The USA’s Defense Finance and Accounting Service (DFAS) has picked up a fourth year option with Electronic Data Systems Corp. in Herndon, VA. This indefinite delivery contract (MDA210-02-D-0001) has a maximum face value of $12.2 million, and covers production support, hardware/software support and system improvements for electronic data management. This brings the aggregate value of the contract to a maximum of $59.6 million.

Work will be performed at DFAS Columbus, OH; DFAS Indianapolis, IN; DFAS Omaha, NB; and DFAS Charleston, SC. Under this option, work will be performed between Jan. 1 and Dec. 31, 2006. Funding includes nine months of fiscal 2006 dollars and three months of fiscal 2007 dollars, to be issued by task orders. The DFAS Contract Services Directorate in Columbus OH issued the contract (MDA210-02-D-0001).

CVN-21 Concept
(click for alternate view)

Super-carriers may be cheaper than building the same amount of aircraft and mission capacity via smaller carriers, but they aren’t cheap. Just how expensive, however, has recently become an item of some debate. Speciality publications like GovExec.com, and mainstream media papers as well, have put forward figures of $13.7-14 billion for the CVN-21 Class. House Armed Services Committee Chairman Duncan Hunter [R-CA] has been quoted giving similar figures.

In the wake of DID’s anchor article covering the new carriers, Pat Dolan of NAVSEA got in touch with DID to protest those figures. She made a solid case, some minor changes were made, and DID began asking a slew of detailed questions. After all, the US Navy’s own on-line Fact File pegs the cost of a Nimitz Class carrier at $4.5 billion, but Navy representatives claim a cost of $8.1 billion per ship for the CVN-21 Class – and note that this is cheaper than building a new Nimitz Class ship! NAVSEA also claims up to $5 billion of savings over the ship’s lifetime vs. a Nimitz carrier.

How does this math square, and how specifically do the innovations in the CVN-21 Class rack up $5 billion in savings over the ship’s 50-year service life?

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Science Applications International Corp. (SAIC) in San Diego, CA received a $28.7 million indefinite-delivery/ indefinite-quantity, cost-reimbursement contract for engineering support for the Capital Asset Management System (CAMS). CAMS is a computer network system that is designed to manage asset accounting and reporting capabilities for all military equipment.

So, why is this useful or important?

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CACI International Inc announced today that it has been awarded a five-year, $188 million prime contract to support the U.S. Naval Sea Systems Command’s Program Executive Office for Littoral and Mine Warfare (PEO-LMW).

The contract, which has a one-year base and four option years, calls for CACI to support a wide range of current and next-generation mine countermeasure programs and combat systems. What kinds of systems?

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Small business qualifier National Technologies Associates, Inc. in Alexandria, VA received a $7.8 million modification to a previously awarded time and materials indefinite-delivery/ indefinite-quantity contract (N00421-02-D-3205), exercising an option to support the Naval Air Warfare Center Aircraft Division’s Comptroller in the areas of management studies; program records/library support; operational security program analysis; training systems technology and financial analysis. The contract will include engineering, technical and administrative services, and work will be performed in Patuxent River, MD (90%); Lakehurst, NJ (5%); and St. Inigoes, MD (5%); work is expected to be completed in July 2006. The Naval Air Warfare Center Aircraft Division in Patuxent River, MD issued the contract.

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Wyle Laboratories Inc. received an Indefinite Delivery/Indefinite Quantity (IDIQ), with work ordered using cost-plus-fixed-fee (CPFF) term Technical Area Tasks (TAT) Delivery Orders, for the Reliability Information Analysis Center (RIAC). The contract has a 36-month base period with one 24-month option period, and the estimated cost and fixed fee for the entire 5-year period is $13.6 million.

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The Fleet and Industrial Supply Center Norfolk Detachment in Philadelphia, PA continues to issue cost-plus-fixed-fee, indefinite-delivery/ indefinite-quantity contracts in support of the implementation of the Department of the Navy (DON) Financial Improvement Plan (FIP). These contracts were competitively procured via the Navy Electronic Commerce Online website, and nine offers were received. The FIP is a corrective program designed to achieve an unqualified audit opinion for its Annual Financial Statements.

Initial contracts with a one-year value of $72.4 million were issued recently to SAIC and IBM Consulting, with options that could expand their combined total to $212.7 million over several years. These two contracts are cumulative with a combined $72.4 million in contracts issued on March 15, 2005 to Bearing Point and Deloitte Consulting LLP, with options that could raise their combined long-term value to $213.5 million.

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