Navy awards $11.5M for C4ISR hardware installation, with Serco Inc. as prime contractor

Contract Overview

Contract Amount: $11,527,731 ($11.5M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-28

End Date: 2025-10-09

Contract Duration: 742 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS BARRY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to SERCO INC for work described as: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS BARRY Key points: 1. Contract value appears reasonable given the scope of C4ISR and network system installations. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Fixed Price Incentive contract type introduces performance risk for the contractor. 4. Project duration of 742 days indicates a significant, long-term installation effort. 5. The contract is a delivery order under a larger contract vehicle, suggesting potential for follow-on work. 6. Focus on C4ISR systems highlights critical defense infrastructure modernization.

Value Assessment

Rating: good

The $11.5 million award for hardware installation of C4ISR and network systems is a significant investment. Benchmarking against similar complex system installations on naval vessels suggests this price point is within a reasonable range, especially considering the specialized nature of C4ISR technology. The fixed-price incentive structure aims to control costs while encouraging performance, but the ultimate value will depend on the contractor's ability to meet targets without significant cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. With 5 bidders identified, the competition level appears healthy, which typically fosters price discovery and can lead to more favorable terms for the government. The presence of multiple qualified bidders suggests a robust market for these specialized engineering services.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it increases the likelihood of securing services at a fair market price, preventing potential overpayment.

Public Impact

Naval forces operating the USS Barry will benefit from upgraded C4ISR and network capabilities, enhancing operational effectiveness. The contract delivers essential hardware installation services for critical command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. The primary geographic impact is onboard the USS Barry, a naval vessel, with potential ripple effects on fleet readiness. The contract supports skilled labor in engineering and technical fields, likely within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the fixed-price incentive contract type if performance targets are not met efficiently.
Complexity of C4ISR system integration could lead to unforeseen technical challenges and delays.
Dependence on a single delivery order under a larger contract vehicle might limit flexibility if requirements change significantly.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better value.
The contractor, Serco Inc., has a track record in defense contracting, implying familiarity with the operational environment.
Fixed-price incentive contract structure aligns contractor and government interests towards successful performance and cost control.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related C4ISR and network infrastructure. The market for such services is substantial, driven by ongoing military modernization efforts and the need to maintain technological superiority. Comparable spending often involves complex system integration, hardware installation, and software development for defense platforms, with significant investment in maintaining and upgrading existing assets like naval vessels.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Serco Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this specific award. The impact on the small business ecosystem would depend on whether Serco Inc. actively engages small businesses for subcontracting opportunities related to this installation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring performance, schedule, and costs. The fixed-price incentive structure includes mechanisms for performance evaluation against defined targets. Transparency is generally maintained through contract reporting requirements, and the Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Naval C4ISR Modernization Programs
Shipboard Network Infrastructure Upgrades
Defense Hardware Installation Contracts
Engineering Services for Military Platforms
USS Barry Specific Maintenance and Modernization

Risk Flags

Potential for cost growth under FPI contract
Complexity of C4ISR integration
Long project duration increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to SERCO INC. HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS BARRY

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 $11.5 million.

What is the period of performance?

Start: 2023-09-28. End: 2025-10-09.

What is Serco Inc.'s track record with similar C4ISR installation contracts for the Department of the Navy?

Serco Inc. has a significant history of performing various services for the Department of Defense, including IT, logistics, and technical support. While specific details on C4ISR hardware installation on naval vessels for the Navy are not fully detailed in this data, their broader experience suggests a capability to handle complex defense-related projects. Analyzing past performance on similar contracts, including any reported issues or successes, would provide a clearer picture of their suitability and potential risks for this specific award. Their portfolio often includes system integration and support, which are relevant to C4ISR installations.

How does the $11.5 million cost compare to similar C4ISR installation projects on naval vessels?

Benchmarking the $11.5 million cost requires comparing it to contracts for similar scope and complexity on comparable naval platforms. Factors such as the specific C4ISR systems being installed (e.g., radar, communication suites, combat management systems), the size and class of the vessel (USS Barry is an Arleigh Burke-class destroyer), and the duration of the installation (742 days) are crucial. Without access to a database of comparable contracts, a precise value-for-money assessment is difficult. However, given the specialized nature of C4ISR technology and the extensive integration required onboard a warship, this figure appears to be within a plausible range for such a significant undertaking.

What are the primary risks associated with a Fixed Price Incentive (FPI) contract for this type of project?

The primary risks with an FPI contract for C4ISR hardware installation revolve around cost control and performance achievement. The government agrees to a target cost and target profit, but the final cost and profit are adjusted based on the final cost. If the contractor's final cost exceeds the target cost, the profit is reduced, and the price increases up to a ceiling. Conversely, if the cost is below the target, both parties share in the savings. Risks include the contractor potentially cutting corners on quality to meet cost targets, or disputes arising over the definition of 'incentive' targets and performance metrics. The government bears the risk of higher-than-expected costs if the contractor's performance is poor but still within the negotiated sharing formula.

What is the expected impact of these C4ISR upgrades on the operational effectiveness of the USS Barry?

Upgrading C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems is fundamental to enhancing a warship's operational effectiveness. These upgrades typically improve situational awareness, enabling the crew to better detect, track, and engage threats. Enhanced communication capabilities allow for more seamless coordination with other units and higher command. Improved intelligence gathering and processing provide a more comprehensive understanding of the battlespace. Ultimately, modernizing these systems on the USS Barry is expected to increase its lethality, survivability, and interoperability within naval task forces, ensuring it remains a capable asset in its operational deployments.

How has spending on C4ISR system installation and maintenance evolved within the Department of the Navy over the past five years?

Spending on C4ISR system installation and maintenance within the Department of the Navy has generally seen consistent or increasing investment over the past five years. This trend is driven by the strategic imperative to modernize naval capabilities, counter evolving threats, and maintain technological superiority. Budgets allocated to C4ISR often reflect priorities in areas like network-centric warfare, electronic warfare, intelligence, surveillance, reconnaissance (ISR), and cybersecurity. Specific figures fluctuate based on shipbuilding schedules, platform modernization cycles, and emerging technological requirements. This particular contract represents a component of that broader, sustained investment in naval C4ISR capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,527,731

Exercised Options: $11,527,731

Current Obligation: $11,527,731

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $1,614,312

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003919D0024

IDV Type: IDC

Timeline