DoD Awards $66.7M Engineering Support Contract to Serco-IPS for Naval Ship Design and Systems Integration
Contract Overview
Contract Amount: $66,668,253 ($66.7M)
Contractor: Serco-Ips Corporation
Awarding Agency: Department of Defense
Start Date: 2017-07-17
End Date: 2023-07-16
Contract Duration: 2,190 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SUPPORT SERVICES FOR THE NAVSEA NAVAL SYSTEMS ENGINEERING DIRECTORATE (SEA 05) FOR AIRCRAFT CARRIER SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; SURFACE COMBATANT SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; AMPHIBIOUS AND AUXILIARY SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; AND WARFARE SYSTEM, CONTROL SYSTEM AND COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT SYSTEMS, AND INTEROPERABILITY (C5I) SYSTEM SUPPORT.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $66.7 million to SERCO-IPS CORPORATION for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SUPPORT SERVICES FOR THE NAVSEA NAVAL SYSTEMS ENGINEERING DIRECTORATE (SEA 05) FOR AIRCRAFT CARRIER SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; SURFACE COMBATANT SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; AMPHIB… Key points: 1. Contract focuses on critical naval systems engineering for aircraft carriers, surface combatants, and C5I systems. 2. Serco-IPS Corporation is the sole awardee, indicating a specific capability or limited market. 3. Potential risk associated with single-award contracts and the need for robust oversight. 4. Spending aligns with the broader defense sector's investment in advanced naval technology and integration.
Value Assessment
Rating: good
The contract value of $66.7M over six years suggests a reasonable annual spend for specialized engineering support. Benchmarking against similar complex naval engineering contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of the required expertise might limit the number of truly capable bidders.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense services.
Public Impact
Ensures continued development and integration of advanced naval systems critical for national security. Supports the modernization of the U.S. Navy's fleet, impacting operational readiness. The contract's duration allows for long-term planning and sustained engineering expertise. Potential for follow-on work or related contracts in naval engineering and systems integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single contractor for critical engineering functions.
- Potential for scope creep in complex, long-term engineering projects.
- Ensuring adequate technical expertise transfer and knowledge retention.
Positive Signals
- Awarded through full and open competition.
- Contract supports vital national defense capabilities.
- Long-term duration allows for sustained program support.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of Defense's naval shipbuilding and systems integration efforts. Spending in this area is driven by modernization needs and geopolitical demands.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large business (Serco-IPS Corporation). There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
Given the significant value and duration, robust oversight by the Department of the Navy is crucial to ensure performance, cost control, and adherence to contract requirements. Regular reviews and performance metrics are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Single award contract.
- Cost Plus Incentive Fee (CPIF) structure requires careful monitoring.
- Long contract duration increases risk of scope creep or evolving requirements.
- Potential for contractor personnel turnover impacting institutional knowledge.
- Complexity of integrating diverse naval systems.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.7 million to SERCO-IPS CORPORATION. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SUPPORT SERVICES FOR THE NAVSEA NAVAL SYSTEMS ENGINEERING DIRECTORATE (SEA 05) FOR AIRCRAFT CARRIER SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; SURFACE COMBATANT SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; AMPHIBIOUS AND AUXILIARY SHIP DESIGN, INTEGRATION, AND ENGINEERING SUPPORT; AND WARFARE SYSTEM, CONTROL SYSTEM AND COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, COMBAT SYSTEMS, AND INTEROPERABILITY (C5I) SYSTEM SUPPORT.
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 $66.7 million.
What is the period of performance?
Start: 2017-07-17. End: 2023-07-16.
What is the specific breakdown of engineering support provided across the different naval platforms (carriers, surface combatants, etc.) and how does this align with current fleet modernization priori
The contract outlines support for aircraft carrier, surface combatant, and amphibious/auxiliary ship design, integration, and engineering. It also includes warfare system, control system, and C5I system support. This broad scope suggests alignment with comprehensive fleet modernization, addressing both new platform development and the integration of advanced combat and communication systems across various naval assets.
What mechanisms are in place to manage cost overruns or performance issues given the Cost Plus Incentive Fee (CPIF) contract type and the long duration?
A CPIF contract incentivizes both the contractor and the government to control costs. The incentive fee structure likely ties bonuses to meeting cost, schedule, and performance targets. Robust government oversight, including Earned Value Management (EVM) and regular performance reviews, is critical to monitor progress, identify potential issues early, and manage the incentive fee effectively.
How does the government ensure continued access to critical engineering knowledge and capabilities if the contractor relationship changes or if future requirements evolve significantly?
The government typically ensures knowledge retention through contract clauses requiring detailed documentation, technical data rights, and potentially personnel transition plans. For long-term, critical services, the government may also invest in internal expertise or maintain relationships with multiple sources to mitigate dependency on a single entity for future needs.
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: N0002417R3133
Offers Received: 5
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $80,577,464
Exercised Options: $80,577,464
Current Obligation: $66,668,253
Actual Outlays: $2,997,457
Subaward Activity
Number of Subawards: 48
Total Subaward Amount: $37,205,571
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: 2017-07-17
Current End Date: 2023-07-16
Potential End Date: 2023-07-16 00:00:00
Last Modified: 2025-12-08
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