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

Positive Signals

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

Risk Flags

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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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