Naval Undersea Warfare Center awards $6.3M engineering contract to Purvis Systems Inc. for acoustic support

Contract Overview

Contract Amount: $6,296,000 ($6.3M)

Contractor: Purvis Systems Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-10

End Date: 2026-06-09

Contract Duration: 729 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS FOR SPECIAL PROJECTS ACOUSTIC SUPPORT PROGRAM ENGINEERING AND FLEET SERVICES FOR THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT CODE 34.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $6.3 million to PURVIS SYSTEMS INC for work described as: THIS REQUIREMENT IS FOR SPECIAL PROJECTS ACOUSTIC SUPPORT PROGRAM ENGINEERING AND FLEET SERVICES FOR THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT CODE 34. Key points: 1. Contract focuses on specialized engineering and fleet services for undersea warfare. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of 729 days indicates a medium-term project. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery contract. 5. The 'Cost No Fee' pricing structure shifts risk to the government. 6. The base award amount is $6.3 million, with potential for growth.

Value Assessment

Rating: fair

The contract's 'Cost No Fee' pricing structure is a notable characteristic, placing the financial risk on the government rather than the contractor. This structure requires careful monitoring to ensure cost control and prevent overruns. Benchmarking the value is challenging without more detailed cost breakdowns or comparisons to similar acoustic support contracts. The base award of $6.3 million for a 729-day period for specialized engineering services appears within a reasonable range for such niche technical support, but a full assessment would require deeper analysis of the specific deliverables and labor categories.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized requirement. While two bidders are better than one, a higher number of competitors typically leads to more aggressive pricing and a wider range of innovative solutions. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment, which can lead to better pricing and value for money. However, with only two bidders, the potential for significant cost savings may be limited compared to scenarios with more robust competition.

Public Impact

The Naval Undersea Warfare Center Division, Newport, is the primary beneficiary, receiving essential engineering and fleet services. The contract supports the Special Projects Acoustic Support Program, crucial for naval undersea capabilities. Services will likely be performed in Rhode Island, the location of the Naval Undersea Warfare Center Division, Newport. The contract supports specialized engineering roles, potentially impacting a small but highly skilled technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' pricing structure places significant cost control responsibility on the government.
Limited competition (two bidders) may reduce the pressure for the most competitive pricing.
The specific nature of 'acoustic support' requires specialized expertise, potentially limiting the pool of qualified contractors.

Positive Signals

Awarded through full and open competition, ensuring a broad opportunity for qualified contractors.
The contract supports a critical national defense function related to undersea warfare.
The Naval Undersea Warfare Center is a key institution, suggesting a well-defined need for these services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing firms that provide engineering consulting and services. The market for specialized acoustic engineering and fleet support for naval applications is niche, often dominated by a few key players with specific expertise and security clearances. Spending in this area is driven by defense modernization efforts and the need for advanced technological capabilities in undersea warfare. Comparable spending benchmarks would typically be found within the Department of Defense's broader engineering and technical services procurement data.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Purvis Systems Inc., is not typically classified as a small business. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses for specific support roles.

Oversight & Accountability

Oversight for this contract will primarily reside with the Naval Undersea Warfare Center Division, Newport, and the Department of the Navy. As a delivery order under a potentially larger IDIQ contract, oversight mechanisms would likely be defined in the parent contract. Transparency is facilitated by the public nature of contract awards, but detailed performance metrics and cost monitoring would be internal to the agency. 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
Specialized Technical Support Services

Risk Flags

Cost No Fee pricing structure requires enhanced government oversight.
Limited competition (2 bidders) may impact price competitiveness.
Specialized nature of services could limit contractor pool.
Delivery Order implies potential for follow-on work or modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.3 million to PURVIS SYSTEMS INC. THIS REQUIREMENT IS FOR SPECIAL PROJECTS ACOUSTIC SUPPORT PROGRAM ENGINEERING AND FLEET SERVICES FOR THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT CODE 34.

Who is the contractor on this award?

The obligated recipient is PURVIS SYSTEMS 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 $6.3 million.

What is the period of performance?

