DoD's $13.9M Engineering Services Contract with SEACORP, LLC Shows Long Duration and Cost Plus Award Fee Structure
Contract Overview
Contract Amount: $13,926,284 ($13.9M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-22
End Date: 2024-01-25
Contract Duration: 6,334 days
Daily Burn Rate: $2.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: N00178-04-D-4122-N415
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $13.9 million to SEACORP, LLC for work described as: N00178-04-D-4122-N415 Key points: 1. Contract duration of over 17 years suggests a long-term need for specialized engineering services. 2. The Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful monitoring to ensure cost control. 3. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 4. The contract's primary NAICS code (541330) points to a significant role in engineering services within the defense sector. 5. Delivery Order (DO) under an IDIQ contract suggests task-based execution of services. 6. The contract's value, while substantial, needs to be benchmarked against similar long-term engineering service contracts.
Value Assessment
Rating: fair
The contract's total value of $13.9 million over more than 17 years averages to approximately $800,000 per year. This figure needs to be compared against industry benchmarks for similar long-term, specialized engineering support contracts. The Cost Plus Award Fee (CPA) structure, while designed to reward performance, can sometimes lead to higher overall costs if not managed rigorously. Without specific performance metrics and award fee payouts, a definitive value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that the Department of Defense sought proposals from all responsible sources. This approach typically fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition is a positive indicator for price discovery and market responsiveness.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces.
Public Impact
The primary beneficiaries are likely the Department of Defense, which receives specialized engineering services crucial for its operations. Services delivered under this contract support defense readiness and technological advancement. The geographic impact is likely concentrated around the contracting agency (Defense Contract Management Agency) and potentially the operational areas of the DoD. The contract supports a workforce skilled in engineering and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Cost Plus Award Fee structure if performance incentives are not tightly managed.
- Long contract duration may lead to complacency or a lack of agility in adapting to evolving technological needs.
- Dependence on a single contractor for an extended period could limit future innovation or access to alternative solutions.
Positive Signals
- Full and open competition suggests a robust selection process and potential for competitive pricing.
- The award fee mechanism, if properly structured, can incentivize high performance and quality service delivery.
- The long duration indicates a stable, ongoing need for the contractor's expertise, suggesting a strong track record and reliability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related engineering needs. The market for defense engineering services is substantial, driven by the continuous need for advanced technological solutions, maintenance, and modernization of military assets. Benchmarks for similar long-term, specialized engineering contracts within the federal government would be necessary for a precise comparison, but the duration and nature of the services suggest a significant role.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not available for this contract. As it was awarded under full and open competition, it does not appear to have been specifically set aside for small businesses. The impact on the small business ecosystem would depend on whether SEACORP, LLC utilizes small business subcontractors, which is not detailed in the provided data.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Award Fee structure implies performance metrics and reviews that contribute to accountability. Transparency would be enhanced through public contract databases and reporting, but specific details on oversight mechanisms and Inspector General involvement require further investigation.
Related Government Programs
- Defense Engineering Services Contracts
- Cost Plus Award Fee Contracts
- Long-Term Service Contracts
- Department of Defense Procurement
Risk Flags
- Long contract duration may indicate potential for cost creep or reduced agility.
- Cost Plus Award Fee structure requires diligent oversight to ensure value for money.
- Lack of specific performance metrics in public data hinders full assessment of value.
- Potential for contractor lock-in due to extended relationship.
Tags
defense, engineering-services, cost-plus-award-fee, full-and-open-competition, long-term-contract, department-of-defense, defense-contract-management-agency, massachusetts, service-contract, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.9 million to SEACORP, LLC. N00178-04-D-4122-N415
Who is the contractor on this award?
The obligated recipient is SEACORP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $13.9 million.
What is the period of performance?
Start: 2006-09-22. End: 2024-01-25.
What is the historical spending trend for this specific contract (N00178-04-D-4122-N415) over its lifespan?
The provided data indicates a total award amount of $13,926,283.8 for contract N00178-04-D-4122-N415, which has a duration from September 22, 2006, to January 25, 2024. This represents a period of over 17 years. While the total value is given, specific annual spending or disbursement data is not detailed. The contract type is Cost Plus Award Fee (CPA), suggesting that actual costs incurred are reimbursed, plus an award fee based on performance. The duration and total value imply a consistent level of spending over the years, averaging approximately $800,000 annually. Further analysis would require access to detailed financial disbursement records to understand fluctuations in spending year-over-year and the breakdown between cost reimbursement and award fees.
How does the Cost Plus Award Fee (CPA) structure of this contract compare to other engineering service contracts awarded by the DoD?
The Cost Plus Award Fee (CPA) structure is a common contracting method used by the Department of Defense (DoD) for services where performance outcomes are critical and can be objectively measured, but precise costs are difficult to estimate upfront. In this contract with SEACORP, LLC, the CPA model allows the government to reimburse the contractor for allowable costs incurred while also providing an incentive fee based on achieving specific performance objectives. Compared to other engineering service contracts, CPA offers more flexibility than fixed-price contracts when scope is uncertain, but requires more oversight than fixed-price contracts to manage costs. It aims to balance cost control with performance incentives, unlike pure cost-plus contracts which may lack performance motivation, or fixed-price contracts which might lead to scope disputes if requirements change. The effectiveness of this CPA structure hinges on well-defined performance metrics and a fair, objective award fee determination process.
What are the key performance indicators (KPIs) used to determine the award fee for SEACORP, LLC under this contract?
The specific Key Performance Indicators (KPIs) used to determine the award fee for SEACORP, LLC under contract N00178-04-D-4122-N415 are not publicly detailed in the provided data. However, for a Cost Plus Award Fee (CPA) contract of this nature, typical KPIs for engineering services often include factors such as technical performance (e.g., meeting design specifications, system reliability), schedule adherence (e.g., timely completion of milestones and deliverables), cost control (e.g., managing resources efficiently within projected budgets), quality of work (e.g., accuracy, completeness, reduction of errors), and responsiveness to government requests or changes. The effectiveness of the award fee mechanism relies heavily on the clarity, measurability, and attainability of these KPIs, ensuring they align with the government's objectives and incentivize the desired contractor behavior.
What is SEACORP, LLC's overall track record with the federal government, particularly in fulfilling long-term engineering service contracts?
SEACORP, LLC has a history of contracting with the federal government, primarily within the defense sector, as indicated by this contract. While this specific contract spans over 17 years, suggesting a strong and sustained relationship, a comprehensive assessment of their track record would require examining their entire contract portfolio. This includes looking at the number and value of other federal contracts awarded to SEACORP, their performance ratings on those contracts (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes, terminations, or significant performance issues. The longevity of this particular contract implies a generally positive performance history and a successful fulfillment of requirements, but a broader review across all their government engagements would provide a more complete picture of their capabilities and reliability.
How does the average annual cost of this contract compare to industry benchmarks for similar engineering services provided to the Department of Defense?
The average annual cost for this contract is approximately $800,000 ($13.9 million over 17+ years). Benchmarking this against industry standards for specialized engineering services provided to the Department of Defense requires access to detailed market research data and cost analysis reports specific to the NAICS code 541330 (Engineering Services) within the defense context. Factors influencing these benchmarks include the specific type of engineering expertise required (e.g., naval architecture, systems engineering, cybersecurity engineering), the complexity of the projects, the security clearance requirements, and the geographic location of service delivery. Without access to proprietary cost databases or specific government cost-effectiveness studies for comparable contracts, it is difficult to definitively state whether $800,000 annually represents a high, low, or average cost. However, for long-term, specialized support, this figure may be considered moderate, contingent on the scope and criticality of the services.
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: N0002406R3610
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 62 JOHNNY CAKE HILL RD, MIDDLETOWN, RI, 02842
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: $14,193,908
Exercised Options: $14,193,908
Current Obligation: $13,926,284
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4122
IDV Type: IDC
Timeline
Start Date: 2006-09-22
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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