DoD's $48.5M R&D Contract with SIGMATECH, INC. Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $48,471,488 ($48.5M)
Contractor: Sigmatech, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-07-20
End Date: 2024-01-22
Contract Duration: 2,012 days
Daily Burn Rate: $24.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: R&D
Official Description: IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $48.5 million to SIGMATECH, INC. for work described as: IGF::OT::IGF Key points: 1. The contract awarded to SIGMATECH, INC. for R&D services is substantial at $48.5M. 2. Competition was initially full and open but later excluded sources, raising questions. 3. The R&D sector (NAICS 541715) is critical but often complex to benchmark. 4. Potential risks include cost overruns and the effectiveness of the R&D outcomes.
Value Assessment
Rating: questionable
The contract's value of $48.5M for R&D services requires deeper analysis against similar contracts. Without specific deliverables or performance metrics, assessing its value proposition is difficult. The 'DEFINITIVE CONTRACT' type suggests potential for scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was initially 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a shift away from broad competition. This method can limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The shift in competition strategy warrants scrutiny to ensure taxpayer funds are used efficiently and effectively for the intended R&D objectives.
Public Impact
Taxpayers may be exposed to higher costs due to limited competition. The effectiveness of the R&D outcomes for the Department of Defense is unclear. The long duration (2018-2024) suggests a significant, ongoing investment. The specific R&D focus within physical, engineering, and life sciences needs further clarification.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition after initial open bidding.
- Lack of clear performance metrics for R&D.
- Potential for cost overruns on a definitive contract.
- Uncertainty regarding the ultimate value and impact of R&D.
Positive Signals
- Contract awarded to a single entity, potentially indicating specialized expertise.
- R&D focus aligns with critical defense needs.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, a sector vital for technological advancement but often characterized by high costs and uncertain outcomes. Benchmarking is challenging due to the specialized nature of R&D.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The 'DEFINITIVE CONTRACT' and the shift in competition type suggest a need for robust oversight to ensure adherence to contract terms, manage costs, and verify the achievement of R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises cost concerns.
- Lack of defined deliverables hinders value assessment.
- Definitive contract type increases risk of scope creep.
- Long contract duration extends risk exposure.
- No small business participation indicated.
Tags
research-and-development-in-the-physical, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.5 million to SIGMATECH, INC.. IGF::OT::IGF
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 $48.5 million.
What is the period of performance?
Start: 2018-07-20. End: 2024-01-22.
What specific R&D objectives are being pursued under this contract, and how will their achievement be measured to ensure value for money?
The contract's focus is NAICS 541715: Research and Development in the Physical, Engineering, and Life Sciences. Specific objectives and measurement criteria are not detailed in the provided data. A thorough review of the contract's SOW and performance metrics is necessary to assess value. Without this, it's difficult to confirm if the $48.5M investment aligns with tangible advancements or mission-critical needs.
What are the primary risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach, and how are they being mitigated?
This procurement method inherently carries risks of reduced competition, potentially leading to higher prices and less innovation compared to a truly open process. Mitigation strategies should include rigorous cost analysis, clear performance standards, and justification for the exclusion of sources. The long contract duration also increases exposure to these risks over time.
How does the $48.5M expenditure compare to industry benchmarks for similar R&D projects, and what is the expected return on investment for the Department of Defense?
Benchmarking R&D contracts is complex due to the unique nature of each project. However, $48.5M is a significant investment. A comparative analysis against similar DoD R&D efforts in physical, engineering, or life sciences is needed. The expected ROI should be tied to specific technological advancements, enhanced capabilities, or cost savings anticipated from the research outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA701418R5028
Offers Received: 4
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 5030 EDISON AVE STE 100, COLORADO SPRINGS, CO, 80915
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,854,529
Exercised Options: $57,956,210
Current Obligation: $48,471,488
Actual Outlays: $34,542,532
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-07-20
Current End Date: 2024-01-22
Potential End Date: 2024-01-22 00:00:00
Last Modified: 2026-03-11
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