Navy awards $7.5M for depot maintenance of repairable items, impacting readiness

Contract Overview

Contract Amount: $7,500,000 ($7.5M)

Contractor: Centurum Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2026-01-13

End Date: 2027-01-12

Contract Duration: 364 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NAVAL SUPPLY WEAPON SYSTEM SUPPORT (NAVSUP WSS) DEPOT MAINTENANCE FY26 Q1 AND Q2 WORKLOAD OF DEPOT-LEVEL REPAIRABLE ITEMS (DLRS) TO PROVIDE READY FOR ISSUE (RFI) A CONDITION ASSETS.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to CENTURUM INFORMATION TECHNOLOGY INC for work described as: NAVAL SUPPLY WEAPON SYSTEM SUPPORT (NAVSUP WSS) DEPOT MAINTENANCE FY26 Q1 AND Q2 WORKLOAD OF DEPOT-LEVEL REPAIRABLE ITEMS (DLRS) TO PROVIDE READY FOR ISSUE (RFI) A CONDITION ASSETS. Key points: 1. Contract focuses on ensuring critical repairable items are ready for issue, directly supporting naval operational readiness. 2. The award utilizes a Cost Plus Fixed Fee (CPFF) pricing structure, common for complex services where cost estimation is challenging. 3. Competition was conducted as 'Full and Open Competition after Exclusion of Sources,' suggesting a specific justification for excluding certain sources. 4. The contract duration of 364 days indicates a short-term need for these specific maintenance services. 5. The primary contractor, CENTURUM INFORMATION TECHNOLOGY INC, is tasked with providing these essential depot-level repairs. 6. This contract falls under the 'Other Communications Equipment Manufacturing' NAICS code, highlighting its specific technical domain.

Value Assessment

Rating: fair

The award amount of $7.5 million for a one-year period for depot maintenance of repairable items appears within a reasonable range for specialized military logistics support. Benchmarking against similar contracts for depot-level repair of complex equipment is difficult without more specific details on the types of items being repaired. The CPFF structure introduces potential cost overruns if not managed tightly, but is often used when the scope of work involves unforeseen complexities in repair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This designation implies that while the competition was intended to be open, specific sources were excluded, likely due to technical capabilities, security requirements, or prior performance issues. The exact number of bidders and the rationale for exclusions are not detailed, making a full assessment of competition dynamics challenging. This approach can sometimes lead to higher prices if the pool of eligible bidders is significantly narrowed.

Taxpayer Impact: Taxpayers may face higher costs if the exclusion of sources limited the competitive landscape, potentially reducing price pressure. Transparency regarding the reasons for source exclusion is crucial for ensuring fair competition and optimal use of public funds.

Public Impact

Naval forces benefit from the increased availability of ready-for-issue assets, enhancing operational readiness and mission capability. The contract delivers critical depot-level maintenance services for repairable items, ensuring the longevity and functionality of essential equipment. Services are likely concentrated in California, where the contractor is located, impacting the local economy through employment and subcontracting opportunities. The contract supports a specialized segment of the defense industrial base focused on repair and maintenance of complex electronic or communication equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause warrants further investigation to ensure it was fully justified and did not unduly restrict competition.
The Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to manage costs effectively and prevent potential overruns.
Lack of detailed information on the specific 'repairable items' makes it difficult to assess the true value and necessity of the contract.

Positive Signals

The contract directly addresses a critical need for operational readiness by ensuring repairable assets are available.
The award to CENTURUM INFORMATION TECHNOLOGY INC indicates a recognized capability in providing specialized depot maintenance services.
The fixed fee component of the CPFF contract provides some level of cost certainty for the government.

Sector Analysis

This contract falls within the broader defense logistics and maintenance sector, specifically focusing on depot-level repair of electronic or communication equipment. The market for such specialized services is often characterized by a limited number of highly qualified contractors due to the technical expertise and security clearances required. Spending in this area is driven by the need to maintain the operational readiness of military assets, ensuring that equipment is functional and available when needed. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the 'repairable items.'

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor may engage small businesses for subcontracting opportunities if it aligns with their supply chain strategy and capabilities needed for depot maintenance.

Oversight & Accountability

Oversight for this contract would typically fall under the Naval Supply Systems Command (NAVSUP) or a designated contracting officer's representative (COR). Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to delivery schedules, quality standards, and cost controls. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Supply Systems Command (NAVSUP) Operations
Depot Maintenance Services
Repairable Item Management
Defense Logistics Agency (DLA) Support
Weapon System Readiness Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to source exclusion may impact price.
Lack of specific item details hinders full value assessment.
Reliance on external contractors for critical maintenance functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to CENTURUM INFORMATION TECHNOLOGY INC. NAVAL SUPPLY WEAPON SYSTEM SUPPORT (NAVSUP WSS) DEPOT MAINTENANCE FY26 Q1 AND Q2 WORKLOAD OF DEPOT-LEVEL REPAIRABLE ITEMS (DLRS) TO PROVIDE READY FOR ISSUE (RFI) A CONDITION ASSETS.

