Navy awards $11.6M for training and human systems integration, with 5 bids received
Contract Overview
Contract Amount: $11,593,553 ($11.6M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2018-03-09
End Date: 2024-09-08
Contract Duration: 2,375 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CODE 15 TRAINING, TRAINERS, AND HUMAN SYSTEMS INTEGRATION
Place of Performance
Location: MIDDLETOWN, NEWPORT County, RHODE ISLAND, 02842
Plain-Language Summary
Department of Defense obligated $11.6 million to SEACORP, LLC for work described as: CODE 15 TRAINING, TRAINERS, AND HUMAN SYSTEMS INTEGRATION Key points: 1. Value appears reasonable given the contract duration and scope, though specific performance metrics are key. 2. Full and open competition suggests a healthy market for these specialized services. 3. Contract duration and cost-plus fixed fee structure warrant monitoring for potential cost overruns. 4. This contract supports critical training infrastructure for naval personnel. 5. The engineering services sector is competitive, with Seacorp likely leveraging existing expertise.
Value Assessment
Rating: good
The contract's total value of $11.6 million over approximately 6.5 years suggests a moderate annual spend. Benchmarking against similar contracts for training and human systems integration is challenging without more granular data on specific services. However, the cost-plus fixed fee structure allows for flexibility but requires careful oversight to ensure costs remain within reasonable bounds and that the fixed fee adequately compensates the contractor for their effort without excessive profit.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. Five bids were received, suggesting a competitive environment for this type of service. This level of competition is generally positive for price discovery and can lead to more favorable terms for the government.
Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and encouraged innovative solutions from the bidders.
Public Impact
Naval personnel will benefit from enhanced training programs and human systems integration. Services delivered include training, trainers, and human systems integration, crucial for operational readiness. The contract's geographic impact is primarily tied to Navy training facilities, likely concentrated in areas with significant naval presence. Workforce implications include the direct employment of trainers and integration specialists by Seacorp, as well as indirect impacts on naval training staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contracts can incentivize higher spending if not closely managed.
- Long contract duration increases the risk of scope creep or evolving requirements not being adequately addressed.
- Reliance on a single awardee for a significant period requires strong performance monitoring.
Positive Signals
- Full and open competition indicates a healthy market and potential for competitive pricing.
- The contract supports critical defense training, aligning with national security objectives.
- A fixed fee component provides some cost certainty compared to purely cost-reimbursement contracts.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on training and human systems integration. This niche within defense contracting is vital for ensuring military personnel are adequately prepared for complex operational environments. The market for such services is characterized by specialized expertise and often involves long-term relationships with government agencies. Comparable spending benchmarks would typically be found within broader defense training and simulation services categories.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and Seacorp, LLC is not listed as a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor may still engage small businesses as subcontractors, depending on their own supply chain strategies and the availability of specialized small business capabilities.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Naval Training Systems
- Human Systems Integration Services
- Defense Training and Simulation
- Engineering Services for Defense
Risk Flags
- Cost-plus fixed fee contract type requires diligent cost monitoring.
- Long contract duration increases potential for scope creep.
- Performance metrics and quality assurance are critical for success.
Tags
defense, department-of-the-navy, engineering-services, training, human-systems-integration, full-and-open-competition, cost-plus-fixed-fee, delivery-order, rhode-island, seacorp-llc, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to SEACORP, LLC. CODE 15 TRAINING, TRAINERS, AND HUMAN SYSTEMS INTEGRATION
Who is the contractor on this award?
The obligated recipient is SEACORP, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2018-03-09. End: 2024-09-08.
What is Seacorp, LLC's track record with similar government contracts, particularly in training and human systems integration?
Seacorp, LLC has a history of performing various services for the U.S. government, including engineering and technical support. While specific details on their past performance in large-scale training and human systems integration contracts require deeper analysis of contract databases, their presence in the engineering services sector suggests relevant experience. Examining past performance evaluations and any reported issues on previous contracts would provide a clearer picture of their reliability and capability in delivering complex training solutions. Their ability to secure this contract under full and open competition indicates a level of confidence from the Department of the Navy in their past performance and future potential.
How does the awarded value of $11.6 million compare to market rates for similar training and human systems integration services?
Benchmarking the $11.6 million award against market rates for similar services is complex without granular details on the specific tasks, duration, and required expertise. However, considering the contract spans approximately 6.5 years (2375 days), the average annual value is roughly $1.78 million. This figure needs to be evaluated against the complexity and criticality of the training and integration services provided. Factors such as the number of personnel trained, the sophistication of the systems integrated, and the specialized skills of the trainers and integration experts would influence market rates. The fact that five bids were received suggests that the market has multiple players capable of offering these services, which generally helps in achieving competitive pricing relative to market norms.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of all allowable costs exceeding initial estimates. This structure can incentivize contractors to incur higher costs if not managed diligently, as their fee remains constant regardless of the total cost. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate this risk. Additionally, defining the scope of work clearly is essential to prevent scope creep, which can further inflate costs under a CPFF arrangement.
How effective are the current oversight mechanisms in place for this contract to ensure value for money?
The effectiveness of oversight mechanisms for this contract hinges on the diligence of the Department of the Navy's contracting officers and program managers. Standard oversight includes regular performance reviews, audits of cost submissions, and monitoring of key performance indicators. The CPFF structure necessitates particularly stringent financial oversight to ensure that all costs incurred are reasonable, allocable, and necessary. Transparency in reporting and clear communication channels between the government and Seacorp, LLC are vital. The presence of an Inspector General's office provides an additional layer of accountability for investigating potential fraud, waste, or abuse, thereby supporting the goal of achieving value for money.
What are the historical spending patterns for training and human systems integration by the Department of the Navy?
Historical spending patterns for training and human systems integration by the Department of the Navy are substantial, reflecting the continuous need to maintain a highly skilled and operationally ready force. The Navy invests heavily in advanced training technologies, simulation systems, and the integration of human factors into system design and operation. Annual expenditures in these areas can fluctuate based on modernization efforts, new platform acquisitions, and evolving threat landscapes. Analyzing past contract awards for similar services would reveal trends in contract types, durations, and average values, providing context for the current $11.6 million award. This specific contract appears to be a significant, multi-year investment within this broader spending category.
What is the potential impact of this contract on the broader defense training and simulation market?
This contract contributes to the overall demand within the defense training and simulation market. By awarding a significant contract for training, trainers, and human systems integration, the Navy signals the ongoing importance of these capabilities. This can encourage investment and innovation among contractors in this sector. The success of Seacorp, LLC on this contract could also enhance their reputation and position them for future opportunities. Furthermore, the competition for this contract, with five bidders, indicates a healthy ecosystem of companies capable of providing these specialized services, which benefits the government through sustained market capacity and competitive pricing.
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: N0002415R3403
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 62 JOHNNY CAKE HILL RD, MIDDLETOWN, RI, 02842
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $23,951,916
Exercised Options: $23,576,821
Current Obligation: $11,593,553
Actual Outlays: $752,653
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $11,294,537
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4122
IDV Type: IDC
Timeline
Start Date: 2018-03-09
Current End Date: 2024-09-08
Potential End Date: 2024-09-08 00:00:00
Last Modified: 2025-12-12
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