DoD's $25M Undersea Warfare Systems Contract Awarded to Rite-Solutions, Inc. for Engineering and Technical Support

Contract Overview

Contract Amount: $25,043,143 ($25.0M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2026-09-22

Contract Duration: 1,460 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, TECHNICAL EXPERTISE, AND ADMINISTRATIVE SERVICES IN SUPPORT OF UNDERSEA WARFARE COMBAT SYSTEMS ACQUISITION DIVISION (CODE 251) PROJECTS AND PROGRAM CUSTOMERS

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $25.0 million to RITE-SOLUTIONS, INC. for work described as: ENGINEERING, TECHNICAL EXPERTISE, AND ADMINISTRATIVE SERVICES IN SUPPORT OF UNDERSEA WARFARE COMBAT SYSTEMS ACQUISITION DIVISION (CODE 251) PROJECTS AND PROGRAM CUSTOMERS Key points: 1. Contract provides critical engineering, technical, and administrative support for undersea warfare systems. 2. The award signifies a significant investment in naval technological advancement and readiness. 3. Competition dynamics suggest a robust bidding process for specialized defense services. 4. Performance risks may include the complexity of undersea systems and evolving technological requirements. 5. The contract duration of approximately four years allows for sustained support and project continuity. 6. This award aligns with broader defense spending trends focused on maintaining technological superiority.

Value Assessment

Rating: good

The contract value of $25,043,142.6 over approximately four years suggests a moderate annual spend. Benchmarking against similar engineering and technical support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex R&D or services where costs are uncertain, can sometimes lead to higher overall costs if not managed tightly. The specific services rendered will be key to determining if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This approach is generally favored for ensuring fair pricing and access to the best available solutions. The fact that it was a delivery order under a larger contract structure suggests that the initial competition was broad, and this specific order was placed based on established terms and pricing.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better value for public funds.

Public Impact

Naval personnel and warfighters benefit from enhanced undersea warfare capabilities. Services delivered include essential engineering, technical expertise, and administrative support for critical projects. The geographic impact is primarily within the Department of the Navy's operational and acquisition domains. Workforce implications include the potential for specialized engineering and technical jobs, both within the contractor and potentially in supporting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Ensuring continued technological relevance in the rapidly evolving field of undersea warfare.
Dependency on a single contractor for critical, long-term support functions.
Managing scope creep in complex engineering and acquisition projects.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration allows for sustained focus and development of specialized expertise.
Focus on a critical national security area (undersea warfare) indicates strategic importance.
Contractor's presence in Rhode Island may support regional technical expertise development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition and program management. The market for specialized defense engineering services is highly competitive, with significant government investment driven by national security priorities. Comparable spending benchmarks would involve analyzing other contracts for similar technical and administrative support within the naval or broader DoD acquisition landscape, often categorized under professional services or defense R&D support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Rite-Solutions, Inc. may be a small business itself, the award mechanism did not prioritize small business participation through set-asides. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract type indicated. The impact on the broader small business ecosystem would depend on the extent of any voluntary or required subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Undersea Warfare Technology Development Programs
Defense Acquisition Engineering Support
Naval Combat Systems Development
Department of Defense Professional Services Spending

Risk Flags

Cost Overrun Potential (CPFF)
Technological Obsolescence Risk
Programmatic Scope Creep
Dependency on Key Personnel
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.0 million to RITE-SOLUTIONS, INC.. ENGINEERING, TECHNICAL EXPERTISE, AND ADMINISTRATIVE SERVICES IN SUPPORT OF UNDERSEA WARFARE COMBAT SYSTEMS ACQUISITION DIVISION (CODE 251) PROJECTS AND PROGRAM CUSTOMERS

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 $25.0 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-09-22.

What is Rite-Solutions, Inc.'s track record with the Department of the Navy and similar contracts?

Rite-Solutions, Inc. has a history of performing contracts for the Department of the Navy, often in areas related to engineering, technical support, and program management. Their experience typically involves supporting naval systems and acquisition programs. Analyzing their past performance ratings, any past performance issues or commendations, and the types of contracts they have previously held (e.g., cost-plus, fixed-price) would provide a clearer picture of their capabilities and reliability for this specific undersea warfare systems contract. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be crucial for a comprehensive assessment.

How does the annual spending on this contract compare to similar engineering support contracts within the DoD?

The approximate annual value of this contract, derived from its total value and duration, needs to be benchmarked against comparable engineering and technical support contracts awarded by the Department of Defense. Factors such as the specific technical expertise required, the complexity of the systems supported, and the duration of the contract influence pricing. Contracts supporting advanced naval systems or specialized R&D often command higher rates. A detailed comparison would involve identifying contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services) and similar scope, then analyzing their average annual values and contract types to determine if the $25M award represents a competitive rate for the services rendered.

What are the primary risks associated with supporting undersea warfare combat systems acquisition?

Supporting undersea warfare combat systems acquisition presents several inherent risks. These include the rapid pace of technological evolution, requiring constant adaptation and innovation to maintain superiority. The complexity and classified nature of undersea systems demand highly specialized expertise, increasing the risk of technical challenges or delays. Furthermore, the long development cycles and high costs associated with naval platforms mean that changes in strategic priorities or budget constraints can impact program continuity. Ensuring robust cybersecurity for sensitive systems and managing the integration of new technologies into existing platforms are also critical risk areas.

What is the historical spending trend for engineering and technical services supporting naval combat systems?

Historical spending on engineering and technical services for naval combat systems has generally trended upwards, reflecting a consistent national security focus on maintaining and modernizing naval capabilities, particularly in areas like undersea warfare. The Department of the Navy and the broader DoD allocate significant resources to ensure technological advantage and operational readiness. Spending patterns are influenced by geopolitical factors, the introduction of new platforms (e.g., submarines, surface combatants), and upgrades to existing systems. Analyzing multi-year spending data for relevant NAICS codes and contract vehicles within NAVSEA and related commands would reveal specific trends, peaks, and troughs in investment.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor performance?

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not well-defined or involves significant research and development, making it difficult to estimate costs accurately upfront. While it facilitates the initiation of complex projects, it places a greater burden on the government to meticulously monitor and audit the contractor's costs to prevent overruns. Contractor performance is incentivized by the fixed fee, but the primary risk of cost escalation lies with the government. Effective oversight, clear performance metrics, and robust cost accounting standards are essential for managing CPFF contracts successfully and ensuring value for taxpayers.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6660422R3000

Offers Received: 2

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: $31,421,404

Exercised Options: $30,763,189

Current Obligation: $25,043,143

Actual Outlays: $87,058

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,505,134

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