DoD's $21.5M Engineering Services Contract for Launcher Lab Facilities Awarded to McLaughlin Research Corp

Contract Overview

Contract Amount: $21,552,082 ($21.6M)

Contractor: Mclaughlin Research Corporation

Awarding Agency: Department of Defense

Start Date: 2020-07-11

End Date: 2026-07-10

Contract Duration: 2,190 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE CODE 45 LAUNCHER LABORATORY COMPLEX TEST FACILITIES INCLUDING FACILITY OPERATIONS, SUPPORT, INTEGRATED LOGISTICS SUPPORT, AND ENGINEERING, TECHNICAL AND DESIGN SERVICES.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to MCLAUGHLIN RESEARCH CORPORATION for work described as: ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE CODE 45 LAUNCHER LABORATORY COMPLEX TEST FACILITIES INCLUDING FACILITY OPERATIONS, SUPPORT, INTEGRATED LOGISTICS SUPPORT, AND ENGINEERING, TECHNICAL AND DESIGN SERVICES. Key points: 1. Contract provides critical engineering and technical support for missile launcher test facilities. 2. Focus on facility operations, logistics, and design services highlights essential infrastructure maintenance. 3. Long-term contract duration suggests a sustained need for specialized technical expertise. 4. Awarded via full and open competition, indicating a broad market solicitation. 5. The contract's value is moderate within the context of large-scale defense infrastructure support. 6. Performance risk appears manageable given the nature of ongoing facility support services.

Value Assessment

Rating: good

The contract value of approximately $21.5 million over its duration appears reasonable for specialized engineering and technical services supporting complex defense facilities. Benchmarking against similar contracts for facility operations and maintenance at government installations suggests this pricing is within expected ranges. The cost-plus-fixed-fee (CPFF) structure allows for flexibility while providing the contractor with an incentive for cost control, though it requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable firms were solicited and had the opportunity to bid. The presence of two bids indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to offer their best value propositions.

Public Impact

The Department of Defense, specifically the Department of the Navy, benefits from sustained operational capability of its launcher laboratory complex. Services include facility operations, integrated logistics support, and engineering/technical/design services, ensuring readiness of critical test infrastructure. The contract supports specialized technical workforces in Rhode Island, contributing to the local economy. Ensures the continued ability to test and develop advanced missile systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts requires robust oversight.
Dependence on a single contractor for critical facility operations could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections without careful management.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long contract duration indicates a stable and predictable need for these services.
The contractor, McLaughlin Research Corporation, likely possesses specialized expertise required for this niche support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense infrastructure. The market for specialized engineering and technical support for government facilities is significant, driven by the need to maintain and upgrade complex defense systems and testing grounds. Comparable spending often involves long-term contracts for facility management, maintenance, and specialized technical expertise, with values varying widely based on the scale and complexity of the facilities supported.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses within the provided data. This suggests that the primary awardee is likely a larger entity, and the impact on the small business ecosystem would depend on whether McLaughlin Research Corporation engages small businesses as subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Navy. Accountability measures are embedded in the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and oversight activities may not be publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Infrastructure Support Contracts
Engineering and Technical Services
Facility Operations and Maintenance
Missile Systems Development Support
Department of the Navy Procurement

Risk Flags

Cost Overrun Risk (CPFF)
Performance Dependency
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to MCLAUGHLIN RESEARCH CORPORATION. ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE CODE 45 LAUNCHER LABORATORY COMPLEX TEST FACILITIES INCLUDING FACILITY OPERATIONS, SUPPORT, INTEGRATED LOGISTICS SUPPORT, AND ENGINEERING, TECHNICAL AND DESIGN 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 $21.6 million.

What is the period of performance?

Start: 2020-07-11. End: 2026-07-10.

What is McLaughlin Research Corporation's track record with similar DoD contracts?

McLaughlin Research Corporation has a history of performing contracts for the Department of Defense, often in areas related to engineering, technical services, and support for complex systems. While specific details on past performance for launcher laboratory facilities are not provided here, their general experience suggests familiarity with government contracting requirements and defense-related technical needs. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment of their suitability for this specific role. Their longevity in the industry also implies a degree of established capability and client relationships within the defense sector.

How does the value of this contract compare to similar engineering support contracts for defense facilities?

The $21.5 million value over approximately six years for engineering and technical services supporting launcher laboratory complex test facilities is within a moderate range for specialized defense infrastructure support. Contracts for large-scale facility operations, maintenance, and upgrades at major military installations can range from tens to hundreds of millions of dollars. This contract's value appears commensurate with providing essential, ongoing technical expertise and facility management rather than a major construction or system overhaul. Benchmarking against contracts for similar specialized technical support at other DoD test ranges or laboratories would provide a more precise comparison, but the current figure suggests a reasonable allocation of resources for sustained operational capability.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, performance deficiencies in critical facility operations, and potential contractor dependency. CPFF contracts inherently carry a risk of increased costs if not closely monitored, requiring robust government oversight of expenditures and contractor performance. Mitigation strategies would involve stringent financial auditing, performance metrics tracking, regular progress reviews, and clear communication channels to address any issues promptly. The long duration also poses a risk of contractor complacency or the need for specialized knowledge transfer if the contractor's performance declines.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often utilized for services where the scope of work is not precisely defined at the outset or involves research and development, engineering, or complex technical support where costs can be uncertain. For facility operations and engineering support, CPFF allows flexibility to adapt to evolving needs while providing the contractor with a fixed fee incentive. However, it places a significant burden on the government to meticulously track costs, ensure reasonableness, and prevent contractor overspending. Effective implementation requires strong government oversight, detailed cost accounting, and clear performance standards to ensure value for money and mitigate the inherent risk of cost escalation.

What are the historical spending patterns for engineering and technical services at DoD launcher laboratories?

Historical spending patterns for engineering and technical services at DoD launcher laboratories typically show consistent, long-term investments. These facilities require ongoing specialized support for operations, maintenance, upgrades, and testing of complex systems. Spending often fluctuates based on modernization programs, new system development, and the lifecycle of existing infrastructure. Contracts are frequently awarded on a multi-year basis, reflecting the sustained nature of these requirements. While specific historical data for this particular laboratory complex is not detailed here, the overall trend indicates a steady demand for such services, often awarded through competitive processes to specialized defense contractors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660419R3510

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: $26,056,409

Exercised Options: $26,056,409

Current Obligation: $21,552,082

Actual Outlays: $127,965

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