DoD's $193M Aviation and Missile Command Contract Awarded to SIGMATECH INC for Program Management Services

Contract Overview

Contract Amount: $55,607,519 ($55.6M)

Contractor: Sigmatech Inc

Awarding Agency: Department of Defense

Start Date: 2005-10-19

End Date: 2010-10-18

Contract Duration: 1,825 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200604!000117!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0026 !A!N! !Y!0005 ! !20051019!20051231!193460839!193460839!193460839!N!SIGMATECH INC !689 DISCOVERY DR NW STE 5 !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000748844!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !7! !S! ! ! !99990909!C! ! !N!Z!A!N!J!2!003! ! !Z!N!Z! ! !Y!A!N!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $55.6 million to SIGMATECH INC for work described as: 200604!000117!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0026 !A!N! !Y!0005 ! !20051019!20051231!193460839!193460839!193460839!N!SIGMATECH INC !689 DISCOVERY DR NW STE 5 !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000748844!N!N!000000000000!R40… Key points: 1. The contract, valued at $193,460,839, was awarded to SIGMATECH INC for program management and support services. 2. Awarded under full and open competition, the contract's pricing structure is firm-fixed-price. 3. The primary risk appears to be the potential for cost overruns given the long duration and fixed-price nature. 4. This falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and significant government investment.

Value Assessment

Rating: good

The total contract value is $193,460,839. While specific per-unit costs are not detailed, the overall value for program management services over five years suggests a reasonable benchmark for complex defense contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the program management services rendered.

Public Impact

Supports critical aviation and missile programs for the Department of the Army. Ensures continuity and expertise in program management for complex defense initiatives. Potential for job creation and economic activity in Huntsville, Alabama, where SIGMATECH INC is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) with fixed-price could lead to cost overruns if scope changes.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.
Potential for vendor lock-in if SIGMATECH INC becomes indispensable to program operations.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
SIGMATECH INC has a track record in defense contracting.
Contract supports essential national defense capabilities.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for defense operations. Spending in this area is substantial, with benchmarks varying widely based on project complexity and duration.

Small Business Impact

The data indicates this contract was awarded to SIGMATECH INC, a specific company, and does not provide information on subcontracting opportunities for small businesses. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of the Army awarded this contract, implying oversight from relevant military and civilian leadership. However, the provided data does not detail specific oversight mechanisms or accountability measures.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost overruns due to fixed-price and long duration.
Lack of detailed performance metrics in public data.
Dependence on a single contractor for critical program management functions.
Scope creep risk if contract modifications are not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 million to SIGMATECH INC. 200604!000117!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0026 !A!N! !Y!0005 ! !20051019!20051231!193460839!193460839!193460839!N!SIGMATECH INC !689 DISCOVERY DR NW STE 5 !HUNTSVILLE !AL!35806!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000748844!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !7! !S! ! ! !99990909!C! ! !N!Z!A!N!J!2!003! ! !Z!N!Z! ! !Y!A!N!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

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 $55.6 million.

What is the period of performance?

Start: 2005-10-19. End: 2010-10-18.

What specific program management functions are included in this contract, and how do they align with the Army's strategic goals?

The contract specifies 'PROGRAM MANAGEMENT/SUPPORT SERVICES'. This typically encompasses planning, organizing, directing, and controlling resources to achieve program objectives. For the Army Aviation and Missile Command, this likely involves managing complex development, acquisition, and sustainment programs for aviation and missile systems, ensuring they meet operational requirements and timelines.

What are the key performance indicators (KPIs) used to evaluate SIGMATECH INC's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for program management services, KPIs might include on-time delivery of milestones, adherence to budget, quality of deliverables, effective risk management, and stakeholder satisfaction. The contracting officer's representative (COR) would monitor these metrics.

How does the $193 million contract value compare to similar program management contracts within the DoD for aviation and missile systems?

Comparing this $193 million contract requires context on the specific scope and duration. However, for multi-year, comprehensive program management of major defense systems, this value appears within a reasonable range. Similar contracts for large-scale acquisition programs can range from tens to hundreds of millions of dollars, depending on the complexity and criticality of the systems managed.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 689 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: W31P4Q05A0026

IDV Type: IDC

Timeline