DoD Awards $6.97M for C4ISR Hardware Installation on USS Ronald Reagan

Contract Overview

Contract Amount: $6,975,341 ($7.0M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-04

End Date: 2026-11-18

Contract Duration: 652 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS RONALD REAGAN (CVN 76), BREMERTON WA

Place of Performance

Location: BREMERTON, KITSAP County, WASHINGTON, 98310

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to SERCO INC for work described as: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS RONALD REAGAN (CVN 76), BREMERTON WA Key points: 1. Contract awarded to Serco Inc. for critical C4ISR and network system installations. 2. Competition was full and open, suggesting a competitive bidding process. 3. Fixed Price Incentive contract type aims to balance cost and performance. 4. Project duration is 652 days, indicating a significant undertaking. 5. Location in Bremerton, WA, aligns with naval maintenance activities.

Value Assessment

Rating: good

The award amount of $6.97M for hardware installation appears reasonable given the scope of C4ISR and network systems on a major naval vessel. Benchmarking against similar complex system integration contracts on naval platforms would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a process designed to secure the best value.

Public Impact

Enhances the operational capabilities of the USS Ronald Reagan, a key asset in national defense. Supports advanced communication, command, control, and intelligence systems crucial for naval operations. Contributes to the readiness and technological superiority of the U.S. Navy fleet. Impacts the defense industrial base, particularly companies specializing in C4ISR integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed Price Incentive contract can lead to cost overruns if not managed carefully.
Complexity of C4ISR integration may present unforeseen technical challenges.
Reliance on a single contractor for installation could pose supply chain risks.

Positive Signals

Full and open competition generally leads to better pricing.
Modernization of critical naval systems enhances national security.
Project duration is clearly defined, allowing for planning.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense systems integration. Spending benchmarks for C4ISR modernization on naval vessels can vary significantly based on system complexity and platform size.

Small Business Impact

While the prime contractor is Serco Inc., it's unclear from the data if small businesses were subcontracted for specific components or services. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Navy, as the contracting agency, is responsible for oversight. The fixed-price incentive structure requires diligent monitoring to ensure cost control and performance adherence.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to the fixed-price incentive structure.
Technical complexity of integrating advanced C4ISR systems.
Dependence on contractor performance for critical operational upgrades.
Schedule slippage impacting fleet readiness.
Cybersecurity risks associated with network system installations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to SERCO INC. HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS RONALD REAGAN (CVN 76), BREMERTON WA

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 $7.0 million.

What is the period of performance?

Start: 2025-02-04. End: 2026-11-18.

What specific C4ISR and network systems are being installed or upgraded, and how do they align with current naval modernization priorities?

The specific C4ISR and network systems are not detailed in the provided data. However, such installations typically involve upgrades to communication suites, radar systems, combat management systems, and data networking infrastructure. These align with naval priorities focused on enhancing situational awareness, interoperability, and cyber resilience across the fleet.

What are the key performance metrics and incentives within the Fixed Price Incentive contract, and how will they be measured to ensure optimal value and risk mitigation?

Key performance metrics likely revolve around successful system integration, operational readiness testing, and adherence to installation schedules. The incentive structure would typically reward the contractor for achieving target costs and performance levels, while penalties might apply for deviations. Detailed metrics and measurement protocols would be outlined in the contract's Performance Work Statement (PWS).

How does the $6.97M cost compare to similar C4ISR modernization efforts on other naval vessels of comparable size and complexity?

Benchmarking this $6.97M award against similar contracts requires access to detailed cost data for comparable naval C4ISR modernization projects. Factors like the specific systems being upgraded, the age and condition of the platform, and the prevailing market rates for specialized labor and equipment significantly influence costs, making direct comparisons challenging without granular data.

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: $7,011,303

Exercised Options: $6,975,341

Current Obligation: $6,975,341

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $484,915

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