DoD's $34.2M Engineering Services Contract with SIGMATECH INC Under Full and Open Competition
Contract Overview
Contract Amount: $34,205,135 ($34.2M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2012-04-27
End Date: 2020-09-30
Contract Duration: 3,078 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: INITIAL AWARD
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to SIGMATECH INC for work described as: INITIAL AWARD Key points: 1. Contract awarded to SIGMATECH INC for Engineering Services. 2. Significant contract value of $34.2 million over its duration. 3. Procured under full and open competition, suggesting market availability. 4. The contract spans a considerable period from 2012 to 2020. 5. Sector is Engineering Services, vital for defense infrastructure.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure can lead to cost overruns if not managed closely. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors could bid. This method generally promotes competitive pricing, but the Time and Materials (T&M) pricing type may limit price certainty.
Taxpayer Impact: Taxpayer funds were used for engineering services procured competitively. The T&M structure necessitates vigilant oversight to ensure cost-effectiveness and prevent overspending.
Public Impact
Ensures critical engineering support for Department of the Army operations. Supports technological advancement and infrastructure maintenance within the DoD. Provides employment opportunities within the engineering sector. Potential for cost efficiencies due to competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing risk
- Long contract duration may obscure current market rates
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Established vendor with a long-term contract
- Supports critical defense needs
Sector Analysis
Engineering Services (NAICS 541330) are crucial for the Department of Defense, encompassing design, consulting, and project management for military infrastructure and systems. Spending in this sector is substantial and directly tied to national security objectives.
Small Business Impact
The data does not indicate if SIGMATECH INC is a small business. The contract was awarded under full and open competition, which typically favors larger, established firms, but does not preclude small business participation if they meet requirements.
Oversight & Accountability
The long duration of the contract (2012-2020) suggests a need for ongoing oversight to ensure continued value and adherence to terms. The Time and Materials pricing model requires robust monitoring by the agency to control costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to T&M pricing
- Lack of detailed performance metrics in data
- Long contract duration may not reflect current market value
- Limited insight into specific deliverables and their impact
Tags
engineering-services, department-of-defense, al, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to SIGMATECH INC. INITIAL AWARD
Who is the contractor on this award?
The obligated recipient is SIGMATECH 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 $34.2 million.
What is the period of performance?
Start: 2012-04-27. End: 2020-09-30.
What specific engineering services were provided under this contract, and how did they align with the Army's strategic goals?
The provided data identifies the contract as 'Engineering Services' under NAICS code 541330. To assess alignment with strategic goals, a detailed review of the Statement of Work (SOW) would be necessary. This would clarify the nature of the engineering tasks, such as design, analysis, or project management, and their direct contribution to specific Army modernization or operational readiness objectives.
How did the Time and Materials pricing structure impact the final cost compared to a fixed-price contract for similar engineering services?
Time and Materials (T&M) contracts offer flexibility but carry inherent cost uncertainty. Without detailed cost data and comparison points, it's difficult to definitively state the impact. However, T&M contracts are generally more susceptible to cost overruns if not meticulously managed and monitored for efficiency and necessity of hours billed.
What mechanisms were in place to ensure the quality and effectiveness of the engineering services delivered by SIGMATECH INC over the contract's eight-year period?
The provided data does not detail the quality assurance or performance monitoring mechanisms. Typically, such contracts would include performance standards, regular reviews, and acceptance criteria for deliverables. Effective oversight would involve the Contracting Officer's Representative (COR) actively managing the contractor's performance against these established metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sigmatech, Inc.
Address: 689 DISCOVERY DRIVE, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,432,253
Exercised Options: $34,205,135
Current Obligation: $34,205,135
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $24,105,055
Parent Contract
Parent Award PIID: W31P4Q12A0005
IDV Type: BPA
Timeline
Start Date: 2012-04-27
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-07-01
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