DoD Awards $9.75M Contract for Inter-Subsystem Monitoring Tool to RITE-SOLUTIONS, INC
Contract Overview
Contract Amount: $9,754,903 ($9.8M)
Contractor: Rite-Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-28
End Date: 2026-09-30
Contract Duration: 763 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTER-SUBSYSTEM MONITORING TOOL (ISMT) AND ON-BOARD TEAM TRAINER-MASTER CONTROLLER (OBTT-MC).
Place of Performance
Location: PAWCATUCK, NEW LONDON County, CONNECTICUT, 06379
Plain-Language Summary
Department of Defense obligated $9.8 million to RITE-SOLUTIONS, INC. for work described as: INTER-SUBSYSTEM MONITORING TOOL (ISMT) AND ON-BOARD TEAM TRAINER-MASTER CONTROLLER (OBTT-MC). Key points: 1. The Department of the Navy awarded a $9.75 million contract for the ISMT and OBTT-MC. 2. RITE-SOLUTIONS, INC. is the sole awardee under a full and open competition after exclusion of sources. 3. The contract aims to enhance system monitoring and training capabilities for naval operations. 4. This award falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar system development and training contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have yielded the most competitive pricing compared to a truly open solicitation.
Taxpayer Impact: Taxpayer funds are being used for advanced monitoring and training systems, with potential for cost inefficiencies due to the contract type and limited competition.
Public Impact
Enhances naval operational readiness through improved system monitoring. Provides advanced training capabilities for naval personnel. Supports the development of critical defense technology. Potential for increased efficiency in system diagnostics and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Limited competition after exclusion of sources
- Potential for cost overruns
Positive Signals
- Addresses critical defense needs
- Supports advanced technology development
- Aims to improve operational effectiveness
Sector Analysis
This contract is within the broader Defense sector, specifically focusing on advanced system monitoring and training equipment. Spending benchmarks for similar specialized naval systems are highly variable, but $9.75 million for development and integration appears within a reasonable range for complex technological solutions.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor, RITE-SOLUTIONS, INC., is not identified as a small business in this context. Therefore, the direct impact on small business participation is likely minimal unless they are subcontractors.
Oversight & Accountability
The contract's oversight will be crucial given the Cost Plus Fixed Fee structure. The Department of the Navy will need robust mechanisms to monitor costs, performance, and adherence to the fixed fee to ensure value for taxpayer money.
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
- Potential for cost overruns due to CPFF structure.
- Limited competition may result in suboptimal pricing.
- Lack of transparency in cost breakdown.
- Dependence on a single contractor for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ct, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to RITE-SOLUTIONS, INC.. INTER-SUBSYSTEM MONITORING TOOL (ISMT) AND ON-BOARD TEAM TRAINER-MASTER CONTROLLER (OBTT-MC).
Who is the contractor on this award?
The obligated recipient is RITE-SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $9.8 million.
What is the period of performance?
Start: 2024-08-28. End: 2026-09-30.
What specific performance metrics will be used to evaluate the effectiveness of the Inter-Subsystem Monitoring Tool and On-Board Team Trainer-Master Controller?
Effectiveness will likely be measured through a combination of technical performance indicators, such as system uptime, diagnostic accuracy, and response times for the monitoring tool. For the trainer, metrics may include trainee proficiency improvements, simulation fidelity, and the ability to replicate realistic operational scenarios. Detailed performance work statements should outline these specific, measurable, achievable, relevant, and time-bound (SMART) goals.
How does the 'exclusion of sources' in the competition process impact the government's ability to secure the best possible price for this contract?
Excluding sources limits the pool of potential bidders, which can reduce competitive pressure and potentially lead to higher prices than if the competition were truly open to all qualified vendors. While justified in some cases (e.g., unique capabilities), it necessitates careful justification to ensure the government is not foregoing significant cost savings or innovative solutions from excluded firms.
What are the long-term cost implications of a Cost Plus Fixed Fee contract for developing and implementing advanced training and monitoring systems?
Cost Plus Fixed Fee contracts carry inherent risks of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. While the fee incentivizes efficiency, the government bears the risk of cost overruns. For complex, long-term system development, this can lead to higher overall expenditures compared to fixed-price contracts if not meticulously managed and monitored by the contracting agency.
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: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002424R6200
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 185 S BROAD ST STE 303, PAWCATUCK, CT, 06379
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $39,269,270
Exercised Options: $10,695,483
Current Obligation: $9,754,903
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $7,655,170
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-28
Current End Date: 2026-09-30
Potential End Date: 2029-08-26 00:00:00
Last Modified: 2025-12-22
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