DoD awards SEACORP $41M for submarine strike systems engineering, with 729 days duration
Contract Overview
Contract Amount: $41,048,443 ($41.0M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2026-03-31
Contract Duration: 729 days
Daily Burn Rate: $56.3K/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 FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, TACTICAL CONTROL SYSTEMS, AND PAYLOAD CONTROL SYSTEMS.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $41.0 million to SEACORP, LLC for work described as: ENGINEERING AND TECHNICAL SERVICES FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, TACTICAL CONTROL SYSTEMS, AND PAYLOAD CONTROL SYSTEMS. Key points: 1. Contract focuses on critical submarine strike systems, weapons, and control systems. 2. SEACORP, LLC, a single awardee, will provide engineering and technical services. 3. The contract duration is 729 days, indicating a medium-term engagement. 4. Services are essential for maintaining and advancing naval strike capabilities. 5. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 6. This award represents a significant investment in naval defense technology.
Value Assessment
Rating: good
The contract value of $41,048,443.19 for 729 days of engineering and technical services for submarine strike systems appears reasonable given the specialized nature of the work. Benchmarking against similar complex defense systems engineering contracts suggests that pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D and complex services, requires careful oversight to manage costs effectively. Without specific details on labor categories and hours, a precise value-for-money assessment is challenging, but the award seems aligned with industry standards for high-tech defense services.
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 vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored for ensuring fair pricing and access to the best available solutions. The competition level is expected to drive SEACORP to provide efficient and cost-effective services to maintain its advantage.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value of federal investment.
Public Impact
The primary beneficiaries are the U.S. Navy's submarine forces, who will receive enhanced strike systems and control technologies. Services delivered include engineering and technical support for current and future submarine strike systems, weapons, tactical control systems, and payload control systems. The geographic impact is primarily within the United States, supporting naval operations and defense infrastructure. Workforce implications include specialized engineering and technical roles, potentially supporting skilled labor in Rhode Island where SEACORP is located.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as the government bears the risk of actual costs exceeding estimates.
- Lack of specific bidder count limits the assessment of the true competitive intensity.
- The specialized nature of submarine strike systems may limit the pool of truly capable competitors in future procurements.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- SEACORP, LLC is a specialized defense contractor, likely possessing the necessary expertise for these critical systems.
- The contract duration of over two years allows for sustained development and integration of complex technologies.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The defense engineering services market is characterized by high barriers to entry due to specialized knowledge, security clearances, and long development cycles. Spending in this area is driven by the need for technological superiority and modernization of military platforms. Comparable spending benchmarks would involve other contracts for complex weapon systems development and integration, often awarded by agencies like the Department of Defense to specialized firms.
Small Business Impact
This contract does not appear to have a small business set-aside component (SS=false, SB=false). The award to SEACORP, LLC, a single entity, suggests that subcontracting opportunities for small businesses may exist if SEACORP chooses to engage them. However, the primary contract is not directly aimed at fostering small business participation. The impact on the small business ecosystem will depend on SEACORP's subcontracting strategy and the availability of small businesses with the highly specialized skills required for submarine strike systems.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve the Department of the Navy's contracting officers and program managers, who are responsible for monitoring costs, performance, and compliance. Accountability measures are built into the CPFF structure, requiring SEACORP to justify its costs and demonstrate progress towards fixed-fee milestones. Transparency is typically managed through contract reporting requirements and potential audits. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.
Related Government Programs
- Submarine Warfare Systems
- Naval Weapons Systems
- Defense Engineering Services
- Tactical Control Systems
- Payload Integration
- Department of the Navy Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Limited information on the number of bidders restricts a full assessment of competitive intensity.
- Specialized nature of the technology may limit future competition.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, submarine-systems, weapons-systems, cost-plus-fixed-fee, full-and-open-competition, rhode-island, large-contract, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to SEACORP, LLC. ENGINEERING AND TECHNICAL SERVICES FOR CURRENT AND FUTURE SUBMARINE STRIKE SYSTEMS, WEAPONS, TACTICAL CONTROL SYSTEMS, AND PAYLOAD CONTROL SYSTEMS.
