DoD's $43.6M NRTIO Support Services contract awarded to Envistacom raises questions on competition and value

Contract Overview

Contract Amount: $43,646,923 ($43.6M)

Contractor: Envistacom, L.L.C

Awarding Agency: Department of Defense

Start Date: 2016-09-29

End Date: 2018-09-28

Contract Duration: 729 days

Daily Burn Rate: $59.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF NRTIO SUPPORT SERVICES

Plain-Language Summary

Department of Defense obligated $43.6 million to ENVISTACOM, L.L.C for work described as: IGF::OT::IGF NRTIO SUPPORT SERVICES Key points: 1. The contract's value of $43.6 million over two years suggests a significant investment in specialized engineering services. 2. The sole-source award to Envistacom warrants scrutiny regarding the absence of broader market engagement. 3. A firm fixed-price contract type generally offers cost certainty but requires careful scope definition to avoid overruns. 4. The duration of 729 days indicates a medium-term engagement, allowing for substantial project development. 5. The lack of small business involvement (both set-aside and subcontracting) suggests limited opportunities for smaller enterprises in this specific award. 6. The absence of a specific Product Service Code (PSC) might indicate a highly specialized or unique service offering.

Value Assessment

Rating: questionable

Benchmarking the value of this $43.6 million contract is challenging without specific details on the services provided under the NRTIO Support Services umbrella. However, given the sole-source nature, it's difficult to assess if competitive pressures drove the pricing to market rates. The firm fixed-price structure provides some cost control, but the overall value proposition is obscured by the lack of competitive data. Without comparable contracts or detailed performance metrics, it's hard to definitively state if this represents excellent or fair value for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Envistacom was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting proposals from multiple interested parties. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they inherently limit price discovery and may not yield the most cost-effective outcome for the government. The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a bidding war among qualified contractors.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium compared to what might have been achieved through a fully competed contract. This also limits transparency into the government's procurement strategy for these critical support services.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Department of the Army, through the provision of specialized NRTIO support services. The services delivered are critical for intelligence, surveillance, and reconnaissance operations, enhancing national security capabilities. The geographic impact is likely focused on areas where the Army operates or requires NRTIO support, potentially global. Workforce implications could include specialized technical roles within Envistacom and potentially within the Army requiring interaction with these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Absence of small business participation opportunities in this significant contract.
Limited public information on the specific nature and performance of NRTIO support services.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a single contractor may indicate specialized expertise required for the NRTIO mission.
Contract duration suggests a stable, medium-term engagement for critical support.

Sector Analysis

The defense sector, particularly within intelligence, surveillance, and reconnaissance (ISR), relies heavily on specialized engineering and technical support services. This contract likely falls within the broader engineering services market (NAICS 541330), which is a substantial segment of federal contracting. Benchmarking spending in this area is complex due to the highly specialized nature of ISR support, but significant investments are consistently made by the DoD to maintain technological superiority in this domain. The award to Envistacom suggests they possess unique capabilities deemed essential for the NRTIO mission.

Small Business Impact

This contract does not appear to have included a small business set-aside, nor is there an indication of subcontracting goals for small businesses. This means that opportunities for small businesses to participate in this specific $43.6 million award were likely minimal. For the broader small business ecosystem, this represents a missed opportunity to engage smaller, agile firms in critical defense support roles. Future solicitations in this area could benefit from incorporating set-aside provisions or encouraging subcontracting to foster small business growth within the defense supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature provides some level of accountability for deliverables. Transparency is limited due to the sole-source award, making it difficult for external parties to assess the procurement process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Support Services
Engineering Services Contracts
Department of the Army Support Contracts
National Reconnaissance Office (NRO) Related Contracts (if NRTIO is related)
Specialized Technical Support

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to ENVISTACOM, L.L.C. IGF::OT::IGF NRTIO SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ENVISTACOM, L.L.C.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2016-09-29. End: 2018-09-28.

What specific NRTIO support services does Envistacom provide under this contract, and how do these services contribute to the Department of Defense's mission?

