DoD awards $18.4M for Remus UUV engineering services to Woods Hole Oceanographic Institution

Contract Overview

Contract Amount: $18,360,604 ($18.4M)

Contractor: Woods Hole Oceanographic Institution

Awarding Agency: Department of Defense

Start Date: 2023-11-20

End Date: 2026-11-19

Contract Duration: 1,095 days

Daily Burn Rate: $16.8K/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, ANALYSIS, FABRICATION, 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 $18.4 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION for work described as: ENGINEERING SERVICES TO PERFORM CONCEPT STUDIES, ENGINEERING DEVELOPMENT, ANALYSIS, FABRICATION, MODIFICATION, MAINTENANCE, INSTALLATION, AND TESTING OF THE EXISTING FLEET SYSTEMS OF REMUS SYSTEMS AND SUBSYSTEMS. Key points: 1. Contract focuses on sustainment and upgrades for existing Remus Unmanned Underwater Vehicle (UUV) systems. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can carry cost overrun risks. 4. Performance period spans three years, indicating a medium-term commitment for sustainment. 5. The awardee, Woods Hole Oceanographic Institution, has a strong background in oceanographic research and development. 6. This contract supports the Navy's ongoing need for reliable and advanced UUV capabilities.

Value Assessment

Rating: good

The contract value of $18.4 million over three years for engineering services related to UUV systems appears reasonable given the specialized nature of the work. Benchmarking against similar sustainment contracts for complex defense systems is challenging without more specific data on the scope of engineering tasks. However, the fixed fee component in a CPFF contract provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The specific number of bids received is not provided, but the open competition suggests a robust process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider range of contractors to participate, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the U.S. Navy, which will receive continued engineering support for its Remus UUV fleet. Services include concept studies, engineering development, analysis, fabrication, modification, maintenance, installation, and testing. The geographic impact is primarily within the United States, supporting naval operations and research facilities. Workforce implications include employment for specialized engineers, technicians, and support staff at the contractor's facility.

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 managed.
The specialized nature of UUV systems may limit the pool of truly competitive bidders in the long term.
Reliance on a single awardee for sustainment of a critical system could pose a risk if performance issues arise.

Positive Signals

Award to a well-established research institution with deep expertise in relevant technologies.
Full and open competition process suggests a commitment to achieving best value.
The contract duration allows for sustained support and development of system improvements.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting unmanned systems and maritime technologies. The market for UUVs and their associated engineering services is growing, driven by increasing demand for autonomous capabilities in surveillance, reconnaissance, and mine countermeasures. Comparable spending benchmarks would likely involve other sustainment contracts for complex defense platforms or specialized engineering services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing specialized expertise, and the potential impact on the small business ecosystem for this specific award is likely minimal unless the prime contractor actively engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract structure, requiring the contractor to justify costs and meet performance milestones. Transparency is facilitated through contract reporting mechanisms, and any significant issues could fall under the purview of the Department of Defense's Inspector General.

Related Government Programs

Unmanned Underwater Vehicle (UUV) Programs
Naval Surface Warfare Center (NSWC) Engineering Services
Defense Research and Development Contracts
Maritime Systems Sustainment

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technical Complexity of UUV Systems
Long-Term Sustainment Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to WOODS HOLE OCEANOGRAPHIC INSTITUTION. ENGINEERING SERVICES TO PERFORM CONCEPT STUDIES, ENGINEERING DEVELOPMENT, ANALYSIS, FABRICATION, 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 $18.4 million.

What is the period of performance?

Start: 2023-11-20. End: 2026-11-19.

What is the historical spending pattern for Remus UUV engineering services with Woods Hole Oceanographic Institution?

Analyzing historical spending requires access to past contract awards. Without specific historical data, it's difficult to establish a precise spending pattern. However, Woods Hole Oceanographic Institution (WHOI) is a well-known research institution with a long history of government contracts, particularly in oceanographic and naval research. If this is a continuation or expansion of previous work on Remus systems, it suggests a sustained need and a successful prior relationship. Future analysis would benefit from examining prior awards to WHOI for similar services to understand trends in contract value, duration, and scope.

How does the pricing structure (Cost Plus Fixed Fee) compare to other UUV sustainment contracts?

Cost Plus Fixed Fee (CPFF) contracts are common in research and development or situations where the scope of work is not precisely defined at the outset, allowing for flexibility. For sustainment contracts, especially those involving engineering development and modifications, CPFF can be appropriate. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for all allowable costs plus a fixed fee. Other UUV sustainment contracts might utilize fixed-price incentive fee or firm-fixed-price structures if the scope is more routine maintenance or well-defined upgrades. The choice of CPFF here suggests the Navy anticipates evolving requirements or significant engineering challenges in maintaining and upgrading the Remus fleet.

What is the track record of Woods Hole Oceanographic Institution in delivering complex engineering services for defense applications?

Woods Hole Oceanographic Institution (WHOI) has a distinguished track record in oceanographic research and engineering, often collaborating with government agencies, including the Department of Defense and Navy. They are known for developing and supporting advanced marine technologies, including autonomous underwater vehicles (AUVs) and remotely operated vehicles (ROVs). Their expertise spans a wide range of disciplines relevant to UUVs, such as hydrodynamics, sensor integration, power systems, and software development. While specific performance metrics for this exact contract are not yet available, WHOI's long-standing reputation and extensive experience in related fields suggest a strong capability to deliver complex engineering services for defense applications.

What are the potential risks associated with the "All Other Transportation Equipment Manufacturing" NAICS code for this contract?

The NAICS code "336999 - All Other Transportation Equipment Manufacturing" is broad and encompasses a wide variety of specialized manufacturing. For this contract, which focuses on engineering services for existing UUV systems rather than new manufacturing, the NAICS code might be less indicative of specific manufacturing risks. The primary risks are more likely tied to the complexity of the UUV systems themselves, the potential for unforeseen engineering challenges, and the management of the CPFF contract type. Risks associated with the NAICS code itself could include supply chain vulnerabilities for specialized components or the need for highly specific manufacturing capabilities, but the emphasis here is on engineering and sustainment, not mass production.

How does the contract duration of 1095 days (3 years) impact the overall value proposition for the Navy?

A three-year contract duration provides a stable period for the Navy to receive consistent engineering support and implement necessary upgrades for the Remus UUV fleet. This extended timeframe allows the contractor, Woods Hole Oceanographic Institution, to develop a deeper understanding of the systems and potentially achieve economies of scale in their support operations. It also offers predictability for budgeting and planning. From a value perspective, a longer duration can be beneficial if it leads to improved system reliability, reduced downtime, and the successful integration of technological advancements, ultimately enhancing the operational effectiveness of the UUVs over their lifecycle.

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: $26,216,871

Exercised Options: $26,216,871

Current Obligation: $18,360,604

Actual Outlays: $462,010

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