Navy awards $250M anti-terrorism system sustainment contract to Serco Inc. through full and open competition
Contract Overview
Contract Amount: $249,812,632 ($249.8M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2015-12-29
End Date: 2021-03-04
Contract Duration: 1,892 days
Daily Burn Rate: $132.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE SYSTEM SUSTAINMENT AT VARIOUS NAVY INSTALLATIONS WORLDWIDE.
Place of Performance
Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043
Plain-Language Summary
Department of Defense obligated $249.8 million to SERCO INC for work described as: IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE SYSTEM SUSTAINMENT AT VARIOUS NAVY INSTALLATIONS WORLDWIDE. Key points: 1. Contract awarded to Serco Inc. for anti-terrorism and force protection system sustainment. 2. The contract has a total value of $249,812,632.26. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is primarily IT and security systems services. 5. The contract duration was 1892 days.
Value Assessment
Rating: good
The contract value of $250M over approximately 5 years for security system sustainment appears reasonable given the scope and duration. Benchmarking against similar large-scale security system contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the services rendered.
Public Impact
Ensures operational readiness of anti-terrorism and force protection systems for the Navy. Supports critical security infrastructure at various Navy installations globally. Provides essential sustainment services, maintaining system functionality and effectiveness. Contributes to the safety and security of naval personnel and assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long duration and multiple locations.
- Reliance on a single contractor for critical security systems.
- Ensuring consistent service quality across all worldwide installations.
Positive Signals
- Awarded through full and open competition.
- Long-term sustainment contract provides stability.
- Focus on critical anti-terrorism and force protection capabilities.
Sector Analysis
This contract falls within the IT and Security Systems Services sector, specifically focusing on sustainment for anti-terrorism and force protection systems. Spending in this area is critical for national security and often involves significant investment in technology and specialized services.
Small Business Impact
The data indicates this was a large contract awarded to Serco Inc. There is no explicit information on small business participation, but large prime contracts often involve subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and compliance with contract terms.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy (1892 days).
- Potential for vendor lock-in with a single provider for critical systems.
- Ensuring consistent service delivery across diverse global locations.
- Risk of cost overruns if scope changes significantly.
- Dependence on Serco Inc. for essential security functions.
Tags
security-systems-services-except-locksmi, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $249.8 million to SERCO INC. IGF::OT::IGF - ANTI-TERRORISM/FORCE PROTECTION ASHORE SYSTEM SUSTAINMENT AT VARIOUS NAVY INSTALLATIONS WORLDWIDE.
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 $249.8 million.
What is the period of performance?
Start: 2015-12-29. End: 2021-03-04.
What specific sustainment activities are included in this contract, and how are they measured for effectiveness?
The contract likely includes maintenance, repair, upgrades, and technical support for anti-terrorism and force protection systems. Effectiveness is typically measured through performance metrics such as system uptime, response times to issues, successful completion of maintenance schedules, and adherence to security protocols. Specific metrics would be detailed in the contract's Statement of Work (SOW) and performance standards.
How does the pricing structure (firm fixed price) align with the potential for evolving threats and technology in anti-terrorism?
A firm fixed price (FFP) contract provides cost certainty for the government but can be less flexible in adapting to rapidly evolving threats or technological advancements. While FFP is good for managing baseline costs, the Navy may need to utilize contract modifications or separate procurements for significant upgrades or changes driven by new threats, potentially increasing overall program costs over time.
What is the long-term strategy for ensuring the continued effectiveness and modernization of these critical security systems beyond this contract's period?
The long-term strategy likely involves periodic re-competition of sustainment contracts, incorporating lessons learned and technological advancements into new solicitations. The Navy may also pursue strategic partnerships or research and development initiatives to stay ahead of evolving threats. Ensuring interoperability and a clear roadmap for system upgrades will be crucial for sustained effectiveness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N3943015R1625
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $249,981,373
Exercised Options: $249,812,632
Current Obligation: $249,812,632
Actual Outlays: $16,593,420
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $120,299,077
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-29
Current End Date: 2021-03-04
Potential End Date: 2021-03-04 00:00:00
Last Modified: 2021-07-26
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