DoD awards $76.6M for Engineering Services to Sigmatech Inc. under Full and Open Competition
Contract Overview
Contract Amount: $76,630,186 ($76.6M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2011-04-18
End Date: 2018-06-30
Contract Duration: 2,630 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW TASK ORDER FOR PROGRAMMATIC SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $76.6 million to SIGMATECH INC for work described as: NEW TASK ORDER FOR PROGRAMMATIC SUPPORT Key points: 1. Significant contract value of $76.6M for engineering services. 2. Sigmatech Inc. secured the award. 3. Awarded by the Department of the Army, part of DoD. 4. Contract duration spans over 7 years. 5. Utilized a Firm Fixed Price contract type.
Value Assessment
Rating: fair
The contract value of $76.6M over 7 years suggests a moderate annual spend. Benchmarking against similar engineering services contracts would be necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for essential engineering services supporting the Department of the Army.
Public Impact
Supports critical engineering services for the U.S. Army. Long-term contract (over 7 years) provides stability for services. Competition ensures potential for cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving needs.
- Fixed price contract may not fully account for unforeseen technical challenges.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Award to a single entity implies successful competition.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense infrastructure and operations. Spending in this sector is substantial across the federal government, particularly within the Department of Defense.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Further analysis would be needed to determine if small businesses participated in the competition or were subcontracted.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for contract execution and performance. The long duration necessitates ongoing monitoring.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk of evolving requirements.
- Potential for scope creep over the 7-year period.
- Firm fixed-price may not cover unforeseen technical challenges.
- Need for detailed understanding of 'programmatic support' to assess true value.
Tags
engineering-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.6 million to SIGMATECH INC. NEW TASK ORDER FOR 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 $76.6 million.
What is the period of performance?
Start: 2011-04-18. End: 2018-06-30.
What specific engineering services are being procured under this task order, and how do they align with current Army modernization priorities?
The task order is for programmatic support, which can encompass a wide range of engineering disciplines. Understanding the specific technical requirements and their alignment with the Army's strategic goals is crucial for assessing the value and necessity of this significant expenditure. Without detailed scope, it's difficult to confirm direct relevance to modernization.
Given the 7-year duration, what mechanisms are in place to manage potential cost overruns or scope creep, especially with a firm fixed-price contract?
Firm fixed-price contracts aim to control costs, but long durations increase risk. The Army likely has contract clauses for change management and performance monitoring. However, unforeseen technical complexities or shifts in requirements could still strain the budget or necessitate contract modifications, requiring diligent oversight.
How effectively did the full and open competition process ensure competitive pricing and identify the best technical solution for the Army's needs?
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing and solutions. The success of this specific competition hinges on the number and quality of bids received, the clarity of the solicitation, and the evaluation criteria used by the Army. A review of the bidding process would confirm its effectiveness.
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
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: $81,694,835
Exercised Options: $76,630,186
Current Obligation: $76,630,186
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q05A0026
IDV Type: IDC
Timeline
Start Date: 2011-04-18
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 12:06:00
Last Modified: 2021-09-27
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