SEACORP, LLC awarded $30M for undersea warfare systems engineering, with a 735-day performance period
Contract Overview
Contract Amount: $30,020,658 ($30.0M)
Contractor: Seacorp, LLC
Awarding Agency: Department of Defense
Start Date: 2024-12-12
End Date: 2026-12-17
Contract Duration: 735 days
Daily Burn Rate: $40.8K/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 NAVAL UNDERSEA WARFARE DIVISION NEWPORT CODE 25 UNDERSEA WARFARE COMBAT SYSTEMS REQUIREMENT FOR VIRGINIA CLASS, COLUMBIA CLASS, SSN(X) CLASS, AND SUBMARINE WARFARE FEDERATED TACTICAL SYSTEMS PLATFORM AND SYSTEMS ENGINEERING SERVICES.
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $30.0 million to SEACORP, LLC for work described as: THIS IS A NAVAL UNDERSEA WARFARE DIVISION NEWPORT CODE 25 UNDERSEA WARFARE COMBAT SYSTEMS REQUIREMENT FOR VIRGINIA CLASS, COLUMBIA CLASS, SSN(X) CLASS, AND SUBMARINE WARFARE FEDERATED TACTICAL SYSTEMS PLATFORM AND SYSTEMS ENGINEERING SERVICES. Key points: 1. Contract focuses on critical submarine platforms, indicating a high-stakes, specialized service requirement. 2. Full and open competition suggests a robust market for these specialized engineering services. 3. The contract type (Cost Plus Fixed Fee) may lead to cost overruns if not closely managed. 4. Performance period of nearly two years allows for significant project development and execution. 5. The award value of $30M is substantial, reflecting the complexity and importance of the work. 6. Geographic concentration in Rhode Island may indicate a regional hub for this type of defense work.
Value Assessment
Rating: good
The contract value of $30,020,658 for engineering services appears reasonable given the specialized nature of undersea warfare systems. Benchmarking against similar complex defense engineering contracts is challenging due to the unique requirements. However, the duration of 735 days for this scope suggests a potentially efficient allocation of resources. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D and complex services, necessitates vigilant oversight to manage costs effectively and ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and evaluated. The specific number of bidders is not provided, but the designation suggests a competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages innovation among a wider pool of potential contractors.
Public Impact
The primary beneficiaries are the U.S. Navy's submarine programs, including Virginia, Columbia, and SSN(X) classes. Services delivered include platform and systems engineering for critical undersea warfare capabilities. The geographic impact is concentrated in Rhode Island, where SEACORP, LLC is located. Workforce implications include the potential for highly skilled engineering jobs in the defense sector.
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 tightly.
- Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
- The specialized nature of the work may limit the pool of truly competitive bidders in the long run.
- Dependence on a single contractor for critical systems engineering could pose a risk if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a healthy market and competitive pricing.
- Focus on critical naval platforms indicates alignment with national defense priorities.
- SEACORP, LLC's specialization in this niche area suggests relevant expertise.
- Long-term contract duration allows for sustained development and integration of complex systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense and naval technology. The market for specialized defense engineering, particularly for complex platforms like submarines, is highly concentrated among a few key players. Spending in this area is driven by national security imperatives and the need for technological superiority. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of submarine systems, but significant investments are typical for maintaining and advancing these critical assets.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, SEACORP, LLC, may engage small businesses as subcontractors, depending on their own supply chain needs and the nature of the services required.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded within the contract's terms, including performance standards and reporting requirements. Transparency is typically managed through contract award databases and public reporting, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Submarine Technology Development Programs
- Defense Engineering Services Contracts
- Virginia Class Submarine Program
- Columbia Class Submarine Program
- Undersea Warfare Systems Development
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Technical Complexity and Evolving Requirements
- Dependence on Specialized Expertise
- Potential for Limited Long-Term Competition
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, submarine-warfare, systems-engineering, cost-plus-fixed-fee, full-and-open-competition, rhode-island, naval-systems, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to SEACORP, LLC. THIS IS A NAVAL UNDERSEA WARFARE DIVISION NEWPORT CODE 25 UNDERSEA WARFARE COMBAT SYSTEMS REQUIREMENT FOR VIRGINIA CLASS, COLUMBIA CLASS, SSN(X) CLASS, AND SUBMARINE WARFARE FEDERATED TACTICAL SYSTEMS PLATFORM AND SYSTEMS ENGINEERING SERVICES.
