DoD Awards $16.98M for USS America Ship Maintenance, SERCO Inc. Secures Contract via Full and Open Competition

Contract Overview

Contract Amount: $16,978,799 ($17.0M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2017-12-21

End Date: 2019-12-08

Contract Duration: 717 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: USS AMERICA CANES MOD 1

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to SERCO INC for work described as: USS AMERICA CANES MOD 1 Key points: 1. Contract awarded to SERCO INC for ship maintenance services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is $16.98 million over a duration of 717 days. 4. The sector is Defense, specifically ship maintenance for the Department of the Navy.

Value Assessment

Rating: good

The contract value of $16.98 million for ship maintenance appears reasonable given the duration and scope. Benchmarking against similar naval maintenance contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently through a process designed to secure favorable pricing for essential defense services.

Public Impact

Ensures operational readiness of the USS America. Supports the U.S. Navy's fleet maintenance capabilities. Contributes to the defense industrial base through service contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts.
Dependence on a single contractor for critical maintenance.

Positive Signals

Competitive award process.
Clear contract duration and scope.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on engineering and maintenance services for naval vessels. Spending in this area is critical for maintaining military readiness and is subject to rigorous oversight.

Small Business Impact

The data does not indicate if small businesses were involved as prime contractors or subcontractors in this specific award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Navy, implying oversight from this agency. The use of a delivery order under a larger contract framework suggests existing oversight mechanisms are in place.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Incentive Fee (CPIF) can lead to cost overruns if not managed tightly.
Potential for scope creep if requirements are not clearly defined.
Dependence on a single contractor for critical maintenance services.
Contract duration is significant, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to SERCO INC. USS AMERICA CANES MOD 1

Who is the contractor on this award?

The obligated recipient is SERCO 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 $17.0 million.

What is the period of performance?

Start: 2017-12-21. End: 2019-12-08.

What specific maintenance tasks are included in this contract, and how do they align with the vessel's lifecycle needs?

The contract details for 'USS AMERICA CANES MOD 1' likely encompass a range of maintenance, repair, and modernization services essential for the operational readiness of the naval vessel. These tasks would typically include routine inspections, preventative maintenance, component replacements, and potentially minor modifications or upgrades. Alignment with the vessel's lifecycle needs would depend on the specific requirements outlined in the Statement of Work, ensuring that maintenance activities support the ship's long-term serviceability and mission capabilities.

What are the key performance indicators (KPIs) used to measure SERCO INC's performance under this contract?

Key performance indicators for this contract would likely focus on adherence to schedule, quality of work performed, cost control (especially relevant for cost-plus contracts), and compliance with safety and environmental regulations. Specific metrics might include on-time completion of maintenance milestones, defect rates, adherence to budget projections, and incident-free operations. Performance would be monitored by the Department of the Navy contracting officer's representative (COR).

How does the 'COST PLUS INCENTIVE FEE' (CPIF) structure incentivize SERCO INC to manage costs effectively while ensuring quality?

A Cost Plus Incentive Fee (CPIF) contract structure incentivizes the contractor (SERCO INC) to control costs by establishing a target cost and fee. If the contractor performs below the target cost, both the government and contractor share in the savings, with the contractor receiving a larger share. Conversely, if costs exceed the target, the contractor's fee is reduced. This structure aims to align the contractor's profit motive with the government's objective of achieving cost savings while maintaining or improving performance quality.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $16,978,799

Exercised Options: $16,978,799

Current Obligation: $16,978,799

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $5,354,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003911D0032

IDV Type: IDC

Timeline