USAF awards $50M+ for engineering support, with limited competition impacting price discovery

Contract Overview

Contract Amount: $50,176,951 ($50.2M)

Contractor: Frontier Technology Inc

Awarding Agency: General Services Administration

Start Date: 2018-07-31

End Date: 2023-12-31

Contract Duration: 1,979 days

Daily Burn Rate: $25.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: USAF SPACE AND MISSILE CENTER (SMC) ENGINEERING DIRECTORATE (EN) SYSTEMS ENGINEERING AND LIFE CYCLE DECISION SUPPORT AWARD

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $50.2 million to FRONTIER TECHNOLOGY INC for work described as: USAF SPACE AND MISSILE CENTER (SMC) ENGINEERING DIRECTORATE (EN) SYSTEMS ENGINEERING AND LIFE CYCLE DECISION SUPPORT AWARD Key points: 1. Contract value exceeds $50 million over its period of performance. 2. Limited competition suggests potential for higher pricing than a fully open market. 3. The contract is a delivery order under an existing contract. 4. Services are categorized under Custom Computer Programming. 5. The contract duration spans over five years. 6. The awardee has a track record with the Air Force.

Value Assessment

Rating: fair

The contract's value of over $50 million for engineering and decision support services is substantial. Benchmarking this against similar contracts for custom computer programming and systems engineering is challenging without more specific service details. However, given the limited competition, the pricing may not reflect the most cost-effective options available in a broader market. The General Services Administration (GSA) often facilitates competitive pricing, but the specific contract vehicle and limited competition here warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'not available for competition' basis, indicating limited competition. The specific reasons for this limitation, such as unique capabilities or prior performance, would need further investigation. With only one bidder likely considered, there is reduced pressure on the contractor to offer the most competitive pricing, potentially leading to less favorable terms for the government.

Taxpayer Impact: The limited competition means taxpayers may not be receiving the best possible value for these engineering and decision support services, as the government had fewer options to drive down costs.

Public Impact

The primary beneficiary is the USAF Space and Missile Center (SMC) Engineering Directorate, receiving critical systems engineering and life cycle decision support. Services delivered include custom computer programming and specialized engineering expertise. The geographic impact is primarily within California, where the contract is managed. Workforce implications include the employment of skilled engineers and programmers by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
The 'not available for competition' status requires justification to ensure fair value.
Lack of multiple bidders reduces the incentive for cost-efficiency.

Positive Signals

The contract supports critical space and missile systems engineering for the Air Force.
The long-term nature of the contract (over 5 years) provides stability for essential services.
Awarded by GSA, which typically has established procurement processes.

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically Custom Computer Programming Services. The market for systems engineering and IT support for defense agencies is substantial, with numerous companies offering specialized expertise. This award represents a significant investment in maintaining and advancing complex aerospace and defense systems, fitting within a broader trend of government reliance on specialized contractors for technical support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Frontier Technology Inc., is likely a mid-to-large-sized business, and the impact on the broader small business ecosystem would depend on whether they engage in subcontracting opportunities beyond the scope of this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the USAF Space and Missile Center (SMC) Engineering Directorate, as they are the primary recipients of the services. The General Services Administration (GSA) as the awarding agency also maintains oversight of its contract vehicles. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USAF Systems Engineering Support Contracts
GSA IT Schedule Contracts
Aerospace Engineering Services
Defense Software Development
Life Cycle Management Support

Risk Flags

Limited competition raises concerns about potential overpricing.
Lack of detailed justification for 'not available for competition' status.
Need for clear performance metrics to assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.2 million to FRONTIER TECHNOLOGY INC. USAF SPACE AND MISSILE CENTER (SMC) ENGINEERING DIRECTORATE (EN) SYSTEMS ENGINEERING AND LIFE CYCLE DECISION SUPPORT AWARD

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 $50.2 million.

What is the period of performance?

Start: 2018-07-31. End: 2023-12-31.

What is the specific justification for awarding this contract on a 'not available for competition' basis?

The justification for awarding this contract on a 'not available for competition' basis is not provided in the data. Typically, such awards are made when only one source possesses the unique capability or specialized knowledge required, or in cases of urgent need where full and open competition is not feasible. Without further documentation from the awarding agency (USAF SMC/GSA), it is impossible to ascertain the precise reason. This lack of transparency can raise concerns about whether alternative solutions were adequately explored or if the government received the best possible value. Further investigation into the contract file and justification documents would be necessary to understand the rationale.

How does the pricing of this contract compare to similar systems engineering and custom programming services awarded by the Air Force or GSA?

Directly comparing the pricing of this $50M+ contract to similar services is difficult without detailed breakdowns of labor categories, rates, and specific deliverables. However, the 'limited' competition status suggests that the pricing may be higher than what could be achieved through a fully open and competitive process. GSA's Federal Acquisition Service (FAS) aims to provide competitive pricing through its contract vehicles, but the specific contract type (delivery order) and the limited competition nature of this award mean that benchmarking against other, more competitively bid contracts is essential. Analysis of the contractor's labor rates against industry standards and historical GSA pricing for comparable skill sets would be necessary to assess value for money.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the key performance indicators (KPIs) used to measure the success of this contract. For engineering and decision support services, typical KPIs might include adherence to project timelines, quality of deliverables (e.g., accuracy of analyses, completeness of documentation), responsiveness to requests, and successful integration of recommendations into program decisions. The USAF Space and Missile Center (SMC) Engineering Directorate would be responsible for defining and monitoring these KPIs. Regular performance reviews and contract reporting would likely track progress against these metrics to ensure the contractor is meeting the government's requirements and delivering the expected value.

What is the track record of Frontier Technology Inc. in performing similar contracts for the Department of Defense?

Frontier Technology Inc. has a history of performing contracts with the Department of Defense, including work related to engineering, technical support, and IT services. While the specific details of their past performance on similar contracts are not included in the provided data, their selection for this significant award suggests a level of capability and experience deemed sufficient by the USAF Space and Missile Center. Further due diligence would involve reviewing past performance evaluations, contract histories, and any reported issues or successes on previous DoD engagements to fully assess their track record.

What is the historical spending trend for systems engineering and decision support services within the USAF Space and Missile Center?

The provided data focuses on a single contract award and does not offer historical spending trends for systems engineering and decision support services within the USAF Space and Missile Center (SMC). To understand historical spending, one would need to analyze aggregated contract data for SMC over several fiscal years, looking specifically at categories related to engineering support, technical services, and IT programming. This would involve examining spending patterns, identifying major contract vehicles, and tracking the evolution of service requirements and associated costs. Such an analysis would reveal whether spending on these services has increased, decreased, or remained stable, and how it compares to overall SMC budgets.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID05140018018

Pricing Type: LABOR HOURS (Z)

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: $51,791,127

Exercised Options: $51,791,127

Current Obligation: $50,176,951

Actual Outlays: $1,454,956

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS05Q14BMD0001

IDV Type: IDC

Timeline