Navy awards $59.8M contract for navigation instructor services to LB & B Associates Inc

Contract Overview

Contract Amount: $59,764,168 ($59.8M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-01

End Date: 2025-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $32.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVIGATION SEAMANSHIP SHIPHANDLING CONTRACTOR INSTRUCTOR SERVICES

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $59.8 million to LB & B ASSOCIATES INC for work described as: NAVIGATION SEAMANSHIP SHIPHANDLING CONTRACTOR INSTRUCTOR SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. Services are for navigation, seamanship, and shiphandling instruction, critical for naval readiness. 4. The contract duration of five years indicates a long-term need for these specialized services. 5. The award amount of approximately $60 million over five years suggests a significant investment in training. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, though the description is specific to training.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for the government, locking in costs. Benchmarking against similar instructor services contracts is difficult without more specific service details and market data. However, the total award of $59.8 million over five years averages to approximately $11.96 million annually, which appears reasonable for specialized, long-term training services critical to naval operations. The absence of extensive modifications or change orders, if applicable, would further support its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available. It reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

Naval personnel will receive specialized training in navigation, seamanship, and shiphandling, enhancing operational capabilities. The services directly contribute to the readiness and effectiveness of the U.S. Navy's fleet. The contract supports skilled instructors, likely with extensive maritime and military experience. The primary geographic impact is on naval training facilities where these services are delivered, potentially across multiple bases. Workforce implications include the employment of specialized instructors and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements evolve significantly beyond the initial contract.
Reliance on a single contractor for five years could lead to complacency or reduced innovation if not managed closely.
Ensuring consistent quality of instruction across all delivery points and instructors is a potential challenge.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Long-term contract (5 years) allows for stable planning and consistent delivery of critical training.
Awarded through full and open competition, suggesting a competitive process that should yield good value.
Specialized nature of the training indicates a focus on critical mission-essential skills for naval personnel.

Sector Analysis

The defense training and simulation market is a significant segment within the broader aerospace and defense industry. This contract falls under professional services, specifically focusing on specialized instruction. The market includes providers of technical training, simulation systems, and curriculum development for military applications. Spending in this sector is driven by the need for continuous personnel development, modernization of training methods, and maintaining operational readiness in complex geopolitical environments. Comparable spending benchmarks would involve analyzing other large-scale training contracts awarded by military branches for similar skill sets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is likely that LB & B Associates Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks to engage small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services to a certain standard. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Naval Education and Training Command (NETC) programs
Fleet Training Support Services
Maritime Simulation and Training Contracts
Defense Contractor Instructor Services
Shiphandling and Navigation Training

Risk Flags

Potential for instructor quality variance
Risk of outdated training methodologies
Dependence on contractor's specialized knowledge

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.8 million to LB & B ASSOCIATES INC. NAVIGATION SEAMANSHIP SHIPHANDLING CONTRACTOR INSTRUCTOR SERVICES

Who is the contractor on this award?

The obligated recipient is LB & B ASSOCIATES 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 $59.8 million.

What is the period of performance?

Start: 2020-08-01. End: 2025-07-31.

What is the track record of LB & B Associates Inc. in delivering similar navigation and seamanship training services to the Department of Defense?

LB & B Associates Inc. has a history of providing professional services, including training and technical support, to various government agencies. While specific details on their past performance for navigation, seamanship, and shiphandling instructor services are not fully elaborated in the provided data, their selection for this significant five-year contract suggests they possess relevant experience and capabilities. A deeper dive into their contract history, past performance reviews, and any prior awards for similar services would provide a more comprehensive understanding of their track record. Examining any past issues or commendations related to their training delivery, curriculum development, or instructor qualifications would further illuminate their suitability for this role.

How does the annual cost of this contract compare to industry benchmarks for specialized maritime training services?

The contract averages approximately $11.96 million per year ($59.8M / 5 years). Benchmarking this against industry standards requires detailed comparison points such as the specific curriculum, number of personnel trained, instructor qualifications, and geographic locations of service delivery. Specialized maritime training, particularly for naval operations, often commands higher costs due to the complexity, required expertise, and stringent quality standards. Without granular data on comparable commercial or military training programs, a precise benchmark is challenging. However, given the critical nature and specialized skill set required for naval navigation and shiphandling, this annual figure appears to be within a reasonable range for a large-scale, long-term government contract of this nature, assuming quality delivery.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential instructor attrition, ensuring consistent quality of training across diverse naval platforms and locations, and the possibility of evolving training needs not fully captured in the initial scope. Another risk is the contractor's ability to maintain up-to-date knowledge of modern navigation and shiphandling techniques. Mitigation strategies likely involve robust performance monitoring by the Navy, clear quality assurance clauses in the contract, requirements for qualified instructors, and potentially built-in mechanisms for curriculum review and updates. The firm-fixed-price nature also mitigates cost overrun risks for the government, shifting that burden to the contractor.

How effective is the firm-fixed-price contract type in ensuring the Navy receives high-quality instruction for the price paid?

The firm-fixed-price (FFP) contract type is generally effective in controlling costs for the government, as the price is set upfront and the contractor bears the risk of cost overruns. This encourages the contractor to manage their expenses efficiently. For ensuring high-quality instruction, the FFP structure relies heavily on well-defined performance standards and quality assurance surveillance by the government. The Navy must actively monitor the contractor's performance against these standards to ensure the instruction meets requirements. While FFP provides cost certainty, the government's role in quality oversight is crucial for guaranteeing the value and effectiveness of the training received.

What is the historical spending trend for navigation, seamanship, and shiphandling instructor services within the Department of the Navy?

Historical spending data for navigation, seamanship, and shiphandling instructor services within the Department of the Navy would reveal trends in investment in these critical training areas. Analyzing past contracts, including their value, duration, and number of awards, can indicate whether spending has been consistent, increasing, or decreasing. Such analysis could also highlight shifts in contracting strategies, such as a move towards longer-term contracts or changes in competition levels. Understanding these historical patterns provides context for the current $59.8 million award, helping to assess if it represents a significant change or a continuation of established spending levels for these essential naval training services.

What specific technologies or simulation tools are expected to be utilized in the delivery of these instructor services?

The provided data does not specify the exact technologies or simulation tools to be used. However, modern navigation, seamanship, and shiphandling instruction typically involves a range of advanced systems. This could include sophisticated bridge simulators that replicate various vessel types and environmental conditions, electronic chart display and information systems (ECDIS), radar simulators, and potentially virtual reality (VR) or augmented reality (AR) training modules. The contractor is expected to leverage current and relevant technologies to provide realistic and effective training scenarios, ensuring naval personnel are proficient with the tools and techniques employed on contemporary vessels.

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: N6134015R0052

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKENLAND PKWY STE 400, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $66,914,855

Exercised Options: $60,274,905

Current Obligation: $59,764,168

Actual Outlays: $22,682,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134016D1008

IDV Type: IDC

Timeline