DoD Awards $15.3M Contract for C4ISR Hardware Installation on USS Hopper

Contract Overview

Contract Amount: $15,279,294 ($15.3M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-11

End Date: 2026-01-09

Contract Duration: 638 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS HOPPER (DDG 70), PEARL HARBOR HI

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to SERCO INC for work described as: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS HOPPER (DDG 70), PEARL HARBOR HI Key points: 1. Contract awarded to Serco Inc. for critical C4ISR and network system installations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, reflecting the complexity of naval systems integration. 4. Potential risks include integration challenges and schedule adherence for the USS Hopper. 5. The IT and Defense sectors are heavily involved in this type of procurement.

Value Assessment

Rating: good

The contract value of $15.3M for hardware installation on a naval vessel appears reasonable given the specialized nature of C4ISR and network systems. Benchmarking against similar naval modernization projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

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

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing the value of taxpayer funds allocated to this essential naval upgrade.

Public Impact

Enhances the combat readiness and communication capabilities of the USS Hopper. Supports the U.S. Navy's technological superiority in the Pacific region. Contributes to the modernization of naval C4ISR systems, crucial for defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for integration issues with complex C4ISR systems.
Schedule delays could impact operational readiness of the USS Hopper.
Reliance on a single awardee for a critical delivery order.

Positive Signals

Awarded under full and open competition.
Fixed Price Incentive contract type can incentivize cost control.
Experienced contractor (Serco Inc.) likely to manage project effectively.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's IT and defense infrastructure. Spending in this area is driven by the need for advanced technological capabilities and platform modernization.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, Serco Inc., is a large business, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award.

Oversight & Accountability

The Department of the Navy's contracting process, including full and open competition, aims to ensure oversight and accountability. The fixed-price incentive contract type also provides a framework for monitoring performance and costs.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Integration complexity of C4ISR and network systems.
Potential for schedule slippage impacting operational readiness.
Cybersecurity risks associated with new hardware installations.
Dependence on contractor performance for critical system functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to SERCO INC. HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS HOPPER (DDG 70), PEARL HARBOR HI

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 $15.3 million.

What is the period of performance?

Start: 2024-04-11. End: 2026-01-09.

What is the specific breakdown of C4ISR and network systems being installed, and how do these align with the Navy's current strategic priorities?

The specific breakdown of C4ISR and network systems is not detailed in the provided data. However, such installations typically involve radar, communication, navigation, and command and control equipment. These align with strategic priorities focused on maintaining information superiority, enhancing situational awareness, and ensuring seamless communication across naval platforms in contested environments.

What are the key performance metrics and risk mitigation strategies outlined in the Fixed Price Incentive contract to ensure successful integration and timely delivery?

The Fixed Price Incentive contract likely includes target cost, target profit, and ceiling price, with adjustments based on actual costs. Key performance metrics would focus on system functionality, integration success, and adherence to the delivery schedule. Risk mitigation strategies would involve detailed project management plans, regular progress reviews, contingency planning for technical challenges, and robust testing protocols.

How does the cost of this installation compare to similar C4ISR upgrades on other naval vessels, and what factors contribute to any significant variances?

Without specific benchmark data for similar C4ISR upgrades on other naval vessels, a direct cost comparison is difficult. Factors influencing cost variances can include the specific systems being upgraded, the complexity of integration with existing ship infrastructure, the vessel's operational tempo, and prevailing market rates for specialized labor and components. The USS Hopper's specific configuration and upgrade scope would dictate its unique cost profile.

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: 4

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: $15,279,294

Exercised Options: $15,279,294

Current Obligation: $15,279,294

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $2,098,658

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