DoD awards $9.4M for LCS maintenance, with a 1,491-day duration, highlighting engineering services for naval assets

Contract Overview

Contract Amount: $9,414,742 ($9.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2026-12-31

Contract Duration: 1,491 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LEGACY LCAC AND LCS-100 CLASS MAINTENANCE AMENDMENT ONE

Place of Performance

Location: PANAMA CITY BEACH, BAY County, FLORIDA, 32407

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: LEGACY LCAC AND LCS-100 CLASS MAINTENANCE AMENDMENT ONE Key points: 1. The contract value of $9.4 million for engineering services appears reasonable given the extensive 1,491-day performance period. 2. Full and open competition was utilized, suggesting a competitive environment for securing these specialized maintenance services. 3. The contract type (Cost Plus Fixed Fee) introduces potential for cost overruns, necessitating robust oversight. 4. Performance is situated in Florida, indicating a specific geographic focus for naval maintenance activities. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of defense readiness. 6. This award represents a small fraction of the overall Department of the Navy's extensive contracting portfolio.

Value Assessment

Rating: good

The contract value of $9.4 million for a 1,491-day performance period suggests a daily rate of approximately $6,300. This rate, while not directly comparable without detailed service breakdowns, seems within a reasonable range for specialized engineering and maintenance services for complex naval assets. The Cost Plus Fixed Fee structure means the government pays costs plus a fixed fee, which can be efficient if costs are well-managed, but also carries risk. Benchmarking against similar LCS maintenance contracts would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The data indicates two bids were received, suggesting a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, preventing potential overpayment and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness, ensuring the continued functionality of LCS vessels. Services delivered include essential engineering and maintenance, crucial for the longevity and performance of naval assets. The geographic impact is concentrated in Florida, where the maintenance activities will likely take place. This contract supports specialized technical and engineering roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Limited competition (2 bids) may not represent the full spectrum of available market capabilities or optimal pricing.
The long performance period (1491 days) increases the risk of scope creep or evolving requirements not being adequately addressed.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Focus on essential maintenance and engineering services directly supports naval asset readiness.
Clear performance period and delivery order structure provide defined expectations.

Sector Analysis

The defense engineering services sector is a critical component of the broader aerospace and defense industry, characterized by high technical expertise and stringent quality requirements. This contract falls within the specialized area of naval vessel maintenance and sustainment. Spending in this sector is substantial, driven by the need to maintain a technologically advanced military. Comparable spending benchmarks would involve analyzing other contracts for naval ship maintenance and engineering support, which often run into millions or billions of dollars annually.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it explicitly mention subcontracting goals for small businesses. The award was made to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has a history of engaging with the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Littoral Combat Ship (LCS) Program
Naval Ship Maintenance Contracts
Defense Engineering Services
Department of the Navy Procurement

Risk Flags

Cost Plus Fixed Fee contract type
Limited number of bids received
Long performance period increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. LEGACY LCAC AND LCS-100 CLASS MAINTENANCE AMENDMENT ONE

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $9.4 million.

What is the period of performance?

Start: 2022-12-01. End: 2026-12-31.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Defense, particularly in naval engineering services?

A review of federal procurement data indicates that MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of receiving contracts from various Department of Defense agencies, including the Department of the Navy. Their contract awards often fall within the engineering services and technical support categories. Specific to naval engineering, their past performance would need to be assessed against the requirements of this LCS maintenance contract. Analyzing past performance evaluations, any contract disputes, or awards for similar services would provide a clearer picture of their capabilities and reliability in this domain. Without access to detailed performance reviews, it's difficult to definitively assess their track record beyond their presence in the federal contracting space.

How does the estimated value per day for this contract compare to industry benchmarks for similar naval engineering services?

The contract value of $9.4 million spread over 1491 days results in an approximate daily rate of $6,300. Benchmarking this figure requires detailed knowledge of the specific services provided, the labor categories involved, and the complexity of LCS maintenance. Industry benchmarks for specialized engineering and maintenance services for naval vessels can vary significantly. Factors such as the required security clearances, specialized tooling, and the criticality of the systems being maintained influence pricing. Generally, rates for highly specialized technical services supporting complex defense platforms tend to be higher than standard commercial engineering rates. A direct comparison would necessitate access to detailed cost breakdowns and data from similar, recently awarded contracts for LCS or comparable naval platforms.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this naval maintenance requirement?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to ensure their fixed fee remains profitable, the government bears the risk of paying actual allowable costs incurred. If the contractor's cost estimates are inaccurate or if unforeseen technical challenges arise during maintenance, the total cost to the government could exceed initial projections. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk. The fixed fee itself is negotiated upfront, providing some cost certainty for that component, but the variable cost component remains a key area for monitoring.

What is the historical spending trend for Littoral Combat Ship (LCS) maintenance and engineering services by the Department of the Navy?

Historical spending on Littoral Combat Ship (LCS) maintenance and engineering services by the Department of the Navy has been substantial and is likely to continue growing as the LCS fleet matures and requires more extensive upkeep. The LCS program has faced various challenges, including maintenance complexities and availability issues, which often translate into significant sustainment costs. Analyzing past five to ten years of Navy procurement data would reveal trends in spending on LCS sustainment, including contracts for engineering support, spare parts, and depot-level maintenance. This trend analysis is crucial for understanding the long-term budgetary implications of maintaining the LCS fleet and for forecasting future needs.

Given the full and open competition with two bids, what is the potential impact on price discovery and overall value for taxpayers?

While full and open competition is the preferred method for maximizing price discovery, receiving only two bids suggests that the market for this specific requirement may be limited or that potential bidders were deterred by contract terms, complexity, or other factors. With only two bidders, the competitive pressure might be less intense than if multiple bids were received. This could potentially lead to a less aggressive pricing strategy from the awarded contractor. Taxpayers benefit from competition by receiving lower prices and better value. A limited number of bids reduces the certainty that the government secured the best possible price, although the full and open nature still provides a baseline for comparison against market rates.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6133122R3004

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DR STE 600, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,894,463

Exercised Options: $24,578,993

Current Obligation: $9,414,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8070

IDV Type: IDC

Timeline