SMARTRONIX, LLC awarded $1.06B for C5ISR capabilities supporting SOCPAC missions

Contract Overview

Contract Amount: $1,064,544,155 ($1.1B)

Contractor: Smartronix, LLC

Awarding Agency: General Services Administration

Start Date: 2020-04-01

End Date: 2025-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $583.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE A BROAD SPECTRUM OF COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, COMBAT SYSTEMS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) CAPABILITIES TO SUPPORT SOCPAC MISSIONS.

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $1.06 billion to SMARTRONIX, LLC for work described as: THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE A BROAD SPECTRUM OF COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, COMBAT SYSTEMS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) CAPABILITIES TO SUPPORT SOCPAC MISSIONS. Key points: 1. Contract provides a broad spectrum of Command, Control, Communications, Computer, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C5ISR) capabilities. 2. The contract is structured as a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. The contract duration is 5 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance but requires careful oversight. 5. The award was made through full and open competition, suggesting a robust market for these services. 6. The geographic location of performance is Hawaii, indicating support for Pacific-focused operations.

Value Assessment

Rating: good

The contract's value of over $1 billion over five years suggests a significant investment in C5ISR capabilities. Benchmarking this against similar large-scale C5ISR support contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure allows for performance incentives, which can lead to better value if managed effectively. The contract's duration and scope indicate a critical need, and the pricing will depend heavily on the specific tasks performed and the contractor's ability to meet award fee criteria.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bids suggests a competitive environment for these specialized C5ISR services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best possible value for its investment in critical C5ISR capabilities.

Public Impact

The primary beneficiaries are the U.S. Special Operations Command Pacific (SOCPAC), receiving enhanced C5ISR capabilities to support their missions. Services delivered include a broad spectrum of C5ISR functions, crucial for intelligence gathering, communication, and operational effectiveness. The geographic impact is focused on Hawaii, suggesting support for operations and personnel stationed or deployed in the Pacific theater. Workforce implications may include the creation or sustainment of specialized technical and support jobs in Hawaii, related to C5ISR systems and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts require diligent oversight to ensure costs are reasonable and award fees are justified.
The broad spectrum of C5ISR capabilities could lead to scope creep if not managed tightly.
Reliance on a single contractor for such a wide range of critical capabilities may present a risk if performance falters.

Positive Signals

Award through full and open competition suggests a healthy market and potential for competitive pricing.
The 5-year duration indicates a stable, long-term partnership for critical mission support.
The contract's focus on advanced C5ISR capabilities aligns with modern military operational needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced Command, Control, Communications, Computer, Combat Systems, Intelligence, Surveillance, and Reconnaissance (C5ISR) capabilities. The market for C5ISR solutions is highly specialized, driven by defense and intelligence agencies requiring cutting-edge technology and integration services. Spending in this sector is significant, reflecting the ongoing need for technological superiority in national security. Comparable spending benchmarks would typically involve other large-scale defense contracts for system integration, software development, and technical support for complex military platforms.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (SB: false). However, as a large prime contract awarded through full and open competition, there is potential for subcontracting opportunities for small businesses within the C5ISR ecosystem. The prime contractor, SMARTRONIX, LLC, will likely engage small businesses for specialized services or components, contributing to the small business ecosystem. The extent of subcontracting will depend on the prime's strategy and the specific requirements of the delivery orders issued under this IDIQ.

Oversight & Accountability

Oversight for this Cost Plus Award Fee (CPAF) contract will be crucial. The General Services Administration (GSA), through its Federal Acquisition Service, is the contracting agency. The contract likely includes performance metrics and milestones tied to the award fee structure, requiring regular monitoring by government contracting officers and technical representatives. Transparency will be maintained through contract reporting mechanisms and potentially through the GSA's contract data reporting systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Command, Control, Communications, Computers, and Intelligence (C4I) Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Services
Special Operations Forces Support Contracts
Defense Information Technology Contracting
Electronic Warfare Systems Support

Risk Flags

Cost Plus Award Fee (CPAF) requires robust oversight.
Geographic concentration in Hawaii may present logistical and talent acquisition challenges.
Broad spectrum of C5ISR capabilities requires careful scope management.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.06 billion to SMARTRONIX, LLC. THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE A BROAD SPECTRUM OF COMMAND, CONTROL, COMMUNICATIONS, COMPUTER, COMBAT SYSTEMS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C5ISR) CAPABILITIES TO SUPPORT SOCPAC MISSIONS.

Who is the contractor on this award?

The obligated recipient is SMARTRONIX, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.06 billion.

What is the period of performance?

Start: 2020-04-01. End: 2025-03-31.

What is the historical spending pattern for C5ISR capabilities by SOCPAC or similar entities?

Analyzing historical spending for C5ISR capabilities by SOCPAC or similar entities requires access to detailed budget and contract data over multiple fiscal years. Generally, spending in this area is substantial and tends to increase with advancements in technology and evolving geopolitical threats. Contracts often span several years and can range from hundreds of millions to billions of dollars, depending on the scope and duration. Factors influencing spending include the need for modernized communication systems, advanced intelligence gathering platforms, cybersecurity enhancements, and integrated combat systems. Without specific historical data for SOCPAC's C5ISR procurements, it's difficult to provide precise figures, but the trend is towards sustained high investment in these critical capabilities.

How does the pricing structure (Cost Plus Award Fee) compare to other contract types for similar C5ISR services?

Cost Plus Award Fee (CPAF) contracts are common for complex services where performance outcomes are difficult to define precisely upfront, such as C5ISR. This structure allows the contractor to recover allowable costs plus a base fee, with the potential for an additional award fee based on meeting or exceeding performance objectives. Compared to Firm-Fixed-Price (FFP) contracts, CPAF offers more flexibility for the government to incentivize desired performance and adapt to changing requirements, but it carries higher cost uncertainty and requires robust oversight. Compared to Cost Plus Incentive Fee (CPIF), CPAF places more emphasis on subjective performance evaluations for the award fee component. For C5ISR services, CPAF can be effective in driving innovation and high-quality delivery, provided the performance metrics are well-defined and objectively measured.

What are the key performance indicators (KPIs) likely used to determine the award fee for SMARTRONIX, LLC?

For a C5ISR support contract like this, key performance indicators (KPIs) for determining the award fee would likely focus on areas critical to mission success and operational readiness. These could include system uptime and availability, response times for technical support and issue resolution, successful integration of new technologies or system upgrades, accuracy and timeliness of intelligence data processing and dissemination, effectiveness of communication links, and overall user satisfaction from SOCPAC personnel. Additionally, KPIs might address adherence to security protocols, successful completion of training objectives, and efficient management of resources. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and the criteria for achieving different levels of award fee would be clearly outlined.

What is SMARTRONIX, LLC's track record with large federal C5ISR contracts?

SMARTRONIX, LLC has a significant track record supporting the Department of Defense and other federal agencies with IT, cloud, cybersecurity, and C5ISR-related services. They have held numerous prime contracts, including large IDIQ vehicles and task orders, often focusing on advanced technologies and mission-critical systems. Their experience spans various branches of the military and intelligence community. While specific details on past C5ISR contract performance metrics are not publicly available, their continued success in winning and performing on large, complex federal contracts suggests a strong capability and a generally positive performance history in delivering technical solutions and support for demanding operational environments.

What are the potential risks associated with the geographic concentration of performance in Hawaii?

The geographic concentration of performance in Hawaii presents several potential risks. Firstly, it could lead to higher labor costs due to the cost of living and the isolated nature of the location. Secondly, attracting and retaining specialized technical talent in Hawaii might be more challenging than in mainland hubs, potentially impacting service delivery or increasing recruitment costs. Thirdly, logistical challenges related to equipment, supplies, and personnel deployment to and from the mainland could arise, potentially causing delays or increased expenses. Finally, reliance on a single geographic location for critical C5ISR support could pose a vulnerability in the event of natural disasters or other disruptions specific to the region.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA20R0007

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 44150 SMARTRONIX WAY STE 200, HOLLYWOOD, MD, 20636

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,168,010,549

Exercised Options: $1,168,010,549

Current Obligation: $1,064,544,155

Actual Outlays: $-230,504

Subaward Activity

Number of Subawards: 200

Total Subaward Amount: $851,591,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU313

IDV Type: IDC

Timeline