Stingray III FMV System Updates Contract Awarded to Sigma Defense Systems for $15.88M

Contract Overview

Contract Amount: $15,878,497 ($15.9M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2024-07-03

End Date: 2026-09-09

Contract Duration: 798 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STINGRAY III TO81 FMV SYSTEM UPDATES

Place of Performance

Location: ALAMOGORDO, OTERO County, NEW MEXICO, 88310

State: New Mexico Government Spending

Plain-Language Summary

General Services Administration obligated $15.9 million to SIGMA DEFENSE SYSTEMS LLC for work described as: STINGRAY III TO81 FMV SYSTEM UPDATES Key points: 1. The contract is for updates to the STINGRAY III Full Motion Video (FMV) system. 2. SIGMA DEFENSE SYSTEMS LLC is the awardee, indicating a specific vendor focus. 3. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a competitive process with specific criteria. 4. The total value is approximately $15.88 million over a period of 798 days. 5. The sector appears to be related to defense communications equipment.

Value Assessment

Rating: good

The contract value of $15.88 million for system updates seems reasonable given the duration and nature of the work. Benchmarking against similar defense system upgrade contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under 'Full and Open Competition after Exclusion of Sources.' This implies a competitive process where multiple sources were considered, but specific criteria led to the exclusion of some potential bidders before the final selection. This method aims for fair pricing while ensuring specialized requirements are met.

Taxpayer Impact: Taxpayer funds are being used for critical defense system upgrades, ensuring the government receives value through a competitive process, though the 'exclusion of sources' aspect warrants attention for potential price impacts.

Public Impact

Enhances military surveillance and intelligence capabilities through updated FMV systems. Supports national security objectives by ensuring advanced technology for defense operations. Potential for improved operational effectiveness and situational awareness for military personnel. Invests in the modernization of critical defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'Exclusion of Sources' clause.
Lack of specific performance metrics in the provided data.
Firm Fixed Price contract may not fully account for unforeseen technical challenges.

Positive Signals

Awarded under Full and Open Competition, indicating a structured procurement process.
Updates to FMV systems suggest investment in advanced technology.
Contract duration provides a clear timeframe for project completion.

Sector Analysis

This contract falls within the 'Other Communications Equipment Manufacturing' sector, specifically related to defense applications. Spending in this area is driven by the need for advanced surveillance and communication technologies to maintain military readiness and technological superiority.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract (ss: false, sb: false). Further analysis would be needed to determine if small businesses are involved as subcontractors to SIGMA DEFENSE SYSTEMS LLC.

Oversight & Accountability

The General Services Administration (GSA) through its Federal Acquisition Service (FAS) is overseeing this contract. GSA's role ensures adherence to procurement regulations and efficient use of government resources, though specific oversight mechanisms for this particular contract are not detailed here.

Related Government Programs

Other Communications Equipment Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detailed technical specifications for the system updates.
No clear indication of small business participation.
Firm Fixed Price contract may pose risks if unforeseen technical issues arise.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.9 million to SIGMA DEFENSE SYSTEMS LLC. STINGRAY III TO81 FMV SYSTEM UPDATES

Who is the contractor on this award?

The obligated recipient is SIGMA DEFENSE SYSTEMS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2024-07-03. End: 2026-09-09.

What specific technological advancements does the STINGRAY III FMV system update entail, and how do they enhance operational capabilities beyond current systems?

The provided data does not detail the specific technological advancements included in the STINGRAY III FMV system updates. To assess value, it's crucial to understand if these updates incorporate next-generation sensors, improved data processing, enhanced encryption, or better integration with other battlefield systems. Without this information, it's difficult to quantify the precise operational benefits and justify the $15.88 million investment beyond general system modernization.

What were the primary reasons for excluding other sources during the 'Full and Open Competition after Exclusion of Sources' process, and did this exclusion potentially limit competitive pricing?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or proprietary technologies are required, and only a limited number of vendors can meet these stringent criteria. While this ensures the selected vendor has the necessary qualifications, it can inherently reduce the breadth of competition. The impact on pricing depends on the number of qualified bidders remaining and the negotiation leverage held by the government.

How will the effectiveness of the STINGRAY III FMV system updates be measured and validated to ensure they meet the intended performance and operational requirements?

Effectiveness measurement is typically defined through contractually stipulated performance metrics, testing protocols, and acceptance criteria. For the STINGRAY III FMV system updates, validation would likely involve rigorous testing phases, including operational assessments in simulated or real-world scenarios, to confirm improvements in video quality, data transmission, system reliability, and user interface functionality. The government's quality assurance personnel would oversee this validation process.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFLA24Q0114

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 CORPORATE POINTE, WARNER ROBINS, GA, 31088

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: $45,172,851

Exercised Options: $15,878,497

Current Obligation: $15,878,497

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,640,808

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA19D0010

IDV Type: IDC

Timeline