DoD Awards $23.7M for Launch, Range, and Networks Support to Sigmatech Inc

Contract Overview

Contract Amount: $23,741,662 ($23.7M)

Contractor: Sigmatech Inc

Awarding Agency: Department of Defense

Start Date: 2021-07-13

End Date: 2026-04-12

Contract Duration: 1,734 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LAUNCH, RANGE, AND NETWORKS SUPPORT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to SIGMATECH INC for work described as: LAUNCH, RANGE, AND NETWORKS SUPPORT Key points: 1. Contract value of $23.7 million over approximately 4.8 years. 2. Competition was full and open after exclusion of sources. 3. Risk appears moderate given the fixed-price contract type and established vendor. 4. Sector is Research and Development, specifically physical, engineering, and life sciences.

Value Assessment

Rating: good

The contract value of $23.7 million for a 4.8-year duration suggests a reasonable annual spend. Benchmarking against similar R&D support contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary research and development support services.

Public Impact

Supports critical Air Force launch, range, and network infrastructure. Ensures continued operational capability for space and missile systems. Potential for technological advancements stemming from R&D support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration extends into 2026, requiring ongoing monitoring.
  • Reliance on a single vendor for critical support functions.

Positive Signals

  • Full and open competition utilized.
  • Firm fixed-price contract type limits cost overrun risk.
  • Supports essential defense infrastructure.

Sector Analysis

This contract falls within the R&D sector, specifically supporting physical and engineering sciences. Spending in this area is crucial for technological advancement and national security, with values varying widely based on project scope.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine the extent of small business participation in the subcontracting chain.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The fixed-price nature of the contract provides some accountability, but performance monitoring is essential.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Contract duration
  • Vendor lock-in potential
  • Performance dependency
  • Scope creep risk

Tags

research-and-development-in-the-physical, department-of-defense, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to SIGMATECH INC. LAUNCH, RANGE, AND NETWORKS SUPPORT

Who is the contractor on this award?

The obligated recipient is SIGMATECH 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 $23.7 million.

What is the period of performance?

Start: 2021-07-13. End: 2026-04-12.

What specific R&D activities are encompassed by 'Launch, Range, and Networks Support'?

This likely includes research into improving launch vehicle reliability, enhancing tracking and telemetry capabilities for ranges, and developing advanced communication networks for command and control. The specific focus would be detailed in the contract's statement of work, outlining the technical objectives and deliverables for Sigmatech Inc.

What are the primary risks associated with this contract for the government?

Key risks include potential vendor performance issues impacting critical infrastructure, the possibility of cost growth if the fixed-price contract doesn't adequately account for unforeseen technical challenges, and the long-term reliance on Sigmatech Inc. for specialized support, potentially limiting future competitive options.

How does this contract contribute to the Air Force's overall mission effectiveness?

This contract is vital for maintaining and advancing the capabilities of the Air Force's launch facilities, testing ranges, and communication networks. These systems are fundamental to space operations, missile defense, and overall command and control, directly impacting national security and operational readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sigmatech, Inc.

Address: 631 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $30,882,779

Exercised Options: $27,894,509

Current Obligation: $23,741,662

Actual Outlays: $593,504

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,134,371

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS617

IDV Type: IDC

Timeline

Start Date: 2021-07-13

Current End Date: 2026-04-12

Potential End Date: 2026-09-12 00:00:00

Last Modified: 2025-06-23

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