DoD Awards $9M Contract for Sequential SBIR Phase II Services to Private Tech Inc
Contract Overview
Contract Amount: $9,019,884 ($9.0M)
Contractor: Private Tech Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2027-01-04
Contract Duration: 461 days
Daily Burn Rate: $19.6K/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: CAPE - 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 $9.0 million to PRIVATE TECH INC. for work described as: CAPE - STRATFI, SEQUENTIAL SBIR PHASE II Key points: 1. Contract value of $9.02M for custom computer programming services. 2. Awarded by the Department of the Air Force, indicating a focus on advanced technology needs. 3. Utilizes a Firm Fixed Price contract type, providing cost certainty for the government. 4. The Sequential SBIR Phase II designation suggests a follow-on effort building on prior research and development.
Value Assessment
Rating: good
The $9.02M contract value appears reasonable for a multi-year R&D effort under the SBIR program. Benchmarking against similar Phase II contracts would provide further insight into pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool. This method may impact price discovery compared to broad full and open competition.
Taxpayer Impact: The use of the SBIR program aims to stimulate technological innovation, with potential long-term benefits for the government and economy, though direct taxpayer impact is tied to the success of the developed technology.
Public Impact
Supports innovation through the Small Business Innovation Research (SBIR) program. Potential for new technological advancements in areas relevant to the Air Force. Contract duration of over 1.5 years allows for substantial development. Focus on custom computer programming services indicates a need for specialized software solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition after exclusion of sources may not yield the best price.
- SBIR Phase II contracts can be complex to manage and assess technical progress.
- Reliance on a single awardee for a critical technology development.
Positive Signals
- Supports small business innovation through SBIR.
- Firm Fixed Price contract provides budget predictability.
- Clear end date for contract performance.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Spending in this area is substantial across the government, driven by the need for specialized software and technological solutions. Benchmarks for similar R&D contracts can vary widely based on complexity and duration.
Small Business Impact
The contract is part of the SBIR program, which is specifically designed to support small businesses in conducting research and development. While this is a Phase II award, it signifies a successful progression from earlier stages, demonstrating the small business's capability.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The use of a definitive contract provides a clear framework for performance monitoring and accountability. Further oversight would involve tracking technical milestones and deliverables.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for technical challenges in R&D.
- Dependence on a single small business for critical technology.
- Ensuring successful transition of developed technology.
Tags
custom-computer-programming-services, department-of-defense, al, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.0 million to PRIVATE TECH INC.. CAPE - STRATFI, SEQUENTIAL SBIR PHASE II
Who is the contractor on this award?
The obligated recipient is PRIVATE TECH 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 $9.0 million.
What is the period of performance?
Start: 2025-09-30. End: 2027-01-04.
What specific technological advancements are expected from this Sequential SBIR Phase II contract, and how will they align with the Air Force's strategic objectives?
The contract aims to advance specific technologies developed in prior SBIR phases. The Air Force likely has defined strategic objectives related to areas such as cybersecurity, data analytics, or advanced command and control systems. The success of this contract will be measured by the successful maturation of these technologies to a point where they can be integrated or further developed for operational use, directly contributing to the Air Force's modernization and capability enhancement goals.
Given the 'exclusion of sources' in the competition, what measures are in place to ensure the government is not overpaying for the services provided?
The Firm Fixed Price contract type provides a degree of cost certainty. However, the 'exclusion of sources' limits the competitive landscape. The government should rely on robust technical evaluations and potentially independent cost estimates to validate the proposed price. Regular performance reviews and milestone assessments are crucial to ensure the contractor is delivering value commensurate with the agreed-upon price.
How will the effectiveness of the developed technology be measured, and what is the transition plan for its potential adoption by the Air Force or other government agencies?
Effectiveness will likely be measured against predefined technical performance metrics and milestones outlined in the contract. This could include demonstrating specific functionalities, achieving certain performance thresholds, or successful integration into test environments. The transition plan would detail how the matured technology will be evaluated for broader adoption, potentially leading to follow-on production contracts or integration into existing systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA877125R0058
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1201 WILSON BLVD FL 25 STE 101, ARLINGTON, VA, 22209
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,471,058
Exercised Options: $13,180,592
Current Obligation: $9,019,884
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-30
Current End Date: 2027-01-04
Potential End Date: 2029-09-29 00:00:00
Last Modified: 2026-01-02
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