DoD's $121M engineering services contract with SEACORP, LLC awarded via full and open competition
Contract Overview
Contract Amount: $121,133,725 ($121.1M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2008-04-09
End Date: 2024-01-25
Contract Duration: 5,769 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CODE 34 SUPPORT TAS::97 0100::TAS
Place of Performance
Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801
Plain-Language Summary
Department of Defense obligated $121.1 million to SEACORP, LLC for work described as: CODE 34 SUPPORT TAS::97 0100::TAS Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract's duration of over 5700 days (approx. 15.8 years) indicates a long-term need for engineering support. 3. The cost-plus-fixed-fee (CPFF) contract type can incentivize contractor efficiency while managing project scope. 4. The contract was awarded as a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing support needs. 5. The significant value suggests a critical role in supporting Department of Defense operations. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses.
Value Assessment
Rating: good
The total award amount of approximately $121 million over nearly 16 years suggests a substantial investment in engineering services. Benchmarking this value is challenging without specific service details, but the duration implies consistent, ongoing support. The CPFF structure requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with performance expectations. Compared to similar long-term engineering support contracts, this award appears within a typical range for complex defense requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The use of an IDIQ vehicle likely means SEACORP was selected from a pool of pre-qualified vendors, with this delivery order representing a specific task order under that agreement.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers, driving down costs through market forces, and ensuring the government secures the best value available.
Public Impact
The primary beneficiaries are the Department of Defense agencies requiring specialized engineering services for their operations and systems. Services delivered likely encompass a broad range of engineering disciplines crucial for defense readiness and technological advancement. The geographic impact is likely national, supporting various defense installations and projects across the United States. Workforce implications include the creation and sustainment of skilled engineering jobs within SEACORP and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 16 years) may require ongoing scrutiny to ensure continued relevance and cost-effectiveness.
- Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
- Lack of specific details on competition level (number of bidders) limits a full assessment of price discovery.
- The contract's value is substantial, necessitating robust oversight to prevent waste or fraud.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace for these services.
- The long duration suggests a stable, long-term need that SEACORP is well-positioned to meet.
- Delivery order structure under an IDIQ allows for flexibility in tasking and management.
- SEACORP's selection implies they met stringent requirements during the initial IDIQ competition.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized expertise in design, analysis, and problem-solving. The market size for engineering services supporting the federal government, particularly the Department of Defense, is substantial, driven by complex weapon systems, infrastructure, and research and development needs. This contract likely represents a significant portion of SEACORP's business within this niche.
Small Business Impact
This contract does not appear to have been awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on securing the best technical and price solution from the broader market. While SEACORP itself may be a small or large business, the award mechanism did not prioritize small business participation directly. Further analysis would be needed to determine if subcontracting opportunities exist within the performance of this contract.
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. Accountability measures are inherent in the contract terms, particularly the cost-plus-fixed-fee structure which requires detailed reporting and justification of costs. Transparency is facilitated through contract databases and reporting requirements, though specific performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Professional, Scientific, and Technical Services
- Department of Defense Contract Vehicles
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Long contract duration may increase risk of obsolescence or changing requirements.
- CPFF contract type requires robust cost monitoring to prevent overruns.
- Limited information on number of bidders restricts full competition assessment.
- Potential for scope creep in long-term service contracts.
Tags
engineering-services, department-of-defense, seacorp-llc, full-and-open-competition, cost-plus-fixed-fee, delivery-order, massachusetts, professional-scientific-and-technical-services, long-term-contract, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.1 million to SEACORP, LLC. CODE 34 SUPPORT TAS::97 0100::TAS
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 $121.1 million.
What is the period of performance?
Start: 2008-04-09. End: 2024-01-25.
What is SEACORP, LLC's track record with the federal government, particularly in fulfilling similar engineering services contracts?
SEACORP, LLC has a history of federal contracting, primarily with the Department of Defense. Data indicates multiple awards for engineering and technical services, often under large IDIQ vehicles. Their performance history, while not detailed here, would be assessed through contract performance reports (CPARs) and past performance evaluations during the bidding process. The fact that they were awarded this significant, long-term contract suggests a positive track record in meeting DoD's complex engineering requirements. Further investigation into their specific project history and client feedback would provide a more comprehensive understanding of their capabilities and reliability.
How does the value of this contract compare to other similar engineering services contracts awarded by the DoD?
The total award value of approximately $121 million over nearly 16 years places this contract in the mid-to-large range for long-term engineering support services within the Department of Defense. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity. Contracts for major weapon system development, large-scale infrastructure design, or extensive research and development efforts can reach hundreds of millions or even billions of dollars. Conversely, smaller, shorter-term specialized engineering tasks might be valued in the single-digit millions. This contract's value appears commensurate with sustained, critical engineering support needs over an extended period, suggesting it is competitively priced within its specific domain.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks with a CPFF contract of this scale and duration revolve around cost control and contractor performance. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the risk of cost overruns beyond the initially estimated costs. If SEACORP's actual costs exceed projections, the government pays more, potentially impacting the overall value. Diligent oversight by the contracting agency is crucial to scrutinize all incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep that inflates expenses without commensurate benefit. Contractor efficiency and effective project management are key to mitigating these risks.
What is the expected impact of this contract on the specific engineering services market segment?
This contract likely solidifies SEACORP, LLC's position as a key provider of engineering services within its specialized niche, particularly for the Department of Defense. Its substantial value and long duration signal a significant commitment from the DoD, potentially influencing market dynamics by demonstrating the demand for such expertise. This could encourage other firms to develop similar capabilities or strengthen existing ones to compete for future contracts. The contract's performance and SEACORP's execution will also serve as a benchmark for future procurements in this segment, influencing pricing expectations and service delivery standards.
How has federal spending on engineering services evolved, and where does this contract fit within historical trends?
Federal spending on engineering services has generally trended upwards over the past two decades, driven by modernization efforts, national security requirements, and infrastructure investments. The Department of Defense is consistently one of the largest federal spenders in this category. This $121 million contract, awarded over a long period, aligns with the government's strategy of using large, long-term contracts, often under IDIQ vehicles, to ensure continuity of essential services. While specific year-over-year spending fluctuates based on budget appropriations and program priorities, contracts like this represent a stable, significant component of the overall federal engineering services expenditure.
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: N0002407R3050
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $128,951,380
Exercised Options: $128,751,380
Current Obligation: $121,133,725
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: 2008-04-09
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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