DoD's $19.8M contract for Afloat Networks awarded to Serco Inc. under full and open competition

Contract Overview

Contract Amount: $19,813,224 ($19.8M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-12

End Date: 2024-07-11

Contract Duration: 577 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AFLOAT NETWORKS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to SERCO INC for work described as: AFLOAT NETWORKS Key points: 1. Contract value of $19.8M for Afloat Networks suggests significant investment in naval communications infrastructure. 2. Award to Serco Inc. indicates a competitive landscape for advanced communication systems. 3. The 'Other Communications Equipment Manufacturing' NAICS code points to specialized technology requirements. 4. A delivery order structure implies flexibility in fulfilling evolving naval operational needs. 5. The contract duration of 577 days allows for phased implementation and testing. 6. Fixed-price contract type aims to control costs and provide budget certainty for the Navy.

Value Assessment

Rating: good

The contract value of $19.8 million for Afloat Networks appears reasonable given the specialized nature of naval communication equipment. Benchmarking against similar contracts for advanced communication systems in the defense sector would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to manage costs effectively, but detailed cost breakdowns are not available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and innovative solutions for the Department of the Navy.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that typically leads to better pricing and value for government expenditures. Full and open competition ensures that the most capable and cost-effective solutions are considered.

Public Impact

Naval personnel operating at sea will benefit from enhanced and reliable communication capabilities. The contract supports the delivery of 'Other Communications Equipment' essential for modern naval operations. The geographic impact is primarily focused on naval installations and deployed vessels, with a specific mention of California. This contract may have implications for the specialized workforce in communications equipment manufacturing and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized equipment requires proprietary support.
Ensuring long-term interoperability with existing and future naval communication systems.
Managing the lifecycle costs of advanced communication equipment beyond the initial procurement.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type provides cost certainty for the government.
The contract duration allows for structured implementation and potential for performance feedback.

Sector Analysis

The defense sector's spending on communications equipment is substantial, driven by the need for secure, reliable, and advanced systems for global operations. This contract for Afloat Networks falls within the broader category of defense electronics and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance). Comparable spending benchmarks would involve analyzing other large-scale procurements of specialized communication systems for naval or other military branches, often running into tens or hundreds of millions of dollars.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. Given the nature of advanced communications equipment, it is possible that larger, established defense contractors are the primary participants. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain or for specialized services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver specified goods and services within budget. Transparency is facilitated by the contract award being made under full and open competition, with public reporting mechanisms for federal contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval C4ISR Systems
Defense Communications Infrastructure
Tactical Data Links
Shipboard Communication Systems
Electronic Warfare Systems

Risk Flags

Potential for technology obsolescence
Integration complexity with existing naval systems
Reliability in harsh maritime environments
Cybersecurity vulnerabilities in communication networks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to SERCO INC. AFLOAT NETWORKS

Who is the contractor on this award?

The obligated recipient is SERCO 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 $19.8 million.

What is the period of performance?

Start: 2022-12-12. End: 2024-07-11.

What is Serco Inc.'s track record with the Department of Defense for similar communication systems contracts?

Serco Inc. has a significant history of contracting with the U.S. Department of Defense across various service and support areas. While specific details on their track record for 'Afloat Networks' or 'Other Communications Equipment Manufacturing' require deeper database searches, their broader portfolio includes support for naval operations, IT services, and platform management. Analyzing past performance on similar-sized or technologically related contracts would reveal their proficiency in delivering complex communication solutions, adherence to schedules, and quality of deliverables. Past performance reviews and contract close-out data are crucial for assessing their reliability in this specific domain.

How does the $19.8 million contract value compare to other recent procurements for naval afloat communication systems?

The $19.8 million contract value for Afloat Networks appears to be a moderate-sized procurement within the context of major defense spending. To benchmark effectively, one would compare this figure against other recent awards for similar systems, such as shipboard communication suites, tactical data networks, or satellite communication terminals for naval vessels. Larger, more comprehensive system integrations or platform-wide upgrades could easily exceed hundreds of millions of dollars. Conversely, smaller, component-level procurements might fall below this threshold. The specific capabilities and scope of work defined in this contract are key to a precise comparison.

What are the primary risks associated with this 'Afloat Networks' contract for the Department of the Navy?

Key risks for the Department of the Navy on this 'Afloat Networks' contract include technological obsolescence, as communication technology evolves rapidly. Integration challenges with existing naval platforms and systems present another significant risk, potentially leading to delays and cost overruns. Performance risks related to the reliability and security of the 'Afloat Networks' in demanding operational environments are also critical. Furthermore, dependence on a single vendor for specialized equipment or support could pose a long-term risk. Ensuring robust testing, clear performance metrics, and contingency planning are vital to mitigate these risks.

What is the expected program effectiveness and impact of these 'Afloat Networks' on naval operations?

The expected program effectiveness of these 'Afloat Networks' is to significantly enhance the communication capabilities of naval vessels, improving situational awareness, command and control, and data sharing. This directly impacts operational effectiveness by enabling faster, more secure, and more reliable information flow between ships, shore commands, and other assets. Improved connectivity can facilitate real-time intelligence, better coordination during joint operations, and enhanced support for personnel. The ultimate goal is to provide a decisive information advantage in complex maritime environments.

What are the historical spending patterns for 'Afloat Networks' or similar communication equipment by the Department of the Navy?

Historical spending patterns for naval afloat communication systems reveal a consistent and substantial investment by the Department of the Navy, driven by the continuous need to modernize and maintain its global communication infrastructure. Over the past decade, spending in this category has likely fluctuated based on major shipbuilding programs, technology refresh cycles, and evolving threats. While specific figures for 'Afloat Networks' as a distinct category are not readily available without deeper analysis, the Navy annually obligates billions of dollars towards C4ISR, electronic systems, and communication equipment for its fleet. This contract represents a portion of that ongoing investment.

How does the 'Other Communications Equipment Manufacturing' NAICS code (334290) inform our understanding of this contract's scope?

The NAICS code 334290, 'Other Communications Equipment Manufacturing,' indicates that this contract likely involves the production or integration of specialized communication hardware that doesn't fit into more specific categories like telephone apparatus manufacturing or radio and television broadcasting and wireless communications equipment manufacturing. This suggests the equipment could be custom-designed, highly specialized for military applications, or encompass a unique combination of communication technologies. It implies a focus on the physical manufacturing or assembly of components critical for naval communication systems, potentially including specialized modems, signal processors, or unique interface devices.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003913R0013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,813,224

Exercised Options: $19,813,224

Current Obligation: $19,813,224

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $17,576,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003914D0125

IDV Type: IDC

Timeline