Dod's $19.3M Signature Measurement System Contract Awarded to Star Dynamics Corp Shows Strong Competition

Contract Overview

Contract Amount: $19,310,744 ($19.3M)

Contractor: Star Dynamics Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-21

End Date: 2024-09-27

Contract Duration: 1,164 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SIGNATURE MEASUREMENT SYSTEM

Place of Performance

Location: HILLIARD, FRANKLIN County, OHIO, 43026

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to STAR DYNAMICS CORP for work described as: SIGNATURE MEASUREMENT SYSTEM Key points: 1. The contract value of $19.3 million represents a significant investment in advanced measurement systems. 2. Full and open competition suggests a healthy market for these specialized defense technologies. 3. The firm-fixed-price structure aims to control costs and provide predictability for the government. 4. The contract duration of over three years indicates a sustained need for these capabilities. 5. The award to STAR DYNAMICS CORP highlights a key player in the defense instrumentation sector. 6. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing niche.

Value Assessment

Rating: good

The contract's value of $19.3 million for the SIGNATURE MEASUREMENT SYSTEM appears reasonable given the specialized nature of the equipment and the firm-fixed-price contract type, which typically includes profit margins. Benchmarking against similar complex defense instrumentation contracts would provide a more precise value-for-money assessment. However, the presence of multiple bidders in a full and open competition suggests that pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that three bids were received suggests a competitive environment for this type of specialized defense system. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received a competitive offer for critical defense technology.

Public Impact

The primary beneficiaries are the Department of the Air Force and the broader Department of Defense, which will utilize the SIGNATURE MEASUREMENT SYSTEM for critical operational or testing purposes. The contract delivers advanced search, detection, navigation, guidance, and related system instruments. The geographic impact is likely concentrated within Department of Defense facilities, potentially including testing ranges or operational bases. The contract supports specialized manufacturing jobs within the aerospace and defense instrumentation industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen technical challenges.
Risk of performance degradation if the system does not meet stringent military specifications.
Dependence on a single contractor for sustainment and potential future upgrades.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a healthy market and potential for competitive pricing.
The contract duration suggests a stable and predictable requirement for the system.

Sector Analysis

The contract falls within the defense instrumentation and manufacturing sector, specifically related to aerospace and navigation systems. This sector is characterized by high technological complexity, stringent quality requirements, and significant government procurement. The market size for such specialized defense electronics is substantial, driven by ongoing modernization and operational needs of military forces worldwide. This contract fits within the broader category of defense readiness and technological superiority.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless STAR DYNAMICS CORP voluntarily engages small businesses for subcontracting opportunities. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms, including contract administration by the Air Force and potential review by the Government Accountability Office (GAO) or the Inspector General (IG) for performance and financial accountability. The firm-fixed-price nature of the contract provides a degree of financial oversight by limiting the government's exposure to cost increases. Transparency is maintained through contract award databases and reporting requirements.

Related Government Programs

Defense Instrumentation
Navigation Systems
Aerospace Manufacturing
Search and Detection Systems
Military Electronics

Risk Flags

Potential for technical complexity leading to performance issues.
Reliance on contractor's specialized manufacturing capabilities.
Need for stringent quality assurance and testing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to STAR DYNAMICS CORP. SIGNATURE MEASUREMENT SYSTEM

Who is the contractor on this award?

The obligated recipient is STAR DYNAMICS CORP.

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 $19.3 million.

What is the period of performance?

Start: 2021-07-21. End: 2024-09-27.

What is the track record of STAR DYNAMICS CORP in delivering similar defense systems?

A comprehensive review of STAR DYNAMICS CORP's past performance is crucial for assessing the risk associated with this contract. While the award itself signifies that the contractor met initial eligibility criteria, detailed analysis would involve examining their history with previous government contracts, particularly those involving complex measurement systems. This includes evaluating on-time delivery rates, adherence to technical specifications, and any history of contract disputes or performance issues. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reports (CPARS) would be essential to gauge their reliability and expertise in fulfilling the requirements of the SIGNATURE MEASUREMENT SYSTEM contract.

How does the awarded value compare to similar contracts for signature measurement systems?

To benchmark the value of this $19.3 million contract, it's necessary to compare it against similar procurements for signature measurement systems within the Department of Defense or other federal agencies. This involves identifying contracts with comparable scope, technical complexity, and quantity of systems delivered. Factors such as the year of award, contract type (e.g., firm-fixed-price vs. cost-plus), and the specific capabilities of the systems are critical for a fair comparison. If comparable contracts awarded recently are significantly lower in value for similar systems, it could indicate potential overpricing or a less competitive bid environment for this specific award. Conversely, if the value aligns with or is lower than benchmarks, it suggests good value for money.

What are the primary risks associated with the performance of this contract?

The primary risks associated with this contract include technical performance challenges, schedule delays, and potential cost overruns, despite the firm-fixed-price structure. Signature measurement systems are often highly complex and require precise calibration and integration, increasing the risk of unforeseen technical hurdles during development or testing. Schedule delays could impact the operational readiness or research timelines of the Air Force. While the firm-fixed-price contract limits financial risk for the government regarding cost increases, the contractor might face financial strain if they underestimate project costs, potentially leading to quality compromises or contractor default. Ensuring robust government oversight and clear performance metrics is key to mitigating these risks.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for this system?

The firm-fixed-price (FFP) contract type is generally effective in ensuring program effectiveness by incentivizing the contractor to control costs and deliver the specified system efficiently. For the SIGNATURE MEASUREMENT SYSTEM, an FFP contract provides the government with cost certainty, meaning the total price is fixed regardless of the contractor's actual costs. This encourages STAR DYNAMICS CORP to manage resources effectively and minimize expenses to maximize their profit margin. However, the effectiveness hinges on the accuracy of the initial technical specifications and cost estimates. If the requirements are poorly defined or the scope is underestimated, the contractor may struggle to meet performance standards within the fixed price, potentially leading to compromises in quality or functionality. Clear performance metrics and acceptance criteria are vital to ensure the system meets its intended purpose.

What are the historical spending patterns for signature measurement systems by the Department of Defense?

Analyzing historical spending patterns for signature measurement systems by the Department of Defense provides context for the current $19.3 million award. This involves examining aggregate spending on similar systems over the past several fiscal years, identifying trends in contract values, award volumes, and key contractors. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate shifts in defense priorities or technological advancements. Furthermore, reviewing historical data can reveal patterns in competition levels and contract types used for these systems. For instance, a consistent trend of full and open competition suggests a mature market, while a rise in sole-source awards might signal consolidation or unique technological requirements. This historical perspective helps assess if the current contract aligns with established spending profiles or represents a significant deviation.

What is the significance of the NAICS code 334511 for this contract?

The North American Industry Classification System (NAICS) code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' is highly significant as it precisely categorizes the industry and the type of products being procured under this contract. This code indicates that STAR DYNAMICS CORP is involved in the manufacturing of sophisticated electronic systems and instruments used for locating, identifying, and guiding vehicles or aircraft, both in the air and at sea. For the Department of Defense, this classification ensures that the procurement process targets companies with the specialized manufacturing capabilities and technological expertise required for such advanced defense applications. It also aids in economic analysis and tracking spending within this specific high-tech manufacturing sub-sector.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4455 REYNOLDS DR, HILLIARD, OH, 43026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,535,850

Exercised Options: $19,535,850

Current Obligation: $19,310,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline