DoD's Air Force Awards $17.3M for NPES Server Refresh to Strategic Mission Systems
Contract Overview
Contract Amount: $17,274,680 ($17.3M)
Contractor: Strategic Mission Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-29
End Date: 2027-12-31
Contract Duration: 1,554 days
Daily Burn Rate: $11.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: NUCLEAR PLANNING AND EXECUTION SYSTEM (NPES) SERVER TECHNICAL REFRESH
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $17.3 million to STRATEGIC MISSION SYSTEMS, LLC for work described as: NUCLEAR PLANNING AND EXECUTION SYSTEM (NPES) SERVER TECHNICAL REFRESH Key points: 1. Contract awarded to Strategic Mission Systems, LLC for $17.3M. 2. The NPES Server Technical Refresh project falls under the Aircraft Manufacturing NAICS code. 3. Full and open competition was utilized for this contract. 4. The contract has a duration of 1554 days, ending in December 2027. 5. This is a delivery order under an existing contract.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar IT hardware refresh contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a competitive bidding process. However, the specific pricing outcomes and how they reflect market rates are not detailed in the provided data.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayer value, as it encourages competitive pricing. The final cost will depend on the incentive fee structure and actual performance.
Public Impact
Ensures continued operational capability for critical nuclear planning systems. Supports the Department of the Air Force's strategic mission readiness. Potential for cost overruns due to the Cost Plus Incentive Fee contract type. Modernization of aging server infrastructure is crucial for cybersecurity and efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type may lead to higher than expected costs.
- Lack of detailed cost breakdown makes precise value assessment difficult.
- Potential for scope creep in technical refresh projects.
Positive Signals
- Full and open competition utilized.
- Awarded to a single vendor, indicating a specific capability match.
- Addresses critical infrastructure modernization.
Sector Analysis
This contract falls within the IT hardware and systems modernization sector, supporting critical defense infrastructure. Spending benchmarks for similar server refreshes vary widely based on scale and complexity, but $17.3M for a system refresh is substantial.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract is a delivery order, suggesting it's part of a larger framework agreement. Oversight would focus on performance against the incentive fee structure and adherence to technical specifications.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee contract type.
- Potential for cost overruns.
- Limited visibility into detailed cost breakdown.
- Dependency on a single vendor for critical infrastructure.
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to STRATEGIC MISSION SYSTEMS, LLC. NUCLEAR PLANNING AND EXECUTION SYSTEM (NPES) SERVER TECHNICAL REFRESH
Who is the contractor on this award?
The obligated recipient is STRATEGIC MISSION SYSTEMS, LLC.
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 $17.3 million.
What is the period of performance?
Start: 2023-09-29. End: 2027-12-31.
What is the expected return on investment for this server technical refresh in terms of improved operational efficiency and reduced maintenance costs?
The return on investment is expected to be realized through enhanced system reliability, reduced downtime, and potentially lower long-term maintenance costs compared to the aging infrastructure. Improved processing power and security features will also contribute to mission effectiveness, though specific quantifiable metrics are not provided.
What are the primary risks associated with the Cost Plus Incentive Fee structure for this project, and how are they being mitigated?
The primary risk is that the contractor may incur costs exceeding the target, leading to higher government expenditure if performance targets are met. Mitigation strategies likely involve robust government oversight, clearly defined performance metrics, and negotiation of fair incentive targets to align contractor and government interests.
How does the performance of Strategic Mission Systems, LLC on similar IT refresh contracts inform the assessment of this project's effectiveness?
Past performance data for Strategic Mission Systems, LLC on similar IT refresh projects would be crucial for assessing effectiveness. A track record of on-time delivery, within-budget performance, and meeting technical specifications would indicate a higher likelihood of success for this NPES refresh.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 2501 LIBERTY PKWY STE 200, MIDWEST CITY, OK, 73110
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,274,680
Exercised Options: $17,274,680
Current Obligation: $17,274,680
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810617D0006
IDV Type: IDC
Timeline
Start Date: 2023-09-29
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-04-28
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