DoD's $214.6M radar system support contract awarded to INDYNE, INC. with 6 bidders

Contract Overview

Contract Amount: $214,583,693 ($214.6M)

Contractor: Indyne, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-05

End Date: 2022-04-30

Contract Duration: 1,517 days

Daily Burn Rate: $141.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF SOLID STATE PHASED ARRAY RADAR SYSTEM (SSPARS) PROGRAM IS COMPRISED OF FIVE RADAR SITES AT THE FOLLOWING 21ST SPACE WING (21 SW) GEOGRAPHICALLY-SEPARATED UNITS (GSUS) IN THE NORTHERN HEMISPHERE: 7TH SPACE WARNING SQUADRON (7 SWS) AT BEALE AIR FORCE BASE (AFB) CALIFORNIA (CA); 6 SWS AT CAPE COD AIR FORCE STATION (AFS) MASSACHUSETTS (MA); 13/213 SWS AT CLEAR AFS ALASKA (AK); ROYAL AIR FORCE (RAF) FYLINGDALES, UNITED KINGDOM (UK); AND 12 SWS AT THULE AIR BASE (AB) GREENLAND (GL). PROVIDE ALL NON-PERSONAL SERVICES, ADMINISTRATIVE, FINANCIAL, AND MANAGERIAL RESOURCES NECESSARY ON A CONTINUOUS 24-HOURS-A-DAY, 7-DAYS-A-WEEK (24/7) BASIS TO SUPPORT THE FIVE SSPARS INSTALLATIONS/SITES IN THE FOLLOWING MISSIONS AND SERVICES AREAS: RADAR OPERATIONS SUPPORT, RADAR MAINTENANCE, MISSION COMPUTER MAINTENANCE, TECHNICAL ASSISTANCE, EXERCISES AND TESTING SUPPORT, SIMULATION TRAINERS, TRAINING DEVELOPMENT AND SUPPORT, MILITARY SATELLITE COMMUNICATIONS, COMMUNICATIONS-ELECTRONICS, ELECTRONIC SYSTEM MANAGEMENT, SUPPLY, FUELS, NON-CLASSIFIED INTERNET PROTOCOL ROUTER NETWORK (NIPRNET), SECRET INTERNET PROTOCOL ROUTER NETWORK (SIPRNET), ENVIRONMENTAL, OCCUPATIONAL HEALTH, MEDICAL AND PUBLIC HEALTH, CIVIL ENGINEERING, VEHICLE AND TRAFFIC MANAGEMENT, SERVICES (FOOD AND MORALE/WELFARE ACTIVITIES), INDUSTRIAL, PHYSICAL AND OPERATIONAL SECURITY, INFORMATION MANAGEMENT, AND TRANSITION (PHASE-IN/OUT) ACTIVITIES. INCLUDES SECURITY CLASSIFICATION UP TO TOP SECRET (TS)/SENSITIVE COMPARTMENTED INFORMATION (SCI) LEVEL IN SUPPORT OF SITE SENSITIVE COMPARTMENTALIZED INFORMATION FACILITY (SCIF) AND COMMUNICATIONS REQUIREMENTS.

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $214.6 million to INDYNE, INC. for work described as: IGF::OT::IGF SOLID STATE PHASED ARRAY RADAR SYSTEM (SSPARS) PROGRAM IS COMPRISED OF FIVE RADAR SITES AT THE FOLLOWING 21ST SPACE WING (21 SW) GEOGRAPHICALLY-SEPARATED UNITS (GSUS) IN THE NORTHERN HEMISPHERE: 7TH SPACE WARNING SQUADRON (7 SWS) AT BEALE AIR FORCE BASE (AFB) CALIFO… Key points: 1. Contract provides essential non-personal services for five geographically dispersed radar sites. 2. Focus on radar operations, maintenance, and mission control ensures continuous 24/7 support. 3. The contract's duration of over 4 years suggests a need for stable, long-term support. 4. Awarded under full and open competition, indicating a broad market solicitation. 5. The firm-fixed-price structure aims to control costs and provide predictability. 6. The contract supports critical early warning and space surveillance missions.

Value Assessment

Rating: good

The contract value of $214.6 million over approximately 4 years for comprehensive support services across five international radar sites appears reasonable. Benchmarking against similar large-scale, long-term support contracts for complex defense systems is challenging due to unique operational requirements. However, the firm-fixed-price nature suggests an effort to manage costs effectively. The number of bidders (6) also implies a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Six bidders participated in the competition, indicating a healthy level of interest and a reasonably competitive market for these specialized support services. The presence of multiple bidders suggests that the government received a range of proposals, allowing for price and technical evaluation to determine the best value.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters price discovery and encourages contractors to offer competitive pricing to win the award, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the U.S. Air Force and the Department of Defense, ensuring the operational readiness of critical early warning and space surveillance radar systems. Services delivered include essential non-personal support, administrative, financial, and managerial resources for radar operations and maintenance. The geographic impact is significant, covering five radar sites across the Northern Hemisphere: Beale AFB (CA), Cape Cod AFS (MA), Clear AFS (AK), RAF Fylingdales (UK), and Thule Air Base (Greenland). Workforce implications include the potential for skilled technicians, administrative staff, and managers to support these specialized facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to the specialized nature of radar system support.
Ensuring consistent service quality across geographically dispersed sites can be challenging.
Reliance on a single contractor for critical 24/7 operations poses a risk if performance falters.

Positive Signals

Firm-fixed-price contract structure helps control costs.
Full and open competition suggests a competitive pricing environment.
Long-term contract duration provides stability for operational support.
Award to a single contractor streamlines management and accountability.

