Naval Undersea Warfare Center awards $13.8M engineering services contract to Mikel Inc. for undersea systems support

Contract Overview

Contract Amount: $13,801,278 ($13.8M)

Contractor: Mikel Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2026-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPERATIONAL, TECHNICAL AND ENGINEERING SERVICES IN SUPPORT OF THE INFRASTRUCTURE, SYSTEMS AND LABORATORIES ASSIGNED TO THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT UNDERSEA WARFARE COMBAT SYSTEMS DEPARTMENT, CODE 25

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to MIKEL INC for work described as: OPERATIONAL, TECHNICAL AND ENGINEERING SERVICES IN SUPPORT OF THE INFRASTRUCTURE, SYSTEMS AND LABORATORIES ASSIGNED TO THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT UNDERSEA WARFARE COMBAT SYSTEMS DEPARTMENT, CODE 25 Key points: 1. Contract focuses on critical engineering, technical, and operational support for undersea warfare systems. 2. Mikel Inc. secured this contract through full and open competition. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. The award type is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a phased approach. 5. The firm fixed-price contract type helps manage cost certainty for the government. 6. The primary location for service delivery is Rhode Island.

Value Assessment

Rating: good

The contract value of $13.8 million over five years for specialized engineering services appears reasonable, especially given the critical nature of undersea warfare systems. Benchmarking against similar contracts for engineering support within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure offers cost predictability, which is a positive indicator for government spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of technical solutions. The Navy's approach indicates a commitment to leveraging the broadest possible market for these essential services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value by considering all capable sources.

Public Impact

The primary beneficiary is the Naval Undersea Warfare Center Division, Newport, which receives essential support for its infrastructure, systems, and laboratories. Services delivered include operational, technical, and engineering support crucial for maintaining and advancing undersea warfare capabilities. The geographic impact is concentrated in Rhode Island, where the Naval Undersea Warfare Center is located. This contract supports specialized engineering roles, potentially impacting the workforce in the defense technology and engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs, despite firm fixed-price structure.
Dependence on a single contractor (Mikel Inc.) for critical support functions.
Risk of knowledge loss if contractor personnel turnover is high.
Ensuring continued innovation and adaptation to evolving undersea warfare technologies.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Long-term contract (5 years) indicates stable support for a critical function.
Focus on specialized engineering services for a key naval capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and national security. The Naval Undersea Warfare Center is a key entity for developing and maintaining advanced naval technologies. Spending in this area is critical for maintaining technological superiority in undersea operations. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the Department of Defense to similar research and development facilities.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a small business set-aside. Mikel Inc.'s size status is not specified, but the nature of the work suggests it could be a mid-to-large-sized firm. There is no explicit information on subcontracting plans for small businesses, which warrants further investigation to ensure opportunities are available within the broader ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Undersea Warfare Center Division, Newport, through its contracting officers and technical representatives. Accountability measures are embedded in the firm fixed-price contract terms and performance requirements. Transparency is facilitated by contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) contracts
Department of Defense Engineering Services
Undersea Warfare Technology Development
Naval Research and Development Contracts
Defense Infrastructure Support Contracts

Risk Flags

Contract duration exceeds 3 years
Contract value exceeds $10 million
Services support critical defense infrastructure
Awarded via Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to MIKEL INC. OPERATIONAL, TECHNICAL AND ENGINEERING SERVICES IN SUPPORT OF THE INFRASTRUCTURE, SYSTEMS AND LABORATORIES ASSIGNED TO THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT UNDERSEA WARFARE COMBAT SYSTEMS DEPARTMENT, 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 $13.8 million.

What is the period of performance?

Start: 2021-05-01. End: 2026-04-30.

What is Mikel Inc.'s track record with the Department of Defense, particularly in providing similar engineering services?

Mikel Inc. has a history of contracting with the Department of Defense, including various branches and agencies. Their experience often involves providing technical, engineering, and program management support. For the Naval Undersea Warfare Center specifically, their past performance would be a key factor in the evaluation process for this contract. A review of their contract history would reveal the types and values of previous awards, their performance ratings, and any significant issues encountered. This information is crucial for assessing their capability to successfully execute the current $13.8 million contract over its 5-year duration, ensuring they possess the requisite expertise in operational, technical, and engineering services for undersea warfare systems.

How does the $13.8 million contract value compare to similar engineering support contracts for naval warfare systems?

The $13.8 million contract value for five years of engineering services for the Naval Undersea Warfare Center is a significant but not extraordinary amount for specialized defense support. To benchmark effectively, one would compare it to contracts awarded by entities like NAVSEA or other warfare centers for similar services, such as systems engineering, technical support, and R&D assistance. Factors like the specific technical complexity, required security clearances, and the number of personnel involved influence pricing. If comparable contracts for similar scope and duration are in the $10-15 million range, this award appears competitive. However, a detailed analysis of the Statement of Work (SOW) and the specific deliverables against market rates for engineering talent in the Rhode Island area would provide a more robust value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the scope of work expands beyond the initial estimates, despite the firm fixed-price (FFP) structure. Technical risks involve ensuring the contractor can keep pace with evolving undersea warfare technologies and maintain the necessary expertise. Performance risks relate to Mikel Inc.'s ability to deliver high-quality services consistently over the five-year period. Mitigation strategies likely include robust contract management by the Naval Undersea Warfare Center, clear performance metrics within the SOW, regular progress reviews, and potentially incentives or penalties tied to performance. The FFP nature itself mitigates cost uncertainty for the government, shifting some financial risk to the contractor.

How effective is the firm fixed-price contract type in ensuring value for money for this specific type of service?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For engineering services like those required by the Naval Undersea Warfare Center, where the core tasks are often predictable (e.g., system maintenance, technical analysis, operational support), FFP provides cost certainty for the government. It incentivizes the contractor, Mikel Inc., to manage its costs efficiently to maximize profit. However, if the requirements are highly dynamic or involve significant research and development where the outcome is uncertain, FFP can be less suitable and might lead to contractors bidding higher to account for potential risks, or conversely, cutting corners. In this case, assuming the core support functions are well-understood, FFP is a suitable choice for cost control.

What is the historical spending trend for engineering services at the Naval Undersea Warfare Center, Newport?

Historical spending data for engineering services at NUWC Newport would reveal trends in demand and investment in this area. Analyzing past contracts awarded for similar support functions over several fiscal years would indicate whether spending has been consistent, increasing, or decreasing. This context is vital for understanding the significance of the current $13.8 million award. For instance, if previous annual spending on such services averaged $2-3 million, this 5-year award represents a substantial, potentially consolidated, investment. Conversely, if annual spending has been in the $5-10 million range, this contract aligns with established patterns. Such analysis helps assess the program's stability and the government's long-term commitment to these capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660420R3012

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $14,102,523

Exercised Options: $14,102,523

Current Obligation: $13,801,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8122

IDV Type: IDC

Timeline