Start: 2024-06-10. End: 2026-06-09.

What is the track record of Purvis Systems Inc. with the Department of Defense, particularly in acoustic support or similar engineering services?

Purvis Systems Inc. has a history of contracting with the Department of Defense, primarily in areas related to engineering, technical services, and program management. While specific details on their acoustic support capabilities require deeper investigation into past performance reports and contract histories, their engagement with the Naval Undersea Warfare Center suggests a recognized capability in relevant technical domains. Analyzing their past performance on similar contracts, including adherence to schedules, budget management (especially under cost-reimbursable or cost-plus structures), and technical execution, would provide a clearer picture of their reliability and expertise for this specific acoustic support requirement. Reviewing contract awards and modifications over the past several years would reveal the scale and scope of their previous work for the Navy and other DoD entities.

How does the 'Cost No Fee' pricing structure compare to other contracts for similar engineering services within the Navy?

The 'Cost No Fee' (CNF) pricing structure is less common for standard service contracts compared to fixed-price or cost-plus-incentive-fee arrangements. CNF places the entire financial risk on the government, meaning the contractor is reimbursed for allowable costs but receives no fee or profit. This structure is typically reserved for situations where the scope of work is highly uncertain, or when the government has a strong interest in ensuring the service is performed regardless of cost, often in research, development, or urgent operational support scenarios. For routine engineering and fleet services, contracts with profit margins (e.g., Cost Plus Fixed Fee, Cost Plus Award Fee) are more prevalent as they incentivize contractor efficiency and performance. The use of CNF here suggests a unique justification, possibly related to the specialized nature of acoustic support or a specific program requirement where cost certainty was secondary to service delivery.

What are the potential risks associated with a 'Cost No Fee' contract for specialized acoustic support?

The primary risk with a 'Cost No Fee' contract is the potential for uncontrolled cost growth, as the contractor has limited financial incentive to manage expenses tightly since their costs are reimbursed without a profit margin. This can lead to higher overall government expenditure than anticipated. Another risk is a potential reduction in contractor diligence or innovation, as the motivation to optimize processes or find cost-saving solutions is diminished. The government must implement robust oversight and auditing mechanisms to scrutinize contractor expenditures and ensure that only reasonable and allocable costs are reimbursed. For specialized acoustic support, ensuring the contractor maintains the highest technical standards without the profit motive driving efficiency can also be a concern, requiring stringent performance monitoring.

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

Analyzing historical spending trends for acoustic support engineering services at the Naval Undersea Warfare Center Division, Newport, requires access to detailed procurement databases and historical contract data. Without direct access to such specific historical figures, a general assessment can be made based on the nature of the work. The Naval Undersea Warfare Center is a primary hub for undersea warfare research, development, and testing, suggesting a consistent and potentially growing need for specialized acoustic support. Spending in this area is likely influenced by defense budgets, technological advancements in sonar and underwater acoustics, and the operational tempo of naval assets. It is reasonable to assume that NUWC Newport has allocated significant resources to acoustic R&D and support over the years, with fluctuations based on specific program priorities and funding cycles.

How does the number of bidders (2) impact the potential for achieving best value for this contract?

A competition with only two bidders generally presents a moderate risk to achieving 'best value' compared to a scenario with numerous competitors. While full and open competition was utilized, limiting the pool to two potential offerors suggests that the market for this highly specialized acoustic support and engineering service may be concentrated. This concentration can reduce the downward pressure on pricing that typically occurs with a larger number of bids. The government's ability to secure the best value will heavily depend on the thoroughness of the evaluation process, the clarity of the requirements, and the relative strengths and weaknesses of the two proposals submitted. If both proposals are strong technically, the government may still achieve good value, but the potential for significant cost savings or highly innovative solutions might be constrained compared to a more robustly competed contract.

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

Solicitation ID: N6660423R3012

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Purvis Systems Incorporated

Address: 88 SILVA LN STE 2, MIDDLETOWN, RI, 02842

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

Financial Breakdown

Contract Ceiling: $37,320,720

Exercised Options: $12,051,653

Current Obligation: $6,296,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8361

IDV Type: IDC

Timeline