GSA awards $26.6M contract for decision support tools to Frontier Technology Inc

Contract Overview

Contract Amount: $26,587,903 ($26.6M)

Contractor: Frontier Technology Inc

Awarding Agency: General Services Administration

Start Date: 2020-09-23

End Date: 2021-09-22

Contract Duration: 364 days

Daily Burn Rate: $73.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SBIR III FOR COMPREHENSIVE SUITE OF COMPUTER AUTOMATED TOOLS AND SUPPORT SERVICES TO ENHANCE CRITICAL DECISION SUPPORT PROCESSES FOR DOD SUCH AS WEAPON SYSTEM ACQUISITION, TESTING, AND SUSTAINMENT THROUGHOUT THE PRODUCT LIFE CYCLE.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $26.6 million to FRONTIER TECHNOLOGY INC for work described as: SBIR III FOR COMPREHENSIVE SUITE OF COMPUTER AUTOMATED TOOLS AND SUPPORT SERVICES TO ENHANCE CRITICAL DECISION SUPPORT PROCESSES FOR DOD SUCH AS WEAPON SYSTEM ACQUISITION, TESTING, AND SUSTAINMENT THROUGHOUT THE PRODUCT LIFE CYCLE. Key points: 1. Contract provides critical decision support for DoD weapon system acquisition, testing, and sustainment. 2. Focus on enhancing automated tools throughout the product lifecycle. 3. Contract awarded as not available for competition, raising questions about market research. 4. Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost overruns. 5. Limited competition could impact overall value for taxpayer dollars. 6. Contract duration of one year with potential for extensions. 7. Services align with R&D in physical and engineering sciences.

Value Assessment

Rating: questionable

The contract's value of $26.6 million for a one-year duration appears substantial for R&D services. Without comparable contract data or detailed cost breakdowns, it is difficult to benchmark the value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed rigorously, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure warrants close monitoring to ensure efficient use of funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' justification, indicating a sole-source procurement. This means that only one vendor, Frontier Technology Inc., was solicited. While sole-source awards can be appropriate when a unique capability is required, the lack of competition limits price discovery and potentially reduces the government's ability to secure the best possible pricing. A thorough justification for the sole-source award is crucial to ensure it was indeed the only viable option.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. This could result in a higher overall cost for the services provided.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, gaining enhanced decision support capabilities. Services delivered aim to improve the efficiency and effectiveness of weapon system acquisition, testing, and sustainment. Geographic impact is likely national, supporting DoD operations across various locations. Workforce implications may include specialized technical and analytical roles within Frontier Technology Inc. and potentially within the DoD for managing these tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
CPFF contract type can lead to cost escalation if not closely managed.
Lack of transparency regarding the 'not available for competition' justification.
Potential for contractor to incur costs without direct performance linkage under CPFF.

Positive Signals

Contract addresses critical decision support needs for the DoD.
Focus on enhancing automated tools suggests modernization efforts.
Frontier Technology Inc. is likely providing specialized expertise in R&D.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for decision support tools and automated systems for defense applications is significant, driven by the need for advanced capabilities in complex operational environments. Comparable spending benchmarks would typically involve other R&D contracts for software development, systems engineering, and analytical support services awarded to defense contractors.

Small Business Impact

The provided data indicates that this contract was not awarded to small businesses (ss: false, sb: false). There is no information available regarding subcontracting plans or set-asides for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, and there is no indication of subcontracting opportunities being prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the relevant contracting officers within the Department of Defense. The effectiveness of oversight depends on the rigor of performance monitoring, cost auditing, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is assessed through the availability of contract details and justifications, which in this case, are limited due to the sole-source nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Weapon System Acquisition
Defense R&D Programs
Decision Support Systems
Automated Tools Development
Product Lifecycle Management

Risk Flags

Sole-source award lacks competitive pressure.
CPFF pricing structure poses cost overrun risk.
Limited information on justification for sole-source.
Potential for extended performance beyond base year.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.6 million to FRONTIER TECHNOLOGY INC. SBIR III FOR COMPREHENSIVE SUITE OF COMPUTER AUTOMATED TOOLS AND SUPPORT SERVICES TO ENHANCE CRITICAL DECISION SUPPORT PROCESSES FOR DOD SUCH AS WEAPON SYSTEM ACQUISITION, TESTING, AND SUSTAINMENT THROUGHOUT THE PRODUCT LIFE CYCLE.

