DoD awards $21.1M for Remus Systems engineering, with Wood's Hole Oceanographic Institution as prime

Contract Overview

Contract Amount: $21,120,928 ($21.1M)

Contractor: Woods Hole Oceanographic Institution

Awarding Agency: Department of Defense

Start Date: 2020-11-12

End Date: 2025-12-31

Contract Duration: 1,875 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES TO PERFORM CONCEPT STUDIES, ENGINEERING DEVELOPMENT, MODIFICATION, MAINTENANCE, INSTALLATION, AND TESTING OF THE EXISTING FLEET SYSTEMS OF REMUS SYSTEMS AND SUBSYSTEMS.

Place of Performance

Location: WOODS HOLE, BARNSTABLE County, MASSACHUSETTS, 02543

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION for work described as: ENGINEERING SERVICES TO PERFORM CONCEPT STUDIES, ENGINEERING DEVELOPMENT, MODIFICATION, MAINTENANCE, INSTALLATION, AND TESTING OF THE EXISTING FLEET SYSTEMS OF REMUS SYSTEMS AND SUBSYSTEMS. Key points: 1. Contract focuses on comprehensive lifecycle support for existing fleet systems. 2. Value-for-money assessment is pending detailed cost analysis and benchmarking. 3. Competition dynamics indicate a full and open approach, suggesting potential for competitive pricing. 4. Risk indicators are moderate, given the established nature of the systems and contractor. 5. Performance context involves ongoing maintenance and modification of critical naval assets. 6. Sector positioning is within specialized defense engineering and manufacturing support.

Value Assessment

Rating: fair

The contract value of $21.1 million over approximately 5 years suggests a moderate annual spend. Benchmarking against similar engineering support contracts for specialized naval systems is necessary to fully assess value. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost overruns if not managed diligently, but also allows for flexibility in evolving technical requirements. Without detailed cost breakdowns, a definitive value-for-money judgment is premature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The specific number of bidders and the evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of qualified contractors to propose their best offers.

Public Impact

The primary beneficiaries are the U.S. Navy, ensuring the continued operational readiness of the Remus Unmanned Undersea Vehicle (UUV) fleet. Services delivered include concept studies, engineering development, modification, maintenance, installation, and testing. Geographic impact is primarily national, supporting naval operations and research facilities, with potential for deployment globally. Workforce implications include specialized engineering and technical roles within Wood's Hole Oceanographic Institution and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Long contract duration (over 5 years) requires sustained oversight to ensure continued value.
Reliance on a single awardee for comprehensive lifecycle support could pose a risk if performance issues arise.

Positive Signals

Award to a reputable institution (WHOI) with a history in oceanographic research and engineering.
Full and open competition suggests a robust selection process.
Focus on maintaining and upgrading existing systems indicates a commitment to operational continuity.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the maintenance and development of unmanned systems. The market for UUVs and related support services is growing, driven by increasing naval requirements for reconnaissance, surveillance, and mine countermeasures. Comparable spending benchmarks would involve other contracts for lifecycle support of specialized defense equipment, particularly unmanned platforms.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. However, the prime contractor, Wood's Hole Oceanographic Institution, may engage small businesses for subcontracting opportunities to fulfill specialized requirements, contributing to the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the CPFF contract terms, requiring detailed reporting and justification for costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may be less publicly accessible.

Related Government Programs

Unmanned Undersea Vehicle (UUV) Programs
Naval Surface Warfare Center (NSWC) Contracts
Defense Research and Development Contracts
Fleet Modernization Programs

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Performance Monitoring
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION. ENGINEERING SERVICES TO PERFORM CONCEPT STUDIES, ENGINEERING DEVELOPMENT, MODIFICATION, MAINTENANCE, INSTALLATION, AND TESTING OF THE EXISTING FLEET SYSTEMS OF REMUS SYSTEMS AND SUBSYSTEMS.

Who is the contractor on this award?

The obligated recipient is WOODS HOLE OCEANOGRAPHIC INSTITUTION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2020-11-12. End: 2025-12-31.

What is the historical performance record of Wood's Hole Oceanographic Institution with the Department of Defense, particularly on similar engineering support contracts?

Wood's Hole Oceanographic Institution (WHOI) has a long-standing reputation in oceanographic research and engineering, often collaborating with government agencies, including the Department of Defense. While specific contract performance data for this exact type of service is not detailed here, WHOI's extensive experience in complex marine systems suggests a strong technical capability. Historical data from federal procurement databases would be needed to assess their track record on past DoD contracts, including on-time delivery, budget adherence, and quality of work. Their involvement in developing and supporting advanced marine technologies implies a capacity to handle the technical demands of the Remus Systems contract. Further analysis would involve reviewing past performance evaluations and any reported issues or successes on prior DoD engagements.

How does the awarded value of $21.1 million compare to the estimated market rates for similar engineering services for unmanned underwater vehicles?

Determining precise market rates for specialized engineering services like those for the Remus Systems is complex due to the niche nature of the technology and the specific requirements outlined. The $21.1 million contract, spanning approximately five years (November 2020 to December 2025), suggests an average annual value of roughly $4.2 million. This figure needs to be benchmarked against contracts for lifecycle support, modification, and maintenance of other advanced unmanned systems within the defense sector. Factors such as the level of R&D involved, the complexity of integration, and the required security clearances influence pricing. A comprehensive comparison would involve analyzing the scope of work, the number of bidders, and the final negotiated prices of comparable contracts awarded by the Navy or other branches for similar UUV platforms or specialized defense equipment.

What are the primary risk indicators associated with this Cost Plus Fixed Fee (CPFF) contract type for engineering services?

The primary risk indicator for a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to ensure their fixed fee is realized, the government bears the risk of increased costs if the contractor's actual expenses exceed initial estimates. This is particularly relevant for engineering development and modification tasks where the scope may evolve. Effective risk mitigation requires robust government oversight, including detailed review of incurred costs, justification for expenditures, and close monitoring of project progress against milestones. Without stringent controls and transparent reporting from the contractor, the government could end up paying more than initially anticipated. The fixed fee component, however, provides a degree of predictability for the contractor's profit margin.

What is the expected impact of this contract on the operational readiness and future development of the Navy's Remus Systems fleet?

This contract is crucial for maintaining and enhancing the operational readiness of the Navy's existing Remus Systems fleet. By providing comprehensive lifecycle support, including maintenance, modification, and testing, it ensures that these unmanned underwater vehicles (UUVs) remain functional, reliable, and capable of performing their intended missions. The engineering development and concept study components also suggest that the contract will contribute to the future evolution of the Remus Systems, potentially incorporating upgrades or new capabilities based on operational feedback and technological advancements. This sustained support is vital for the Navy's ability to leverage UUV technology effectively for intelligence, surveillance, reconnaissance, and other critical tasks.

How does the duration of this contract (over 5 years) influence the assessment of its value and the management of contractor performance?

The extended duration of this contract, spanning over five years, necessitates a long-term perspective on value assessment and performance management. While a longer contract can provide stability and continuity for critical support services, it also increases the government's exposure to potential performance degradation or cost escalations over time. For value assessment, it implies that the annual spend should be considered within the broader context of sustained operational capability. Effective management requires proactive oversight, regular performance reviews, and mechanisms to adapt to changing requirements or technological advancements throughout the contract period. The government must ensure that performance standards remain high and that the contractor remains incentivized to deliver optimal value over the entire contract lifecycle, not just in the initial phases.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660417R0350

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 266 WOODS HOLE RD, WOODS HOLE, MA, 02543

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,794,316

Exercised Options: $23,794,316

Current Obligation: $21,120,928

Actual Outlays: $6,811,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6660418DC828

IDV Type: IDC

Timeline