DoD's $29.2M contract for Persistent Ground Surveillance Systems support awarded to Technology and Supply Management, LLC

Contract Overview

Contract Amount: $29,223,959 ($29.2M)

Contractor: Technology and Supply Management, LLC

Awarding Agency: Department of Defense

Start Date: 2015-07-31

End Date: 2017-01-30

Contract Duration: 549 days

Daily Burn Rate: $53.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND MATERIAL REQUIRED TO SUPPORT GOVERNMENT FURNISHED PERSISTENT GROUND SURVEILLANCE SYSTEMS (PGSS): PROGRAM MANAGEMENT, OPERATOR/USER-LEVEL MAINTAINERS, ENGINEERING SERVICES, SUB-SYSTEM COMPONENT REPAIR PARTS AND SPARES PROCUREMENT, ABOVE USER LEVEL MAINTAINERS, TRAINING, TRAINER/TEST SYSTEMS, TEST AND EVALUATION, OPERATIONS CAPABILITY, LOGISITICS, DRAWDOWN AND SURGE OPERATIONS, RESET, STORAGE, AND TRANSPORTATION, TRANSITION PLAN, EVACUATION PLAN, AND DEMOBILIZATION PLAN.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to TECHNOLOGY AND SUPPLY MANAGEMENT, LLC for work described as: IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND MATERIAL REQUIRED TO SUPPORT GOVERNMENT FURNISHED PERSISTENT GROUND SURVEILLANCE SYSTEMS (PGSS): PROGRAM MANAGEMENT, OPERATOR/USER-LEVEL MAINTAINERS, ENGINEERING SERVICES, SUB-SYSTEM COMPONENT REPAIR PARTS AND… Key points: 1. Contract focuses on comprehensive support for PGSS, including program management, maintenance, engineering, and logistics. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 549 days indicates a medium-term need for these specialized services. 4. The 'Engineering Services' NAICS code suggests a focus on technical and design-related support. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while ensuring necessary services are rendered. 6. The small business set-aside status is false, indicating it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar PGSS support contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses plus a fixed fee, which can sometimes lead to higher overall costs if not managed tightly. However, CPFF is often used when the scope of work is not fully defined or is expected to change, allowing for flexibility. Without specific performance metrics or a comparison to industry standards for similar surveillance system support, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The specific exclusion of sources might refer to pre-qualification criteria or specific technical requirements that narrowed the field, but the intent was to allow broad participation. The level of competition is generally positive for price discovery, as multiple firms vie for the contract.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging lower bids and more efficient service delivery. It helps ensure that the government is not overpaying for the required services and that the most capable and cost-effective provider is selected.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities relying on persistent ground surveillance capabilities. Services delivered include program management, maintenance, engineering, logistics, training, and operational support for PGSS. The geographic impact is likely focused on areas where ground surveillance is critical for military operations, potentially including overseas deployments. Workforce implications include the need for skilled personnel in program management, engineering, maintenance, and logistics related to surveillance systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not rigorously managed.
The exclusion of sources, even within a full and open competition, warrants understanding the specific criteria that may have limited the bidder pool.
Lack of detailed performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the contractor's support.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract covers a wide range of essential support functions for a critical surveillance system.
The fixed fee component in the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

The defense sector, particularly within intelligence, surveillance, and reconnaissance (ISR), is a significant area of federal spending. Persistent Ground Surveillance Systems (PGSS) are crucial for modern military operations, providing continuous monitoring capabilities. This contract fits within the broader market for defense technology and support services, which is characterized by long-term relationships, specialized technical requirements, and substantial government investment. Comparable spending benchmarks would typically involve other large-scale ISR system support contracts, often running into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by 'sb: false'. This means that large businesses were eligible to compete and potentially win the contract without specific set-aside requirements. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is not guaranteed, though the prime contractor may still engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures to ensure costs remain reasonable and the fixed fee is justified. Transparency would be enhanced through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Ground Surveillance Technologies
Military Program Management
Defense Logistics and Maintenance
Aerospace and Defense Engineering Services

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Complexity
Technical Obsolescence of Surveillance Systems
Supply Chain Disruptions for Spare Parts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to TECHNOLOGY AND SUPPLY MANAGEMENT, LLC. IGF::OT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROCURE SERVICES AND MATERIAL REQUIRED TO SUPPORT GOVERNMENT FURNISHED PERSISTENT GROUND SURVEILLANCE SYSTEMS (PGSS): PROGRAM MANAGEMENT, OPERATOR/USER-LEVEL MAINTAINERS, ENGINEERING SERVICES, SUB-SYSTEM COMPONENT REPAIR PARTS AND SPARES PROCUREMENT, ABOVE USER LEVEL MAINTAINERS, TRAINING, TRAINER/TEST SYSTEMS, TEST AND EVALUATION, OPERATIONS CAPABILITY, LOGISITICS, DRAWDOWN AND SURGE OPERATIONS, RESET, STORAGE, AND TRANSPORTATION, TRANSITION PLA

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY AND SUPPLY MANAGEMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2015-07-31. End: 2017-01-30.

