DoD's $29.7M Autonomous Maritime Systems Contract Awarded to Serco-IPS Corporation
Contract Overview
Contract Amount: $29,704,053 ($29.7M)
Contractor: Serco-Ips Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-26
End Date: 2025-09-29
Contract Duration: 2,560 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AUTONOMOUS MARITIME SYSTEMS TEST CENTER (AMSTC) ENGINEERING AND TECHNICAL SERVICES
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $29.7 million to SERCO-IPS CORPORATION for work described as: AUTONOMOUS MARITIME SYSTEMS TEST CENTER (AMSTC) ENGINEERING AND TECHNICAL SERVICES Key points: 1. Contract value of $29.7M for engineering and technical services. 2. Awarded to Serco-IPS Corporation under full and open competition. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Services are within the Engineering Services sector.
Value Assessment
Rating: good
The contract value of $29.7M appears reasonable for specialized engineering and technical services. Benchmarking against similar DoD contracts for autonomous systems development and testing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary services.
Public Impact
Enhances U.S. Navy's capabilities in autonomous maritime systems. Supports technological advancement in defense. Potential for job creation in Rhode Island.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
- Long contract duration (2018-2025) increases exposure to changing technological needs and market conditions.
Positive Signals
- Awarded under full and open competition, indicating competitive pricing.
- Services directly support critical defense modernization efforts.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. Spending benchmarks for similar specialized engineering services for the DoD can vary widely based on complexity and duration.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The contract's duration and cost-plus nature warrant diligent monitoring to ensure performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for scope creep without strict oversight.
- Reliance on a single contractor for specialized services.
Tags
engineering-services, department-of-defense, ri, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.7 million to SERCO-IPS CORPORATION. AUTONOMOUS MARITIME SYSTEMS TEST CENTER (AMSTC) ENGINEERING AND TECHNICAL SERVICES
Who is the contractor on this award?
The obligated recipient is SERCO-IPS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $29.7 million.
What is the period of performance?
Start: 2018-09-26. End: 2025-09-29.
What is the specific breakdown of services provided under this contract and how do they align with current autonomous maritime system requirements?
The contract covers engineering and technical services for the Autonomous Maritime Systems Test Center (AMSTC). Specific services likely include system design, integration, testing, evaluation, and support for autonomous maritime platforms and associated technologies. Alignment with current requirements would necessitate a review of the Statement of Work and any subsequent modifications, ensuring it reflects the Navy's evolving needs in areas like unmanned vessel operation, sensor integration, and command and control systems.
What are the key performance indicators (KPIs) and milestones for this contract, and how is performance being tracked?
Key performance indicators and milestones are typically defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For this Cost Plus Fixed Fee contract, KPIs might include successful system testing, delivery timelines for prototypes or components, and adherence to technical specifications. Performance tracking would involve regular progress reports from Serco-IPS, government inspections, and milestone reviews conducted by the Department of the Navy to ensure the contractor is meeting its obligations and managing costs effectively.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure value for money compared to other contract types?
The Cost Plus Fixed Fee (CPFF) structure allows the government to reimburse the contractor for allowable costs plus a predetermined fixed fee. While it facilitates contracting for research and development or services where cost estimation is difficult, it shifts some cost risk to the government. Unlike fixed-price contracts, the government bears the risk of cost overruns. Effective oversight, detailed cost monitoring, and clear definition of the 'fixed fee' are crucial to ensure value for money and prevent excessive spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6660417R3067
Offers Received: 2
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, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,421,839
Exercised Options: $39,421,839
Current Obligation: $29,704,053
Actual Outlays: $1,424,025
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $4,194,827
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4066
IDV Type: IDC
Timeline
Start Date: 2018-09-26
Current End Date: 2025-09-29
Potential End Date: 2025-09-29 00:00:00
Last Modified: 2025-09-15
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