTURUM INFORMATION TECHNOLOGY INC. SATELLITE COMMUNICATION (SATCOM)-C5ISR PROGRAMS AND CAPABILITY BASED IN-SERVICE ENGINEERING ACTIVITY (CB-ISEA) SUPPORT

Who is the contractor on this award?

The obligated recipient is CENTURUM INFORMATION TECHNOLOGY 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 $7.4 million.

What is the period of performance?

Start: 2025-05-05. End: 2030-05-04.

How does the awarded amount compare to historical spending on similar SATCOM and C5ISR engineering support contracts?

Benchmarking this $742 million award requires comparing it against similar contracts for SATCOM and C5ISR engineering support, considering factors like scope, duration, and specific technologies. Without historical data for directly comparable contracts, a precise benchmark is difficult. However, the significant value suggests a substantial scope of work critical to naval operations.

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

The primary risk with CPFF is potential cost overruns if the contractor's actual costs exceed estimates, even though a fixed fee is guaranteed. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent scope creep. The government bears the risk of higher-than-expected costs, while the contractor is incentivized to manage expenses to protect their fee.

How effectively will this contract support the Navy's modernization goals for its C5ISR and SATCOM capabilities?

This contract is designed to provide essential engineering support for existing and potentially new SATCOM and C5ISR programs, directly contributing to modernization. The five-year duration allows for sustained effort in capability development and sustainment. Success hinges on the contractor's ability to deliver innovative solutions and adapt to evolving technological requirements within the defense landscape.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523624R3043

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 651 ROUTE 73 N STE 107, MARLTON, NJ, 08053

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

Financial Breakdown

Contract Ceiling: $91,520,329

Exercised Options: $45,923,870

Current Obligation: $7,422,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7338

IDV Type: IDC

Timeline