DoD's $18.5M Logistics Support Contract Awarded to Chitra Productions LLC Amidst Full and Open Competition

Contract Overview

Contract Amount: $18,504,170 ($18.5M)

Contractor: Chitra Productions LLC

Awarding Agency: Department of Defense

Start Date: 2020-07-27

End Date: 2025-07-26

Contract Duration: 1,825 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN COMMAND LOGISTICS SUPPORT.

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to CHITRA PRODUCTIONS LLC for work described as: THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN COMMAND LOGISTICS SUPPORT. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is 5 years, indicating a long-term need for these logistics support services. 4. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, which may encompass a broad range of support functions. 6. The contract value of $18.5 million over five years needs to be benchmarked against similar logistics support contracts for value assessment.

Value Assessment

Rating: fair

The contract value of $18.5 million over five years averages to $3.7 million annually. Without specific details on the scope of logistics support, it is difficult to definitively benchmark this against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. Further analysis would require comparing the specific deliverables and performance metrics to industry standards and other government contracts for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders (as suggested by 'no': 4) implies a moderate level of competition for this requirement. While multiple bidders participated, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. A competitive process generally aids in price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A full and open competition suggests that taxpayers benefited from a process designed to solicit the best value from multiple potential providers, potentially leading to more competitive pricing than a sole-source award.

Public Impact

The primary beneficiaries are the NAVSEALOGCEN (Navy Supply Corps Logistics Command) and the Department of the Navy, receiving essential logistics support. The services delivered are critical for the operational readiness and efficiency of naval logistics operations. The geographic impact is likely centered around the locations where NAVSEALOGCEN operates, potentially including various naval bases and facilities. The contract supports the defense industrial base and potentially creates or sustains jobs within the engineering and logistics support sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not meticulously managed and monitored.
The broad nature of 'logistics support' requires clear performance metrics to ensure value for money.
Dependence on a single contractor for 5 years could pose risks if performance degrades or unforeseen issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract has a defined duration, allowing for planning and performance evaluation over a set period.
The fixed fee component in the CPFF structure provides some level of cost predictability for the government.

Sector Analysis

The defense logistics and engineering services sector is a significant component of the federal contracting landscape. Companies in this sector provide a wide array of support functions, from supply chain management and maintenance to complex engineering solutions for military equipment and infrastructure. Spending in this area is driven by the Department of Defense's continuous need to maintain operational readiness and modernize its capabilities. Benchmarking this contract's value would involve comparing its scope and cost against other engineering and logistics support contracts awarded by the Navy and other military branches.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false) and the contractor, Chitra Productions LLC, is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with small businesses should be assessed as part of the contract's execution, depending on the specific nature of the logistics support required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure that all costs incurred by the contractor are allowable, reasonable, and allocable to the contract. Performance metrics and regular reporting requirements are crucial accountability measures. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of the Navy Logistics Support Contracts
Defense Engineering Services Contracts
NAVSEALOGCEN Support Services
Cost Plus Fixed Fee Contracts in Defense

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad 'logistics support' definition may lead to scope creep if not clearly defined.
Potential for cost escalation inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to CHITRA PRODUCTIONS LLC. THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN COMMAND LOGISTICS SUPPORT.

Who is the contractor on this award?

The obligated recipient is CHITRA PRODUCTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2020-07-27. End: 2025-07-26.

What is the specific scope of 'logistics support' covered under this contract, and how does it align with NAVSEALOGCEN's mission?

