Navy awards $14.7M contract for CBRND sustainment to Interfuze Corp, utilizing full and open competition

Contract Overview

Contract Amount: $14,756,304 ($14.8M)

Contractor: Interfuze Corporation

Awarding Agency: General Services Administration

Start Date: 2022-09-30

End Date: 2026-03-30

Contract Duration: 1,277 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 47QFNA19K00220310 JPEO CBRND NAVY SUSTAINMENT CNIC

Place of Performance

Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $14.8 million to INTERFUZE CORPORATION for work described as: 47QFNA19K00220310 JPEO CBRND NAVY SUSTAINMENT CNIC Key points: 1. Contract value of $14.7 million over approximately 3.5 years suggests a moderate investment in sustainment services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. Interfuze Corporation, the sole awardee, will provide sustainment for JPEO CBRND systems. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The period of performance spans from September 30, 2022, to March 30, 2026. 6. The North American Industry Classification System (NAICS) code 334519 points to manufacturing of measuring and controlling devices, suggesting a technical component to the sustainment.

Value Assessment

Rating: good

The contract value of $14.7 million for a 1277-day period of performance equates to approximately $11,555 per day. Without specific details on the services rendered, direct benchmarking is challenging. However, the firm fixed-price nature suggests the government has negotiated a set price for defined deliverables, which is generally favorable for cost control. The award amount appears reasonable for sustainment services of complex equipment, assuming the scope is well-defined.

Cost Per Unit: $11,555 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria. The fact that it was competed at all is positive for price discovery. The number of bidders is not specified, but the 'full and open' designation suggests multiple interested parties were likely considered.

Taxpayer Impact: This competitive approach aims to ensure the government receives the best value by allowing multiple qualified vendors to bid, potentially driving down costs for taxpayers.

Public Impact

The primary beneficiaries are the U.S. Navy's Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO CBRND), ensuring the operational readiness of critical defense systems. Services delivered include sustainment, which typically encompasses maintenance, repair, and logistical support for CBRND equipment. The geographic impact is likely focused on Navy installations and operational areas where CBRND equipment is deployed. Workforce implications may include specialized technical roles for Interfuze Corporation employees involved in the sustainment activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and impact on the breadth of competition.
Lack of specific details on the sustainment services provided makes it difficult to fully assess value for money and potential risks.
The NAICS code suggests a manufacturing focus, which might imply a need for specialized parts or technical expertise that could be subject to supply chain risks.

Positive Signals

The use of Firm Fixed Price contract type is a positive signal, indicating cost certainty for the government.
The contract was awarded through a competitive process, suggesting an effort to obtain fair market value.
The sustainment of critical CBRND equipment is vital for national defense, indicating a program of significant importance.

Sector Analysis

The defense sustainment sector is a critical component of the overall defense industrial base, ensuring the operational readiness of military equipment. This contract falls within the broader category of defense logistics and support services. Spending in this area is substantial, as maintaining complex systems requires ongoing investment. Comparable spending benchmarks would typically involve analyzing other sustainment contracts for similar defense systems or across different branches of the military.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Therefore, the direct impact on small businesses through this contract is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Naval Sea Systems Command (NAVSEA) or the relevant JPEO CBRND contracting office, given the Navy's involvement. The General Services Administration (GSA) acts as the contracting agency. Accountability measures are inherent in the Firm Fixed Price contract type, requiring Interfuze Corporation to meet defined performance standards. Transparency is facilitated by the contract award notice, but detailed performance metrics and oversight reports are not publicly available.

Related Government Programs

JPEO CBRND Programs
Navy Logistics and Sustainment Contracts
CBRND Defense Equipment Maintenance
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Complexity of CBRND systems may lead to higher-than-expected sustainment costs.
Dependence on specific technical expertise and parts availability for sustainment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.8 million to INTERFUZE CORPORATION. 47QFNA19K00220310 JPEO CBRND NAVY SUSTAINMENT CNIC

Who is the contractor on this award?

The obligated recipient is INTERFUZE CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-03-30.

What specific sustainment services are included under this contract for JPEO CBRND systems?

The provided data indicates the contract is for 'SUSTAINMENT' of JPEO CBRND systems. Sustainment typically encompasses a range of activities crucial for maintaining the operational readiness of defense equipment. These can include scheduled and unscheduled maintenance, repair and overhaul, logistics support (such as spare parts management and inventory control), technical support, engineering services for obsolescence management or minor upgrades, and potentially training for end-users or maintainers. The specific nature of the CBRND systems (e.g., detection equipment, protective gear, decontamination systems) would dictate the precise scope of sustainment. Without access to the contract's Statement of Work (SOW), the exact services remain generalized.

How does the daily cost of $11,555 compare to similar sustainment contracts for defense equipment?

Benchmarking the daily cost of $11,555 requires comparison with contracts for similar types of defense equipment and sustainment scopes. Sustainment costs can vary dramatically based on the complexity, criticality, and age of the equipment. For instance, sustainment for highly specialized, technologically advanced systems like advanced sensor arrays or complex communication suites might command higher daily rates due to the need for specialized technicians, expensive diagnostic equipment, and proprietary parts. Conversely, sustainment for simpler, more robust equipment might fall below this benchmark. Without knowing the specific CBRND systems involved and the detailed service level agreements, a precise comparison is difficult. However, this figure provides a baseline for evaluating the cost-effectiveness of the contract.

What are the potential risks associated with Interfuze Corporation's track record in fulfilling defense sustainment contracts?

Assessing the risks associated with Interfuze Corporation's track record requires examining their past performance on similar government contracts. Key areas to investigate include their history of on-time delivery, adherence to quality standards, cost control performance (especially on fixed-price contracts), and any history of contract disputes, terminations, or performance deficiencies. A review of contract databases (like the Federal Procurement Data System - FPDS) and performance evaluations (Contractor Performance Assessment Reporting System - CPARS) would be necessary. If Interfuze has a strong history of successful sustainment delivery for complex systems, the risk is lower. Conversely, a history of performance issues would elevate the risk profile for this contract, potentially impacting the readiness of critical CBRND assets.

What is the significance of the NAICS code 334519 ('Other Measuring and Controlling Device Manufacturing') in the context of this sustainment contract?

The NAICS code 334519 indicates that the primary business activity of the contractor, or at least the focus of this contract, relates to the manufacturing of measuring and controlling devices. In the context of a sustainment contract for JPEO CBRND systems, this suggests that the contract likely involves maintaining, repairing, or supporting equipment that falls under this manufacturing classification. These could be sensors, detectors, monitoring systems, or control units used in chemical, biological, radiological, or nuclear defense applications. The relevance lies in the specialized technical knowledge, calibration requirements, and potential need for replacement parts that are characteristic of such devices. It implies that the sustainment effort requires expertise akin to that of a manufacturer in this specific domain.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact taxpayer value compared to standard full and open competition?

The 'Full and Open Competition After Exclusion of Sources' method is a nuanced approach. Standard 'Full and Open Competition' allows all responsible sources to submit offers. 'After Exclusion of Sources' implies that while the competition was intended to be broad, certain potential offerors were deliberately excluded based on specific, pre-defined criteria outlined in the solicitation. This exclusion must be justified and documented. If the exclusions were based on legitimate technical capabilities, security requirements, or past performance necessary for this specialized sustainment, it could still lead to strong competition among qualified vendors, potentially yielding good value. However, if the exclusions were overly restrictive or not well-justified, it could limit competition, potentially leading to higher prices and reduced value for taxpayers compared to a scenario where all capable sources could participate.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFNA22Q0207

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 675 DISCOVERY DR NW STE 200, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $22,758,119

Exercised Options: $15,130,777

Current Obligation: $14,756,304

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $759,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFNA20D0008

IDV Type: IDC

Timeline