Who is the contractor on this award?

The obligated recipient is FRONTIER TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2020-09-23. End: 2021-09-22.

What is the specific nature of the 'computer automated tools and support services' being provided?

The contract description indicates the services are for 'comprehensive suite of computer automated tools and support services to enhance critical decision support processes for DOD such as weapon system acquisition, testing, and sustainment throughout the product life cycle.' While specific tool names or functionalities are not detailed in the provided summary, the emphasis is on improving decision-making capabilities for complex defense-related processes. This likely involves software development, data analytics, simulation, modeling, and potentially AI-driven insights to aid military planners and acquisition professionals in making informed choices regarding weapon systems from initial development through deployment and maintenance.

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

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is the justification for a sole-source award. A formal justification document would typically be required by federal acquisition regulations, outlining why full and open competition was not feasible. Reasons could include the unique capabilities of Frontier Technology Inc., the need for specialized expertise that only they possess, or urgent requirements where only one source could meet the timeline. Without access to this specific justification, it's impossible to fully assess its validity, but it implies that GSA and the DoD determined that no other vendors could fulfill the requirement adequately or within the necessary timeframe.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact cost control for this contract?

The Cost Plus Fixed Fee (CPFF) structure means Frontier Technology Inc. will be reimbursed for all allowable costs incurred during the contract performance, plus a predetermined fixed fee. While the fixed fee provides the contractor with a profit incentive, the primary risk of cost overrun lies with the government. If the contractor's costs exceed initial estimates, the government is obligated to pay those costs, provided they are deemed allowable and reasonable. Effective cost control under a CPFF contract relies heavily on robust government oversight, detailed cost tracking, and stringent auditing to ensure that all expenditures are necessary and directly related to contract performance. Without strong oversight, this structure can incentivize less cost-conscious behavior from the contractor.

What is Frontier Technology Inc.'s track record with similar DoD contracts?

The provided data does not include specific details about Frontier Technology Inc.'s past performance or track record with the DoD or similar contracts. To assess their suitability and reliability for this $26.6 million R&D contract, a review of their contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any prior experience with decision support tools or weapon system lifecycle management would be necessary. This information is crucial for understanding their capabilities, management practices, and ability to deliver on complex R&D projects within budget and schedule.

Are there any comparable contracts for similar decision support tools that could serve as a benchmark?

Without access to a comprehensive federal procurement database or specific details about the 'computer automated tools' being developed, it is challenging to identify directly comparable contracts. However, the contract's classification under NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) suggests that benchmarks could be drawn from other R&D contracts awarded by the DoD or other agencies for software development, systems engineering, and advanced analytical support. The value of $26.6 million for a one-year duration for specialized R&D services is significant, and comparisons would ideally focus on contracts with similar scope, complexity, and contractor expertise to assess value for money.

What are the potential risks associated with the one-year duration and the possibility of extensions?

A one-year base period for a contract focused on developing 'comprehensive suites' of tools and providing 'support services' for complex DoD processes carries inherent risks. If the development is complex, a single year may be insufficient to deliver the full scope of intended capabilities, leading to a reliance on extensions. This can create budget uncertainty for the government and potentially lock the agency into a single contractor for longer than initially planned, especially if the sole-source justification remains valid. Furthermore, if the contract is extended multiple times, it could indicate scope creep or underestimation of the initial effort, both of which can impact overall cost and value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA20R0035

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4141 COLONEL GLENN HWY STE 140, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,019,856

Exercised Options: $43,983,855

Current Obligation: $26,587,903

Actual Outlays: $8,511,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline