DoD's $30.5M contract for design studio services awarded to Skylight Inc. shows strong competition
Contract Overview
Contract Amount: $30,468,416 ($30.5M)
Contractor: Skylight Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2026-09-29
Contract Duration: 729 days
Daily Burn Rate: $41.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DESIGN STUDIO BESPIN ECOSYSTEM SBIR III IDIQ TASK ORDER NUMBER (TON) 17 - SIMPLE REPORT AND DATA INTEGRATION BUILDING BLOCKS (DIBBS) SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.5 million to SKYLIGHT INC. for work described as: DESIGN STUDIO BESPIN ECOSYSTEM SBIR III IDIQ TASK ORDER NUMBER (TON) 17 - SIMPLE REPORT AND DATA INTEGRATION BUILDING BLOCKS (DIBBS) SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded for custom computer programming and design services. 2. Skylight Inc. is the prime contractor for this firm-fixed-price contract. 3. The contract has a duration of 729 days, ending in September 2026. 4. This is a delivery order under an existing IDIQ contract. 5. The contract was awarded under full and open competition. 6. The base award value is approximately $30.5 million.
Value Assessment
Rating: good
The contract's firm-fixed-price structure suggests predictable costs. Benchmarking against similar custom computer programming services requires detailed analysis of the specific tasks. The award value of $30.5 million for a two-year period for design studio and data integration services appears within a reasonable range for complex IT projects, though specific performance metrics would offer further insight into value.
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, indicating a broad solicitation process. While the exact number of bidders is not specified, this competition type generally fosters price discovery and allows for a wide range of potential contractors to submit proposals. This approach aims to secure the best value for the government.
Taxpayer Impact: Full and open competition typically leads to more competitive pricing, benefiting taxpayers by ensuring the government is not overpaying for services. It also promotes a wider pool of contractors, potentially leading to innovative solutions.
Public Impact
The Department of the Air Force benefits from enhanced design studio and data integration capabilities. Services include custom computer programming, service design, and engineering support. The contract supports the Air Force's operational and strategic objectives. Workforce implications are likely related to specialized IT and design professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial design requirements are not clearly defined.
- Reliance on a single contractor for critical design and data integration services.
- Ensuring ongoing alignment with evolving Air Force technological needs.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Awarded under full and open competition, suggesting competitive pricing.
- Clear task order structure under an existing IDIQ contract.
Sector Analysis
This contract falls within the Custom Computer Programming Services sector, a significant segment of the IT industry. The market for these services is characterized by rapid technological advancements and a high demand for specialized skills in areas like data integration and service design. The contract's value of $30.5 million is moderate for a federal IT service contract of this nature, fitting within the broader landscape of defense IT spending.
Small Business Impact
The contract data indicates that small business participation is not a primary focus for this specific award, as the 'sb' (small business set-aside) flag is false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the prime contractor, Skylight Inc., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting strategy rather than a direct set-aside.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. As a delivery order under an IDIQ, the underlying contract likely has established oversight mechanisms. Transparency is facilitated through contract award databases, and any specific Inspector General investigations would depend on reported issues or audits.
Related Government Programs
- SBIR III IDIQ
- Custom Computer Programming Services
- IT Services
- Design and Engineering Support
Risk Flags
- Potential for performance issues if contractor lacks relevant experience.
- Risk of cost overruns if scope is not clearly defined.
- Dependency on contractor for critical design and data integration.
Tags
it, defense, department-of-the-air-force, firm-fixed-price, delivery-order, full-and-open-competition, custom-computer-programming-services, design-studio, data-integration, skylight-inc, alabama
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 million to SKYLIGHT INC.. DESIGN STUDIO BESPIN ECOSYSTEM SBIR III IDIQ TASK ORDER NUMBER (TON) 17 - SIMPLE REPORT AND DATA INTEGRATION BUILDING BLOCKS (DIBBS) SERVICE DESIGN AND ENGINEERING SUPPORT SERVICES
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 $30.5 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-09-29.
What is the track record of Skylight Inc. in performing similar federal contracts?
Assessing Skylight Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving custom computer programming, service design, and data integration. Information on contract databases like SAM.gov or FPDS can reveal their history, including contract values, agencies served, and performance ratings. A positive history with similar complex IT projects, especially within the Department of Defense, would indicate a lower performance risk for this current contract. Conversely, a history of performance issues or contract disputes would raise concerns about their ability to deliver successfully on this $30.5 million award.
How does the pricing of this contract compare to similar custom computer programming services?
Benchmarking the pricing of this $30.5 million contract requires comparing its per-unit costs or overall value against similar custom computer programming and design services awarded by the federal government. Factors such as the specific technical requirements, labor categories, duration, and geographic location influence pricing. Without detailed task breakdowns and labor rates, a precise comparison is difficult. However, the firm-fixed-price nature suggests that the government has negotiated a set price, and the full and open competition should have driven this price to be competitive relative to market rates for comparable services.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks for this contract include potential scope creep if requirements are not well-defined, technical challenges in integrating data and delivering design services, and contractor performance issues. Mitigation strategies likely involve robust project management by the Air Force, clear statement of work (SOW), regular progress reviews, and performance monitoring. The firm-fixed-price structure incentivizes the contractor to manage costs and timelines effectively. The use of an IDIQ task order also implies that the foundational contract has already undergone some level of vetting and risk assessment.
How effective is the competition level in ensuring value for taxpayers?
The contract's award under 'full and open competition after exclusion of sources' is a strong indicator of effective competition. This approach allows all responsible sources to submit bids, fostering a competitive environment that typically drives down prices and encourages innovation. The effectiveness for taxpayers lies in the government's ability to secure high-quality services at the most advantageous price. While the exact number of bidders isn't provided, the process itself is designed to maximize value by preventing sole-source situations and encouraging multiple proposals, thereby enhancing price discovery and ensuring a fair market price is achieved.
What is the historical spending pattern for similar design studio and data integration services within the Department of Defense?
Analyzing historical spending patterns for similar services within the DoD is crucial for context. Federal procurement data reveals significant annual spending on IT services, including custom programming, system design, and data management. Contracts for specialized design studios and data integration can range from hundreds of thousands to tens of millions of dollars, depending on complexity and duration. The $30.5 million awarded to Skylight Inc. for a two-year period appears to be a substantial but not unprecedented investment for the Air Force, suggesting a consistent need for such capabilities within the department's broader IT modernization and operational support efforts.
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
Solicitation ID: FA877124R0067
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1226 N TAMIAMI TRL STE 201-13, 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: $46,139,587
Exercised Options: $30,468,416
Current Obligation: $30,468,416
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877122D0003
IDV Type: IDC
Timeline
Start Date: 2024-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-09-29
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