DoD Awards $171.7M for Ship Design Services to Serco-IPS Corporation Under Full and Open Competition
Contract Overview
Contract Amount: $171,688,173 ($171.7M)
Contractor: Serco-Ips Corporation
Awarding Agency: Department of Defense
Start Date: 2015-09-02
End Date: 2024-09-01
Contract Duration: 3,287 days
Daily Burn Rate: $52.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF SHIP DESIGN SERVICES
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $171.7 million to SERCO-IPS CORPORATION for work described as: IGF::OT::IGF SHIP DESIGN SERVICES Key points: 1. Significant contract value for specialized engineering services. 2. Competition was full and open, suggesting market availability. 3. Risk appears moderate given established contractor and service type. 4. Spending falls within the Engineering Services sector.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar large-scale engineering service contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. Multiple bidders likely contributed to achieving a competitive price, though the CPFF structure necessitates ongoing oversight.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense engineering services, with competition aiming to optimize cost-effectiveness.
Public Impact
Supports naval readiness and modernization efforts. Involves complex engineering and design for maritime assets. Potential for long-term impact on shipbuilding and defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires diligent cost oversight.
- Long contract duration may lead to scope creep if not managed.
Positive Signals
- Full and open competition utilized.
- Contract awarded by Department of the Navy.
- Services are critical for defense infrastructure.
Sector Analysis
This contract falls under Engineering Services, a sector vital for government infrastructure and defense projects. Spending benchmarks for similar large-scale design services can vary significantly based on project complexity and duration.
Small Business Impact
The data does not indicate specific subcontracting to small businesses. Further analysis would be needed to determine if small business participation is being maximized.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPFF structure necessitates robust financial tracking and performance monitoring to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) requires diligent cost monitoring.
- Long contract duration (3287 days) presents potential for scope creep.
- Lack of specific small business subcontracting data.
- Need to benchmark fixed fee against industry standards.
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $171.7 million to SERCO-IPS CORPORATION. IGF::OT::IGF SHIP DESIGN SERVICES
Who is the contractor on this award?
The obligated recipient is SERCO-IPS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $171.7 million.
What is the period of performance?
Start: 2015-09-02. End: 2024-09-01.
What is the estimated total cost if the contract reaches its maximum potential value over its duration?
The provided data shows an award amount of $171,688,173.44 with a duration of 3287 days. However, the contract type is Cost Plus Fixed Fee (CPFF), meaning the final cost will depend on actual allowable costs incurred plus a fixed fee. Without knowing the fee percentage or projected cost ceiling, the exact total cost cannot be determined from this data alone.
How does the fixed fee component of this CPFF contract compare to industry standards for similar ship design services?
The fixed fee is a crucial element of a CPFF contract, representing the contractor's profit. To assess its reasonableness, it should be benchmarked against typical fixed fee percentages for large-scale, complex engineering and design services within the defense sector. Without this specific fee information, a direct comparison to industry standards is not possible.
What mechanisms are in place to ensure the effectiveness and quality of the ship design services provided by Serco-IPS Corporation?
Effectiveness and quality are typically ensured through performance metrics, milestones, and deliverables outlined in the contract. The Department of the Navy's quality assurance personnel would monitor progress, review designs, and ensure compliance with technical specifications and requirements. Regular progress reviews and acceptance criteria are key to maintaining service quality.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002415R3472
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $311,240,340
Exercised Options: $283,935,322
Current Obligation: $171,688,173
Subaward Activity
Number of Subawards: 81
Total Subaward Amount: $56,993,820
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4066
IDV Type: IDC
Timeline
Start Date: 2015-09-02
Current End Date: 2024-09-01
Potential End Date: 2024-09-01 00:00:00
Last Modified: 2025-09-30
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