DoD Awards $44M for Ship Design Services to Serco-IPS Corp under Full and Open Competition

Contract Overview

Contract Amount: $44,136,663 ($44.1M)

Contractor: Serco-Ips Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-29

End Date: 2026-09-01

Contract Duration: 1,495 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Defense

Official Description: SHIP DESIGN SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.1 million to SERCO-IPS CORPORATION for work described as: SHIP DESIGN SERVICES Key points: 1. Significant contract value of $44.1M for specialized engineering services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk associated with the long duration (1495 days) and cost-plus contract type. 4. Spending falls within the Engineering Services sector, crucial for naval readiness.

Value Assessment

Rating: good

The contract type is Cost No Fee (CNF), which shifts risk to the contractor. While specific pricing benchmarks are not provided, the total award value of $44.1M for nearly 5 years of service appears reasonable for complex ship design.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the ship design services procured.

Public Impact

Enhances naval capabilities through advanced ship design. Supports critical defense infrastructure and national security. Potential for technological advancements in naval engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type can lead to cost overruns if not managed carefully.
Long contract duration may present challenges in adapting to evolving technological requirements.
Lack of specific performance metrics makes it difficult to assess contractor efficiency.

Positive Signals

Full and open competition ensures a broad range of potential solutions.
Contract awarded to a known entity (Serco-IPS Corporation) may indicate established expertise.
Focus on ship design is critical for maintaining a modern naval fleet.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for defense procurement. Spending benchmarks for ship design services can vary widely based on complexity, but $44.1M over nearly five years for specialized design work is within a typical range for major naval projects.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and no small business participation is explicitly mentioned. This suggests the primary contractor, Serco-IPS Corporation, is likely a large business, and subcontracting opportunities for small businesses are not detailed in this award notice.

Oversight & Accountability

The Department of the Navy is the awarding agency, responsible for oversight. The contract's Cost No Fee structure places significant performance risk on the contractor, implying a need for robust monitoring of technical execution and adherence to design specifications.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost No Fee contract type carries inherent financial risk for the government if not managed.
Long contract duration (1495 days) increases exposure to changing requirements and technological obsolescence.
Lack of detailed performance metrics makes objective assessment of contractor efficiency challenging.
No explicit mention of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.1 million to SERCO-IPS CORPORATION. SHIP DESIGN SERVICES

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 $44.1 million.

What is the period of performance?

Start: 2022-07-29. End: 2026-09-01.

What specific ship classes or types are covered by this design services contract, and how do they align with current naval modernization priorities?

The provided data does not specify the ship classes or types. Understanding this would be crucial to assess the strategic value and alignment with the Navy's modernization goals. Without this detail, it's difficult to fully gauge the long-term impact on fleet capabilities and readiness.

Given the Cost No Fee structure, what are the key performance indicators (KPIs) being tracked to ensure Serco-IPS Corporation meets design milestones and quality standards effectively?

The data does not detail specific Key Performance Indicators (KPIs) for this Cost No Fee contract. Effective oversight would require the Navy to closely monitor technical progress, adherence to design specifications, and timely delivery of design documentation to mitigate potential cost overruns and ensure the contractor meets quality expectations.

How does the $44.1M award for ship design services compare to similar contracts awarded by the Navy or other branches for comparable naval engineering projects over the last three years?

Benchmarking this $44.1M award requires access to a broader dataset of comparable naval engineering contracts. Factors like ship complexity, technological requirements, and contract duration significantly influence pricing. A preliminary assessment suggests the value is substantial but requires detailed comparison with similar projects to confirm cost-effectiveness.

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: N0002408R3121

Offers Received: 3

Pricing Type: COST NO FEE (S)

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: $67,084,802

Exercised Options: $67,084,802

Current Obligation: $44,136,663

Actual Outlays: $587,732

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $32,616,667

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