What is the track record of Technology and Supply Management, LLC with Department of Defense contracts, particularly for surveillance systems?

Technology and Supply Management, LLC (TSM) has a history of performing contracts for the Department of Defense, including services related to logistics, maintenance, and program support. While specific details on their track record with Persistent Ground Surveillance Systems (PGSS) are not fully elaborated in the provided data, their award for this significant task order suggests they possess the necessary qualifications and experience. A deeper dive into TSM's contract history, including past performance evaluations and any prior issues or successes with similar systems, would provide a more comprehensive understanding of their capabilities and reliability in this domain. Examining their financial stability and any past disputes or claims could also offer further insight into their contractor performance.

How does the $29.2 million value of this contract compare to other PGSS support contracts or similar defense technology services?

The $29.2 million value for a 549-day (approximately 18-month) contract for comprehensive support of Persistent Ground Surveillance Systems (PGSS) appears to be within a reasonable range for specialized defense technology services. However, direct comparisons are difficult without knowing the exact scope, level of support (e.g., depot-level maintenance vs. field support), and specific system configurations involved. Contracts for ISR systems and their sustainment can vary widely. For instance, larger, more complex ISR platforms or contracts involving significant hardware upgrades could easily exceed this amount. Conversely, simpler maintenance or training contracts might be lower. To provide a more precise benchmark, one would need to compare this contract against other PGSS support task orders or similar contracts for ground-based ISR systems awarded by the Army or other branches, considering factors like duration, service mix, and the number of systems supported.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for surveillance system support?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Technology and Supply Management, LLC for PGSS support, is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor is inefficient or if unforeseen technical challenges arise that increase costs significantly, the government ultimately bears these higher expenses. This structure can reduce the contractor's incentive to control costs aggressively compared to fixed-price contracts. Effective oversight, rigorous auditing of expenses, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

What is the expected effectiveness of the services provided under this contract for the Department of the Army's PGSS program?

The expected effectiveness of the services under this contract hinges on the contractor's ability to deliver comprehensive support for the Persistent Ground Surveillance Systems (PGSS). The contract's scope covers critical areas such as program management, maintenance (operator-level and above), engineering services, spare parts procurement, training, and operational logistics. Successful execution in these areas should ensure the PGSS are operational, maintained, and supported throughout their lifecycle, thereby enhancing the Army's intelligence, surveillance, and reconnaissance capabilities. The effectiveness will be measured by the system's readiness rates, the quality of maintenance and engineering support, and the successful training of personnel. The CPFF structure, while carrying cost risks, allows flexibility to address emergent technical issues that could impact effectiveness.

How has the Department of Defense's spending on surveillance and reconnaissance systems evolved, and where does this contract fit?

Department of Defense spending on surveillance and reconnaissance (ISR) systems has been substantial and consistently growing, driven by the need for real-time intelligence and situational awareness in complex operational environments. This includes a wide array of platforms, from satellites and aircraft to ground-based sensors like PGSS. This $29.2 million contract for PGSS support represents a specific investment in maintaining and operating a critical component of the ground ISR architecture. It fits within the broader trend of the DoD investing heavily in advanced ISR capabilities, focusing not only on acquiring new technologies but also on ensuring the sustainment, modernization, and effective utilization of existing systems. Such contracts are essential for operational readiness and reflect the ongoing reliance on persistent surveillance.

What are the implications of awarding this contract under 'Full and Open Competition After Exclusion of Sources' for future procurements?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was broad, certain pre-defined criteria or specific exclusions were applied. This could involve requirements for specific technical expertise, security clearances, or prior experience with particular systems. For future procurements, this implies that potential bidders should pay close attention to the detailed requirements and any stated exclusions in the solicitation. It signals that the agency is seeking best-of-breed solutions but may have specific, non-negotiable prerequisites. Understanding the rationale behind the 'exclusion of sources' in this instance could help other firms prepare more effectively for similar future opportunities by ensuring they meet all stipulated qualifications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3877 FAIRFAX RIDGE ROAD, SUITE 110N, FAIRFAX, VA, 22030

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,208,381

Exercised Options: $31,208,381

Current Obligation: $29,223,959

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56KGY15D0016

IDV Type: IDC

Timeline