DoD's Air Force awards $21.3M advisory contract to Niksoft Systems Corp. for ISR&SOF support

Contract Overview

Contract Amount: $21,261,977 ($21.3M)

Contractor: Niksoft Systems Corp.

Awarding Agency: Department of Defense

Start Date: 2015-08-18

End Date: 2020-09-17

Contract Duration: 1,857 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES (ISR&SOF) DIRECTORATE STAFF ADVISORY AND ASSISTANCE SERVICES (A&AS) (AFLCMC/WI)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to NIKSOFT SYSTEMS CORP. for work described as: IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES (ISR&SOF) DIRECTORATE STAFF ADVISORY AND ASSISTANCE SER… Key points: 1. Contract provides essential advisory and assistance services for intelligence, surveillance, and reconnaissance operations. 2. Niksoft Systems Corp. secured this contract through full and open competition. 3. The contract duration spans over 5 years, indicating a long-term need for these services. 4. Services are critical for the ISR&SOF Directorate Staff, supporting national security objectives. 5. The contract type, Cost Plus Fixed Fee, allows for cost reimbursement plus a fixed fee. 6. This award represents a significant investment in specialized engineering and administrative support.

Value Assessment

Rating: good

The contract's value of $21.3 million over five years for specialized advisory and assistance services appears reasonable given the critical nature of ISR&SOF support. Benchmarking against similar contracts for engineering and administrative support within the Department of Defense suggests this pricing is within expected ranges for complex, long-term engagements. The Cost Plus Fixed Fee structure, while requiring careful oversight, is common for services where scope may evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a broad solicitation process. While the exact number of bidders is not specified, this approach generally fosters a competitive environment, allowing multiple qualified firms to propose solutions. The competitive nature is expected to drive fair pricing and innovative approaches to service delivery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized intelligence support services, preventing potential overpricing associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Intelligence, Surveillance, Reconnaissance, and Special Operations Forces (ISR&SOF) Directorate Staff, who receive crucial advisory and assistance. Services delivered include engineering, professional, and administrative support essential for operational planning and execution. The geographic impact is primarily within the Department of Defense's operational and intelligence communities. Workforce implications include the potential for skilled professionals in engineering and administrative support to be engaged through Niksoft Systems Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single contractor for critical advisory services could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports critical national security functions within ISR&SOF.
Niksoft Systems Corp. is a recognized entity providing professional services to the government.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering and administrative support for defense intelligence. The market for such specialized advisory services is competitive, with numerous firms capable of supporting complex government requirements. Spending in this category is substantial across the federal government, particularly within defense agencies requiring advanced technical and analytical capabilities for intelligence operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors if Niksoft Systems Corp. chooses to engage them for specialized support, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Performance reviews, financial audits, and adherence to contract terms are standard accountability measures. Transparency is maintained through contract databases and reporting requirements, with potential oversight from the Inspector General for any financial or performance irregularities.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Programs
Special Operations Forces Support Contracts
Defense Advisory and Assistance Services
Engineering Services for Defense
Professional Services for Federal Agencies

Risk Flags

Contract duration exceeds 3 years
Cost-reimbursement contract type
Sole-source or limited competition potential (though awarded full and open)
Critical support function for national security

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to NIKSOFT SYSTEMS CORP.. IGF::CL::IGF SCATI ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE, RECONNAISSANCE AND SPECIAL OPERATIONS FORCES (ISR&SOF) DIRECTORATE STAFF ADVISORY AND ASSISTANCE SERVICES (A&AS) (AFLCMC/WI)

Who is the contractor on this award?

The obligated recipient is NIKSOFT SYSTEMS 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 $21.3 million.

What is the period of performance?

Start: 2015-08-18. End: 2020-09-17.

What is the historical spending pattern for advisory and assistance services within the Air Force's ISR&SOF Directorate?

