DoD's $21.7M PEO C4I Contract Awarded to SERCO INC for Engineering Services
Contract Overview
Contract Amount: $21,722,323 ($21.7M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2015-12-21
End Date: 2017-04-28
Contract Duration: 494 days
Daily Burn Rate: $44.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::CT::IGF ROOSEVELT PEO C4I INSTALLATIONS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $21.7 million to SERCO INC for work described as: IGF::CT::IGF ROOSEVELT PEO C4I INSTALLATIONS Key points: 1. Contract value of $21.7M for engineering services. 2. Awarded to SERCO INC under full and open competition. 3. Potential risk associated with cost-plus incentive fee contract type. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: fair
The contract value of $21.7M appears reasonable for engineering services, but the cost-plus incentive fee structure warrants scrutiny. Benchmarking against similar large-scale engineering contracts is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the cost-plus incentive fee (CPIF) structure could lead to costs exceeding initial estimates if not managed carefully.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. While competition is positive, the CPIF type introduces potential for cost overruns that could impact overall taxpayer burden.
Public Impact
Supports critical C4I installations for the Department of the Navy. Ensures availability of specialized engineering expertise. Impacts readiness and operational capabilities of naval forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee contract type
- No small business participation noted
Positive Signals
- Full and open competition
- Supports critical defense infrastructure
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense infrastructure development and maintenance. Spending benchmarks for similar large-scale defense engineering projects would provide further context.
Small Business Impact
The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. Further investigation may be needed to understand if opportunities were missed for small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight mechanisms should ensure adherence to contract terms, cost controls, and performance metrics, especially given the CPIF structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus incentive fee structure may lead to cost overruns.
- Lack of small business participation.
- Potential for performance issues if not adequately monitored.
- Contract duration and delivery order nature could indicate evolving requirements.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to SERCO INC. IGF::CT::IGF ROOSEVELT PEO C4I INSTALLATIONS
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 $21.7 million.
What is the period of performance?
Start: 2015-12-21. End: 2017-04-28.
What is the typical profit margin for SERCO INC on similar cost-plus incentive fee contracts within the defense sector?
Determining the typical profit margin for SERCO INC on similar CPIF contracts requires access to proprietary company data or detailed contract award histories. However, CPIF contracts are designed to incentivize cost savings by sharing savings with the contractor, while also allowing for increased profit if performance targets are met. The specific incentive structure and baseline costs negotiated would dictate the potential profit range.
What specific C4I installations are covered under this contract and what is their current operational status?
The specific C4I installations covered under this contract are not detailed in the provided data. This information would typically be found in the contract's statement of work or associated task orders. Understanding the operational status and criticality of these installations is essential for assessing the true value and risk associated with the engineering services provided.
How effectively has SERCO INC managed costs and met performance objectives on this contract, given the CPIF structure?
Assessing the effectiveness of SERCO INC's cost management and performance on this contract requires reviewing performance reports, earned value management data, and any incentive fee payouts. Without this detailed performance data, it's difficult to determine if the CPIF structure has successfully incentivized efficiency or led to cost overruns. Post-award audits or reviews would provide this insight.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,722,323
Exercised Options: $21,722,323
Current Obligation: $21,722,323
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003911D0032
IDV Type: IDC
Timeline
Start Date: 2015-12-21
Current End Date: 2017-04-28
Potential End Date: 2017-04-28 00:00:00
Last Modified: 2019-10-21
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