DoD's Navy awards $17.7M engineering services contract to McLaughlin Research Corp. for infrastructure support

Contract Overview

Contract Amount: $17,753,066 ($17.8M)

Contractor: Mclaughlin Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-01

End Date: 2025-04-30

Contract Duration: 2,068 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NUWCDIVNPT CODE 102 INFRASTRUCTURE DIVISION AND CODE 107 PROPERTY MANAGEMENT DIVISION SUPPORT SERVICES.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to MCLAUGHLIN RESEARCH CORPORATION for work described as: NUWCDIVNPT CODE 102 INFRASTRUCTURE DIVISION AND CODE 107 PROPERTY MANAGEMENT DIVISION SUPPORT SERVICES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Cost-plus-fixed-fee contract type may lead to cost overruns if not managed closely. 3. Long contract duration of over 2000 days indicates a need for sustained support. 4. The contract supports infrastructure and property management divisions, crucial for operational readiness. 5. Awarded by the Department of the Navy, indicating a focus on maritime defense needs. 6. The contractor, McLaughlin Research Corporation, has secured this award, suggesting past performance or competitive advantage.

Value Assessment

Rating: fair

The contract value of $17.7 million over approximately 6.8 years (2068 days) averages to about $2.6 million annually. Benchmarking this against similar engineering support services for naval infrastructure is challenging without more specific service details. The cost-plus-fixed-fee structure introduces potential for costs to exceed initial estimates, warranting close monitoring of expenditures and contractor efficiency to ensure value for money.

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 two bids suggests a moderate level of competition for this specific requirement. While competition is present, a higher number of bidders would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bids, the potential for significant cost savings may be limited compared to scenarios with more extensive competition.

Public Impact

The primary beneficiaries are the Department of the Navy's NUWCDIVNPT, specifically the Infrastructure Division and Property Management Division. The contract delivers essential support services for maintaining and managing critical infrastructure. Services are geographically focused on Rhode Island, where NUWCDIVNPT is located. This contract likely supports a workforce of engineers, technicians, and administrative staff involved in infrastructure management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize contractor to increase costs to maximize profit.
Limited competition (2 bids) may result in suboptimal pricing for the government.
Long contract duration increases the risk of scope creep and potential cost overruns.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Supports critical infrastructure and property management functions for the Navy.
Contractor has secured a significant award, indicating capability in this service area.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including defense, infrastructure development, and research. The market for engineering services supporting defense infrastructure is substantial, driven by the need to maintain and modernize aging facilities and develop new capabilities. Comparable spending benchmarks would depend on the specific nature of the infrastructure supported, but contracts for facility management and engineering support are common within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily includes small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award notice, but detailed spending and performance data may be subject to standard government reporting protocols. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Infrastructure Support Contracts
Engineering Services for Government Facilities
Property Management Services for Federal Agencies

Risk Flags

Cost-plus-fixed-fee contract type may lead to higher costs than anticipated.
Limited competition (2 bids) could result in suboptimal pricing.
Long contract duration increases risk of scope creep and cost escalation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to MCLAUGHLIN RESEARCH CORPORATION. NUWCDIVNPT CODE 102 INFRASTRUCTURE DIVISION AND CODE 107 PROPERTY MANAGEMENT DIVISION 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 $17.8 million.

What is the period of performance?

Start: 2019-09-01. End: 2025-04-30.

What is McLaughlin Research Corporation's track record with the Department of the Navy and similar contracts?

McLaughlin Research Corporation (MRC) has a history of contracting with the Department of Defense, including the Department of the Navy. While specific details on past performance for identical infrastructure and property management support services are not provided in this summary, MRC's ability to win this $17.7 million contract suggests they have met the Navy's requirements for technical capability and past performance. Further investigation into their contract history, including past performance reviews and any documented issues on previous Navy contracts, would be necessary for a comprehensive assessment. Their website and federal procurement databases like SAM.gov can offer more insights into their portfolio and client base.

How does the $17.7 million value compare to similar engineering support contracts for naval infrastructure?

Directly comparing the $17.7 million value requires understanding the specific scope of services provided for NUWCDIVNPT's infrastructure and property management. Naval infrastructure support can range widely from base operations and maintenance to specialized engineering studies for facilities. This contract, spanning nearly seven years, averages approximately $2.6 million annually. Larger, more comprehensive base operations contracts can run into tens or hundreds of millions annually. Conversely, smaller, specialized engineering study contracts might be in the low millions. Without a detailed breakdown of services (e.g., facilities maintenance, IT infrastructure, environmental services, capital planning), it's difficult to benchmark precisely. However, the value appears moderate for a long-term, multi-faceted support role within a significant naval command.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to McLaughlin Research Corporation, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this means the final cost could exceed initial projections if costs are not rigorously controlled and monitored. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives value for its investment.

How effective is the 'full and open competition' approach when only two bids are received?

While 'full and open competition' is the preferred method for maximizing government purchasing power, its effectiveness is diminished when only two bids are received. The ideal scenario involves numerous bidders vying for the contract, driving down prices through competitive pressure and offering a wider array of solutions. With only two offers, the government has limited options, potentially leading to less aggressive pricing than if more competitors were involved. The effectiveness hinges on whether these two bidders were genuinely the most capable and competitive in the market. If the pool of potential bidders was indeed small for this specialized service, then two bids might represent a reasonable level of competition. However, it raises questions about whether additional outreach or different solicitation strategies could have attracted more interest.

What are the historical spending patterns for infrastructure and property management support at NUWCDIVNPT?

Historical spending patterns for infrastructure and property management support at NUWCDIVNPT are not detailed in the provided data. To assess this, one would need to examine previous contract awards for similar services to this specific command or its predecessors. Analyzing trends in contract values, durations, and types (e.g., fixed-price vs. cost-reimbursable) over several fiscal years would reveal whether the current $17.7 million award represents an increase, decrease, or stable level of investment. Understanding past spending can help contextualize the current award's value and identify any significant shifts in the Navy's approach to managing its infrastructure at this facility.

What are the implications of the contract duration (2068 days) on service delivery and cost management?

A contract duration of 2068 days (approximately 6.8 years) for infrastructure and property management support implies a need for long-term, stable service provision. This extended period allows the contractor to develop deep familiarity with the facilities and operational requirements, potentially leading to more efficient and effective service delivery over time. It also provides continuity for the government customer. However, such long durations also increase the risk of cost escalation due to inflation, changes in requirements, or unforeseen challenges. For the government, it necessitates robust contract management to ensure performance remains high and costs are controlled throughout the contract's life. It also means less frequent opportunities to re-compete and potentially leverage new market innovations or 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: N6660419R3504

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 130 EUGENE O'NEILL DR, NEW LONDON, CT, 06320

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,025,966

Exercised Options: $19,025,966

Current Obligation: $17,753,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8089

IDV Type: IDC

Timeline