Analyzing historical spending for advisory and assistance services (A&AS) within the Air Force's ISR&SOF Directorate reveals a consistent demand for specialized support. Prior to this $21.3 million contract awarded in 2015, the directorate likely engaged in similar A&AS contracts, potentially with different vendors or through different contracting vehicles. These services are crucial for providing technical expertise, program management, and analytical support that organic military and civilian personnel may not possess in sufficient depth or breadth. Spending patterns in this area are often influenced by evolving technological landscapes, changes in threat assessments, and shifts in strategic priorities, necessitating ongoing investment in external expertise to maintain operational effectiveness and inform decision-making. Without specific historical data for this exact directorate, one can infer that A&AS spending is a significant and recurring component of the ISR&SOF budget, reflecting the complex and dynamic nature of their mission.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor performance for this ISR&SOF support?

The Cost Plus Fixed Fee (CPFF) contract type for this ISR&SOF support contract means the contractor, Niksoft Systems Corp., is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common in advisory and assistance roles. For cost control, the government's contracting officers and program managers must diligently monitor and audit the contractor's incurred costs to ensure they are reasonable, allocable, and allowable. Effective oversight is paramount to prevent cost overruns. Regarding contractor performance, the fixed fee incentivizes the contractor to complete the work efficiently to maximize their profit margin, but it does not directly tie profit to performance quality. Therefore, robust performance metrics and regular evaluations are essential to ensure the contractor delivers high-quality advisory services that meet the ISR&SOF Directorate's needs.

What are the key performance indicators (KPIs) likely used to evaluate Niksoft Systems Corp.'s performance on this contract?

Key Performance Indicators (KPIs) for this advisory and assistance contract would likely focus on the quality, timeliness, and impact of the support provided to the ISR&SOF Directorate. Examples could include the accuracy and relevance of technical advice, the completeness and clarity of reports and analyses, and the responsiveness to requests for support. Timeliness KPIs might measure adherence to deadlines for deliverables and responsiveness to urgent requirements. Impact KPIs could assess how effectively the contractor's recommendations influenced decision-making, program development, or operational planning. Furthermore, KPIs related to personnel qualifications, adherence to security protocols, and overall customer satisfaction from the Directorate staff would also be critical for evaluating Niksoft Systems Corp.'s performance throughout the contract's duration.

What is the typical duration and value range for similar engineering and administrative support contracts within the Department of Defense?

The typical duration and value range for similar engineering and administrative support contracts within the Department of Defense can vary significantly based on the specific agency, mission criticality, and scope of services. Contracts for specialized advisory and assistance services, like those provided to the ISR&SOF Directorate, often span multiple years, ranging from 1 to 5 years, with potential for option periods extending the total duration. Values can range from a few million dollars for smaller, focused support tasks to tens or even hundreds of millions of dollars for large-scale, long-term programs requiring extensive engineering, research, and management expertise. The $21.3 million awarded to Niksoft Systems Corp. over approximately five years falls within a moderate range for such specialized defense support, reflecting a substantial but not exceptionally large investment for critical intelligence operations.

What are the potential risks associated with relying on a single contractor for critical ISR&SOF advisory services?

Relying on a single contractor, such as Niksoft Systems Corp., for critical ISR&SOF advisory services presents several potential risks. Firstly, there's a risk of 'vendor lock-in,' where the government becomes overly dependent on the contractor's specific knowledge, processes, and personnel, making it difficult and costly to switch providers if performance issues arise or needs change. Secondly, a lack of competition can reduce the incentive for the contractor to innovate or maintain the highest levels of service quality and cost-efficiency over time. Thirdly, if the contractor experiences financial instability, key personnel departures, or internal management issues, it could significantly disrupt the continuity and effectiveness of the essential advisory support. Finally, there's a potential for knowledge silos to develop, where critical institutional knowledge resides solely with the contractor, posing a risk to the government's long-term capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1984 ISAAC NEWTON SQ W STE 306A, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,742,232

Exercised Options: $32,761,681

Current Obligation: $21,261,977

Actual Outlays: $323,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS130

IDV Type: IDC

Timeline