DoD Awards $44.9M R&D Contract to SHIPCOM FEDERAL SOLUTIONS LLC for Physical Sciences Research
Contract Overview
Contract Amount: $44,878,445 ($44.9M)
Contractor: Shipcom Federal Solutions LLC
Awarding Agency: Department of Defense
Start Date: 2024-07-02
End Date: 2028-04-03
Contract Duration: 1,371 days
Daily Burn Rate: $32.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NRE
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77082
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $44.9 million to SHIPCOM FEDERAL SOLUTIONS LLC for work described as: NRE Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences, excluding Nanotechnology and Biotechnology. 2. Awarded by the Department of the Navy, this is a Delivery Order under a larger contract. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The specific NAICS code 541715 covers a broad range of scientific research and development services.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. The awarded amount is significant for R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may not yield the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the potential for costs to exceed initial estimates due to the contract type.
Public Impact
This contract supports scientific advancement within the Department of Defense. The research area is critical for national security and technological innovation. The duration of the contract extends over several years, indicating a long-term research objective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition after exclusion of sources
- No small business participation indicated
Positive Signals
- Supports critical R&D for the Department of the Navy
- Long contract duration allows for sustained research efforts
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but can be prone to cost overruns and long development cycles.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that larger, established firms are likely the primary recipients of such contracts, potentially limiting opportunities for smaller innovative companies.
Oversight & Accountability
The 'Delivery Order' nature of the award implies it's part of a larger, pre-existing contract. Oversight would focus on the management of this specific order and its alignment with the parent contract's objectives and terms.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases financial risk.
- Limited competition may lead to suboptimal pricing.
- No indication of small business participation.
- Research and Development projects are inherently uncertain and may not yield desired results.
- Long contract duration increases exposure to changing technological landscapes and requirements.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.9 million to SHIPCOM FEDERAL SOLUTIONS LLC. NRE
Who is the contractor on this award?
The obligated recipient is SHIPCOM FEDERAL SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $44.9 million.
What is the period of performance?
Start: 2024-07-02. End: 2028-04-03.
What specific research outcomes are expected from this $44.9 million investment, and how will they contribute to the Department of the Navy's mission?
The expected outcomes are not detailed in the provided data. However, R&D in physical, engineering, and life sciences typically aims to develop new technologies, improve existing systems, or gain scientific understanding relevant to defense applications. The contribution to the Navy's mission would depend on the specific research focus, potentially enhancing operational capabilities, intelligence gathering, or platform development.
Given the Cost Plus Fixed Fee structure and limited competition, what measures are in place to mitigate cost escalation and ensure fair pricing?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Mitigation typically involves stringent oversight of incurred costs, regular audits, and clear performance metrics. Limited competition can be justified if only a few entities possess the specialized expertise required. However, robust negotiation and benchmarking against similar R&D efforts are crucial to ensure fair pricing.
How effectively does this contract leverage small businesses for specialized R&D tasks, or is it primarily focused on large prime contractors?
The provided data indicates 'sb: false,' suggesting no small business set-aside for this specific award. This implies the contract is likely awarded to a large business prime contractor. While large contractors may utilize small business subcontractors, the primary award structure does not prioritize small business participation, potentially limiting opportunities for innovative smaller firms in this specific instance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 11200 RICHMOND AVE STE 552, HOUSTON, TX, 77082
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,878,445
Exercised Options: $44,878,445
Current Obligation: $44,878,445
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833523G0031
IDV Type: BOA
Timeline
Start Date: 2024-07-02
Current End Date: 2028-04-03
Potential End Date: 2028-04-03 00:00:00
Last Modified: 2025-11-26
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