DoD's Air Force awards $85.6M for Space Systems Engineering to Sigmatech Inc
Contract Overview
Contract Amount: $85,599,080 ($85.6M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2020-02-11
End Date: 2025-08-23
Contract Duration: 2,020 days
Daily Burn Rate: $42.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: R&D
Official Description: PKS-SANGHOTT-ALLEN-AWARD FOR SPACE SYSTEMS ENGINEERING AND TECHINCAL ASSISTANCE (SETA)
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20153
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $85.6 million to SIGMATECH INC for work described as: PKS-SANGHOTT-ALLEN-AWARD FOR SPACE SYSTEMS ENGINEERING AND TECHINCAL ASSISTANCE (SETA) Key points: 1. Contract awarded to Sigmatech Inc. for Space Systems Engineering and Technical Assistance (SETA). 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. Awarded via Full and Open Competition after Exclusion of Sources, indicating a specific procurement approach. 4. The duration spans from February 2020 to August 2025, with a total value of $85.6 million.
Value Assessment
Rating: good
The contract value of $85.6 million for SETA services appears reasonable given the 5-year duration. Benchmarking against similar R&D contracts for specialized engineering support would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method 'Full and Open Competition after Exclusion of Sources' suggests that while competition was sought, certain sources were excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The competitive nature of the award, despite exclusions, aims to secure value for taxpayers. The final price reflects negotiated labor hours for specialized services.
Public Impact
Supports critical space systems engineering and technical assistance for the Department of the Air Force. The contract duration of over five years ensures continuity in vital space technology development. Funding allocated to R&D in this sector can drive innovation and maintain national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition may limit optimal price discovery.
- Labor hour contract type can be susceptible to cost overruns if not managed closely.
Positive Signals
- Awarded under full and open competition principles.
- Long-term contract provides stability for critical R&D efforts.
- Supports a key agency within the Department of Defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security, with significant government investment typically seen in defense-related R&D.
Small Business Impact
The contract was awarded to Sigmatech Inc., a prime contractor. There is no indication of small business subcontracting in the provided data. Further analysis would be needed to determine if small businesses are participating in the supply chain.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. The labor hour contract type necessitates diligent monitoring of hours and rates to ensure cost efficiency and prevent overruns.
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
- Potential for reduced competition due to source exclusion.
- Labor hour contract type requires robust oversight to manage costs.
- Lack of small business participation data.
- Specific technical scope not detailed.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.6 million to SIGMATECH INC. PKS-SANGHOTT-ALLEN-AWARD FOR SPACE SYSTEMS ENGINEERING AND TECHINCAL ASSISTANCE (SETA)
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 $85.6 million.
What is the period of performance?
Start: 2020-02-11. End: 2025-08-23.
What specific technical areas does the Space Systems Engineering and Technical Assistance cover?
The provided data indicates the contract is for 'Space Systems Engineering and Technical Assistance (SETA)' under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While specific technical areas are not detailed, SETA contracts typically involve support for system design, integration, testing, and lifecycle management of complex space systems, including hardware, software, and mission operations.
How does the 'Exclusion of Sources' impact the overall value and risk for taxpayers?
Excluding sources in a 'Full and Open Competition' scenario can potentially limit the number of bidders, which might reduce competitive pressure and lead to higher prices than if all eligible sources were allowed to compete. This could increase the risk of taxpayers not receiving the best possible value. However, exclusions are often based on specific technical capabilities or security requirements, aiming to ensure the most qualified vendors are considered.
What are the key performance indicators (KPIs) used to measure the effectiveness of this SETA contract?
Effectiveness for a SETA contract is typically measured through KPIs related to technical performance, schedule adherence, cost control, and quality of deliverables. For this contract, effectiveness would likely be assessed by the Air Force's satisfaction with Sigmatech's engineering support, the successful completion of assigned tasks, timely delivery of technical documentation, and adherence to project milestones within the allocated labor hours and budget.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research 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: LABOR HOURS (Z)
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: $87,292,766
Exercised Options: $87,292,766
Current Obligation: $85,599,080
Actual Outlays: $32,247,214
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,809,738
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: 2020-02-11
Current End Date: 2025-08-23
Potential End Date: 2025-08-23 00:00:00
Last Modified: 2025-03-14
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