DoD's $31.9M SEACORP sensor support contract shows strong competition and long-term performance

Contract Overview

Contract Amount: $31,920,018 ($31.9M)

Contractor: Seacorp, LLC

Awarding Agency: Department of Defense

Start Date: 2007-08-27

End Date: 2024-01-25

Contract Duration: 5,995 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: SENSOR AND SONAR SYSTEM TECHNICAL SUPPORT

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to SEACORP, LLC for work described as: SENSOR AND SONAR SYSTEM TECHNICAL SUPPORT Key points: 1. Value for money appears reasonable given the extended contract duration and specialized nature of the services. 2. Strong competition was present, indicating a healthy market for these technical support services. 3. The contract's long duration (nearly 17 years) suggests a stable, ongoing need for these capabilities. 4. Performance context is established through a long-term delivery order under a prime contract. 5. This contract fits within the broader Defense sector's need for specialized engineering and technical support. 6. The cost-plus award fee structure incentivizes performance while managing costs.

Value Assessment

Rating: good

The contract's total value of $31.9 million over nearly 17 years averages to approximately $1.88 million per year. While a direct per-year comparison is difficult without more granular data on specific deliverables, the overall value seems aligned with specialized technical support for complex defense systems. The cost-plus award fee structure allows for flexibility and incentivizes contractor performance, which can be a good value driver for long-term, evolving needs. Benchmarking against similar long-term, specialized support contracts would provide further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the competition would require further investigation. Full and open competition generally leads to better price discovery and a wider pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and ensures the government receives the best value by selecting from a broad range of capable providers.

Public Impact

The Department of Defense benefits through the continued technical support of critical sensor and sonar systems. This contract ensures the operational readiness and effectiveness of advanced defense technologies. The services provided likely support military personnel by ensuring their equipment functions optimally. Geographic impact is likely concentrated around military installations where these systems are deployed or maintained. Workforce implications include the employment of specialized engineers and technicians by SEACORP, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (nearly 17 years) could indicate a lack of innovation or a reliance on a single solution over an extended period.
Cost-plus award fee contracts can sometimes lead to cost overruns if not managed diligently, though the award fee component aims to mitigate this.
The specific nature of 'technical support' can be broad; clarity on the exact services rendered is important for assessing ongoing value.

Positive Signals

The contract was awarded under full and open competition, suggesting a robust selection process.
The long-term nature of the contract indicates a consistent need and likely satisfaction with the contractor's performance.
The cost-plus award fee structure, when managed effectively, can align contractor incentives with government objectives.
SEACORP, LLC's long-term engagement suggests a proven track record and established expertise in this specialized area.

Sector Analysis

The defense sector heavily relies on specialized engineering and technical support services to maintain complex weapon systems, including advanced sensor and sonar technologies. This contract falls within the Engineering Services (NAICS 541330) category, a significant segment of the defense industrial base. Spending in this area is driven by the need for continuous upgrades, maintenance, and operational support of sophisticated military hardware. Comparable spending benchmarks would involve analyzing other long-term support contracts for similar defense systems across various branches of the military.

Small Business Impact

There is no indication that this contract involved small business set-asides, as SEACORP, LLC is likely a large business. The contract's value and specialized nature suggest that subcontracting opportunities for small businesses might exist, particularly for specific components or niche technical services. However, without more detailed subcontracting plans, the direct impact on the small business ecosystem is unclear. Further analysis of subcontracting reports would be necessary to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract's long duration and cost-plus award fee structure necessitate rigorous oversight to manage costs and ensure that award fees are justified by performance. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Support Contracts
Naval Sea Systems Command (NAVSEA) Technical Services
Air Force Materiel Command Support Services
Intelligence, Surveillance, and Reconnaissance (ISR) Systems Support

Risk Flags

Long contract duration may warrant review for potential obsolescence or lack of innovation.
Cost-plus award fee structure requires diligent oversight to ensure cost control and value.
Limited number of bids (2) in a full and open competition warrants further scrutiny of market dynamics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to SEACORP, LLC. SENSOR AND SONAR SYSTEM TECHNICAL SUPPORT

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 $31.9 million.

What is the period of performance?

Start: 2007-08-27. End: 2024-01-25.

What is SEACORP, LLC's track record with the Department of Defense, particularly on similar sensor and sonar system contracts?

SEACORP, LLC has a significant history of contracting with the Department of Defense, particularly in areas related to naval systems, sonar, and electronic warfare. Their long-standing relationship with the DoD, evidenced by this nearly 17-year contract, suggests a consistent performance record and a deep understanding of military requirements. While specific details on past performance metrics for this exact contract are not provided, the repeated award of such contracts implies a level of satisfaction with their technical expertise, reliability, and ability to meet demanding defense specifications. Further investigation into their contract history, including any past performance reviews or awards, would provide a more comprehensive picture of their track record.

How does the average annual cost of this contract compare to similar long-term technical support contracts for defense systems?

The average annual cost of this contract is approximately $1.88 million ($31.9M / ~16.8 years). Benchmarking this against similar long-term technical support contracts for defense systems requires access to a broader dataset of comparable contracts. However, for specialized, high-technology support services for critical military assets like advanced sensors and sonar, this annual figure appears within a reasonable range. Factors influencing cost include the complexity of the systems supported, the level of technical expertise required, the duration of the support, and the specific contract type (Cost Plus Award Fee). Contracts for less complex systems or those with shorter durations would naturally have lower annual costs. Without specific comparable contract data, it's challenging to definitively state if it's high or low, but it reflects the specialized nature of the services.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this duration?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract of this duration (nearly 17 years) revolve around cost control and potential for scope creep. For the government, the risk is that costs could escalate beyond initial projections if the base cost plus fee structure is not rigorously managed and performance metrics for the award fee are not clearly defined and strictly enforced. There's also a risk that the contractor might not be sufficiently incentivized to find the most cost-effective solutions if the award fee criteria are too easily met. For the contractor, risks include not meeting the award fee criteria, leading to lower-than-expected profits, and the potential for government audits and scrutiny over incurred costs. The long duration amplifies these risks, as market conditions, technological needs, and personnel can change significantly over such a period.

How effective is the 'full and open competition' strategy in ensuring value for money for long-term defense technical support contracts?

Full and open competition is generally considered the most effective strategy for ensuring value for money, even for long-term defense technical support contracts. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For long-term contracts, this means the government can select a contractor based on the best combination of technical capability, past performance, and price at the outset. However, the effectiveness can be diminished if the contract requirements are not well-defined or if the evaluation criteria are not robust. Over the long term, continuous monitoring and potential re-competition or contract modifications are crucial to ensure sustained value and adapt to evolving needs. The presence of two bids in this specific case indicates competition occurred, but the degree of competition's impact on price discovery would depend on the specifics of the bidding process.

What are the implications of this contract's long performance period (nearly 17 years) on technological relevance and potential obsolescence?

A performance period spanning nearly 17 years for a technology-focused contract like sensor and sonar system support carries significant implications for technological relevance and potential obsolescence. While the contract's longevity suggests a stable and ongoing need, it also raises questions about whether the supported systems are keeping pace with advancements in technology. There's a risk that the systems themselves could become outdated, making the specialized support less critical or requiring a shift in the type of support needed. Conversely, the long duration might be justified if the supported systems are foundational and have long life cycles, with the support evolving to incorporate newer technologies or upgrades. Effective contract management would involve periodic reviews to ensure the services remain relevant and to adapt to technological shifts, potentially through contract modifications or by planning for future procurements.

How does the 'Engineering Services' classification (NAICS 541330) typically relate to defense spending on complex systems like sensors and sonar?

The 'Engineering Services' classification (NAICS 541330) is a broad category that encompasses a wide range of professional engineering activities, including design, development, consulting, and technical support. For defense spending on complex systems like sensors and sonar, this classification is highly relevant. It covers the specialized expertise required for the research, development, testing, integration, maintenance, and lifecycle support of these advanced technologies. Contracts under this NAICS code often involve highly skilled engineers and technicians who provide critical services to ensure the operational effectiveness and readiness of military platforms. Spending within this category reflects the government's reliance on external expertise for complex technical challenges that may exceed internal capabilities or require specialized knowledge.

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: N0002407R3155

Offers Received: 2

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: $47,945,511

Exercised Options: $47,756,925

Current Obligation: $31,920,018

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