SPAWAR’s C4ISR Installation Contracts: 2011-2016

On Jan 21/11, Us Navy Space and Naval Warfare Systems Command in San Diego, CA announced a set of 4 multiple-award contracts to install and certify Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems. These systems will be delivered under a combination of cost-plus-incentive-fee, fixed-price-incentive (firm target), firm-fixed-price, and cost-plus-fixed-fee delivery orders as “Government Furnished Equipment” (GFE), for installation on board surface ships, submarines, and shore stations located worldwide. With the umbrella terms all set, contracts can be placed on behalf of SPAWAR, and also on behalf of other prospective U.S. Government and Foreign Military Sales customers. There’s an initial 3-year base period that runs to 2014, and a 2-year option period that would extend it to 2016. When these contracts were issued, several media outlets added them together, and reported $5+ billion in contracts. That isn’t correct. Here’s what is correct, and how the contracts work… SPAWAR confirms to DID that as a multiple-award contract, they’ve estimated just over $1.4 billion as the limit, with each winner competing for specific task orders. In other words, reaching even one contractor’s maximum value means that contractor would have to win every single task order competition, and the others would […]