The requirement is described as 'to provide NAVSEALOGCEN Command Logistics Support.' This is a broad statement that likely encompasses a range of activities essential for the functioning of the Navy Supply Corps Logistics Command. These could include, but are not limited to, supply chain management, inventory control, maintenance planning, transportation coordination, warehousing, and potentially technical support for logistics systems. The specific scope would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract. Understanding the precise deliverables is crucial for assessing the contract's value and performance. For instance, if it includes managing critical spare parts for naval vessels, its impact on operational readiness is high. If it focuses on administrative support, the impact might be more localized to the command's internal operations. The alignment with NAVSEALOGCEN's mission would depend on whether the support directly contributes to the command's ability to execute its core functions of providing logistics expertise and services to the Navy.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar logistics support services, and what are the associated risks and benefits?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is a high degree of uncertainty in the costs associated with performance. Under CPFF, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee, which represents the contractor's profit. This structure can be beneficial when innovation or flexibility is required, as it incentivizes the contractor to perform the work without the risk of cost overruns impacting their profit margin significantly. However, it carries risks for the government, primarily the potential for cost growth if the contractor's costs escalate beyond initial estimates, as the fixed fee remains constant. Unlike fixed-price contracts, where the contractor bears the risk of cost overruns, CPFF shifts more cost risk to the government. For logistics support, which can involve unpredictable variables like fuel prices, parts availability, and unforeseen maintenance needs, CPFF might seem appropriate. However, it necessitates robust government oversight to scrutinize costs and ensure efficiency. Alternatives like Firm-Fixed-Price (FFP) contracts offer greater cost certainty for the government but might discourage innovation or require a very tightly defined scope, which may not be feasible for complex logistics operations.

What is Chitra Productions LLC's track record with government contracts, particularly within the Department of Defense and for logistics support services?

Information regarding Chitra Productions LLC's specific track record with government contracts, especially within the Department of Defense and for logistics support services, is not detailed in the provided data snippet. A comprehensive assessment would require accessing contract databases (like the Federal Procurement Data System - FPDS) to review past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract modifications, disputes, or terminations. Understanding the company's experience with similar contract types (like CPFF), its performance history on comparable projects, and its financial stability would be crucial for evaluating the risk associated with this $18.5 million award. Without this historical data, it's challenging to gauge their reliability and capability in delivering the required logistics support effectively and efficiently.

How does the $18.5 million contract value compare to historical spending on similar logistics support services by NAVSEALOGCEN or the Department of the Navy?

The provided data indicates a contract value of $18,504,169.66 awarded to Chitra Productions LLC for NAVSEALOGCEN Command Logistics Support. To benchmark this against historical spending, one would need to analyze past contracts awarded by NAVSEALOGCEN or the Department of the Navy for similar logistics support services. This analysis should consider the period of performance, the scope of work, and the contract type. For example, comparing this 5-year contract to previous 5-year contracts for comparable services would provide a clearer picture of whether the current award represents an increase, decrease, or stable level of spending. Factors such as inflation, changes in operational requirements, and market dynamics could influence year-over-year spending. Accessing historical contract data through resources like FPDS would be necessary to conduct a meaningful comparison and determine if the current spending level is consistent with past trends or represents a significant deviation.

What are the potential risks associated with the 'Engineering Services' NAICS code (541330) in the context of logistics support, and how are they mitigated?

The NAICS code 541330, 'Engineering Services,' typically covers firms that provide engineering consulting and services. When applied to 'logistics support,' it suggests that the contract may involve the design, analysis, integration, and management of complex logistics systems, rather than just the physical movement or storage of goods. Potential risks in this context could include scope creep, where the engineering requirements expand beyond the initial definition, leading to cost overruns. There's also a risk of misinterpreting the 'engineering' aspect, potentially leading to the contractor providing services that are not aligned with the Navy's actual logistics needs. Furthermore, the integration of engineering solutions with existing operational logistics can be complex and prone to technical challenges. Mitigation strategies would involve a clearly defined Statement of Work (SOW) or Performance Work Statement (PWS) that precisely outlines the engineering tasks, deliverables, and performance metrics. Robust project management, regular technical reviews, and strong government oversight are essential to manage scope, ensure alignment with operational requirements, and control costs throughout the contract lifecycle.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6572619R3503

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4873 SOUTH OLIVER DRIVE, VIRGINIA BEACH, VA, 23455

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $21,217,764

Exercised Options: $21,217,764

Current Obligation: $18,504,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7346

IDV Type: IDC

Timeline