DoD awards $2.9M for Unmanned Undersea Vehicle Software Services to Rite-Solutions, Inc

Contract Overview

Contract Amount: $2,925,858 ($2.9M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-22

End Date: 2026-07-31

Contract Duration: 616 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UNMANNED UNDERSEA VEHICLE SOFTWARE SERVICES

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $2.9 million to RITE-SOLUTIONS, INC. for work described as: UNMANNED UNDERSEA VEHICLE SOFTWARE SERVICES 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. Performance period spans over 600 days, indicating a medium-term project. 4. The award is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 336999 covers 'All Other Transportation Equipment Manufacturing', providing broad industry context. 6. The contract is for software services related to Unmanned Undersea Vehicles (UUVs).

Value Assessment

Rating: fair

Benchmarking the value of this $2.9 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee provides some incentive for efficiency, it doesn't guarantee optimal value compared to fixed-price contracts. Further analysis would require understanding the scope of work and comparing labor rates and overhead to industry standards for similar UUV software development.

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 presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the number of bidders can still vary significantly depending on the specialized nature of the requirement and the pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open solicitation. However, the actual cost savings depend on the effectiveness of the bidding process and the government's negotiation strategy.

Public Impact

The primary beneficiaries are the Department of the Navy and its UUV programs, enhancing operational capabilities. Services delivered include software development and support crucial for the functionality and deployment of unmanned undersea vehicles. The geographic impact is likely concentrated within naval operations and potentially R&D facilities, though specific locations are not detailed. Workforce implications may include specialized software engineers and developers, potentially in Rhode Island where the contractor is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Limited competition with only 3 bidders might not represent the full market potential.
The specific nature of UUV software services requires specialized expertise, potentially limiting the competitive pool.
The duration of the contract (over 600 days) requires sustained oversight to ensure performance and value.

Positive Signals

Awarded under full and open competition, which is a positive indicator for market fairness.
The contractor, RITE-SOLUTIONS, INC., has a presence in Rhode Island, potentially supporting local technical expertise.
The contract is for software services, a critical component for modern defense systems.

Sector Analysis

The Unmanned Undersea Vehicle (UUV) sector is a rapidly growing segment within the defense industry, driven by increasing demand for autonomous maritime capabilities. This contract for software services fits within the broader 'All Other Transportation Equipment Manufacturing' NAICS code, but more specifically addresses the advanced technology needs of naval defense. Spending in this area is significant, with numerous government contracts awarded for UUV platforms, sensors, and associated software. Benchmarking requires comparison to other UUV software development contracts, which often involve complex integration and cybersecurity requirements.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mentioned. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, larger prime contractors like Rite-Solutions, Inc. may engage small businesses as subcontractors on other projects, contributing indirectly to their growth.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Accountability measures will likely involve performance reviews, milestone tracking, and adherence to software development lifecycle standards. Transparency is typically maintained through contract reporting requirements, though detailed public access to performance data may be limited due to national security considerations.

Related Government Programs

Unmanned Maritime Systems (UMS)
Naval Software Development
Autonomous Systems
Defense Software Engineering
Undersea Warfare Technology

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Limited number of bidders (3) may indicate potential for higher prices than with broader competition.
The specialized nature of UUV software development could present unique technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.9 million to RITE-SOLUTIONS, INC.. UNMANNED UNDERSEA VEHICLE SOFTWARE SERVICES

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 $2.9 million.

What is the period of performance?

Start: 2024-11-22. End: 2026-07-31.

What is the track record of RITE-SOLUTIONS, INC. with Department of Defense contracts, particularly in software development for unmanned systems?

A review of federal procurement data indicates that RITE-SOLUTIONS, INC. has a history of receiving contracts from the Department of Defense, including for services related to software development and engineering. While specific details on their track record with unmanned systems software are not provided in this summary, their continued awards suggest a level of established performance and capability recognized by the Navy. Further investigation into contract performance reports (e.g., CPARS) and the value/scope of their previous DoD awards would provide a more comprehensive understanding of their expertise and reliability in this specialized domain.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar UUV software services in terms of value for money?

The CPFF structure is often used when the scope of work is not precisely defined or when there is significant uncertainty in the cost of performance. For UUV software services, where innovation and evolving requirements are common, CPFF can facilitate flexibility. However, it shifts cost risk to the government. Compared to fixed-price contracts, CPFF may result in higher overall costs if not managed diligently, as the contractor is reimbursed for actual costs plus a fee. Fixed-price contracts offer better cost certainty for the government but may require a more mature and well-defined scope of work upfront. The value for money with CPFF hinges heavily on robust government oversight to control costs and ensure the fixed fee accurately reflects the effort and risk involved.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how will they be measured?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for software development contracts, KPIs might include metrics related to code quality, adherence to development timelines, successful integration of software modules, system performance under simulated conditions, and cybersecurity compliance. Deliverables would likely encompass software code, documentation, test reports, and potentially training materials. The Department of the Navy's contracting officers and technical representatives would be responsible for defining and monitoring these KPIs and deliverables throughout the contract's performance period to ensure successful execution and value.

What is the historical spending trend for Unmanned Undersea Vehicle (UUV) software services within the Department of Defense?

Historical spending on UUV software services within the Department of Defense has shown a consistent upward trend over the past decade, driven by the increasing strategic importance of autonomous maritime capabilities. While specific aggregate figures for 'UUV software services' are not readily available as a distinct category, broader spending on Unmanned Maritime Systems (UMS) and related technologies has surged. This growth reflects advancements in AI, sensor technology, and the need for persistent surveillance, mine countermeasures, and anti-submarine warfare capabilities. The DoD's focus on modernizing its fleet and enhancing its technological edge ensures continued investment in this domain.

Are there any specific cybersecurity requirements or certifications mandated for contractors providing software services for UUVs?

While not explicitly stated in the summary data, contracts for UUV software services, especially within the Department of Defense, almost invariably include stringent cybersecurity requirements. These typically align with DoD directives and standards such as NIST SP 800-171 for protecting controlled unclassified information (CUI) and potentially higher-level cybersecurity maturity model certification (CMMC) requirements depending on the sensitivity of the data and systems involved. Contractors are expected to implement robust security measures throughout the software development lifecycle, including secure coding practices, access controls, and continuous monitoring to protect against cyber threats.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › All Other Transportation Equipment Manufacturing

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: N6660417R0350

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 185 SOUTH BROAD ST. SUITE 303, PAWCATUCK, CT, 06379

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,744,853

Exercised Options: $5,369,379

Current Obligation: $2,925,858

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,195,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6660418DC820

IDV Type: IDC

Timeline