Naval Undersea Warfare Center awards $10.5M engineering services contract to Sonalysts, Inc

Contract Overview

Contract Amount: $10,469,296 ($10.5M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2005-08-17

End Date: 2010-08-16

Contract Duration: 1,825 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200511!052465!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N0017804D4126 !A!N! !Y!N402 ! !20050817!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!34180!011!09!GROTON !NEW LONDON !CONN !+000000144608!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !

Place of Performance

Location: WATERFORD, NEW LONDON County, CONNECTICUT, 06385

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SONALYSTS INC for work described as: 200511!052465!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N0017804D4126 !A!N! !Y!N402 ! !20050817!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!34180!011!09!GROTON !NEW … Key points: 1. Contract awarded for engineering and technical services, indicating a need for specialized expertise. 2. The contract duration of 5 years suggests a long-term requirement for these services. 3. Awarded under full and open competition, implying a robust bidding process. 4. The contractor, Sonalysts, Inc., has a track record in providing similar services. 5. The contract's value is significant within the engineering services sector for defense. 6. The specific NAICS code (541330) points to a focus on engineering services.

Value Assessment

Rating: good

The contract value of $10.5 million over five years for engineering technical services appears reasonable given the duration and the specialized nature of undersea warfare support. Benchmarking against similar contracts for engineering services within the Department of Defense would provide a more precise value-for-money assessment. However, the fixed-fee structure suggests that cost control was a consideration during negotiation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 21 bids suggests a competitive environment, which generally leads to better pricing and service offerings for the government. The extensive competition implies that the government had a good selection of qualified contractors.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring that the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the Naval Undersea Warfare Center (NUWC) and the U.S. Navy, who receive critical engineering and technical support. Services delivered include specialized engineering, technical, and programmatic support for undersea warfare systems. The geographic impact is primarily centered around the Naval Undersea Warfare Center facilities, likely in Connecticut. Workforce implications include the employment of skilled engineers and technical professionals by Sonalysts, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-fee structure is not tightly managed.
Dependence on a single contractor for critical technical services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contractor, Sonalysts, Inc., has experience in this domain, reducing initial performance risk.
The contract duration indicates a stable, long-term need, allowing for focused development and support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. The market for defense engineering services is substantial, driven by the continuous need for modernization and maintenance of complex military systems. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the Department of Defense to similar entities.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though Sonalysts, Inc. may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Naval Undersea Warfare Center contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Undersea Warfare Technology Development
Naval Warfare Technology Support Contracts

Risk Flags

Potential for scope creep given the nature of R&D and engineering services.
Contractor performance history needs thorough review for similar complex projects.
Adequacy of government oversight for a CPFF contract type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SONALYSTS INC. 200511!052465!1700!N66604!NAVAL UNDERSEA WARFARE CENTER !N0017804D4126 !A!N! !Y!N402 ! !20050817!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!34180!011!09!GROTON !NEW LONDON !CONN !+000000144608!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!200

Who is the contractor on this award?

The obligated recipient is SONALYSTS 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 $10.5 million.

What is the period of performance?

Start: 2005-08-17. End: 2010-08-16.

What is the track record of Sonalysts, Inc. in performing similar engineering and technical services for the Department of Defense?

Sonalysts, Inc. has a history of providing engineering, technical, and programmatic support services to the U.S. Navy and other defense agencies. Their expertise often lies in areas such as combat systems, sonar, electronic warfare, and information technology. Prior contract performance data, available through sources like the Federal Procurement Data System (FPDS), would detail their success in meeting performance requirements, delivery schedules, and cost objectives on previous engagements. A review of past performance evaluations would be crucial to fully assess their capabilities and reliability for this specific contract.

How does the awarded value of $10.5 million compare to similar engineering services contracts for undersea warfare support?

The $10.5 million contract value over five years equates to an average annual value of $2.1 million. This figure needs to be benchmarked against other contracts for similar engineering and technical services supporting naval warfare systems. Factors such as the scope of work, required expertise, security clearances, and the specific systems being supported influence pricing. Contracts awarded by entities like the Naval Surface Warfare Center or other DoD research and development commands for comparable services would serve as relevant benchmarks. Without direct comparative data, it's challenging to definitively state if this represents a premium or a discount, but the full and open competition suggests a market-driven price.

What are the primary risk indicators associated with this contract award to Sonalysts, Inc.?

Key risk indicators for this contract include potential performance issues if the specialized technical requirements are not met, reliance on a single contractor for critical support functions, and the possibility of cost growth if the fixed-fee structure is not adequately managed. The complexity of undersea warfare systems necessitates highly skilled personnel, and any turnover or skill gaps within Sonalysts could pose a risk. Furthermore, the long duration of the contract increases the potential for unforeseen technical challenges or changes in requirements that may not be fully captured in the initial scope, potentially leading to contract modifications or disputes.

How effective is the cost-plus-fixed-fee (CPFF) contract type in managing costs for engineering services like these?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used when the scope of work is not precisely defined at the outset, allowing for flexibility. In this case, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their profit margin, as the fee is fixed. However, it can also lead to cost overruns if not carefully monitored by the government. The government bears the risk of cost overruns, while the contractor is motivated to complete the work within the estimated cost to achieve their fixed fee.

What is the historical spending pattern for engineering and technical services at the Naval Undersea Warfare Center?

Historical spending patterns at the Naval Undersea Warfare Center (NUWC) for engineering and technical services would reveal trends in contract awards, typical contract values, and the prevalence of different contract types. Analyzing data over several fiscal years would show whether spending in this category has been consistent, increasing, or decreasing. It would also indicate which contractors have been awarded significant portions of this work and the types of services most frequently procured. This historical context is vital for understanding the significance of the $10.5 million award and assessing its alignment with NUWC's long-term strategic needs and budget allocations.

What is the significance of the NAICS code 541330 (Engineering Services) in the context of this contract?

The North American Industry Classification System (NAICS) code 541330 designates establishments primarily engaged in providing architectural, engineering, and related services. For this contract, it signifies that the core service procured from Sonalysts, Inc. is professional engineering expertise. This includes design, development, testing, and analysis related to complex systems, such as those used in undersea warfare. This classification helps in comparing this contract to others within the broader engineering services market and understanding the specific skill sets and capabilities required from the contractor.

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

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 215 PARKWAY NORTH, WATERFORD, CT, 02

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,930,201

Exercised Options: $527,561

Current Obligation: $10,469,296

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4126

IDV Type: IDC

Timeline