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 $41.0 million.
What is the period of performance?
Start: 2024-04-01. End: 2026-03-31.
What is SEACORP, LLC's track record with similar defense contracts, particularly those involving submarine systems?
SEACORP, LLC has a history of performing work for the U.S. Navy and Department of Defense, often in areas related to naval systems and engineering. While specific details on past submarine strike system contracts are not immediately available from the provided data, their designation as a provider for such critical systems suggests prior experience and capability. A deeper dive into their contract history, including past performance evaluations and any awards or penalties, would provide a more comprehensive understanding of their reliability and expertise in this specialized domain. Their ability to secure this significant contract under full and open competition implies a positive assessment of their past performance by the Navy.
How does the $41 million contract value compare to similar engineering services for naval weapon systems?
The $41 million contract value for engineering and technical services for submarine strike systems over approximately two years is substantial, reflecting the complexity and criticality of the work. Benchmarking against similar contracts for advanced naval weapon systems development and integration reveals that such figures are not uncommon. For instance, contracts for sonar systems, missile guidance, or combat system integration can range from tens to hundreds of millions of dollars, depending on scope, duration, and technological sophistication. The Cost Plus Fixed Fee (CPFF) nature of this award means the government is paying for actual costs plus a negotiated fixed fee, which can vary based on market rates for specialized engineering talent and the inherent risks involved in developing cutting-edge defense technology.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced defense systems?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one for submarine strike systems, is the potential for cost overruns. Under a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's actual costs exceed initial estimates, the government bears the financial burden. This shifts cost risk from the contractor to the government. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate this risk. Additionally, defining the scope of work precisely is vital to prevent scope creep, which can further inflate costs without commensurate increases in value.
How does the duration of 729 days impact the assessment of program effectiveness and contractor performance?
The contract duration of 729 days (approximately two years) provides a substantial timeframe for SEACORP, LLC to deliver on the engineering and technical services for submarine strike systems. This duration suggests that the project involves complex development, integration, or sustainment activities that cannot be completed in a shorter period. From an effectiveness standpoint, this longer duration allows for iterative development, testing, and refinement, potentially leading to a more robust and effective final product. For assessing contractor performance, it offers ample opportunity to evaluate SEACORP's ability to manage resources, meet milestones, control costs (within the CPFF framework), and deliver quality technical solutions over a sustained period. Consistent positive performance throughout this period would indicate high program effectiveness.
What are the implications of awarding this contract to a single entity (SEACORP, LLC) versus multiple awardees?
Awarding this contract to a single entity, SEACORP, LLC, can have several implications. On the positive side, it can foster a deep, focused relationship between the government and the contractor, potentially leading to greater efficiency and institutional knowledge regarding the specific submarine strike systems. It simplifies contract management for the government. However, it also concentrates risk with one provider and reduces the potential benefits of competition during the performance period. If SEACORP underperforms or faces challenges, there are fewer immediate alternatives. The initial 'full and open competition' suggests that SEACORP was deemed the most capable or advantageous offeror at the time of award, but the lack of multiple awardees means ongoing competitive pressure is absent unless future contract actions are competed.
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: N6660424R3000
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: $90,145,076
Exercised Options: $46,040,034
Current Obligation: $41,048,443
Actual Outlays: $103,039
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $4,521,433
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: 2024-04-01
Current End Date: 2026-03-31
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-02-26
More Contracts from Seacorp, LLC
- Code 34 Support TAS::97 0100::TAS — $121.1M (Department of Defense)
- Code 34 Technical Support Igf::ot::igf — $86.4M (Department of Defense)
- Conform Platform Engineering, Advanced System Engineering, Technical, and Test and Evaluation Services for Development, Evaluation, Modernization, and Sustainment of the U.S. Navy and Royal Australian Navy Submarine Platforms — $69.7M (Department of Defense)
- Electromagnetic Maneuver Warfare Modular Suite (emwms) — $59.8M (Department of Defense)
- Strike Engineering and Tech. Support Services (code 25) — $57.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)