DoD Awards $42.8M for Torpedo Engineering Support to McLaughlin Research Corp
Contract Overview
Contract Amount: $42,793,644 ($42.8M)
Contractor: Mclaughlin Research Corporation
Awarding Agency: Department of Defense
Start Date: 2018-12-21
End Date: 2024-12-20
Contract Duration: 2,191 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TORPEDO ANALYSIS, FLEET ENGINEERING SUPPORT AND PROGRAM AND ADMINISTRATIVE SUPPORT SERVICES
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $42.8 million to MCLAUGHLIN RESEARCH CORPORATION for work described as: TORPEDO ANALYSIS, FLEET ENGINEERING SUPPORT AND PROGRAM AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract value of $42.8M over 6 years. 2. Awarded via full and open competition. 3. Risk of cost overruns due to Cost Plus Fixed Fee structure. 4. Services fall under Engineering Services sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
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. However, the Cost Plus Fixed Fee structure may limit the incentive for the contractor to control costs.
Taxpayer Impact: Taxpayer funds are being used for critical defense engineering services. The Cost Plus Fixed Fee structure warrants close oversight to ensure cost efficiency.
Public Impact
Supports critical Navy torpedo systems. Ensures continued operational readiness of fleet assets. Potential for long-term reliance on a single contractor for specialized support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Potential for cost overruns
- Long-term contract duration
Positive Signals
- Full and open competition
- Supports critical defense systems
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense readiness. Spending benchmarks for similar specialized engineering support services can vary widely based on complexity and duration.
Small Business Impact
The data indicates that this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee contract type necessitates diligent monitoring of costs and performance to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee structure may incentivize cost overruns.
- Lack of transparency on specific profit margins.
- Potential for contractor lock-in due to specialized knowledge.
- No indication of small business subcontracting.
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 $42.8 million to MCLAUGHLIN RESEARCH CORPORATION. TORPEDO ANALYSIS, FLEET ENGINEERING SUPPORT AND PROGRAM AND ADMINISTRATIVE 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $42.8 million.
What is the period of performance?
Start: 2018-12-21. End: 2024-12-20.
What is the projected profit margin for McLaughlin Research Corporation under this Cost Plus Fixed Fee contract, and how does it compare to industry standards for similar services?
The specific profit margin is not detailed in the provided data. Cost Plus Fixed Fee contracts allow for the reimbursement of all allowable costs plus a negotiated fixed fee representing profit. To assess if it's reasonable, one would need to compare the fixed fee percentage against typical profit margins for engineering services in the defense sector, considering the contract's complexity and risk.
What specific torpedo systems and engineering challenges does this contract address, and what are the potential risks if these services are not adequately provided?
The contract covers 'TORPEDO ANALYSIS, FLEET ENGINEERING SUPPORT AND PROGRAM AND ADMINISTRATIVE SUPPORT SERVICES.' Specific systems are not detailed, but risks of inadequate service include compromised torpedo system performance, reduced fleet readiness, potential mission failures, and increased long-term maintenance costs due to unresolved engineering issues.
How will the Department of the Navy ensure cost efficiency and prevent potential cost overruns given the Cost Plus Fixed Fee contract structure?
The Navy will likely employ robust contract management practices, including detailed cost monitoring, regular performance reviews, and audits. Establishing clear performance metrics and milestones, along with stringent review processes for cost reimbursement requests, are crucial to maintaining cost control and ensuring value for taxpayer money.
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: N6660418R3015
Offers Received: 2
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: $54,086,826
Exercised Options: $54,086,826
Current Obligation: $42,793,644
Actual Outlays: $3,875,330
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
Start Date: 2018-12-21
Current End Date: 2024-12-20
Potential End Date: 2024-12-20 00:00:00
Last Modified: 2025-07-30
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