DoD's $21.6M Costal Surveillance Station contract awarded to Techno-Sciences, LLC for construction services

Contract Overview

Contract Amount: $21,637,087 ($21.6M)

Contractor: Techno-Sciences, LLC

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2011-03-31

Contract Duration: 1,280 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COSTAL SURVEILLANCE STATION (CSS)

Place of Performance

Location: BELTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to TECHNO-SCIENCES, LLC for work described as: COSTAL SURVEILLANCE STATION (CSS) Key points: 1. The contract value represents a significant investment in critical infrastructure for naval operations. 2. Techno-Sciences, LLC secured this award through a competitive process, suggesting potential for favorable pricing. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. The duration of the contract indicates a long-term need for these surveillance capabilities. 5. The project's location in Maryland may have implications for regional economic development and workforce. 6. The contract's classification as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' warrants further examination of the exclusion rationale.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable projects for 'Costal Surveillance Stations' with identical scope. However, the $21.6 million price tag for a multi-year construction and integration project appears within a reasonable range for complex defense infrastructure. The firm-fixed-price structure suggests the government aimed to control costs, but the final value depends heavily on the contractor's execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources were excluded. The rationale for this exclusion is not detailed here but typically involves reasons like national security, proprietary technology, or specific capabilities only a limited number of entities possess. The limited nature of the competition may have influenced the number of bidders and potentially the final price.

Taxpayer Impact: While the exclusion of sources limits the breadth of competition, the remaining pool of bidders still provides a degree of price discovery for taxpayers. However, understanding the justification for exclusions is crucial to ensure no taxpayer funds were unnecessarily forgone due to restricted market access.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Navy, gaining enhanced coastal surveillance capabilities. The contract delivers construction services for a Costal Surveillance Station, likely involving infrastructure development and technology integration. The geographic impact is concentrated in Maryland, where the station is located, potentially creating local jobs and economic activity. Workforce implications include construction labor and potentially specialized technical personnel for the surveillance systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' aspect of the competition requires scrutiny to ensure it was justified and did not unduly limit competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's track record on this specific project.
The firm-fixed-price contract, while managing cost risk, could lead to disputes if unforeseen issues arise during construction.

Positive Signals

The award was made under a competitive process, indicating that multiple entities were considered.
The firm-fixed-price contract type generally provides cost certainty for the government.
The contract duration suggests a sustained commitment to enhancing coastal surveillance capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically related to infrastructure construction and surveillance technology. The market for defense construction and specialized surveillance systems is often characterized by high barriers to entry due to security clearances, technical expertise, and established relationships with government agencies. Spending in this area is driven by national security priorities and the need to maintain technological superiority.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, there may be subcontracting opportunities for small businesses, depending on the prime contractor's strategy and the nature of the work required. The overall impact on the small business ecosystem would depend on the extent of any subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance details might be considered sensitive.

Related Government Programs

Naval Base Construction
Coastal Defense Systems
Surveillance Technology Procurement
Department of Defense Infrastructure Projects

Risk Flags

Limited Competition Rationale
Lack of Detailed Performance Metrics
Potential for Cost Overruns in Fixed-Price Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to TECHNO-SCIENCES, LLC. COSTAL SURVEILLANCE STATION (CSS)

Who is the contractor on this award?

The obligated recipient is TECHNO-SCIENCES, 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 $21.6 million.

What is the period of performance?

Start: 2007-09-28. End: 2011-03-31.

What was the specific rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The provided data does not specify the exact reasons for excluding certain sources. Typically, such exclusions are based on national security concerns, the need for highly specialized or proprietary technology, or situations where only a limited number of contractors possess the unique capabilities required for the project. Without further documentation from the contracting agency (Department of the Navy), it is impossible to definitively state the rationale. This exclusion warrants further investigation to ensure fair competition and taxpayer value were not compromised.

How does the $21.6 million cost compare to similar coastal surveillance station construction projects?

Direct cost comparisons for 'Costal Surveillance Stations' are difficult due to the unique nature of such projects and the variability in scope, technology, and location. However, $21.6 million for a multi-year construction and integration project of this type is not inherently excessive for defense infrastructure. To provide a more precise benchmark, one would need to analyze contracts with similar specifications, including the size and complexity of the station, the types of surveillance equipment integrated, and the duration of the construction period. The firm-fixed-price nature suggests an attempt to cap costs, but the final value is contingent on execution.

What are the key performance indicators (KPIs) used to assess the success of this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for a construction project of this nature, typical KPIs would likely include adherence to the project schedule, meeting construction quality standards, successful integration and testing of surveillance systems, compliance with safety regulations, and final delivery of a fully functional coastal surveillance station. The firm-fixed-price contract implies that meeting all technical specifications and delivery timelines within the agreed budget are paramount for successful performance.

What is the track record of Techno-Sciences, LLC in delivering similar defense construction or surveillance projects?

Information regarding Techno-Sciences, LLC's specific track record on similar defense construction or surveillance projects is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on government contracts, including client feedback, any past performance issues or awards, and their experience with projects of comparable scale and technical complexity. Their ability to secure this contract suggests they met the minimum requirements, but further due diligence on their historical performance would be beneficial for a complete risk assessment.

What are the potential risks associated with the firm-fixed-price contract type for this project?

While firm-fixed-price contracts are designed to provide cost certainty, they can introduce risks, particularly for complex construction projects. Potential risks include the contractor underestimating costs, leading to potential quality compromises or requests for change orders to recoup losses. Conversely, if the contractor significantly overestimates costs, taxpayers may end up paying a premium. Unforeseen site conditions or technical challenges during construction could also lead to disputes and contract modifications, potentially increasing the final cost beyond initial expectations.

How does this spending align with broader trends in U.S. coastal defense and surveillance investments?

This $21.6 million contract for a Costal Surveillance Station aligns with broader U.S. defense strategies that emphasize enhanced maritime domain awareness and border security. Investments in coastal surveillance are critical for monitoring potential threats, managing maritime traffic, and protecting national interests. Such spending reflects a continuing commitment to modernizing defense infrastructure and integrating advanced technologies to maintain situational awareness in strategic coastal regions. The specific allocation to Maryland may also reflect regional defense priorities or existing infrastructure needs.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10001 DEREKWOOD LN STE 204, LANHAM, MD, 04

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,637,087

Exercised Options: $21,637,087

Current Obligation: $21,637,087

Contract Characteristics

Cost or Pricing Data: NO

Timeline