Interior Department awards $87.7M contract for multispectral imaging systems to Seneca Strategic Partners

Contract Overview

Contract Amount: $87,730,973 ($87.7M)

Contractor: Seneca Strategic Partners, LLC

Awarding Agency: Department of the Interior

Start Date: 2022-11-22

End Date: 2027-11-21

Contract Duration: 1,825 days

Daily Burn Rate: $48.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVER MULTISPECTRAL IMAGING AND TRACKING SYSTEM (MITS) FLY-OUT (FO) SYSTEMS

Place of Performance

Location: SALAMANCA, CATTARAUGUS County, NEW YORK, 14779

State: New York Government Spending

Plain-Language Summary

Department of the Interior obligated $87.7 million to SENECA STRATEGIC PARTNERS, LLC for work described as: DELIVER MULTISPECTRAL IMAGING AND TRACKING SYSTEM (MITS) FLY-OUT (FO) SYSTEMS Key points: 1. Contract value of $87.7 million for multispectral imaging and tracking systems. 2. Awarded to Seneca Strategic Partners, LLC, a single entity. 3. Contract duration spans five years, from November 2022 to November 2027. 4. The contract is for definitive contract type with a firm fixed price. 5. The North American Industry Classification System (NAICS) code is 334220, related to wireless communications equipment manufacturing. 6. The place of performance is New York. 7. The contract was not available for competition.

Value Assessment

Rating: questionable

The contract value of $87.7 million for multispectral imaging and tracking systems is significant. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm fixed price structure suggests cost certainty, but the lack of competition raises concerns about potential overpricing. Benchmarking against similar systems or market rates for advanced imaging technology would be necessary for a thorough valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source award. The specific reasons for this determination are not provided in the available data. A sole-source award typically means only one vendor was considered capable of fulfilling the requirement, which can limit price discovery and potentially lead to higher costs for the government compared to a competitive process. The absence of multiple bidders means there was no direct comparison of offers to ensure the best value.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the lack of a bidding process. This could result in a higher overall expenditure for the government than if multiple vendors had competed for the contract.

Public Impact

The Department of the Interior will benefit from advanced multispectral imaging and tracking capabilities. These systems are likely to enhance surveillance, monitoring, or data collection for the department's missions. The geographic impact is centered in New York, the place of performance. The contract supports the technology manufacturing sector, potentially impacting specialized workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about price reasonableness and potential for inflated costs.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in given the long-term nature of the contract.
Absence of performance metrics or success criteria in the provided data.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Long-term contract (5 years) allows for sustained capability development and deployment.
Award to a single, presumably specialized, vendor may indicate a focus on specific expertise.

Sector Analysis

The contract falls within the wireless communications equipment manufacturing sector, specifically related to advanced imaging and tracking systems. This is a specialized area within the broader electronics manufacturing industry. The market for such high-technology equipment is often characterized by high barriers to entry, significant R&D investment, and a limited number of qualified suppliers. Comparable spending benchmarks would depend heavily on the specific technical specifications and capabilities of the multispectral imaging systems being procured.

Small Business Impact

The data indicates that small business participation is not a primary focus for this contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Seneca Strategic Partners, LLC, is likely a large business, and the contract's structure does not appear to prioritize or mandate opportunities for the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a definitive contract awarded by the Department of the Interior, it would typically fall under the purview of the department's contracting officer and potentially the Office of Inspector General for audits and investigations. Transparency regarding the contract's performance and spending would depend on the reporting requirements stipulated within the contract itself and the department's public disclosure policies.

Related Government Programs

Department of the Interior IT Procurement
Advanced Surveillance Technology Contracts
Wireless Communications Equipment Procurement
Federal Imaging Systems Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency into specific system capabilities and performance metrics.
Risk of technological obsolescence over the five-year contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $87.7 million to SENECA STRATEGIC PARTNERS, LLC. DELIVER MULTISPECTRAL IMAGING AND TRACKING SYSTEM (MITS) FLY-OUT (FO) SYSTEMS

Who is the contractor on this award?

The obligated recipient is SENECA STRATEGIC PARTNERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $87.7 million.

What is the period of performance?

Start: 2022-11-22. End: 2027-11-21.

What is the specific technical capability of the Multispectral Imaging and Tracking System (MITS) Fly-Out (FO) Systems being procured?

The provided data does not detail the specific technical capabilities of the Multispectral Imaging and Tracking System (MITS) Fly-Out (FO) Systems. The NAICS code 334220 suggests it relates to wireless communications equipment manufacturing, and the contract title implies advanced imaging and tracking functions. However, without further documentation such as a Statement of Work (SOW) or technical specifications, the precise nature of the system's multispectral imaging bands, resolution, tracking accuracy, operational range, and data processing capabilities remains unknown. Understanding these technical aspects is crucial for assessing the contract's necessity, value, and potential risks.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states that the contract 'was not available for competition,' indicating a sole-source award. However, the specific justification or rationale behind this determination is not included. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs, often due to unique capabilities, proprietary technology, or urgent requirements. Without the official justification document, it is impossible to verify the necessity of this approach or to assess if alternative solutions or competitive avenues were adequately explored. This lack of transparency is a significant concern regarding the procurement process.

How does the contract's firm fixed price structure impact risk allocation between the government and Seneca Strategic Partners, LLC?

A firm fixed price (FFP) contract generally places the majority of the cost risk on the contractor, Seneca Strategic Partners, LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs incurred. If their costs exceed the fixed price, their profit margin will decrease, or they may incur a loss. Conversely, if their costs are lower than anticipated, their profit will increase. For the government, an FFP contract provides cost certainty, as the total expenditure is known upfront. However, the risk of the contractor cutting corners on quality to manage costs, especially in a sole-source situation, is a potential concern that requires robust oversight.

What is the historical spending pattern for multispectral imaging and tracking systems by the Department of the Interior?

The provided data does not include historical spending patterns for multispectral imaging and tracking systems by the Department of the Interior. This specific contract, valued at $87.7 million over five years, represents a significant investment. To understand historical trends, one would need to analyze past contract awards for similar systems, track spending levels over multiple fiscal years, and identify any recurring needs or evolving requirements within the department. Without this historical context, it is difficult to determine if this current award represents an increase, decrease, or stable level of investment in this technology.

What are the potential performance risks associated with this contract, given its sole-source nature and duration?

The sole-source nature of this contract presents several potential performance risks. Without competition, Seneca Strategic Partners, LLC may have less incentive to innovate or optimize performance, as there is no direct market pressure from competitors. There's also a risk that the government may not be receiving the most advanced or cost-effective solution available. The five-year duration, while allowing for sustained capability, also increases the risk of technological obsolescence if the system's capabilities are not continuously updated or if the market evolves rapidly. Furthermore, the lack of transparency surrounding the sole-source justification makes it harder to assess if the chosen vendor truly possesses the unique capabilities required, or if performance issues could arise due to unmet expectations.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D0422R0099

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 OHI YO WAY, SALAMANCA, NY, 14779

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $88,011,577

Exercised Options: $87,730,973

Current Obligation: $87,730,973

Actual Outlays: $39,615,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline