SEACORP, LLC awarded $20.6M for submarine strike systems engineering, with work extending through August 2025
Contract Overview
Contract Amount: $20,606,978 ($20.6M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2016-09-29
End Date: 2025-08-12
Contract Duration: 3,239 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SERVICES, TECHNICAL SERVICES AND MATERIAL TO NUWCDIVNPT CODE 25 FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, AND PAYLOAD CONTROL SYSTEMS. THIS WORK SHALL INCLUDE SYSTEMS ENGINEERING, INTEGRATION AND TEST, INSTALLATION AND FLEET SUPPORT, AND PROGRAM PLANNING, MEETING AND WORKING GROUP SUPPORT.
Place of Performance
Location: MIDDLETOWN, NEWPORT County, RHODE ISLAND, 02842
Plain-Language Summary
Department of Defense obligated $20.6 million to SEACORP, LLC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SERVICES, TECHNICAL SERVICES AND MATERIAL TO NUWCDIVNPT CODE 25 FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, AND PAYLOAD CONTROL SYSTEMS. THIS WORK SHALL INCLUDE SYSTEMS ENGINEERING, INTEGRATION AND TEST, INSTAL… Key points: 1. Contract focuses on critical submarine strike systems, indicating a high-stakes area of defense spending. 2. Engineering and technical services are core to the contract, suggesting a need for specialized expertise. 3. The contract duration of over 3000 days highlights a long-term commitment to these systems. 4. Full and open competition was utilized, suggesting a broad market engagement for these services. 5. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight of costs. 6. Work is concentrated in Rhode Island, potentially impacting the local defense industrial base.
Value Assessment
Rating: good
The contract's value of $20.6 million over its extended period appears reasonable for specialized engineering services supporting complex defense systems. Benchmarking against similar contracts for submarine systems engineering is challenging due to the unique nature of the technology, but the pricing structure (Cost Plus Fixed Fee) suggests a negotiated profit margin on top of incurred costs. The long duration implies a consistent need for these services, and the fixed fee component provides some cost predictability for the government.
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 had the opportunity to submit proposals. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide the required engineering and technical services.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of qualified contractors.
Public Impact
The primary beneficiaries are the U.S. Navy's submarine forces, who rely on advanced strike systems for national security. Services delivered include systems engineering, integration, testing, installation, fleet support, and program planning. The geographic impact is primarily in Rhode Island, where SEACORP, LLC is located and likely performs much of the work. Workforce implications include the employment of skilled engineers, technicians, and support staff within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs to increase their fee, necessitating robust government oversight.
- The long duration of the contract increases the risk of cost overruns due to potential changes in scope or unforeseen technical challenges.
- Reliance on a single contractor for critical submarine strike systems engineering could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
- The contract addresses critical national security needs related to submarine strike systems, indicating strategic importance.
- SEACORP, LLC's specialization in this niche area suggests a high level of expertise and capability.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for specialized defense engineering, particularly for advanced weapon systems like submarine strike capabilities, is highly concentrated among a few key players. Spending in this area is driven by national security priorities and technological advancements. Comparable spending benchmarks are difficult to establish precisely due to the proprietary nature of defense systems, but overall U.S. defense R&D and engineering services spending is in the tens of billions annually.
Small Business Impact
This contract does not appear to have a small business set-aside component, as SEACORP, LLC is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized engineering for advanced defense systems may limit opportunities for broad small business participation, though specific components or support services could potentially be subcontracted.
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 Fixed Fee (CPFF) structure requires diligent monitoring of incurred costs to ensure they are reasonable and allocable. Transparency is generally limited for defense contracts of this nature due to national security sensitivities, but reporting requirements would be in place to track progress and expenditures.
Related Government Programs
- Submarine Warfare Systems
- Naval Weapons Systems
- Defense Engineering Services
- Systems Integration
- Fleet Support Services
Risk Flags
- Cost Overrun Risk (CPFF Structure)
- Long-Term Dependency
- Technical Obsolescence
- Scope Creep Potential
Tags
defense, department-of-defense, submarine-systems, engineering-services, cost-plus-fixed-fee, full-and-open-competition, naval-operations, rhode-island, seacorp-llc, long-term-contract, strike-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.6 million to SEACORP, LLC. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING SERVICES, TECHNICAL SERVICES AND MATERIAL TO NUWCDIVNPT CODE 25 FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, AND PAYLOAD CONTROL SYSTEMS. THIS WORK SHALL INCLUDE SYSTEMS ENGINEERING, INTEGRATION AND TEST, INSTALLATION AND FLEET SUPPORT, AND PROGRAM PLANNING, MEETING AND WORKING GROUP 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 $20.6 million.
What is the period of performance?
Start: 2016-09-29. End: 2025-08-12.
What is SEACORP, LLC's track record with the Department of Defense, particularly on similar complex engineering contracts?
SEACORP, LLC has a significant history of contracting with the Department of Defense, particularly in areas related to naval systems and engineering. Their expertise often lies in complex electronic systems, combat systems, and weapon platforms. Reviewing their past performance on contracts, especially those involving submarine technology or systems integration, would provide insight into their reliability, technical proficiency, and ability to manage large-scale projects. Data on past performance, including any awards or disputes, is crucial for assessing their suitability for this ongoing critical work. Their specialization suggests a strong, albeit potentially niche, track record within the defense sector.
How does the $20.6 million total contract value compare to other engineering services contracts for submarine systems?
The $20.6 million total contract value for SEACORP, LLC's engineering services for submarine strike systems is moderate when considered over its extended duration (approximately 9 years). However, direct comparisons are challenging due to the highly specialized and often classified nature of submarine weapon systems. Contracts for similar, high-level systems engineering, integration, and testing for advanced naval platforms can range from tens of millions to hundreds of millions of dollars, depending on the scope, complexity, and specific technologies involved. The value here suggests a focused scope of work, possibly for specific components or phases of development and sustainment, rather than a complete system overhaul. Benchmarking would require access to detailed scope-of-work and performance metrics of comparable contracts.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for critical defense systems?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to SEACORP, LLC, is that the contractor has an incentive to increase costs to maximize their profit, as the fee is a fixed percentage of the estimated cost. While the fixed fee provides some predictability, the government bears the risk of cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable, allocable, and allowable, and to manage scope creep effectively. For critical defense systems, any cost escalation can impact program budgets and timelines, potentially delaying the deployment of essential capabilities.
How effective is the 'full and open competition' approach in ensuring value for money for specialized defense engineering services?
Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. For specialized defense engineering services, this approach ensures that the government can identify and select the contractor offering the best combination of technical capability, past performance, and price. However, the effectiveness can be limited if the market for highly specialized skills is small, or if the technical requirements are so complex that only a few firms can realistically compete. In such cases, while competition is present, the number of viable bidders might be limited, potentially reducing the downward pressure on price compared to markets with many suppliers.
What are the potential long-term implications of this contract on the submarine strike systems' technological advancement and sustainment?
This contract's long duration (ending in 2025) suggests a commitment to the sustainment and potential incremental development of current and future submarine strike systems. By engaging SEACORP, LLC for engineering and technical services, the Navy aims to ensure these critical systems remain operational, effective, and potentially updated to meet evolving threats. The continuity of service provided by a specialized contractor can foster deep institutional knowledge, leading to more efficient problem-solving and maintenance. However, it also raises questions about whether this long-term reliance might stifle innovation from other potential sources or lead to vendor lock-in. The contract's scope will determine the extent to which it supports technological advancement versus routine sustainment.
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: N0002416R3042
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: $21,396,946
Exercised Options: $21,396,946
Current Obligation: $20,606,978
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $39,456
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: 2016-09-29
Current End Date: 2025-08-12
Potential End Date: 2025-08-12 00:00:00
Last Modified: 2025-08-15
More Contracts from Seacorp, LLC
- Code 34 Support TAS::97 0100::TAS — $121.1M (Department of Defense)
- Code 34 Technical Support Igf::ot::igf — $86.4M (Department of Defense)
- Conform Platform Engineering, Advanced System Engineering, Technical, and Test and Evaluation Services for Development, Evaluation, Modernization, and Sustainment of the U.S. Navy and Royal Australian Navy Submarine Platforms — $69.7M (Department of Defense)
- Electromagnetic Maneuver Warfare Modular Suite (emwms) — $59.8M (Department of Defense)
- Strike Engineering and Tech. Support Services (code 25) — $57.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)