DoD's $10.5M contract for service design strategy awarded to Skylight Inc. for custom computer programming

Contract Overview

Contract Amount: $10,520,786 ($10.5M)

Contractor: Skylight Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-25

End Date: 2026-06-24

Contract Duration: 729 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE DESIGN ACCELERATOR STRATFI, SEQUENTIAL SBIR PHASE II

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SKYLIGHT INC. for work described as: SERVICE DESIGN ACCELERATOR STRATFI, SEQUENTIAL SBIR PHASE II Key points: 1. The contract's value of $10.5 million for a 2-year duration suggests a significant investment in strategic service design. 2. Awarded under full and open competition after exclusion of sources, indicating a deliberate selection process. 3. The fixed-price contract type aims to control costs and provide predictability for the Air Force. 4. This contract falls under custom computer programming services, a broad category with diverse applications. 5. The geographic location of performance in Alabama may indicate a concentration of relevant expertise or operational needs. 6. The absence of small business set-asides suggests the competition was geared towards larger, established firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. However, the $10.5 million price tag for two years of service design strategy and custom programming suggests a substantial investment. Comparing it to similar SBIR Phase II contracts, which are typically for research and development, this award appears to be at the higher end, potentially reflecting the scope and strategic importance of the 'Stratfi' initiative. Further analysis would require understanding the specific outcomes expected and how they align with industry standards for service design and software development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This specific designation implies that while the competition was open, certain sources were initially excluded, possibly due to specific technical requirements, prior performance, or other pre-qualification criteria. The number of bidders is not specified, but the 'full and open' nature suggests a broad solicitation. The exclusion of sources, however, warrants further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: While the competition was open, the exclusion of certain sources might have limited the number of potential bidders, potentially impacting the most competitive pricing achievable for taxpayers.

Public Impact

The Department of the Air Force is the primary beneficiary, aiming to improve its service design strategies. The contract will deliver custom computer programming services focused on strategic planning and service design. Performance is slated for Alabama, potentially impacting the local tech workforce and economy. The initiative could lead to enhanced efficiency and effectiveness in Air Force service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure maximum fair opportunity.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The high dollar amount for a 2-year contract necessitates close monitoring of deliverables and outcomes.

Positive Signals

Awarded to Skylight Inc., a company likely possessing specialized expertise in service design and programming.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration of two years allows for focused development and implementation of strategic initiatives.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT industry focused on developing tailored software solutions. The market for such services is vast, driven by government and commercial demand for specialized digital capabilities. The $10.5 million award is substantial for a 2-year engagement, suggesting a complex or high-priority project. Comparable spending benchmarks would typically involve analyzing other custom programming contracts for strategic initiatives within the defense sector, considering factors like project scope, duration, and contractor expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all qualified offerors, including large businesses. While there's no explicit subcontracting requirement mentioned, large prime contractors often engage small businesses for specialized tasks. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited, potentially impacting their ability to secure significant federal work in this area.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the terms of the firm fixed-price contract, with payments contingent on meeting defined milestones and deliverables. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

SBIR Phase II Contracts
Custom Computer Programming Services
Department of the Air Force IT Spending
Strategic Planning Services
Service Design Initiatives

Risk Flags

Competition Limitation: 'Exclusion of sources' requires scrutiny.
Performance Risk: Lack of detailed metrics for value assessment.
SBIR Program Focus: Ensuring transition beyond R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SKYLIGHT INC.. SERVICE DESIGN ACCELERATOR STRATFI, SEQUENTIAL SBIR PHASE II

Who is the contractor on this award?

The obligated recipient is SKYLIGHT 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 $10.5 million.

What is the period of performance?

Start: 2024-06-25. End: 2026-06-24.

What is Skylight Inc.'s track record with the Department of Defense and specifically the Air Force?

A review of federal procurement data would be necessary to fully assess Skylight Inc.'s track record. However, the award of a $10.5 million contract, especially one designated as a Sequential SBIR Phase II, suggests the company has successfully navigated the Small Business Innovation Research program and demonstrated technical merit and commercialization potential in a prior phase. SBIR contracts are highly competitive and require significant innovation. Further investigation into their past performance ratings, prior contract values, and any reported issues on previous DoD or Air Force contracts would provide a more comprehensive picture of their reliability and capability.

How does the $10.5 million value compare to similar service design strategy contracts within the DoD?

Benchmarking this $10.5 million contract requires understanding the specific scope of 'SERVICE DESIGN ACCELERATOR STRATFI'. Service design strategy contracts can vary widely in cost depending on complexity, duration, and deliverables. Given this is a Sequential SBIR Phase II, it implies a focus on developing and maturing an innovative technology or approach. While direct comparisons are difficult without more detail, $10.5 million over two years for a strategic initiative in custom computer programming is a substantial investment. It suggests a project of significant scope or one that is expected to yield high-value outcomes for the Air Force, potentially placing it at the higher end of typical R&D or strategic planning contract values in this domain.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, contractor underperformance, and misalignment between the developed strategy and actual Air Force needs. The firm fixed-price nature helps mitigate cost overrun risks, but performance risks remain. Mitigation strategies likely involve robust project management by the Air Force, clearly defined milestones and deliverables, regular progress reviews, and potentially performance-based payment schedules. The 'Sequential SBIR Phase II' designation also implies a phased approach, allowing for course correction if initial development proves problematic. The 'exclusion of sources' in the competition might also introduce a risk if it inadvertently limited the pool of highly capable competitors.

What specific services or technological advancements are expected from this 'SERVICE DESIGN ACCELERATOR STRATFI' contract?

The designation 'SERVICE DESIGN ACCELERATOR STRATFI' and the NAICS code '541511' (Custom Computer Programming Services) suggest the contract aims to develop or enhance strategic approaches to service design, likely leveraging custom software or digital tools. This could involve creating frameworks, methodologies, or platforms that enable the Air Force to more effectively design, deliver, and manage its services. The 'Stratfi' component might refer to a specific strategic initiative or platform. The SBIR Phase II nature indicates a focus on innovation and maturation of a technology or concept, moving beyond initial research towards a more developed solution ready for potential broader application or integration.

What is the historical spending pattern for custom computer programming services by the Department of the Air Force?

The Department of the Air Force is a significant spender on custom computer programming services, reflecting its extensive reliance on sophisticated IT systems for operations, intelligence, logistics, and personnel management. Historical spending in this category (NAICS 541511) typically runs into billions of dollars annually across numerous contracts. This spending supports a wide range of needs, from developing new software applications and modernizing legacy systems to providing cybersecurity solutions and data analytics platforms. The $10.5 million award for service design strategy is a relatively small portion of the overall Air Force IT budget but represents a focused investment in a specific strategic capability.

What does the 'Sequential SBIR Phase II' designation imply about the nature and maturity of the work?

The 'Sequential SBIR Phase II' designation indicates that this contract is part of the Small Business Innovation Research (SBIR) program, specifically a follow-on effort to a successful Phase I or an earlier Phase II project. SBIR Phase II projects focus on the research and development of the proposed innovation, with the goal of demonstrating technical feasibility and commercial potential. A 'sequential' award suggests a continuation or expansion of work from a previous phase, implying that the foundational research has been completed and the contractor is now tasked with further developing, refining, and potentially scaling the technology or concept. This typically involves more extensive prototyping, testing, and validation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1226 N TAMIAMI TRL, SARASOTA, FL, 34236

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,670,107

Exercised Options: $10,587,362

Current Obligation: $10,520,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline