Navy awards $979M contract for navigation and ship-handling instructor services to LB & B Associates Inc

Contract Overview

Contract Amount: $9,791,152 ($9.8M)

Contractor: LB & B Associates Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-01-31

Contract Duration: 244 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NAVIGATION SEAMANSHIP & SHIP-HANDLING CONTRACTOR INSTRUCTOR SERVICES (NSS CIS) AT: NS SAN DIEGO-NS EVERETT-MAYPORT-PASCAGOULA,MS-NS NEWPORT-NS NORFOLK-BATH,ME-MARINETTE,WI-NS PEARL-SWESC,GREAT LAKES,IL-CFA YOKOSUKA & SASEBO JAPAN-NS ROTA-NSA BAHRAIN.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to LB & B ASSOCIATES INC for work described as: NAVIGATION SEAMANSHIP & SHIP-HANDLING CONTRACTOR INSTRUCTOR SERVICES (NSS CIS) AT: NS SAN DIEGO-NS EVERETT-MAYPORT-PASCAGOULA,MS-NS NEWPORT-NS NORFOLK-BATH,ME-MARINETTE,WI-NS PEARL-SWESC,GREAT LAKES,IL-CFA YOKOSUKA & SASEBO JAPAN-NS ROTA-NSA BAHRAIN. Key points: 1. Contract provides critical training services across multiple naval installations, ensuring operational readiness. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract is 244 days, indicating a focused period of service delivery. 5. The contract value represents a significant investment in specialized military training. 6. The geographic scope includes domestic and international naval bases, highlighting the global reach of naval operations.

Value Assessment

Rating: good

The contract value of $979.1 million for 244 days of service suggests a substantial per-diem cost. Benchmarking against similar specialized training contracts is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. The extensive scope of services and geographic coverage likely contribute to the overall cost.

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 offers. The presence of multiple bidders (indicated by 'no': 3, though this may refer to delivery orders or specific aspects) suggests a degree of market interest. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of contractors to bid, driving down prices and improving the quality of services offered.

Public Impact

Naval personnel at various domestic and international bases will receive essential navigation and ship-handling training. This training is crucial for maintaining the operational readiness and safety of naval vessels. The services support the Department of the Navy's mission to maintain maritime superiority. The contract impacts the specialized defense contracting workforce, particularly those with expertise in maritime training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Dependence on a single contractor for critical training services could pose a risk if performance issues arise.
Ensuring consistent quality of instruction across all specified naval installations.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm-fixed-price contract type provides cost certainty.
Contract covers a broad range of critical training needs for the Navy.
Services are essential for maintaining operational readiness and safety.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on specialized training for maritime operations. The defense training market is substantial, with significant government investment in maintaining a skilled military workforce. LB & B Associates Inc. operates in a niche area of defense contracting, providing essential support services that are critical for naval readiness. Comparable spending benchmarks would involve analyzing other large-scale training contracts within the Department of Defense.

Small Business Impact

The provided data indicates that small business set-aside was not utilized ('ss': false, 'sb': false). This suggests the contract was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses within this data, which would typically be a consideration in larger defense contracts to ensure broader economic impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract, which requires the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Naval Training and Education Command Contracts
Defense Contract Management Agency (DCMA) Oversight
Maritime Simulation and Training Systems
Ship Operations and Seamanship Training

Risk Flags

Potential for scope creep if not clearly defined.
Dependence on contractor's ability to maintain qualified instructors across all locations.
Ensuring consistent training quality across diverse naval installations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to LB & B ASSOCIATES INC. NAVIGATION SEAMANSHIP & SHIP-HANDLING CONTRACTOR INSTRUCTOR SERVICES (NSS CIS) AT: NS SAN DIEGO-NS EVERETT-MAYPORT-PASCAGOULA,MS-NS NEWPORT-NS NORFOLK-BATH,ME-MARINETTE,WI-NS PEARL-SWESC,GREAT LAKES,IL-CFA YOKOSUKA & SASEBO JAPAN-NS ROTA-NSA BAHRAIN.

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 $9.8 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-01-31.

What is the historical performance record of LB & B Associates Inc. with the Department of Defense, particularly in similar training contracts?

A thorough review of LB & B Associates Inc.'s contract history with the Department of Defense is essential to assess their past performance. This would involve examining past awards, contract modifications, past performance evaluations, and any instances of disputes or contract terminations. For contracts similar to this navigation and ship-handling instructor services award, specific attention should be paid to their ability to deliver high-quality training, meet performance metrics, and manage costs effectively. A positive track record with similar complex training requirements would indicate a lower risk for this current award, while a history of performance issues might raise concerns about the contractor's capability and reliability.

How does the awarded price of $979.1 million compare to market rates for similar navigation and ship-handling instructor services?

Benchmarking the $979.1 million award against market rates for comparable navigation and ship-handling instructor services is crucial for assessing value for money. This comparison would involve analyzing data from similar contracts awarded by the Department of Defense or other federal agencies, as well as private sector training providers. Factors such as the duration of the contract (244 days), the scope of services, the number of instructors required, the specific skills and certifications needed, and the geographic locations of service delivery all influence pricing. If the awarded price is significantly higher than comparable contracts or market rates, it could indicate potential overpricing or a lack of sufficient competition. Conversely, a price within or below market benchmarks would suggest a more favorable outcome for the government.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured?

Key performance indicators (KPIs) for this navigation and ship-handling instructor services contract are critical for ensuring the Navy receives the expected quality and effectiveness of training. While specific KPIs are not detailed in the provided data, typical metrics for such contracts often include student pass rates, instructor certification levels, adherence to training schedules, student feedback scores, and the successful completion of specific training modules. The Department of the Navy's contracting officer and technical representatives will be responsible for monitoring these KPIs throughout the contract period. Performance will likely be measured through regular progress reports, on-site inspections, and formal performance reviews. Failure to meet established KPIs could result in contract remedies, including potential financial penalties or termination.

What is the historical spending trend for navigation and ship-handling instructor services within the Department of the Navy?

Analyzing historical spending trends for navigation and ship-handling instructor services within the Department of the Navy provides context for the current $979.1 million award. This would involve examining contract data over several fiscal years to identify patterns in spending levels, the number of contracts awarded, and the primary contractors involved. Understanding these trends can reveal whether spending in this area is increasing, decreasing, or remaining relatively stable. It can also highlight any significant shifts in procurement strategies or the emergence of new training requirements. For instance, a consistent increase in spending might suggest growing demand for these services or an expansion of naval operations, while a decrease could indicate efficiency improvements or a reduction in training needs.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract of this magnitude ($979.1 million) and duration (244 days) carries specific risks, primarily related to scope definition and contractor performance. For the government, the main risk is that the contractor may not deliver the full scope of services as intended if the contract language is not precise, or if unforeseen circumstances arise that make performance exceptionally difficult or costly. While the FFP structure shifts cost overrun risk to the contractor, a poorly defined scope could lead to disputes or a contractor attempting to cut corners to maintain profitability. For the contractor, the risk lies in underestimating the costs or complexities involved in delivering the services across multiple, geographically dispersed locations, potentially leading to financial losses if they cannot manage their expenses within the fixed price.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134024R0034

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9891 BROKEN LAND PKWY STE 400, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $91,662,664

Exercised Options: $9,791,152

Current Obligation: $9,791,152

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134022D1007

IDV Type: IDC

Timeline