Serco Inc. awarded $9.89M contract for engineering and technical support services by the Department of the Navy

Contract Overview

Contract Amount: $9,887,891 ($9.9M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2007-12-20

End Date: 2009-01-31

Contract Duration: 408 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ENGINEERING AND TECHNICAL SUPPORT SERVIC

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to SERCO INC for work described as: ENGINEERING AND TECHNICAL SUPPORT SERVIC Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 408 days indicates a medium-term engagement for services. 3. Awarded as Cost Plus Fixed Fee (CPFF), which can shift some cost risk to the government. 4. The contract was awarded by the Department of the Navy, a major defense agency. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded in December 2007, with an end date in January 2009.

Value Assessment

Rating: fair

The contract value of $9.89 million for engineering and technical support over approximately 13.5 months appears to be within a reasonable range for specialized services. However, without specific details on the scope of work, deliverables, and labor categories, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comparable engineering services would be necessary for a more definitive evaluation of pricing and value.

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 number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on both technical merit and cost.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to yield the best value by driving down prices through market forces.

Public Impact

The Department of the Navy benefits from specialized engineering and technical support services. These services are crucial for maintaining and enhancing naval capabilities. The contract supports the defense sector's operational readiness and technological advancement. The geographic impact is likely concentrated around naval facilities where the services are rendered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to achieve a higher fee, potentially leading to less cost control compared to fixed-price contracts.
Lack of specific details on performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The contract's relatively short duration might indicate a need for ongoing re-competition or potential for contract modifications, which can add administrative overhead.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Serco Inc., is a known entity in government contracting, implying a level of established capability.
The contract specifies a fixed fee component, which provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often involves complex projects requiring deep technical knowledge. The market size for engineering services supporting the federal government, particularly the Department of Defense, is substantial, driven by the need for advanced technological solutions and ongoing support for complex systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Serco Inc., would determine any subcontracting opportunities based on its own business strategy and the specific needs of the engineering and technical support services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Engineering Services
Technical Support Contracts
Naval Operations Support
Professional Services Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to higher costs for the government compared to fixed-price contracts.
Lack of specific performance metrics makes objective evaluation of contractor performance difficult.
The contract's duration and scope require careful management to prevent cost overruns and ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to SERCO INC. ENGINEERING AND TECHNICAL SUPPORT SERVIC

Who is the contractor on this award?

The obligated recipient is SERCO 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 $9.9 million.

What is the period of performance?

Start: 2007-12-20. End: 2009-01-31.

What is Serco Inc.'s track record with the Department of the Navy for similar engineering and technical support contracts?

Serco Inc. has a history of performing various services for the Department of the Navy and other federal agencies. Analyzing their past performance on contracts with similar scope, duration, and value would provide insight into their reliability, quality of service, and ability to manage costs effectively. A review of past performance evaluations and any contract disputes or awards would be crucial. For this specific contract, its completion within the specified period suggests a degree of successful execution, but further investigation into detailed performance metrics and client feedback would be necessary for a comprehensive assessment of their track record.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or services where the scope is not well-defined, allowing for flexibility. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure shifts some cost risk to the government, as the final cost can exceed initial estimates if costs increase. Compared to fixed-price contracts, CPFF can be less cost-effective for the government if not managed diligently, as it lacks the contractor's incentive to control costs tightly. However, for highly technical or uncertain projects, it can ensure the government obtains the necessary services without overly penalizing the contractor for unforeseen challenges.

What are the key performance indicators (KPIs) used to measure the success of this engineering and technical support contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for engineering and technical support services, KPIs might include adherence to project timelines, quality of deliverables (e.g., accuracy of designs, completeness of reports), technical performance of systems supported, responsiveness to requests, and budget adherence. The effectiveness of the CPFF structure also relies on robust government oversight to ensure costs are reasonable and allocable. Without explicit KPIs, assessing the contractor's performance objectively is challenging, relying instead on broader contract completion status.

What is the historical spending trend for engineering and technical support services by the Department of the Navy in the years surrounding this contract award?

The Department of the Navy consistently spends significant amounts on engineering and technical support services, given its complex operational and technological requirements. In the years surrounding the 2007-2009 period of this contract, overall defense spending was substantial, influenced by ongoing military operations. While this specific $9.89 million contract represents a fraction of the Navy's total budget, it reflects a segment of their investment in specialized expertise. Analyzing broader trends would involve examining annual reports and budget allocations for the Naval Sea Systems Command (NAVSEA) or relevant program executive offices to understand the scale and evolution of such procurements.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk with CPFF contracts is the potential for cost overruns, as the government bears the risk of increased costs while the contractor's profit (the fixed fee) remains constant. This can reduce the contractor's incentive to control expenses rigorously. Another risk is the potential for scope creep if the contract is not tightly managed, leading to additional costs without a corresponding increase in the fixed fee. Ensuring accurate cost accounting and robust oversight by the government are critical to mitigating these risks. The government must also ensure that the fixed fee is fair and reasonable for the level of effort and risk undertaken by the contractor.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6600107R0018

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 2650 PARK TOWER DR STE 800, VIENNA, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,887,891

Exercised Options: $9,887,891

Current Obligation: $9,887,891

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600107D0018

IDV Type: IDC

Timeline