DoD awards McLaughlin Research Corp $20.5M for Engineering Services, supporting hull and sensor systems

Contract Overview

Contract Amount: $20,565,548 ($20.6M)

Contractor: Mclaughlin Research Corporation

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2027-01-13

Contract Duration: 1,504 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROVIDE ANALYSES, IN-SERVICE ENGINEERING, PROTOTYPE DEVELOPMENT, TEST AND EVALUATION, AND SYSTEM ENGINEERING SERVICES IN SUPPORT OF TOWED, HULL AND SENSOR SYSTEM PROGRAMS.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to MCLAUGHLIN RESEARCH CORPORATION for work described as: PROVIDE ANALYSES, IN-SERVICE ENGINEERING, PROTOTYPE DEVELOPMENT, TEST AND EVALUATION, AND SYSTEM ENGINEERING SERVICES IN SUPPORT OF TOWED, HULL AND SENSOR SYSTEM PROGRAMS. Key points: 1. Contract focuses on critical engineering and testing for naval systems. 2. McLaughlin Research Corporation is the sole awardee for this delivery order. 3. The contract spans over 4 years, indicating a long-term need. 4. Spending is concentrated in Rhode Island, a specific regional economic impact.

Value Assessment

Rating: good

The Cost Plus Fixed Fee contract type allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering service contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this specific award is a delivery order, implying it's part of a larger IDIQ or contract vehicle.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering services critical to national defense, with competition aiming for cost-effectiveness.

Public Impact

Supports advanced naval technology development and maintenance. Ensures readiness and effectiveness of critical defense systems. Contributes to the technological edge of the U.S. Navy. Potential for job creation and economic activity 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 tightly.
Sole awardee for this delivery order may limit broader market engagement.
Specific regional concentration of spending.

Positive Signals

Awarded under full and open competition.
Supports critical defense programs.
Long-term contract duration suggests sustained need and potential for stable support.

Sector Analysis

This contract falls under Engineering Services, a sector vital for defense procurement. Spending benchmarks for similar specialized engineering services for naval systems would provide further context.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight will be crucial for the Cost Plus Fixed Fee structure to ensure costs remain within reasonable bounds and that performance meets requirements. The Department of the Navy's contracting office is responsible.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type risk.
Potential for cost overruns.
Limited visibility into specific profit margins.
Sole awardee for this delivery order.
Long contract duration may require significant adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to MCLAUGHLIN RESEARCH CORPORATION. PROVIDE ANALYSES, IN-SERVICE ENGINEERING, PROTOTYPE DEVELOPMENT, TEST AND EVALUATION, AND SYSTEM ENGINEERING SERVICES IN SUPPORT OF TOWED, HULL AND SENSOR SYSTEM PROGRAMS.

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 $20.6 million.

What is the period of performance?

Start: 2022-12-01. End: 2027-01-13.

What is the typical profit margin for Cost Plus Fixed Fee contracts in defense engineering services, and how does McLaughlin's fixed fee compare?

Profit margins for Cost Plus Fixed Fee contracts in defense engineering can vary, but typically range from 7-15%. A detailed review of the fixed fee component within this contract, compared to industry standards and the scope of work, is necessary to assess if it represents fair value. Without specific profit data, a precise benchmark is difficult, but the overall contract value suggests a significant undertaking.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness and value for taxpayer money?

Key performance indicators would likely focus on technical performance, adherence to schedules, and quality of deliverables for the engineering, prototype, and testing services. The Department of the Navy would establish specific metrics, potentially including successful prototype completion, test result accuracy, and system integration milestones. Regular performance reviews and acceptance of deliverables would be the primary mechanisms for ensuring effectiveness and value.

Given the long contract duration, what mechanisms are in place to ensure the technology and services remain relevant and cost-effective throughout its life?

Mechanisms to ensure relevance and cost-effectiveness over a long duration typically include contract clauses for technical refresh, value engineering, and periodic reviews of the statement of work. The Cost Plus Fixed Fee structure, while flexible, necessitates ongoing dialogue between the Navy and McLaughlin Research Corporation to adapt to evolving technological landscapes and identify efficiencies, ensuring the services remain aligned with current and future defense needs.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660422R3001

Offers Received: 3

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: $32,163,534

Exercised Options: $26,241,559

Current Obligation: $20,565,548

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