DoD's $210M PSS Contract for Naval Support Services Awarded to Serco-IPS Corporation

Contract Overview

Contract Amount: $209,850,806 ($209.9M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-09

End Date: 2026-09-08

Contract Duration: 2,556 days

Daily Burn Rate: $82.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMS 377, PROFESSIONAL SUPPORT SERVICES (PSS) IN THE AREAS OF T&E, TECHNICAL MANAGEMENT SUPPORT, ACQUISITION AND LIFE CYCLE MANAGEMENT SUPPORT, LANDING CRAFT PLANNING YARD SUPPORT, INTEGRATED LOGISTICS SUPPORT (ILS), GFE SUPPORT, AND FLEET SUPPORT.

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $209.9 million to SERCO-IPS CORPORATION for work described as: PMS 377, PROFESSIONAL SUPPORT SERVICES (PSS) IN THE AREAS OF T&E, TECHNICAL MANAGEMENT SUPPORT, ACQUISITION AND LIFE CYCLE MANAGEMENT SUPPORT, LANDING CRAFT PLANNING YARD SUPPORT, INTEGRATED LOGISTICS SUPPORT (ILS), GFE SUPPORT, AND FLEET SUPPORT. Key points: 1. The contract, valued at $209.85 million, covers a broad range of professional support services for the Department of the Navy. 2. Key service areas include T&E, technical management, acquisition, logistics, and fleet support, indicating a comprehensive need. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges if not closely managed.

Value Assessment

Rating: good

The contract's value of $209.85 million over its duration appears reasonable given the extensive scope of professional support services required by the Department of the Navy. Benchmarking against similar large-scale support contracts would provide further context on pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order mechanism under a larger contract allows for flexibility in tasking.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple bidders, potentially leading to lower prices and better service quality.

Public Impact

Naval readiness and operational efficiency are supported by these critical services. Taxpayers benefit from a competitive bidding process for a significant contract. Potential for innovation and improved service delivery through competition. Ensures specialized technical and management expertise is available to the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Long contract duration (nearly 7 years) increases risk of scope creep or evolving requirements.
Limited information on specific performance metrics and oversight mechanisms.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Broad scope of services suggests a strategic approach to meeting complex naval support needs.
Contract supports critical functions for the Department of the Navy.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and relates to professional support services for the defense sector. Spending in this area is substantial, driven by the complex technical and logistical needs of modern military operations.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (sb: false). Therefore, small businesses were likely not primary recipients of this specific award, though they may participate as subcontractors.

Oversight & Accountability

The contract's duration and complexity necessitate robust oversight from the Department of the Navy to ensure performance standards are met and costs are controlled. Specific oversight mechanisms and reporting requirements should be clearly defined and monitored.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may not align with evolving technological needs.
Lack of specific performance metrics in the provided data.
Complexity of managing diverse support services across multiple naval functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $209.9 million to SERCO-IPS CORPORATION. PMS 377, PROFESSIONAL SUPPORT SERVICES (PSS) IN THE AREAS OF T&E, TECHNICAL MANAGEMENT SUPPORT, ACQUISITION AND LIFE CYCLE MANAGEMENT SUPPORT, LANDING CRAFT PLANNING YARD SUPPORT, INTEGRATED LOGISTICS SUPPORT (ILS), GFE SUPPORT, AND FLEET 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 $209.9 million.

What is the period of performance?

Start: 2019-09-09. End: 2026-09-08.

What is the estimated cost savings achieved through the full and open competition compared to a sole-source or limited competition scenario for these extensive naval support services?

While full and open competition generally drives down costs, quantifying the exact savings without a baseline comparison is challenging. However, it suggests that multiple qualified vendors competed, likely resulting in a more favorable price than if only one or a few were solicited. This competitive pressure is intended to ensure taxpayer funds are used efficiently.

How will the Department of the Navy mitigate the inherent risks associated with a Cost Plus Fixed Fee (CPFF) contract, particularly concerning potential cost overruns given the contract's significant

Effective mitigation requires stringent oversight, detailed cost tracking, and regular performance reviews. The Navy must ensure that Serco-IPS Corporation adheres strictly to the fixed fee and that all costs incurred are reasonable, allocable, and allowable. Clear communication channels and proactive risk management are crucial to prevent budget escalation.

What specific performance metrics and key performance indicators (KPIs) are in place to measure the effectiveness of Serco-IPS Corporation's support services across the diverse areas outlined in the c

The effectiveness of these services hinges on clearly defined KPIs related to technical accuracy, timeliness of support, logistical efficiency, and fleet readiness impact. Regular performance evaluations against these metrics, coupled with feedback mechanisms from naval units, are essential to ensure the contractor is meeting expectations and delivering value.

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: N0016418R3003

Offers Received: 3

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: $224,819,361

Exercised Options: $224,819,361

Current Obligation: $209,850,806

Actual Outlays: $12,626,984

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $80,575,861

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