DoD's $65M UAS Technical Services Contract with SIGMATECH INC awarded under full and open competition
Contract Overview
Contract Amount: $65,043,272 ($65.0M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2017-10-30
End Date: 2022-10-30
Contract Duration: 1,826 days
Daily Burn Rate: $35.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TECHNICAL AND ENGINEERING SERVICES FOR UAS.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $65.0 million to SIGMATECH INC for work described as: TECHNICAL AND ENGINEERING SERVICES FOR UAS. Key points: 1. Contract awarded to SIGMATECH INC for $65M for UAS technical services. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract falls under R&D in Physical, Engineering, and Life Sciences. 4. Potential risks include vendor lock-in and cost overruns if not managed effectively.
Value Assessment
Rating: fair
The contract value of $65M over 5 years is substantial. Benchmarking against similar R&D contracts for UAS technical services is difficult without more specific data on deliverables and scope. The provided benchmark of $35,621 (likely a unit or task order value) seems low relative to the total contract value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were allowed to participate. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: Taxpayer funds are being used for research and development in UAS technology. The effectiveness and ultimate value of this R&D will determine the true taxpayer impact.
Public Impact
Advancement in Unmanned Aerial System (UAS) technology. Potential for improved defense capabilities through R&D. Investment in specialized engineering and technical services. Job creation in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Scope creep in R&D projects.
- Effectiveness of technical services in achieving R&D goals.
- Long contract duration (5 years) may not adapt to rapid tech changes.
Positive Signals
- Full and open competition.
- Firm Fixed Price contract type.
- Focus on critical R&D area (UAS).
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The contract was awarded to SIGMATECH INC, and it is not indicated whether this is a small business. Further analysis would be needed to determine the extent of small business participation or subcontracting.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would involve monitoring the progress of R&D, adherence to the firm fixed price, and ensuring deliverables meet technical requirements.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for R&D project delays.
- Uncertainty of R&D outcomes.
- Long contract duration may not keep pace with rapid technological advancements.
- Need for robust oversight to ensure effective use of funds.
Tags
research-and-development-in-the-physical, department-of-defense, al, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.0 million to SIGMATECH INC. TECHNICAL AND ENGINEERING SERVICES FOR UAS.
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 $65.0 million.
What is the period of performance?
Start: 2017-10-30. End: 2022-10-30.
What specific technical and engineering services are being provided for UAS, and how do they align with current DoD priorities?
The contract specifies 'TECHNICAL AND ENGINEERING SERVICES FOR UAS.' Without further detail, it's difficult to ascertain the exact services. These could range from design and prototyping to testing and integration. Alignment with DoD priorities would depend on whether these services contribute to specific strategic goals like enhanced surveillance, autonomous operations, or new weapon system development.
How effectively was the $65M allocated across the 5-year period, and what are the key performance indicators for success?
The allocation of $65M over 1826 days (approx. 5 years) suggests an average annual spend of $13M. Key performance indicators (KPIs) would typically include milestones achieved in R&D, successful prototype development, performance metrics of tested systems, and timely delivery of technical reports. Effective allocation requires clear project management and regular progress reviews.
What is the long-term strategic value of this R&D investment in UAS technology for the Department of Defense?
The long-term strategic value lies in maintaining technological superiority in the rapidly evolving field of unmanned systems. Successful R&D can lead to enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities, improved battlefield effectiveness, and potentially reduced risk to personnel. The investment aims to ensure the DoD has cutting-edge UAS technology to meet future operational demands.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sigmatech, Inc.
Address: 4901 CORPORATE DR NW STE C, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,918,421
Exercised Options: $65,043,272
Current Obligation: $65,043,272
Parent Contract
Parent Award PIID: W31P4Q15A0028
IDV Type: BPA
Timeline
Start Date: 2017-10-30
Current End Date: 2022-10-30
Potential End Date: 2022-10-30 00:00:00
Last Modified: 2025-04-24
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