Who is the contractor on this award?

The obligated recipient is CENTURUM INFORMATION TECHNOLOGY 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 $7.5 million.

What is the period of performance?

Start: 2026-01-13. End: 2027-01-12.

What specific types of 'repairable items' are covered under this contract, and what is their criticality to naval operations?

The contract specifies 'Depot-Level Repairable Items (DLRI)' intended to be provided in a 'Ready For Issue (RFI)' condition. While the exact list of items is not provided in the summary data, DLRI typically refers to components or sub-assemblies that are too complex or costly to repair at the unit level and require specialized facilities and expertise found at depots. These items are critical for maintaining the operational readiness of various naval platforms, including ships, aircraft, and ground support equipment. Their criticality stems from their role in enabling the functionality of larger weapon systems or essential support infrastructure. Without a specific item list, it's difficult to quantify the precise impact, but the contract's focus on RFI status underscores their immediate importance to ongoing naval missions.

What is the historical spending pattern for similar depot maintenance contracts with CENTURUM INFORMATION TECHNOLOGY INC or for these types of repairable items?

Analyzing historical spending requires access to broader contract databases. However, the current award of approximately $7.5 million for a one-year period provides a data point for future comparisons. To assess historical patterns, one would need to query databases like FPDS or USASpending for contracts awarded to CENTURUM INFORMATION TECHNOLOGY INC for similar services (e.g., depot maintenance, repair of electronic equipment) or contracts awarded by the Department of the Navy for DLRI maintenance. Examining the volume, value, and duration of previous awards would reveal trends in contractor performance, pricing, and the government's reliance on specific vendors or service types. Without this historical data, it's challenging to determine if this $7.5 million award represents an increase, decrease, or stable level of spending for these services.

What are the specific performance metrics and quality standards required for the 'Ready For Issue' (RFI) condition of the repairable items?

The contract's requirement for items to be in 'Ready For Issue' (RFI) condition implies stringent performance metrics and quality standards. While the specific details are not in the summary, RFI typically means the item has undergone all necessary diagnostics, repairs, and testing to be immediately deployable or installable into a system without further servicing. This includes meeting original equipment manufacturer (OEM) specifications or equivalent performance standards. Quality standards would likely encompass adherence to technical manuals, repair procedures, and potentially certifications like ISO 9001. Performance metrics would focus on turnaround time for repairs, defect rates (e.g., number of items failing post-repair), and successful integration into operational systems. Failure to meet these standards could result in contract penalties or rejection of repaired items.

What is the justification for the 'Exclusion of Sources' in this 'Full and Open Competition' award, and what are the implications for price?

The designation 'Full and Open Competition after Exclusion of Sources' suggests that while the solicitation was broadly advertised, certain potential offerors were intentionally excluded. The justification for such exclusions typically relates to highly specialized technical requirements, unique capabilities, security concerns, or prior performance issues that make only a limited number of contractors suitable. For example, if the repairable items involve classified technology or require proprietary repair processes, only specific companies might possess the necessary clearances or intellectual property rights. The implication for price is that excluding sources can reduce the competitive pool, potentially leading to higher prices than if a wider range of bidders were involved. However, if the exclusions are strictly necessary due to the nature of the work, the government may deem the higher price acceptable to ensure the required technical capability and security are met.

How does this contract align with the Department of the Navy's broader strategy for depot maintenance and supply chain management?

This contract aligns with the Department of the Navy's (DoN) strategy by addressing the critical need for maintaining the readiness of its assets through specialized depot-level maintenance. The focus on 'Ready For Issue' (RFI) condition for 'Depot-Level Repairable Items' (DLRI) directly supports the DoN's objective of ensuring operational availability of its equipment and weapon systems. By outsourcing these complex repair tasks, the Navy can leverage specialized industry expertise and potentially achieve cost efficiencies compared to performing all maintenance in-house. This contract also fits within the broader supply chain management framework, ensuring that essential components are repaired and returned to stock, thereby reducing lead times and the need for new procurements. The specific NAICS code (334290 - Other Communications Equipment Manufacturing) suggests a focus on electronic or communication systems, which are vital across naval platforms.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 651 ROUTE 73 N STE 107, MARLTON, NJ, 08053

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,500,000

Exercised Options: $7,500,000

Current Obligation: $7,500,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600123D0014

IDV Type: IDC

Timeline