DoD's Navy Awards $16.4M Engineering Support Contract to Serco Inc. via Full and Open Competition
Contract Overview
Contract Amount: $16,402,396 ($16.4M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2025-02-27
End Date: 2026-02-26
Contract Duration: 364 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SUPPORT SERVICES FOR PMS 515
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of Defense obligated $16.4 million to SERCO INC for work described as: ENGINEERING AND TECHNICAL SUPPORT SERVICES FOR PMS 515 Key points: 1. Contract Value: $16.4 million for engineering and technical support. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Moderate risk due to cost-plus fixed-fee structure, potentially leading to cost overruns. 4. Sector: Engineering services within the Department of Defense, specifically the Navy.
Value Assessment
Rating: fair
The contract is a cost-plus fixed-fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. The award amount of $16.4 million for a one-year duration needs to be benchmarked against similar engineering support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the cost-plus fixed-fee structure may still allow for cost increases beyond initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for engineering and technical support services. The competitive nature of the award aims to ensure reasonable pricing, but the contract type warrants close monitoring for cost efficiency.
Public Impact
Ensures continued technical expertise for critical Navy programs. Supports the Department of Defense's operational readiness and technological advancement. Potential for innovation and improved engineering solutions through competitive selection.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed-fee contract type may lead to cost overruns.
- Limited duration of one year requires potential for future re-competition.
- No specific small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Supports critical Department of Defense mission.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the Department of Defense's acquisition and program management. Spending in this area is essential for maintaining technological superiority and operational effectiveness.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific award, as the contract was awarded to Serco Inc. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Robust oversight will be crucial to manage costs effectively under the cost-plus fixed-fee structure and ensure deliverables meet requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus fixed-fee contract type.
- Potential for cost overruns.
- One-year duration may necessitate future re-competition.
- No explicit small business participation noted.
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to SERCO INC. ENGINEERING AND TECHNICAL SUPPORT SERVICES FOR PMS 515
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 $16.4 million.
What is the period of performance?
Start: 2025-02-27. End: 2026-02-26.
What is the historical cost performance of Serco Inc. on similar cost-plus fixed-fee contracts with the Department of Defense?
Analyzing Serco Inc.'s past performance on similar cost-plus fixed-fee contracts is crucial for assessing potential cost overruns. A review of previous contracts would reveal trends in their ability to manage project expenses within fixed-fee parameters and identify any recurring issues with budget adherence or contractor-initiated cost increases.
How does the awarded amount compare to the benchmark for similar engineering support services provided to the Navy?
Benchmarking the $16.4 million award against similar contracts for engineering and technical support services within the Navy is essential for validating its cost-effectiveness. This comparison will help determine if the pricing is competitive and reflects fair market value, or if it suggests potential overpayment or underestimation of the required resources.
What specific technical capabilities does Serco Inc. bring to PMS 515 that justify this contract award?
Understanding the specific technical capabilities Serco Inc. offers is key to evaluating the effectiveness of this award. This includes assessing their expertise in areas relevant to PMS 515's mission, their track record in delivering complex engineering solutions, and how their unique skills contribute to the Navy's program objectives and overall mission success.
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: N0016423R3008
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, 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: $96,909,010
Exercised Options: $17,187,106
Current Obligation: $16,402,396
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,257,128
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: 2025-02-27
Current End Date: 2026-02-26
Potential End Date: 2030-02-26 00:00:00
Last Modified: 2026-02-12
More Contracts from Serco Inc
- -Pphf-2013-Eligibility Support — $1.2B (Department of Health and Human Services)
- Eligibility Support — $1.0B (Department of Health and Human Services)
- Eligibility Support — $589.3M (Department of Health and Human Services)
- Serco Management Services Inc for Area 5 Igf::ct::igf — $378.8M (Department of Transportation)
- J Plant Renovation — $327.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)