Sector Analysis

This contract falls within the Telecommunications and Defense sector, specifically supporting critical radar infrastructure. The market for specialized defense system support services is often characterized by a limited number of highly qualified contractors. The total value of $214.6 million over approximately four years represents a significant investment in maintaining national security assets. Comparable spending benchmarks would likely involve other large-scale, long-term support contracts for complex military electronic systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of supporting phased array radar systems, it is likely that the prime contractor, INDYNE, Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data, but large defense contracts often include subcontracting goals to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, with contract administration and performance monitoring conducted by contracting officers and program managers. The firm-fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Solid State Phased Array Radar System (SSPARS) Program
21st Space Wing Operations Support
Air Force Satellite Control Network
Missile Defense Agency Support Contracts
Space Surveillance Network Operations

Risk Flags

Potential for performance degradation over long contract duration.
Challenges in ensuring consistent service quality across dispersed sites.
Risk associated with reliance on a single contractor for critical 24/7 operations.
Logistical complexities due to geographic dispersion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $214.6 million to INDYNE, INC.. IGF::OT::IGF SOLID STATE PHASED ARRAY RADAR SYSTEM (SSPARS) PROGRAM IS COMPRISED OF FIVE RADAR SITES AT THE FOLLOWING 21ST SPACE WING (21 SW) GEOGRAPHICALLY-SEPARATED UNITS (GSUS) IN THE NORTHERN HEMISPHERE: 7TH SPACE WARNING SQUADRON (7 SWS) AT BEALE AIR FORCE BASE (AFB) CALIFORNIA (CA); 6 SWS AT CAPE COD AIR FORCE STATION (AFS) MASSACHUSETTS (MA); 13/213 SWS AT CLEAR AFS ALASKA (AK); ROYAL AIR FORCE (RAF) FYLINGDALES, UNITED KINGDOM (UK); AND 12 SWS AT THULE AIR BASE (AB) GREENLAND (GL). PROV

Who is the contractor on this award?

The obligated recipient is INDYNE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $214.6 million.

What is the period of performance?

Start: 2018-03-05. End: 2022-04-30.

What is the track record of INDYNE, INC. in supporting similar complex defense systems?

INDYNE, INC. has a history of providing technical, professional, and management support services to various government agencies, including the Department of Defense. Their experience often involves complex systems requiring specialized technical expertise, similar to radar operations and maintenance. While specific details on past performance for SSPARS-like systems are not provided in this data snippet, their general profile suggests they are a capable contractor for such requirements. Further investigation into their contract history with the Air Force and other defense entities would reveal more about their specific successes and challenges in similar roles.

How does the per-unit cost of support compare to other radar maintenance contracts?

A direct per-unit cost comparison is difficult without defining the 'unit' of service (e.g., per radar site, per hour of operation, per maintenance action) and accessing comparable contract data. The total contract value of $214.6 million spread over approximately 4 years for five sites suggests an average annual cost of roughly $53.6 million per year, or about $10.7 million per site annually. This figure encompasses all non-personal services, administrative, financial, and managerial resources. Benchmarking would require detailed cost breakdowns and comparison with contracts for similar radar systems, considering factors like system complexity, age, operational tempo, and geographic dispersion.

What are the primary risks associated with the long duration and geographic dispersion of this contract?

The primary risks associated with the long duration (over 4 years) and geographic dispersion of this contract include potential cost overruns if inflation or unforeseen technical issues arise, contractor performance degradation over time, and challenges in maintaining consistent service quality and oversight across five distinct locations. Geographic dispersion increases logistical complexities and communication challenges, potentially impacting response times for maintenance or operational issues. The reliance on a single contractor for critical 24/7 support also presents a risk if the contractor faces financial instability, labor disputes, or fails to meet performance standards.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and risks can be reasonably anticipated. For the SSPARS support contract, FFP provides cost certainty for the government, as the contractor assumes most of the risk for cost overruns. This incentivizes the contractor to perform efficiently and control their own costs. However, if unforeseen technical challenges or scope changes occur, the contractor may seek adjustments, or the government might need to issue modifications, potentially increasing the overall cost. The success of FFP here depends on the accuracy of the initial scope definition and the contractor's ability to manage their resources effectively.

What is the historical spending trend for SSPARS program support?

The provided data reflects a single contract award for SSPARS support from March 5, 2018, to April 30, 2022, totaling $214.6 million. This represents the spending for this specific period and contractor. To understand historical spending trends, one would need to examine prior contracts for SSPARS support, potentially including predecessor systems or different support phases, as well as any subsequent contracts awarded after April 2022. Analyzing these past awards would reveal patterns in contract duration, value, competition levels, and the types of services procured over time for the SSPARS program.

What are the implications of having 6 bidders for a contract of this magnitude and specialization?

Having six bidders for a contract of this magnitude ($214.6 million) and specialization (radar system support) indicates a reasonably competitive market. This level of competition is generally favorable for the government, as it increases the likelihood of receiving competitive pricing and innovative solutions. It suggests that multiple companies possess the technical capabilities and resources required to perform the work. A higher number of bidders typically leads to better price discovery and can reduce the risk of contractor complacency or price gouging. It also provides the government with more options to choose from based on technical merit, past performance, and price.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA251715R8001

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 46561 EXPEDITION DR # 100, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $214,583,693

Exercised Options: $214,583,693

Current Obligation: $214,583,693

Actual Outlays: $13,629,881

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $5,357,796,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline