Coast Guard awards $5M for technical instruction on shipboard command, control, and communications systems

Contract Overview

Contract Amount: $5,045,378 ($5.0M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-07

End Date: 2024-06-10

Contract Duration: 1,922 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TECHNICAL INSTRUCTOR WHO ARE TRAINED IN VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS REQUIRED TO DEVELOP, BUILD AND FIELD VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS FOR A VARIETY OF CUTTERS AND UNITS BOTH AFLOAT AND ASHORE. ENAV

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: TECHNICAL INSTRUCTOR WHO ARE TRAINED IN VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS REQUIRED TO DEVELOP, BUILD AND FIELD VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS FOR A VARIETY OF CUTTERS AND UNITS BOTH AFLOAT AND ASHORE. ENAV Key points: 1. Contract provides essential technical training for complex naval systems, ensuring operational readiness. 2. The fixed-price contract structure offers cost certainty for the government. 3. Competition was conducted after exclusion of sources, suggesting potential limitations in market reach. 4. The duration of the contract (over 5 years) indicates a long-term need for these specialized skills. 5. The award falls within engineering services, a critical support function for naval operations.

Value Assessment

Rating: good

The contract value of approximately $5 million over five years appears reasonable for specialized technical instruction. Benchmarking against similar contracts for advanced technical training in defense or maritime sectors would provide a more precise value assessment. The firm fixed-price nature helps control costs, but the specific per-unit cost of training is not detailed here.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not provided but could relate to specialized capabilities or prior relationships. The limited competition may have implications for achieving the lowest possible price.

Taxpayer Impact: The exclusion of sources means taxpayers may not have benefited from the broadest possible competition, potentially leading to a higher overall cost than if all qualified vendors had been allowed to bid.

Public Impact

Personnel within the U.S. Coast Guard will receive critical training on shipboard command, control, and communications (C3) systems. This training directly supports the operational readiness and effectiveness of various cutters and units, both at sea and ashore. The services delivered ensure that Coast Guard personnel are proficient in operating and maintaining vital C3 infrastructure. The geographic impact is nationwide, covering all units requiring these specialized C3 systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources may restrict price discovery and potentially increase costs.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and value of the training provided.
The specific nature of 'exclusion of sources' warrants further investigation to ensure fairness and optimal use of taxpayer funds.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long contract duration suggests a stable and ongoing need for these critical services.
The contractor, Credence Management Solutions LLC, is providing specialized technical instruction vital for national security.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on technical instruction for complex C3 systems. This is a niche but critical area within the broader defense and maritime technology market. Spending in this sector often involves high-value, specialized knowledge transfer. Comparable spending benchmarks would typically be found in contracts supporting naval training and systems integration for government clients.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of small business set-asides or subcontracting requirements. This suggests that the prime contractor is likely a larger entity, and the contract's value and specialized nature may not have been conducive to significant small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services. The Inspector General for the Department of Homeland Security may have jurisdiction for audits or investigations if concerns arise regarding performance or financial integrity.

Related Government Programs

Naval Training Systems
Command, Control, Communications, Computers, and Intelligence (C4I) Systems Support
Maritime Security Technology
Defense Contractor Training Services
Shipboard Systems Engineering

Risk Flags

Limited competition may impact cost-effectiveness.
Lack of detailed performance metrics hinders effectiveness assessment.
Justification for 'exclusion of sources' requires further scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.0 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. TECHNICAL INSTRUCTOR WHO ARE TRAINED IN VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS REQUIRED TO DEVELOP, BUILD AND FIELD VARIOUS SHIPBOARD COMMAND, CONTROL AND COMMUNICATIONS SYSTEMS FOR A VARIETY OF CUTTERS AND UNITS BOTH AFLOAT AND ASHORE. ENAV

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2019-03-07. End: 2024-06-10.

What is the specific nature of the 'exclusion of sources' in this 'Full and Open Competition After Exclusion of Sources' award, and what was the justification?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) contract type implies that the government intended to compete the requirement broadly but subsequently excluded specific potential offerors. The justification for such exclusions typically relates to factors like unique capabilities, proprietary data, prior performance on related systems, or specific security requirements that only a limited number of entities could meet. Without further documentation from the contracting agency (U.S. Coast Guard), the precise reasons for excluding certain sources remain unknown. This method can sometimes lead to less competitive pricing compared to unrestricted full and open competition, as the pool of eligible bidders is smaller. Taxpayers may incur higher costs if the excluded sources could have offered a more competitive price or innovative solution.

How does the per-unit cost of this technical instruction compare to industry benchmarks for similar specialized training?

The provided data does not include specific per-unit cost breakdowns for the technical instruction. The total award amount of approximately $5.04 million covers a duration of 1922 days (roughly 5.26 years), implying a significant scope of work. To benchmark the per-unit cost, one would need to know the number of personnel trained, the duration and intensity of each training module, and the specific systems covered. Industry benchmarks for highly specialized technical training, particularly in defense and maritime C3 systems, can vary widely. Factors such as the complexity of the systems, the required security clearances for instructors, and the need for specialized facilities or simulators would influence pricing. Without these details, a direct comparison is not feasible, but the overall contract value suggests a substantial investment in developing critical workforce skills.

What is Credence Management Solutions LLC's track record with similar government contracts, particularly in technical instruction and C3 systems?

Credence Management Solutions LLC has a history of performing various services for government agencies, including the Department of Homeland Security and the U.S. Coast Guard. Their contract portfolio often includes program management, IT support, and professional services. While this specific contract focuses on technical instruction for C3 systems, the company's broader experience in supporting defense and security-related entities suggests a foundational capability. A deeper analysis would involve reviewing past performance evaluations and the scope of previous training-related contracts awarded to Credence Management Solutions to ascertain their specific expertise and success rate in delivering complex technical training for maritime command and control systems.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the technical instruction provided under this contract?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) used to measure the success and effectiveness of the technical instruction. Typically, for such contracts, KPIs might include trainee pass/fail rates on assessments, post-training proficiency evaluations, reduction in system errors attributed to operator/maintainer knowledge gaps, timely completion of training modules, and feedback scores from trainees and their supervisors. The effectiveness is also indirectly gauged by the operational readiness and performance of the C3 systems themselves. Without access to the contract's statement of work (SOW) or performance work statement (PWS), these specific metrics remain unspecified.

How has historical spending by the U.S. Coast Guard on technical instruction for C3 systems trended over the past five years?

Analyzing historical spending trends for technical instruction on C3 systems by the U.S. Coast Guard requires access to comprehensive contract databases and spending reports over the specified period. This particular contract, awarded in March 2019 with an end date in June 2024, represents a significant portion of spending within its timeframe. General trends in defense and maritime spending often show increasing investment in advanced C3 capabilities due to evolving threats and technological advancements. It is plausible that spending in this area has remained consistent or increased as the Coast Guard modernizes its fleet and systems. A detailed trend analysis would involve aggregating data on all similar contracts awarded by the USCG over the last five years to identify patterns in contract values, durations, and types of services procured.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,045,378

Exercised Options: $5,045,378

Current Obligation: $5,045,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS112

IDV Type: IDC

Timeline