DoD's $26.5M engineering services contract for naval programs awarded to SEACORP, LLC

Contract Overview

Contract Amount: $26,464,723 ($26.5M)

Contractor: Seacorp, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS IS A REQUIREMENT FOR ENGINEERING SERVICES FOR CODE 34 COMMUNICATIONS AND ELECTROMAGNETIC MANEUVER WARFARE PROGRAMS, INCLUDING, MECHANICAL ENGINEERING, FABRICATION, AND ENVIRONMENTAL QUALIFICATION TESTING.

Place of Performance

Location: MIDDLETOWN, NEWPORT County, RHODE ISLAND, 02842

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to SEACORP, LLC for work described as: THIS IS A REQUIREMENT FOR ENGINEERING SERVICES FOR CODE 34 COMMUNICATIONS AND ELECTROMAGNETIC MANEUVER WARFARE PROGRAMS, INCLUDING, MECHANICAL ENGINEERING, FABRICATION, AND ENVIRONMENTAL QUALIFICATION TESTING. Key points: 1. Contract focuses on critical engineering services for communications and electromagnetic warfare. 2. SEACORP, LLC, a single awardee, will provide mechanical engineering, fabrication, and testing. 3. The contract duration spans four years, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a potentially competitive bidding process. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. The value of the contract is substantial, reflecting the complexity and importance of the programs supported.

Value Assessment

Rating: good

The contract value of approximately $26.5 million over four years for specialized engineering services appears reasonable given the scope. Benchmarking against similar contracts for complex defense engineering is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure value for money, as it allows for cost reimbursement plus a fixed fee. The fixed fee component aims to provide an incentive for the contractor to manage costs effectively.

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 data does not specify the number of bids received, which is crucial for a complete assessment of the competition's intensity. A robust competition typically leads to better pricing and innovation. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are the Department of the Navy and the Department of Defense, receiving essential engineering support for advanced communications and warfare programs. Services delivered include mechanical engineering, fabrication, and environmental qualification testing, crucial for the development and maintenance of sophisticated military systems. The geographic impact is likely concentrated around SEACORP's facilities and Navy installations where these programs are managed or deployed. Workforce implications include the employment of skilled engineers and technicians by SEACORP, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The market for specialized defense engineering services is characterized by high barriers to entry due to technical expertise, security clearances, and established relationships. Spending in this sector is often driven by the need for innovation and sustainment of complex military platforms. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense to similar firms.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. SEACORP, LLC's size is not specified, but larger prime contractors often have varying levels of engagement with the small business ecosystem. The absence of a small business set-aside or specific subcontracting goals means there is no direct mechanism within this contract to boost small business participation.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs incurred are allowable, allocable, and reasonable. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, large-contract, specialized-services, communications-systems, electromagnetic-warfare, rhode-island, seacorp-llc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to SEACORP, LLC. THIS IS A REQUIREMENT FOR ENGINEERING SERVICES FOR CODE 34 COMMUNICATIONS AND ELECTROMAGNETIC MANEUVER WARFARE PROGRAMS, INCLUDING, MECHANICAL ENGINEERING, FABRICATION, AND ENVIRONMENTAL QUALIFICATION TESTING.

Who is the contractor on this award?

The obligated recipient is SEACORP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is SEACORP, LLC's track record with the Department of Defense, particularly in providing engineering services for similar programs?

SEACORP, LLC has a history of contracting with the Department of Defense, primarily supporting naval programs. Their expertise often lies in areas such as combat systems, command and control, and electronic warfare. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts would be crucial. This includes reviewing past performance evaluations, any contract disputes or terminations, and their ability to manage costs and schedules effectively. A review of their contract history would reveal if they have consistently met performance requirements and delivered quality engineering services within budget constraints on previous DoD engagements. Without specific past performance data for this contract, it's assumed they possess the necessary qualifications based on the award.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope is not fully defined at the outset. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but can lead to higher costs if not managed diligently, as the government bears the cost risk. Compared to Cost-Plus-Incentive-Fee (CPIF), CPFF offers less incentive for cost reduction beyond the fixed fee. For taxpayers, CPFF requires robust oversight to ensure costs are reasonable and the fixed fee provides fair profit, maximizing value by balancing flexibility with cost control.

What are the key performance indicators (KPIs) used to assess the success of this contract, and how is performance being monitored?

Key performance indicators (KPIs) for this contract would likely include technical performance metrics related to the engineering services (e.g., design accuracy, testing success rates, adherence to specifications), schedule adherence (milestone completion, on-time delivery of reports or prototypes), and cost control (managing incurred costs within the estimated ceiling and ensuring the fixed fee is justified). Performance monitoring is typically conducted by the Contracting Officer's Representative (COR) or Technical Point of Contact (TPOC) through regular progress meetings, review of deliverables, site visits, and performance reports submitted by SEACORP. The CPFF structure necessitates close monitoring of expenditures against the estimated cost.

What is the historical spending trend for engineering services related to Code 34 Communications and Electromagnetic Maneuver Warfare programs within the Department of the Navy?

Analyzing historical spending trends for these specific programs requires access to detailed procurement data beyond this single award. However, generally, spending on advanced communications and electromagnetic warfare capabilities within the Department of the Navy tends to be substantial and often increases with evolving geopolitical threats and technological advancements. These areas are critical for maintaining information superiority and operational effectiveness. Trends might show consistent investment, with fluctuations based on specific program lifecycles, modernization efforts, and budget allocations. Understanding these broader trends provides context for the $26.5 million awarded here, indicating whether it aligns with or deviates from typical investment levels in these critical capabilities.

Are there any identified risks associated with SEACORP, LLC's performance or the nature of the services provided under this contract?

Potential risks associated with this contract include performance-related risks, such as delays in engineering tasks, failure to meet technical specifications, or issues during fabrication and testing. Given the CPFF structure, cost overrun risk is also present if costs escalate beyond initial estimates, requiring careful management and oversight. Programmatic risks could involve changes in requirements or technology obsolescence impacting the long-term viability of the systems being developed. Furthermore, reliance on a single contractor for critical services introduces a dependency risk. Mitigation strategies typically involve robust contract management, clear performance standards, regular communication, and contingency planning.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660422R3002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 62 JOHNNY CAKE HILL RD, MIDDLETOWN, RI, 02842

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

Financial Breakdown

Contract Ceiling: $40,961,093

Exercised Options: $33,564,202

Current Obligation: $26,464,723

Actual Outlays: $3,979,319

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $3,215,691

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8623

IDV Type: IDC

Timeline

Start Date: 2022-09-01

Current End Date: 2026-08-31

Potential End Date: 2027-08-31 00:00:00

Last Modified: 2026-02-26

More Contracts from Seacorp, LLC

View all Seacorp, LLC federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending