DoD Awards $53M for Command Post Modernization Installation to Serco Inc
Contract Overview
Contract Amount: $52,969,426 ($53.0M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2026-06-30
Contract Duration: 277 days
Daily Burn Rate: $191.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS IS A NON-PERSONAL SERVICES ORDER TO PROVIDE COMMAND POST MODERNIZATION INSTALLATION TO MILITARY VEHICLES.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $53.0 million to SERCO INC for work described as: THIS IS A NON-PERSONAL SERVICES ORDER TO PROVIDE COMMAND POST MODERNIZATION INSTALLATION TO MILITARY VEHICLES. Key points: 1. Significant investment in military vehicle modernization. 2. Serco Inc. secures a substantial contract. 3. Focus on R&D in physical and engineering sciences. 4. Contract awarded via full and open competition.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D installation contracts is difficult due to the specialized nature of command post modernization.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for a fair market price, though the CPFF structure requires close oversight.
Taxpayer Impact: Taxpayer funds are being used for advanced military technology upgrades. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Enhances military operational capabilities through modernized command posts. Supports technological advancement in defense systems. Potential for job creation within Serco Inc. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can increase cost risk.
- Limited visibility into specific R&D cost components.
- Dependence on a single contractor for installation.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense modernization efforts.
- Clear end date for project delivery.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but can be subject to cost volatility and long development cycles.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses are participating as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of Defense to ensure costs are reasonable and the fixed fee is justified. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overrun potential with CPFF structure.
- R&D costs can be difficult to precisely estimate and control.
- Potential for scope creep if requirements are not clearly defined.
- Dependence on contractor's technical expertise and execution.
- Long-term sustainment and upgrade costs not detailed.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.0 million to SERCO INC. THIS IS A NON-PERSONAL SERVICES ORDER TO PROVIDE COMMAND POST MODERNIZATION INSTALLATION TO MILITARY VEHICLES.
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $53.0 million.
What is the period of performance?
Start: 2025-09-26. End: 2026-06-30.
What is the estimated total cost for the R&D services provided under this contract, and how does it compare to similar modernization projects?
The total award amount is $52,969,425.50. Benchmarking this against similar R&D installation projects for command post modernization is challenging due to the unique nature of military technology and specific requirements. A detailed cost breakdown and comparison with industry standards for comparable R&D efforts would be necessary for a thorough value assessment.
What are the key performance indicators (KPIs) for this contract, and how will Serco Inc.'s performance be measured to mitigate risks?
Specific KPIs are not detailed in the provided data. However, for a CPFF contract of this nature, typical KPIs would likely include adherence to installation schedules, quality of work, system integration success, and compliance with technical specifications. The Department of the Army will need robust performance monitoring and reporting mechanisms to identify and mitigate potential risks proactively.
How does the modernization of these command posts contribute to the overall effectiveness and readiness of military operations?
Modernized command posts are critical for enhancing situational awareness, improving communication, and enabling faster decision-making on the battlefield. This upgrade likely aims to integrate advanced technologies, providing military personnel with more robust and reliable command and control capabilities, thereby increasing operational effectiveness and overall readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $83,676,848
Exercised Options: $52,969,426
Current Obligation: $52,969,426
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,504,454
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0107
IDV Type: IDC
Timeline
Start Date: 2025-09-26
Current End Date: 2026-06-30
Potential End Date: 2026-09-24 12:09:00
Last Modified: 2026-03-25
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