DoD Awards $58.9M for Navy Security Systems Sustainment to Serco Inc
Contract Overview
Contract Amount: $58,863,854 ($58.9M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2021-02-19
End Date: 2022-05-01
Contract Duration: 436 days
Daily Burn Rate: $135.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE YEAR - LIFE CYCLE SUSTAINMENT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.9 million to SERCO INC for work described as: BASE YEAR - LIFE CYCLE SUSTAINMENT Key points: 1. Contract value of $58.9M for sustainment services. 2. Awarded under full and open competition. 3. Potential for cost savings identified through benchmarking. 4. Sector: IT/Security Systems.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar security system sustainment contracts is recommended to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Competitive bidding likely resulted in a fair market price, maximizing taxpayer value for essential security system sustainment.
Public Impact
Ensures continued operation of critical security systems for the Navy. Supports national security by maintaining robust defense infrastructure. Potential for job creation within the security services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in sustainment services.
- Reliance on a single vendor for critical systems.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
- Established vendor with experience.
Sector Analysis
This contract falls within the IT and Security Systems Services sector, which is crucial for government operations. Spending benchmarks for similar sustainment contracts can vary widely based on system complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Navy to ensure Serco Inc. meets all contractual obligations and service level agreements.
Related Government Programs
- Security Systems Services (except Locksmiths)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is significant (436 days).
- No small business set-aside.
- Potential for vendor lock-in if not managed.
- Reliance on a single vendor for critical infrastructure.
Tags
security-systems-services-except-locksmi, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.9 million to SERCO INC. BASE YEAR - LIFE CYCLE SUSTAINMENT
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 $58.9 million.
What is the period of performance?
Start: 2021-02-19. End: 2022-05-01.
What is the projected cost savings or efficiency gains anticipated from this sustainment contract compared to previous arrangements or market alternatives?
The provided data does not explicitly detail projected cost savings or efficiency gains. However, the firm fixed price structure and full and open competition suggest an intent to achieve value. Further analysis of the contract's performance metrics and comparison with industry benchmarks would be necessary to quantify any realized savings or improvements over the contract's lifecycle.
What are the key performance indicators (KPIs) for this sustainment contract, and how will Serco Inc.'s performance against these KPIs be measured and reported?
Key performance indicators are not detailed in the provided data. Typically, sustainment contracts for security systems would include metrics related to system uptime, response times for maintenance, incident resolution rates, and adherence to security protocols. The Department of the Navy would be responsible for establishing and monitoring these KPIs to ensure contract compliance and system effectiveness.
Are there any identified risks associated with Serco Inc.'s ability to provide continuous and effective sustainment services for the Navy's security systems throughout the contract duration?
While the data doesn't highlight specific risks with Serco Inc., general risks in sustainment contracts include vendor financial stability, potential for key personnel departure, and unforeseen technical challenges. The firm fixed price nature could also pose a risk if unexpected issues arise that significantly increase costs beyond the agreed-upon price, potentially impacting service quality if not managed proactively.
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: N3943020R2245
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC
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: $58,863,854
Exercised Options: $58,863,854
Current Obligation: $58,863,854
Actual Outlays: $31,803,433
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $27,386,480
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N3943021D2230
IDV Type: IDC
Timeline
Start Date: 2021-02-19
Current End Date: 2022-05-01
Potential End Date: 2026-08-18 00:00:00
Last Modified: 2022-09-14
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