Navy's $42.8M Engineering Services Contract Awarded to Serco Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $42,844,895 ($42.8M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2023-03-23
End Date: 2026-03-22
Contract Duration: 1,095 days
Daily Burn Rate: $39.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: COMMANDER NAVY INSTALLATIONS COMMAND (CNIC) N6 REGIONAL SUPPORT
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $42.8 million to SERCO INC for work described as: COMMANDER NAVY INSTALLATIONS COMMAND (CNIC) N6 REGIONAL SUPPORT Key points: 1. The contract is for regional support services for the Commander Navy Installations Command (CNIC). 2. Serco Inc. was awarded the contract following a full and open competition. 3. The contract has a duration of 1095 days, ending in March 2026. 4. The primary service category is Engineering Services (NAICS 541330). 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns.
Value Assessment
Rating: good
The contract's value of $42.8M over three years appears reasonable for comprehensive engineering support services. Benchmarking against similar large-scale DoD engineering contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by encouraging multiple bidders to offer their best pricing and technical solutions.
Public Impact
Ensures continued operational support for Navy installations. Supports critical infrastructure and facilities management for the Navy. Provides specialized engineering expertise to the Department of the Navy. Impacts multiple Navy regions through regional support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed closely.
- Potential for scope creep given the nature of engineering services.
- Reliance on a single contractor for critical regional support.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Long-term contract provides stability for essential services.
- Clear service category (Engineering Services) and agency (DoD).
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of defense infrastructure and operations. Spending in this sector for the DoD is substantial, with contracts often being large and complex.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities exist within this large prime contract.
Oversight & Accountability
The Department of the Navy awarded this contract, implying oversight from within the DoD. The contract's duration and value suggest regular performance reviews and financial oversight are necessary.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Potential for cost overruns.
- Lack of small business prime awardee.
- Broad scope of engineering services.
- Long contract duration.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to SERCO INC. COMMANDER NAVY INSTALLATIONS COMMAND (CNIC) N6 REGIONAL SUPPORT
Who is the contractor on this award?
The obligated recipient is SERCO 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 $42.8 million.
What is the period of performance?
Start: 2023-03-23. End: 2026-03-22.
What is the specific breakdown of engineering services required under this contract?
The provided data does not detail the specific engineering services. However, given the context of Commander Navy Installations Command (CNIC) regional support, it likely encompasses a broad range of activities such as facilities engineering, infrastructure maintenance planning, environmental engineering, and construction project oversight across various Navy installations.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators would likely focus on timely project completion, adherence to budget, quality of engineering designs and oversight, compliance with environmental regulations, and overall satisfaction of Navy installation commands. Specific KPIs would be detailed in the contract's statement of work and performance standards.
How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar services?
The fixed fee is a percentage of the estimated cost. Without knowing the estimated cost and the specific services, it's difficult to benchmark. However, for Cost Plus Fixed Fee contracts, the fee is negotiated to represent a fair profit margin while incentivizing the contractor to control costs. A fee significantly above or below typical ranges (often 5-15%) warrants scrutiny.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523623R3000
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $74,265,547
Exercised Options: $49,030,004
Current Obligation: $42,844,895
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,578,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8498
IDV Type: IDC
Timeline
Start Date: 2023-03-23
Current End Date: 2026-03-22
Potential End Date: 2028-03-22 00:00:00
Last Modified: 2026-02-12
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