DoD's Navy Awards $248M Engineering Services Contract to Serco Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $248,135,412 ($248.1M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2022-07-29
End Date: 2026-07-28
Contract Duration: 1,460 days
Daily Burn Rate: $170.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROFESSIONAL SUPPORT SERVICES FOR SEA21
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Defense obligated $248.1 million to SERCO INC for work described as: PROFESSIONAL SUPPORT SERVICES FOR SEA21 Key points: 1. Significant contract value of $248 million for professional support services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract is for engineering services, a critical sector for defense operations. 4. Risk of cost overruns exists with Cost Plus Fixed Fee contract type.
Value Assessment
Rating: good
The contract value of $248 million is substantial. Benchmarking against similar engineering services contracts would be necessary to fully assess pricing, but the full and open competition suggests a reasonable price discovery process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient price for the engineering services.
Public Impact
Supports critical Department of the Navy operations with professional engineering services. Contract duration of approximately four years impacts long-term resource planning. Potential for follow-on work or similar contracts in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential defense functions.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense infrastructure and technological advancement. Spending in this sector is often substantial due to the complexity and specialized nature of the work.
Small Business Impact
The data indicates no small business participation in this contract. This could be due to the specialized nature of the services required or the size of the contract, which may favor larger prime contractors.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for large contracts. However, the specific oversight details for this contract are not provided.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Long contract duration (approx. 4 years).
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $248.1 million to SERCO INC. PROFESSIONAL SUPPORT SERVICES FOR SEA21
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 $248.1 million.
What is the period of performance?
Start: 2022-07-29. End: 2026-07-28.
What is the specific scope of engineering services required under this contract?
The provided data does not detail the specific scope of engineering services. Further investigation into the contract's statement of work would be necessary to understand the precise requirements, such as design, analysis, testing, or program management, and how they align with the Navy's operational needs.
How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns?
Monitoring a Cost Plus Fixed Fee contract involves rigorous oversight of incurred costs and contractor performance against the fixed fee. The contracting officer and technical team must ensure all costs are allowable, allocable, and reasonable, and that the contractor meets performance milestones to earn the fixed fee.
Are there any performance metrics or key performance indicators (KPIs) associated with this contract?
The provided data does not specify performance metrics or KPIs. Effective contract management typically includes defined KPIs to measure contractor success in delivering engineering services, ensuring quality, timeliness, and adherence to technical specifications.
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: N0016419R3504
Offers Received: 2
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, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $414,785,440
Exercised Options: $325,488,957
Current Obligation: $248,135,412
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $45,651,321
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8498
IDV Type: IDC
Timeline
Start Date: 2022-07-29
Current End Date: 2026-07-28
Potential End Date: 2027-07-28 00:00:00
Last Modified: 2026-02-12
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