DoD awards $13.4M for submarine electronic system support, with SEACORP LLC managing critical non-propulsion systems
Contract Overview
Contract Amount: $13,384,802 ($13.4M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2024-03-01
End Date: 2026-02-28
Contract Duration: 729 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING AND TECHNICAL SERVICES NECESSARY TO DESIGN, BUILD, TEST, MAINTAIN, AND SUPPORT OPERATION IN NON-PROPULSION ELECTRONIC SYSTEM SYSTEM PERFORMANCE FOR THE VIRGINIA, COLUMBIA, AND SSNX SUBMARINES.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $13.4 million to SEACORP, LLC for work described as: ENGINEERING AND TECHNICAL SERVICES NECESSARY TO DESIGN, BUILD, TEST, MAINTAIN, AND SUPPORT OPERATION IN NON-PROPULSION ELECTRONIC SYSTEM SYSTEM PERFORMANCE FOR THE VIRGINIA, COLUMBIA, AND SSNX SUBMARINES. Key points: 1. Contract focuses on essential electronic system design, build, test, maintenance, and operational support for key submarine classes. 2. SEACORP, LLC, a single awardee, will provide services over a 729-day period. 3. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee for profit. 4. This award is a Delivery Order under a larger contract vehicle, indicating a phased approach to procurement. 5. The services are critical for the operational readiness and performance of Virginia, Columbia, and SSNX submarines. 6. No small business set-asides were involved in this specific award. 7. The contract is for engineering services, aligning with NAICS code 541330.
Value Assessment
Rating: good
The contract value of $13.4 million for approximately two years of service appears reasonable for specialized engineering and technical support for complex naval systems. Benchmarking against similar contracts for submarine electronic system maintenance and development would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type suggests that costs are monitored, but the fixed fee component provides a predictable profit margin for the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not detailed in the provided data, but the 'full and open' designation suggests a competitive process was initiated. This approach is generally favored to ensure the government receives the best value through market forces.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation among contractors vying for the award.
Public Impact
The primary beneficiaries are the U.S. Navy's submarine fleet, ensuring the operational effectiveness of critical non-propulsion electronic systems. Services delivered include design, building, testing, maintenance, and ongoing support for these complex systems. The geographic impact is primarily within naval facilities and shipyards where submarine maintenance and upgrades occur. This contract supports a specialized technical workforce skilled in naval electronics and engineering.
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.
- Reliance on a single contractor (SEACORP, LLC) for critical systems could pose a risk if performance falters.
- The long-term sustainment and obsolescence management of electronic systems require continuous attention.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process to secure the best value.
- Focus on essential maintenance and support for high-value strategic assets (submarines).
- Clear definition of services required for non-propulsion electronic systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex electronic systems for naval applications. The market for specialized defense engineering services is highly competitive, with a focus on technical expertise, security clearances, and proven track records. Spending in this area is driven by the need to maintain and modernize aging fleets and develop next-generation capabilities, with significant government investment allocated to ensure technological superiority and operational readiness.
Small Business Impact
This specific award was not set aside for small businesses, and the data indicates no indication of subcontracting requirements for small businesses. The contractor, SEACORP, LLC, is not identified as a small business. Therefore, this particular contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Performance will be monitored against the terms of the Cost Plus Fixed Fee agreement, including cost tracking and adherence to the fixed fee. Transparency is expected through contract reporting mechanisms, and the Inspector General's office would have jurisdiction in cases of fraud, waste, or abuse.
Related Government Programs
- Submarine Maintenance Contracts
- Naval Electronic Systems Procurement
- Defense Engineering Services
- Department of the Navy Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Control Risk (CPFF)
- Contractor Performance Risk
- System Obsolescence Management
- Cybersecurity of Electronic Systems
Tags
defense, department-of-defense, department-of-the-navy, submarine-systems, engineering-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, rhode-island, seacorp-llc, non-propulsion-electronics, virginia-class-submarine
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to SEACORP, LLC. ENGINEERING AND TECHNICAL SERVICES NECESSARY TO DESIGN, BUILD, TEST, MAINTAIN, AND SUPPORT OPERATION IN NON-PROPULSION ELECTRONIC SYSTEM SYSTEM PERFORMANCE FOR THE VIRGINIA, COLUMBIA, AND SSNX SUBMARINES.
