DoD's $36.9M Submarine C4 Systems Support Contract Awarded to Mikel Inc
Contract Overview
Contract Amount: $36,908,530 ($36.9M)
Contractor: Mikel Inc
Awarding Agency: Department of Defense
Start Date: 2020-01-27
End Date: 2024-07-26
Contract Duration: 1,642 days
Daily Burn Rate: $22.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CONFIGURATION MANAGEMENT, INTEGRATED LOGISTICS, IN-SERVICE ENGINEERING AND PROJECT MANAGEMENT SUPPORT SERVICES FOR SUBMARINE COMMAND AND CONTROL SYSTEMS FOR CODE 25.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $36.9 million to MIKEL INC for work described as: CONFIGURATION MANAGEMENT, INTEGRATED LOGISTICS, IN-SERVICE ENGINEERING AND PROJECT MANAGEMENT SUPPORT SERVICES FOR SUBMARINE COMMAND AND CONTROL SYSTEMS FOR CODE 25. Key points: 1. Contract supports critical submarine command and control systems. 2. Mikel Inc. is the sole awardee under full and open competition. 3. The contract spans over 4 years, indicating a long-term need. 4. Engineering services sector sees significant investment in defense modernization.
Value Assessment
Rating: good
The contract's value of $36.9M over four years appears reasonable for specialized engineering and logistics support for complex submarine systems. Benchmarking against similar long-term defense support contracts 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, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being used for essential defense infrastructure maintenance and upgrades, ensuring national security capabilities.
Public Impact
Ensures operational readiness of submarine command and control systems. Supports advanced engineering and logistics for critical naval assets. Contributes to the technological superiority of the U.S. submarine fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus contracts.
- Reliance on a single contractor for critical systems.
Positive Signals
- Awarded through full and open competition.
- Supports vital national defense infrastructure.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related IT and complex systems. Spending in this area is often driven by modernization efforts and the need for specialized technical expertise.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy awarded this contract, implying oversight from a major defense agency. The duration and nature of the services suggest ongoing monitoring is required to ensure performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Long contract duration may lead to vendor lock-in.
- Potential for scope creep if requirements are not tightly managed.
- Dependence on a single contractor for critical systems.
Tags
engineering-services, department-of-defense, ri, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.9 million to MIKEL INC. CONFIGURATION MANAGEMENT, INTEGRATED LOGISTICS, IN-SERVICE ENGINEERING AND PROJECT MANAGEMENT SUPPORT SERVICES FOR SUBMARINE COMMAND AND CONTROL SYSTEMS FOR CODE 25.
Who is the contractor on this award?
The obligated recipient is MIKEL 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 $36.9 million.
What is the period of performance?
Start: 2020-01-27. End: 2024-07-26.
What is the projected cost efficiency of this contract given the Cost Plus Fixed Fee structure?
The Cost Plus Fixed Fee (CPFF) structure aims to provide a degree of cost control by capping the contractor's fee. However, the government bears the risk of cost overruns. Effective oversight and clear performance metrics are crucial to ensure cost efficiency and prevent excessive spending beyond the base cost plus the fixed fee.
What are the key performance indicators (KPIs) used to measure the success of Mikel Inc.'s support services?
Specific KPIs are not detailed in the provided data. Typically, for such contracts, KPIs would include system uptime, response times for engineering support, successful implementation of upgrades, adherence to project timelines, and overall system reliability. Regular performance reviews against these metrics are essential.
How does this contract contribute to the overall modernization strategy of the U.S. submarine fleet?
This contract directly supports the sustainment and potential upgrades of submarine command and control systems, which are core components of a submarine's operational capability. By ensuring these systems are maintained and potentially enhanced, it contributes to the fleet's technological relevance and effectiveness in modern naval operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6660418R3016
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2 CORPORATE PL STE 103, MIDDLETOWN, RI, 02842
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $41,614,510
Exercised Options: $41,008,038
Current Obligation: $36,908,530
Actual Outlays: $3,282,789
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7834
IDV Type: IDC
Timeline
Start Date: 2020-01-27
Current End Date: 2024-07-26
Potential End Date: 2025-01-26 00:00:00
Last Modified: 2025-02-20
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