DoD Awards $25.8M Contract to SEACORP for Navigation Systems Amidst Limited Competition
Contract Overview
Contract Amount: $25,829,135 ($25.8M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2021-01-08
End Date: 2027-09-10
Contract Duration: 2,436 days
Daily Burn Rate: $10.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: MMM PRODUCTION AND ENGINEERING SERVICES
Place of Performance
Location: MIDDLETOWN, NEWPORT County, RHODE ISLAND, 02842
Plain-Language Summary
Department of Defense obligated $25.8 million to SEACORP, LLC for work described as: MMM PRODUCTION AND ENGINEERING SERVICES Key points: 1. Contract value of $25.8M for navigation systems. 2. SEACORP, LLC is the sole awardee. 3. Limited competition raises potential value concerns. 4. Sector focus is on defense navigation and guidance systems.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure with limited competition warrants scrutiny. Without robust price discovery, it's difficult to ascertain if the $25.8M represents optimal value for the taxpayer.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs than a fully competitive environment.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these navigation systems.
Public Impact
Defense spending on critical navigation technology. Potential impact on military operational readiness. Limited visibility into cost-effectiveness due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Essential defense system
- Long-term contract duration
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing of navigation and guidance systems. Spending in this niche area is critical for military operations but often involves specialized contractors and limited competitive landscapes.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is not identified as a small business. This suggests a missed opportunity to engage small businesses in this defense contract.
Oversight & Accountability
The contract's limited competition and cost-plus nature necessitate close oversight to ensure cost control and prevent potential overruns. Robust auditing and performance monitoring are crucial.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Cost-plus contract type
- No small business participation noted
- Potential for cost overruns
- Lack of transparency in pricing justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, ri, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to SEACORP, LLC. MMM PRODUCTION AND ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is SEACORP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $25.8 million.
What is the period of performance?
Start: 2021-01-08. End: 2027-09-10.
What is the justification for the limited competition on this navigation system contract?
The justification for limited competition is not provided in the data. Typically, such awards occur when only one or a few sources possess the necessary specialized capabilities, technology, or security clearances. However, without explicit documentation, it's difficult to confirm the necessity and ensure fair pricing.
How does the cost-plus incentive fee structure impact the government's risk and SEACORP's performance?
A cost-plus incentive fee (CPIF) contract shares cost risks between the government and the contractor. It incentivizes the contractor to control costs by offering bonuses for meeting or beating targets and penalties for exceeding them. This structure aims to balance cost efficiency with performance, but requires careful negotiation of targets and effective oversight.
What is the potential long-term cost implication of awarding this contract without full and open competition?
Awarding contracts without full and open competition can lead to higher long-term costs. Limited competition reduces the pressure on contractors to offer the most competitive pricing. Over the life of the contract, especially with cost-plus elements, this can result in taxpayers bearing a greater financial burden than if the contract had been competed.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002420R6208
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 62 JOHNNY CAKE HILL, MIDDLETOWN, RI, 02842
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $34,081,062
Exercised Options: $29,074,176
Current Obligation: $25,829,135
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,565,841
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-01-08
Current End Date: 2027-09-10
Potential End Date: 2027-09-10 00:00:00
Last Modified: 2026-01-13
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