The contract, identified as 'IGF::OT::IGF NRTIO SUPPORT SERVICES,' suggests Envistacom provides critical support related to the National Technical Means of Interception (NTMI) or similar intelligence, surveillance, and reconnaissance (ISR) capabilities. While specific service details are not publicly available due to the sensitive nature of NRTIO operations, such support typically involves technical analysis, system maintenance, operational support, data processing, and potentially the development or integration of specialized equipment. These services are vital for the Department of Defense's ability to gather, process, and exploit intelligence, directly contributing to national security objectives by providing situational awareness and informing strategic decision-making.

What was the justification for awarding this $43.6 million contract to Envistacom on a sole-source basis, and were there any attempts to explore other potential sources?

The justification for a sole-source award typically stems from circumstances where only one responsible source is capable of providing the required service or supply. For this contract, awarded under FAR Part 13.5 (likely for simplified acquisition procedures or specific exceptions), the justification would need to demonstrate that Envistacom possesses unique capabilities, proprietary technology, or specialized expertise essential for the NRTIO support services that no other contractor could reasonably provide. Without access to the specific Justification and Approval (J&A) document, it's impossible to detail the exact reasons. However, such justifications often cite factors like urgent and compelling needs, specific technical requirements, or the existence of a sole-source proprietary product or service.

How does the $43.6 million contract value compare to similar NRTIO or ISR support contracts awarded by the Department of Defense or other agencies?

Comparing this $43.6 million contract value directly to similar NRTIO or ISR support contracts is challenging without more specific details on the scope of services and the agencies involved. However, contracts for specialized intelligence and ISR support within the federal government can range significantly, from a few million to hundreds of millions of dollars, depending on complexity, duration, and technological requirements. Given that this contract was for approximately two years (729 days), the annual value is roughly $21.8 million. This figure is substantial and suggests a significant level of support. Benchmarking would require identifying contracts with comparable technical requirements, security clearances, and operational demands within the intelligence community or DoD's ISR enterprise.

What are the potential risks associated with a sole-source award of this magnitude, particularly concerning cost control and contractor performance?

Sole-source awards of this magnitude carry inherent risks. Without competition, there is less pressure on the contractor (Envistacom) to offer the most competitive pricing, potentially leading to higher costs for the government than if the contract were competed. Contractor performance oversight becomes even more critical, as the government lacks the leverage of alternative bidders. Risks include potential cost overruns if the fixed-price scope is not meticulously managed, delays in delivery, or a decline in service quality if the contractor becomes complacent. Robust contract management, clear performance metrics, and diligent oversight are essential to mitigate these risks and ensure value for taxpayer dollars.

What is Envistacom's track record with federal contracts, particularly with the Department of Defense, and have they previously received sole-source awards?

Envistacom, L.L.C. has a history of receiving federal contracts, primarily with the Department of Defense. Publicly available data indicates they have been awarded numerous contracts, often in specialized areas related to communications, intelligence, and aviation support. The fact that this particular $43.6 million contract was sole-source suggests a pattern or a specific capability that has led to such awards in the past. Analyzing their contract history would reveal the types of services they provide, their performance ratings (if available), and the extent to which they have operated under competitive versus sole-source solicitations. A review of their past performance is crucial for understanding their reliability and value proposition.

What are the historical spending patterns for NRTIO support services or similar intelligence support contracts within the Department of Defense over the last five years?

Historical spending on NRTIO support services or analogous intelligence, surveillance, and reconnaissance (ISR) contracts within the Department of Defense (DoD) has been substantial and generally increasing, reflecting the growing importance of intelligence gathering and analysis in modern warfare and national security. While precise figures for 'NRTIO support services' are difficult to isolate due to classification and varied contract naming conventions, the broader ISR and intelligence analysis sectors represent tens of billions of dollars annually for the DoD. Spending trends are influenced by geopolitical events, technological advancements, and evolving threats. Contracts often involve long-term engagements for specialized systems, software, and expert personnel, with significant portions awarded on a sole-source or limited-competition basis due to the unique nature of the requirements.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911NF16R0011

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 CONCOURSE PKWY NE, ATLANTA, GA, 30328

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $47,021,229

Exercised Options: $47,021,229

Current Obligation: $43,646,923

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911NF16D0032

IDV Type: IDC

Timeline