DoD awards $52.5M for Naval Undersea Warfare Center imaging and EW systems engineering

Contract Overview

Contract Amount: $52,489,880 ($52.5M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-28

End Date: 2026-03-14

Contract Duration: 745 days

Daily Burn Rate: $70.5K/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 IMAGING AND ELECTRONIC WARFARE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT (NUWCDIVNPT) CODE 34.

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $52.5 million to RITE-SOLUTIONS, INC. for work described as: THIS IS A REQUIREMENT FOR IMAGING AND ELECTRONIC WARFARE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT (NUWCDIVNPT) CODE 34. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is over two years, indicating a significant, ongoing need for these services. 4. The awardee, RITE-SOLUTIONS, INC., is a single entity, highlighting the need to assess their capacity and past performance. 5. The services are for engineering and technical support, crucial for advanced naval warfare capabilities. 6. The geographic focus is Rhode Island, impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The total value of $52.5 million over approximately two years suggests a substantial investment in specialized engineering services. Comparisons to similar contracts for systems engineering and technical support within the defense sector would be necessary to fully assess value for money. The fixed fee component provides some cost certainty, but the cost-plus nature requires diligent oversight to ensure efficient resource utilization.

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 number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing. The agency sought a broad range of potential contractors, which should theoretically lead to a more favorable outcome for the government in terms of cost and quality.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at a reasonable price, reducing the risk of overpayment compared to sole-source awards.

Public Impact

The primary beneficiaries are the Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT), which receives critical technical support. Services delivered include engineering and technical support for imaging and electronic warfare systems, vital for naval defense. The geographic impact is concentrated in Rhode Island, where the NUWCDIVNPT is located. Workforce implications may include employment opportunities for engineers and technical specialists in the Rhode Island area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to prevent cost creep.
The reliance on a single awardee necessitates a thorough review of their past performance and capacity.
The specialized nature of the services means limited options for immediate replacement if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contract supports critical naval warfare systems, aligning with national defense priorities.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. The market for defense engineering services is substantial, driven by continuous modernization efforts within military branches. Comparable spending benchmarks would involve analyzing other contracts for similar systems engineering and technical support for naval platforms or electronic warfare systems. The $52.5 million value positions this as a significant, but not exceptionally large, contract within the broader defense services landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, RITE-SOLUTIONS, INC., may choose to subcontract portions of the work to small businesses, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily rest with the Naval Undersea Warfare Center Division, Newport (NUWCDIVNPT) contracting and technical personnel. They will be responsible for monitoring performance, approving costs, and ensuring adherence to the contract terms. The Department of Defense has established Inspector General offices that can investigate potential fraud, waste, or abuse, providing an additional layer of accountability. Transparency will depend on the agency's policies regarding the release of contract performance information.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Naval Warfare Systems Engineering
Electronic Warfare Systems Support
Defense Imaging Technology Contracts
Undersea Warfare Technology Development

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Single awardee necessitates thorough performance assessment.
Specialized nature of services may limit market responsiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.5 million to RITE-SOLUTIONS, INC.. THIS IS A REQUIREMENT FOR IMAGING AND ELECTRONIC WARFARE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF THE NAVAL UNDERSEA WARFARE CENTER DIVISION, NEWPORT (NUWCDIVNPT) CODE 34.

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 $52.5 million.

What is the period of performance?

Start: 2024-02-28. End: 2026-03-14.

What is the track record of RITE-SOLUTIONS, INC. with similar defense contracts, particularly those involving complex systems engineering?

Assessing the track record of RITE-SOLUTIONS, INC. requires a review of their past performance evaluations on federal contracts, particularly those with the Department of Defense and specifically the Department of the Navy. Information on previous awards, contract values, and performance ratings (e.g., CPARS - Contractor Performance Assessment Reporting System) would be crucial. Specifically, looking for experience in imaging and electronic warfare systems engineering and technical services would provide direct insight into their capabilities and reliability for this specific requirement. A history of successful, on-time, and within-budget performance on comparable contracts would be a strong positive indicator, while a pattern of issues could raise concerns about their ability to meet the demands of this $52.5 million award.

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

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope of work is not precisely defined at the outset. It allows the contractor to recover all allowable costs plus a predetermined fixed fee, representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it carries a higher risk of cost overruns because the government bears the brunt of cost uncertainties. The fixed fee, however, incentivizes the contractor to control costs to maximize their profit margin on that fee. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance-based incentives that can further align contractor and government interests. The primary risk with CPFF is ensuring robust government oversight to manage costs effectively and prevent scope creep that inflates the total contract value beyond the initial estimate.

What is the historical spending trend for imaging and electronic warfare systems engineering and technical services at NUWCDIVNPT?

To understand the historical spending trend for these services at NUWCDIVNPT, one would need to analyze past contract awards for similar requirements over several fiscal years. This would involve searching contract databases for keywords related to 'imaging systems engineering,' 'electronic warfare technical support,' and 'NUWCDIVNPT.' Examining the total dollar amounts awarded annually, the number of contracts issued, and the types of contract vehicles used (e.g., IDIQs, task orders) would reveal patterns. A consistent or increasing trend might indicate a growing need or sustained investment in these capabilities, while a declining trend could suggest shifting priorities or the maturation of existing systems. Understanding this history provides context for the current $52.5 million award, helping to determine if it represents a typical level of investment or a significant deviation.

What are the key performance indicators (KPIs) likely to be used to measure the success of this contract, and how will they be monitored?

Key Performance Indicators (KPIs) for this contract will likely focus on technical performance, schedule adherence, and cost control. For technical performance, KPIs could include the successful development and integration of imaging and electronic warfare systems, meeting specified technical requirements and performance thresholds, and the quality of engineering documentation. Schedule adherence KPIs would track the timely completion of milestones and deliverables. Cost control KPIs would involve monitoring expenditures against the estimated cost and ensuring the fixed fee is earned appropriately. Monitoring will likely be conducted through regular progress reports submitted by RITE-SOLUTIONS, INC., technical reviews, site visits, and potentially formal performance assessments (like CPARS). The NUWCDIVNPT technical point of contact and contracting officer's representative (COR) will be central to this monitoring process.

How does the geographic concentration in Rhode Island potentially impact competition and contractor performance?

The geographic concentration of this contract in Rhode Island, supporting NUWCDIVNPT, could have several impacts. On the positive side, it may foster strong relationships between the contractor and the government facility, potentially leading to better understanding and responsiveness. It could also benefit the local Rhode Island economy through job creation and support for local businesses. However, a heavy geographic concentration might limit the pool of potential bidders if local or regional firms are preferred or if travel costs for out-of-state bidders are prohibitive. For the incumbent contractor, proximity can be an advantage. For performance, close proximity can facilitate communication and problem-solving, but it also means the government's reliance on a single geographic location for critical support.

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: N6660423R3008

Offers Received: 1

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: $88,696,198

Exercised Options: $58,860,948

Current Obligation: $52,489,880

Actual Outlays: $227,349

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $27,181,023

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