DoD awards $41.8M for undersea vehicle support, with McLaughlin Research Corp. securing a cost-plus-fixed-fee contract

Contract Overview

Contract Amount: $41,820,876 ($41.8M)

Contractor: Mclaughlin Research Corporation

Awarding Agency: Department of Defense

Start Date: 2018-02-15

End Date: 2023-10-24

Contract Duration: 2,077 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CODE 85 UNDERSEA VEHICLES AND SUPPORT EQUIPMENT DESIGN, PRODUCTION, QUALITY AND LOGISTICS SUPPORT SERVICES

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to MCLAUGHLIN RESEARCH CORPORATION for work described as: CODE 85 UNDERSEA VEHICLES AND SUPPORT EQUIPMENT DESIGN, PRODUCTION, QUALITY AND LOGISTICS SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but also carries cost overrun risks. 3. The duration of the contract (2077 days) indicates a long-term need for these specialized engineering services. 4. The contract was awarded by the Defense Contract Management Agency, a key oversight body within the DoD. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of defense procurement. 6. The contract's value is substantial, reflecting the complexity and importance of undersea vehicle support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure means the final cost can fluctuate based on actual expenses, making direct price comparisons difficult. However, the fixed fee component provides some predictability. The total award amount of $41.8 million over approximately 5.7 years suggests a significant investment in specialized engineering services for undersea vehicles.

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 bids. The presence of 3 bids suggests a moderate level of competition for this specialized service. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the specific number of bidders can influence the intensity of that competition.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open process. However, the actual cost savings depend on the number and aggressiveness of the bidders.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units requiring support for undersea vehicles. Services delivered include design, production, quality, and logistics support for these complex systems. The geographic impact is likely concentrated within defense facilities and operational areas where these vehicles are deployed. Workforce implications include the need for highly skilled engineers and technical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if not closely managed.
The long contract duration may present challenges in adapting to evolving technologies or requirements.
Limited public information on specific performance metrics makes it difficult to assess value for money comprehensively.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, McLaughlin Research Corporation, has a track record in defense contracting.
The contract addresses a critical need for undersea vehicle support within the Department of Defense.

Sector Analysis

The defense engineering services sector is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships. Companies like McLaughlin Research Corporation operate within a niche that requires deep technical expertise in areas such as naval architecture, marine engineering, and advanced materials. Spending in this sector is driven by national security priorities and technological advancements in defense capabilities, including the increasing importance of unmanned and autonomous underwater systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the 'ss: false' flag suggests no specific small business subcontracting goals were mandated within this award. This means that opportunities for small businesses to participate in this contract would likely be through direct subcontracting by the prime contractor, McLaughlin Research Corporation, rather than through a formal set-aside program.

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. Accountability measures would be embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be restricted due to national security concerns. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Undersea Warfare Programs
Defense Engineering Services
Department of Defense Logistics Support
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Contract Management
Technology Obsolescence
Performance Measurement Difficulty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to MCLAUGHLIN RESEARCH CORPORATION. CODE 85 UNDERSEA VEHICLES AND SUPPORT EQUIPMENT DESIGN, PRODUCTION, QUALITY AND LOGISTICS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MCLAUGHLIN RESEARCH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2018-02-15. End: 2023-10-24.

What is McLaughlin Research Corporation's track record with similar DoD contracts?

McLaughlin Research Corporation has a history of securing contracts with the Department of Defense, particularly in areas related to engineering and technical services. While specific details on past undersea vehicle support contracts require deeper database analysis, their presence as a prime contractor suggests a demonstrated capability to meet DoD requirements. Reviewing their contract history for similar service types, contract values, and performance ratings would provide a more comprehensive understanding of their reliability and expertise in this domain. Past performance is a critical factor in federal procurement, and agencies often rely on this data when making future award decisions.

How does the $41.8 million award compare to other DoD contracts for undersea vehicle support?

Comparing the $41.8 million award requires analyzing the scope, duration, and specific services included in other contracts for undersea vehicle support. This particular contract spans nearly six years and covers a broad range of services from design to logistics. Larger, more complex programs involving the development or sustainment of major platforms might exceed this value significantly. Conversely, smaller, more focused contracts for specific components or short-term technical assistance would likely be lower. Without a direct benchmark for identical services and durations, this award appears to represent a substantial, mid-to-large scale investment in specialized engineering and support capabilities for critical defense assets.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly beyond initial projections, the government bears the burden of these increased expenses. This structure can sometimes disincentivize aggressive cost control by the contractor, as their profit is fixed regardless of the final cost. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. The long duration of this contract amplifies these risks, necessitating vigilant monitoring throughout its life cycle.

How effective is the Defense Contract Management Agency (DCMA) in overseeing contracts of this nature?

The Defense Contract Management Agency (DCMA) is specifically tasked with providing contract administration services for the Department of Defense, including quality assurance, payment, and performance monitoring. For complex engineering services like those provided under this contract, DCMA plays a critical role in ensuring that the contractor meets technical specifications, quality standards, and delivery schedules. Their effectiveness relies on adequate staffing, specialized expertise in the contracted field, and robust communication channels with both the contracting officer and the contractor. While DCMA is a well-established entity, the sheer volume and diversity of contracts they oversee mean that oversight intensity can vary.

What are the historical spending patterns for undersea vehicle support services within the DoD?

Historical spending on undersea vehicle support services within the DoD has generally been substantial and consistent, reflecting the strategic importance of submarine and unmanned underwater vehicle (UUV) programs. Budgets allocated to naval systems, including those for undersea warfare, are typically significant and often span multiple fiscal years due to the long development and procurement cycles. Spending trends are influenced by geopolitical factors, technological advancements (e.g., AI in UUVs), and the overall defense budget. While specific figures for 'undersea vehicle support' as a distinct category can be difficult to isolate without detailed budget breakdowns, it forms a critical part of the broader naval systems procurement and sustainment expenditure.

What is the significance of the North American Industry Classification System (NAICS) code 541330 for this contract?

The NAICS code 541330, 'Engineering Services,' is highly significant as it precisely categorizes the core function of this contract. This code encompasses firms that provide architectural, engineering, and related services, including drafting, design, and consulting. For the Department of Defense, engaging firms under this classification means they are procuring specialized technical expertise essential for the design, development, modification, and support of complex systems like undersea vehicles. This code helps in classifying the contract for statistical purposes, identifying relevant industry players, and understanding the market landscape for such specialized professional services.

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: N6660417R3059

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 130 EUGENE ONEILL DR, NEW LONDON, CT, 06320

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $45,102,325

Exercised Options: $45,102,325

Current Obligation: $41,820,876

Actual Outlays: $1,760,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4083

IDV Type: IDC

Timeline