DoD awards $5.4M for C4ISR hardware installation on USS Curtis Wilbur, highlighting engineering services needs

Contract Overview

Contract Amount: $5,380,557 ($5.4M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2025-08-11

End Date: 2026-10-09

Contract Duration: 424 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS CURTIS WILBUR (DDG 54), SAN DIEGO CA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to SERCO INC for work described as: HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS CURTIS WILBUR (DDG 54), SAN DIEGO CA Key points: 1. Contract focuses on specialized engineering services for critical C4ISR and network systems. 2. Competition was robust, suggesting a healthy market for these specialized naval engineering services. 3. Fixed Price Incentive contract type introduces performance-based risk sharing. 4. The contract duration of 424 days aligns with typical shipboard modernization timelines. 5. Geographic focus on San Diego, a major naval hub, indicates strategic deployment. 6. This award reflects ongoing investment in maintaining and upgrading naval C4ISR capabilities.

Value Assessment

Rating: good

The contract value of $5.4 million for hardware installation of C4ISR and network systems appears reasonable given the specialized nature of naval engineering services. Benchmarking against similar contracts for shipboard system integration and installation is challenging without more specific data on system complexity and scope. However, the fixed-price incentive structure suggests an effort to control costs while ensuring performance. The award to Serco Inc., a known defense contractor, indicates a level of confidence in their ability to deliver.

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 solicited and evaluated. The presence of 3 bids suggests a competitive environment for this type of specialized engineering service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from a range of offers, driving down costs and encouraging innovation among contractors vying for the work.

Public Impact

Naval forces operating the USS Curtis Wilbur (DDG 54) will benefit from upgraded C4ISR and network systems. Services delivered include the installation of critical hardware for command, control, communications, computers, intelligence, surveillance, and reconnaissance. The geographic impact is concentrated in San Diego, California, a key naval base. This contract supports skilled jobs in engineering and technical services within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met effectively.
Dependence on contractor's ability to integrate complex C4ISR systems seamlessly.
Risk of schedule delays impacting fleet readiness if installation encounters unforeseen issues.

Positive Signals

Fixed Price Incentive contract aligns government and contractor interests on performance.
Award to an established contractor (Serco Inc.) suggests a lower risk of execution failure.
Competition indicates market availability and potential for competitive pricing.
Focus on critical C4ISR systems underscores commitment to naval technological superiority.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related C4ISR and network infrastructure. The market for naval system integration and installation is specialized, with a few key players capable of performing such complex work. Spending in this area is driven by the need to maintain and modernize aging fleets, ensuring technological parity and operational effectiveness. Comparable spending benchmarks would typically involve other ship modernization contracts or large-scale C4ISR system integration projects within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the scope of work may not have been easily divisible into smaller components suitable for small business participation. Further analysis would be needed to determine if subcontracting opportunities exist within the awarded contract.

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 contract type includes built-in accountability through performance metrics tied to financial incentives. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Ship Modernization Programs
C4ISR System Integration Contracts
Defense Network Infrastructure Upgrades
Shipboard Combat Systems Installation

Risk Flags

Potential for cost growth under incentive contract
Schedule adherence critical for fleet readiness
Complexity of C4ISR integration requires specialized expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to SERCO INC. HARDWARE INSTALLATION OF C4ISR AND NETWORK RELATED SYSTEMS ONBOARD USS CURTIS WILBUR (DDG 54), SAN DIEGO CA

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 $5.4 million.

What is the period of performance?

Start: 2025-08-11. End: 2026-10-09.

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 supporting the Department of Defense, including various naval platforms. While specific details on C4ISR hardware installation contracts for DDG-class destroyers are not immediately available in this summary, Serco's broader portfolio includes ship maintenance, modernization, and technical services. Their experience often encompasses complex systems integration and lifecycle support. To fully assess their track record for this specific type of work, a deeper dive into past performance evaluations, contract awards for similar systems (e.g., radar, communication suites, combat management systems), and any reported issues or successes on comparable naval vessels would be necessary. Their established presence suggests a capacity to handle such requirements, but specific C4ISR installation expertise should be verified through detailed contract history analysis.

How does the $5.4 million value compare to similar C4ISR installation contracts on naval vessels?

The $5.4 million value for hardware installation of C4ISR and network systems on the USS Curtis Wilbur (DDG 54) needs context for a precise comparison. C4ISR modernization costs can vary dramatically based on the specific systems being installed (e.g., radar upgrades, communication suites, electronic warfare systems), the extent of integration required, and the platform's condition. For a DDG-class destroyer, this amount appears to be within a reasonable range for a significant hardware installation phase, especially considering it's a delivery order under a larger contract. However, without knowing the exact scope of 'C4ISR and network related systems,' it's difficult to benchmark precisely. Comparable contracts might include upgrades to Aegis systems, new sensor installations, or communication suite overhauls on similar vessels, which can range from a few million to tens of millions of dollars depending on complexity and duration.

What are the primary risks associated with this fixed-price incentive contract?

The primary risks associated with this Fixed Price Incentive (FPI) contract center on the balance between cost control and performance achievement. For the government, the risk is that the final cost could exceed the target price if the contractor incurs higher-than-expected costs while still meeting performance targets, especially if the ceiling price is high. Conversely, the contractor bears the risk of cost overruns if actual costs exceed the target price, but they are incentivized to control costs to achieve a better profit margin, sharing savings with the government above a certain threshold. A key risk is the potential for disputes over performance metrics or cost accounting, which could delay the project or lead to litigation. Additionally, if the incentive targets are poorly defined or unrealistic, it could lead to either insufficient cost savings for the government or excessive risk for the contractor, potentially impacting quality or schedule.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money on this contract?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money, as it maximizes the pool of potential bidders and encourages competitive pricing. With three bids received, as indicated, there was a degree of competition, which should have pressured bidders to offer competitive prices and terms. This approach allows the government to evaluate a range of technical solutions and price points, selecting the offer that provides the best overall value. However, the effectiveness is contingent on the clarity of the solicitation requirements and the evaluation criteria. If the requirements were well-defined and the evaluation process robust, the competition likely yielded a fair market price. The fixed-price incentive structure further aims to align contractor incentives with government cost-saving goals, enhancing value realization.

What are the historical spending patterns for C4ISR system installations on naval vessels like the USS Curtis Wilbur?

Historical spending on C4ISR system installations and upgrades for naval vessels, particularly destroyers like the DDG-54, has been substantial and consistent, reflecting the critical role of these systems in modern naval operations. The Department of the Navy allocates significant portions of its budget towards maintaining and modernizing its fleet's C4ISR capabilities to counter evolving threats and incorporate technological advancements. Spending patterns typically show multi-year investments for major platform upgrades, with individual contracts varying widely in value based on the scope of work – from component replacements to full system overhauls. Factors influencing historical spending include the pace of technological change, the age of the fleet, geopolitical demands, and specific program requirements like the Aegis Combat System upgrades. The $5.4 million award for this specific installation aligns with the ongoing trend of significant investment in naval C4ISR modernization.

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: 3

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: $5,380,557

Exercised Options: $5,380,557

Current Obligation: $5,380,557

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $886,093

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