DoD's $74.5M I&EW Systems Contract Awarded to RITE-SOLUTIONS, INC. Under Full and Open Competition

Contract Overview

Contract Amount: $74,472,134 ($74.5M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-12-05

End Date: 2024-12-08

Contract Duration: 1,830 days

Daily Burn Rate: $40.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF IMAGING AND ELECTRONIC WARFARE (I&EW) SYSTEMS.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $74.5 million to RITE-SOLUTIONS, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF IMAGING AND ELECTRONIC WARFARE (I&EW) SYSTEMS. Key points: 1. Significant contract value of $74.5M for engineering and technical services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the long duration and cost-plus contract type. 4. Sector is IT/Defense, supporting critical Imaging and Electronic Warfare systems.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. However, the award amount of $74.5M for a 5-year period suggests a reasonable annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a delivery order indicates a specific task within a larger potential scope.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes market efficiency and can lead to lower prices through competitive bidding.

Public Impact

Supports critical national security functions related to imaging and electronic warfare. Long-term contract (5 years) provides stability for the contractor and ensures continuity of services. Potential for technological advancements in sensitive defense systems. Contractor's performance will be crucial for maintaining and improving I&EW capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type can incentivize higher spending.
Long contract duration increases exposure to cost overruns.
Lack of specific performance metrics in provided data.

Positive Signals

Awarded under full and open competition.
Supports critical defense capabilities.
Contractor has a significant award amount, indicating trust and capability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. Benchmarks for similar long-term, high-value engineering support contracts in the defense sector can vary widely based on complexity and system criticality.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award, though subcontractors could potentially be involved.

Oversight & Accountability

The Department of the Navy is the contracting agency, implying established oversight mechanisms. However, the long duration and cost-plus nature of the contract necessitate diligent monitoring to ensure cost control and effective service delivery.

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 (5 years).
Potential for scope creep.
Lack of specific performance metrics in provided data.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.5 million to RITE-SOLUTIONS, INC.. ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF IMAGING AND ELECTRONIC WARFARE (I&EW) SYSTEMS.

Who is the contractor on this award?

The obligated recipient is RITE-SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $74.5 million.

What is the period of performance?

Start: 2019-12-05. End: 2024-12-08.

What specific performance metrics are in place to ensure the value delivered aligns with the $74.5M investment?

The provided data does not detail specific performance metrics. Effective oversight would require clearly defined deliverables, quality standards, and key performance indicators (KPIs) tied to the engineering and technical services for I&EW systems. Regular performance reviews and milestone tracking are essential to ensure the contractor meets objectives and justifies the cost.

How is the risk of cost escalation managed under the Cost Plus Fixed Fee (CPFF) contract type for this long-duration project?

CPFF contracts carry inherent risk of cost escalation. Mitigation strategies likely involve stringent budget controls, detailed cost reporting requirements, and negotiation of a reasonable fixed fee that incentivizes efficiency. The government must actively monitor expenditures and contractor performance to prevent unnecessary costs and ensure the fee remains justified.

What is the anticipated impact of these I&EW systems on overall defense effectiveness and technological superiority?

I&EW systems are crucial for modern warfare, enabling intelligence gathering, situational awareness, and disruption of enemy electronic capabilities. Investment in engineering and technical services for these systems directly supports the development and maintenance of advanced defense technologies, contributing to national security and maintaining a technological edge over adversaries.

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: N6660419R3500

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 185 S BROAD ST, PAWCATUCK, CT, 06379

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: $86,193,124

Exercised Options: $86,193,104

Current Obligation: $74,472,134

Actual Outlays: $5,866,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8424

IDV Type: IDC

Timeline