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 $13.4 million.
What is the period of performance?
Start: 2024-03-01. End: 2026-02-28.
What is SEACORP, LLC's track record with the Department of the Navy, particularly in providing electronic systems support for submarines?
SEACORP, LLC has a history of providing engineering and technical services to the Department of Defense, including the Navy. Their expertise often lies in complex systems integration, testing, and lifecycle support. While specific details on past submarine electronic system contracts are not provided here, their selection for this significant award suggests a demonstrated capability and prior positive performance evaluations. Further analysis would involve reviewing their contract history, past performance questionnaires, and any documented awards or commendations from the Navy to fully assess their track record in this specialized domain.
How does the $13.4 million contract value compare to similar contracts for submarine electronic system support?
The $13.4 million value for approximately two years of service for non-propulsion electronic systems on Virginia, Columbia, and SSNX submarines provides a benchmark for specialized naval engineering support. To assess value for money, this figure should be compared against historical contracts awarded by the Navy for similar services, considering factors like the scope of work, system complexity, duration, and inflation. Without direct comparable data, it's challenging to definitively state if this represents a high or low cost. However, the full and open competition suggests an effort to achieve competitive pricing. Analysis of the contractor's proposed labor rates and overhead, as well as the fixed fee percentage, would offer further insight into the cost structure.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for submarine electronic systems?
The primary risks with a CPFF contract, especially for complex engineering services like submarine electronic systems, revolve around cost control and contractor efficiency. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This structure can incentivize cost overruns if not managed diligently, as the contractor is guaranteed their fee regardless of cost efficiency. Risks include potential scope creep, inaccurate cost estimations, and the contractor not being sufficiently motivated to minimize expenses. Robust government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.
How effective is the 'full and open competition' approach in ensuring optimal pricing and quality for specialized defense engineering services?
Full and open competition is generally considered the most effective method for ensuring optimal pricing and quality for specialized defense engineering services. By allowing all responsible sources to submit bids, the government leverages market forces to drive down costs and encourage innovation. This broad competition increases the pool of potential contractors, leading to a wider range of technical solutions and potentially better value. However, the effectiveness is contingent on the clarity of the solicitation, the government's ability to accurately define requirements, and the evaluation process. For highly specialized services, the number of truly capable bidders might be limited, potentially reducing the competitive pressure compared to more commoditized markets.
What are the historical spending patterns for submarine electronic system maintenance and support within the Department of the Navy?
Historical spending patterns for submarine electronic system maintenance and support within the Department of the Navy are substantial, reflecting the high cost and complexity of maintaining these advanced platforms. Annual budgets often run into billions of dollars for overall submarine modernization, maintenance, and sustainment. Specific allocations for non-propulsion electronic systems, while a subset of the total, are significant due to the critical role these systems play in navigation, communication, sonar, and combat systems. Spending tends to be cyclical, influenced by shipbuilding schedules, upgrade requirements, and the service life of existing platforms. Fluctuations can also occur based on geopolitical factors and evolving technological threats.
What are the implications of this contract award for the future development and sustainment of the Columbia-class submarines?
This contract award is significant for the Columbia-class submarines as it ensures the critical non-propulsion electronic systems are designed, built, tested, maintained, and supported from an early stage. The Columbia class represents the future of the U.S. Navy's ballistic missile submarine force, and ensuring the reliability and performance of its complex electronic infrastructure is paramount. This award signifies a commitment to providing the necessary engineering expertise to mature these systems, address potential issues during development and initial deployment, and establish a sustainment baseline. It contributes to the overall program's success by securing specialized support crucial for operational readiness and long-term viability.
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: N6660423R3017
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: $28,002,463
Exercised Options: $14,090,248
Current Obligation: $13,384,802
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $3,812,213
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: 2024-03-01
Current End Date: 2026-02-28
Potential End Date: 2029-02-28 00:00:00
Last Modified: 2026-02-26
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