Army awards $11.5M for security assistance programmatic support to Sigmatech Inc

Contract Overview

Contract Amount: $11,504,420 ($11.5M)

Contractor: Sigmatech Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2011-04-25

Contract Duration: 1,306 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER AWARD FOR PROGRAMMATIC SUPPORT OF PWS ENTITLED "U.S. ARMY SECURITY ASSISTANCE COMMAND PROGRAMMATIC SUPPORT"

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to SIGMATECH INC for work described as: NEW TASK ORDER AWARD FOR PROGRAMMATIC SUPPORT OF PWS ENTITLED "U.S. ARMY SECURITY ASSISTANCE COMMAND PROGRAMMATIC SUPPORT" Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 3.6 years provides a stable period for service delivery. 3. Awarded as a Firm Fixed Price contract, which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 541330 indicates engineering services. 5. The contract was awarded in Alabama, potentially benefiting the local economy. 6. This task order is part of a larger programmatic support effort for the Army Security Assistance Command.

Value Assessment

Rating: fair

The contract value of $11.5 million over approximately 3.6 years averages to about $3.2 million annually. Benchmarking this against similar programmatic support contracts for defense agencies is challenging without more specific service details. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the contractor performs efficiently. Further analysis would require comparing the scope of work and deliverables to other contracts of a similar nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific task order. While more than one bidder is present, the exact number of potential bidders and the intensity of the competition are not fully detailed, making it difficult to definitively assess if the pricing achieved represents the lowest possible cost.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and improve the quality of services offered.

Public Impact

The U.S. Army Security Assistance Command benefits from programmatic support services. Services delivered likely include program management, analysis, and administrative support related to security assistance. The geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include employment opportunities for individuals with expertise in program management and defense support within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on specific performance metrics for this task order.
The exact scope and deliverables are not fully detailed, making comprehensive value assessment difficult.
Potential for cost overruns exists if the firm fixed-price contract scope is not precisely managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract structure shifts cost risk to the contractor.
Contract duration provides a stable period for service delivery and planning.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant part of the federal contracting landscape, particularly within the Department of Defense. This contract for programmatic support falls within this broad category, likely encompassing project management, technical analysis, and administrative functions essential for the execution of security assistance programs. Comparable spending in this sector often involves large-scale engineering and technical support services for major defense initiatives, with contract values varying widely based on complexity and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem for this specific award appears minimal. However, the prime contractor, Sigmatech Inc., may engage small businesses as subcontractors if it aligns with their project needs and contractual obligations, though this is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring would likely involve regular reviews of deliverables and adherence to the Performance Work Statement (PWS). Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms are internal to the agency and contractor.

Related Government Programs

Army Security Assistance Command Programs
Department of Defense Programmatic Support Contracts
Engineering Services for Government

Risk Flags

Contract awarded in 2007, historical data may not reflect current market rates or performance.
Limited detail on specific deliverables and performance metrics.
Competition level (3 bidders) is moderate, potentially impacting price optimization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to SIGMATECH INC. NEW TASK ORDER AWARD FOR PROGRAMMATIC SUPPORT OF PWS ENTITLED "U.S. ARMY SECURITY ASSISTANCE COMMAND PROGRAMMATIC SUPPORT"

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 $11.5 million.

What is the period of performance?

Start: 2007-09-27. End: 2011-04-25.

What is the specific nature of the "programmatic support" provided under this contract?

The "programmatic support" for the "U.S. Army Security Assistance Command Programmatic Support" likely entails a range of services crucial for the effective management and execution of the Army's security assistance initiatives. This could include tasks such as program planning, policy development, budget analysis, logistical coordination, administrative assistance, and reporting. The goal is to ensure that the complex operations involved in providing military aid and training to foreign partners are managed efficiently and effectively. Without the full Performance Work Statement (PWS), the precise scope remains general, but it is understood to be advisory and support-oriented rather than direct operational execution.

How does the $11.5 million value compare to other similar programmatic support contracts within the Department of Defense?

Directly comparing the $11.5 million value of this specific task order to other programmatic support contracts within the Department of Defense (DoD) is challenging without a detailed understanding of the scope, duration, and specific services rendered. DoD contracts for programmatic support can range from a few million dollars for smaller, specialized tasks to hundreds of millions or even billions for large-scale, long-term program management efforts across major defense systems. This $11.5 million award, spanning approximately 3.6 years, suggests a moderately sized, focused support effort rather than a comprehensive program management contract for a major weapon system. Its value is likely typical for specific task orders supporting established commands like the Army Security Assistance Command.

What are the key performance indicators (KPIs) used to assess Sigmatech Inc.'s performance on this contract?

The specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, for programmatic support contracts of this nature, typical KPIs would likely revolve around the timely and accurate delivery of required reports, adherence to project schedules, effective management of assigned tasks, quality of analysis and recommendations provided, and overall client satisfaction. The firm fixed-price nature of the contract implies that meeting these performance standards within the agreed budget is paramount for the contractor. The contracting officer's representative (COR) would be responsible for monitoring performance against the Performance Work Statement (PWS) and associated metrics.

What is Sigmatech Inc.'s track record with the Department of the Army and similar contracts?

Sigmatech Inc. has a history of contracting with the Department of Defense, including the Department of the Army. While specific details of their past performance on similar programmatic support contracts are not exhaustively detailed in the provided data, their ability to win this $11.5 million "full and open competition" award suggests a demonstrated capability and a competitive standing within the defense contracting market. Companies in this space typically build a track record through successful execution of prior contracts, which often involves providing technical, engineering, or management support services to various military branches and agencies. Further investigation into federal procurement databases would reveal the breadth and success of their prior engagements.

What is the potential risk associated with the firm fixed-price contract type for this service?

The primary risk associated with a firm fixed-price (FFP) contract type, like the one awarded to Sigmatech Inc., is that the contractor assumes the majority of the cost responsibility. If the contractor underestimates the effort required, encounters unforeseen challenges, or experiences cost increases in labor or materials, their profit margin will be reduced, or they could incur a loss. For the government, the risk is that the contractor might cut corners on quality or scope to protect their profit if costs escalate unexpectedly. However, FFP contracts are generally favored for well-defined scopes of work as they provide cost certainty for the buyer and incentivize contractor efficiency.

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

Financial Breakdown

Contract Ceiling: $11,504,420

Exercised Options: $11,504,420

Current Obligation: $11,504,420

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0026

IDV Type: IDC

Timeline