Navy Awards $250 Million Contract to Small Businesses

Thirteen small businesses win Navy contract worth up to $250 million.
President, Proximo, LLC
February 05, 2013 Another Federal government agency has taken the important step of awarding a significant contract to small businesses. The Department of the Navy awarded 13 small businesses with a contract worth nearly $50 million for 2013 with options to renew through 2018. If they exercise all renewals then the contract is worth a quarter of a billion dollars. The contract is for delivery of various support services including research, development, testing and evaluation.  

The contract is what’s known as a “task order” award. This means that the Navy has approved 13 small businesses the right to compete for the right to fulfill the numerous services that together add up to $50 million per year. Each company isn’t allocated a quota; instead the best price for each individual task request by the Navy will win. This means that the 13 companies will be competing against each other but only against each other; no other company can enter the competition to fulfill the requested services.

The Navy is also requiring “cost-plus-fixed-fee”. Under this model, the bids presented by the companies for each bid should be priced in two parts: the actual cost of the service plus a fixed profit amount.  

Read the full article at Washington Technology.

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