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 $30.0 million.
What is the period of performance?
Start: 2024-12-12. End: 2026-12-17.
What is SEACORP, LLC's track record with similar defense contracts, particularly for submarine systems?
SEACORP, LLC has a demonstrated history of supporting naval programs, including significant work on submarine systems. Their expertise is often cited in areas related to combat systems, sonar, and other critical technologies for undersea warfare. While specific contract details and performance reviews are often proprietary, their repeated selection for complex projects by the Department of the Navy suggests a strong track record and established capabilities. Further analysis would involve reviewing past performance evaluations and any publicly available contract awards to assess their consistency in delivering on time and within budget for similar complex engineering services.
How does the awarded value of $30M compare to similar engineering services contracts for naval platforms?
Comparing the $30M award value requires context regarding the scope, duration, and complexity of the services. Engineering services for major naval platforms, especially submarines, are inherently high-cost due to the specialized knowledge, security requirements, and advanced technology involved. Contracts for systems engineering, integration, and development for platforms like the Virginia or Columbia class submarines can range from tens to hundreds of millions of dollars over their lifecycle. This $30M award, for a 735-day period, appears to be within the expected range for significant, but not program-defining, engineering support for these advanced platforms. A precise benchmark would necessitate access to detailed scopes of work for comparable contracts.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to SEACORP, LLC, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed estimates, the government bears the burden of these increased expenses, while the contractor's profit remains fixed. This can incentivize less cost-conscious behavior if not rigorously managed. For complex engineering services where requirements may evolve or unforeseen technical challenges arise, the 'cost' component can escalate significantly. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear definition of work to prevent scope creep and ensure efficient resource utilization.
How effective are the current oversight mechanisms for ensuring program effectiveness and value for money?
The effectiveness of oversight mechanisms for this contract depends heavily on the specific implementation by the Department of the Navy. Standard oversight includes regular progress reviews, technical evaluations, financial audits, and adherence to contract milestones. For CPFF contracts, vigilant monitoring of incurred costs against the estimated cost is crucial. Program effectiveness is typically measured against defined technical requirements and operational performance metrics. Value for money is assessed by comparing the delivered capabilities and performance against the total cost. Robust oversight involves proactive identification of potential issues, timely corrective actions, and clear communication channels between the government and the contractor to ensure the program meets its objectives efficiently and cost-effectively.
What are the historical spending patterns for undersea warfare systems engineering services within the Department of Defense?
Historical spending on undersea warfare systems engineering services within the Department of Defense has been substantial and consistently high, driven by the strategic importance of submarine forces. Major investments are allocated towards the development, modernization, and sustainment of platforms like the Virginia, Columbia, and future SSN(X) classes. This includes significant funding for combat systems, sonar technology, cybersecurity, and platform integration. Spending often follows multi-year procurement and development cycles, with significant outlays during peak R&D and production phases. Fluctuations in spending can occur based on geopolitical shifts, technological advancements, and budget appropriations. Analyzing historical data reveals a sustained commitment to maintaining and advancing U.S. undersea dominance.
What is the potential impact of this contract on the broader submarine industrial base?
This contract directly supports critical elements of the submarine industrial base by engaging a specialized engineering firm, SEACORP, LLC. Such contracts are vital for maintaining the technical expertise and workforce required for designing, building, and maintaining advanced submarine systems. By funding complex engineering services, it helps sustain a high-skill labor pool in areas like naval architecture, systems engineering, and combat systems development. Furthermore, it reinforces the ecosystem of companies that contribute to the overall health and readiness of the U.S. submarine force. The success and continuity of these engineering efforts are foundational for the long-term viability and technological edge of the submarine industrial base.
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: N6660424R3018
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: $86,283,969
Exercised Options: $37,085,501
Current Obligation: $30,020,658
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $2,981,771
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: 2024-12-12
Current End Date: 2026-12-17
Potential End Date: 2029-12-17 00:00:00
Last Modified: 2026-02-26
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