DoD Awards $6.19M Engineering Services Task Order to Rite-Solutions, Inc. for NSWCDD Support
Contract Overview
Contract Amount: $6,192,134 ($6.2M)
Contractor: Rite-Solutions, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2026-10-31
Contract Duration: 1,460 days
Daily Burn Rate: $4.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: AWARD FOR CSC2 TASK ORDER WHICH PROVIDES NSWCDD V DEPARTMENT WITH VARIOUS SUPPORT.
Place of Performance
Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $6.2 million to RITE-SOLUTIONS, INC. for work described as: AWARD FOR CSC2 TASK ORDER WHICH PROVIDES NSWCDD V DEPARTMENT WITH VARIOUS SUPPORT. Key points: 1. The award is for engineering services supporting the Naval Surface Warfare Center Dahlgren Division (NSWCDD). 2. Rite-Solutions, Inc. secured this task order under full and open competition. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is primarily engineering services, a critical component of defense operations.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee structure may not always yield the most cost-effective outcome for taxpayers.
Taxpayer Impact: Taxpayer funds are being used for essential engineering support services. The cost-plus nature of the contract warrants close monitoring to ensure value for money.
Public Impact
Ensures continued engineering support for critical naval warfare systems. Supports technological advancement and maintenance within the Department of the Navy. Provides employment opportunities within the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited visibility into detailed cost components
Positive Signals
- Full and open competition
- Supports critical defense infrastructure
Sector Analysis
This award falls within the Engineering Services sector, which is crucial for the development, testing, and maintenance of complex defense systems. Spending in this area is often driven by technological requirements and national security needs.
Small Business Impact
The data indicates this task order was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
Oversight will be critical to manage the Cost Plus Fixed Fee structure effectively, ensuring that costs remain within reasonable bounds and that the contractor delivers the required engineering support efficiently.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract structure
- Potential for cost escalation
- Lack of specific performance metrics in award data
- No indication of small business subcontracting opportunities
Tags
engineering-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.2 million to RITE-SOLUTIONS, INC.. AWARD FOR CSC2 TASK ORDER WHICH PROVIDES NSWCDD V DEPARTMENT WITH VARIOUS SUPPORT.
Who is the contractor on this award?
The obligated recipient is RITE-SOLUTIONS, 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 $6.2 million.
What is the period of performance?
Start: 2022-11-01. End: 2026-10-31.
What is the typical profit margin for Cost Plus Fixed Fee contracts in this engineering services sub-sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in the engineering services sub-sector can vary significantly based on contract complexity, risk, and market conditions. Generally, the fixed fee is negotiated as a percentage of the estimated cost. While specific benchmarks are proprietary, industry averages for CPFF profit might range from 5% to 15% of the total contract cost. However, effective oversight is crucial to ensure this fee represents fair value and doesn't inflate overall project expenses.
How does the duration and value of this task order compare to similar engineering support contracts for NSWCDD?
This task order has a duration of approximately 4 years (1460 days) with a total value of $6.19 million. Comparing this to similar contracts requires access to historical procurement data for NSWCDD. However, on average, engineering support task orders of this duration and value are common for supporting major naval research and development facilities. The key is to ensure the cost per year ($1.55M) aligns with the scope of work and market rates for specialized engineering expertise.
What are the key performance indicators (KPIs) being used to measure the effectiveness of Rite-Solutions, Inc.'s support under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for engineering support services, typical KPIs would likely include adherence to project timelines, quality of deliverables (e.g., reports, designs, analyses), technical performance metrics, and responsiveness to task requirements. Effective contract management would involve regular performance reviews against these defined KPIs to ensure the contractor is meeting its obligations 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: N0017821R3018
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 185 S BROAD ST, PAWCATUCK, CT, 06379
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $30,662,544
Exercised Options: $27,592,844
Current Obligation: $6,192,134
Actual Outlays: $97,814
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $8,267,391
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8424
IDV Type: IDC
Timeline
Start Date: 2022-11-01
Current End Date: 2026-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2026-02-11
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