DoD's $42.5M Milsatcom Systems Directorate contract awarded to Odyssey Systems Consulting Group, Ltd

Contract Overview

Contract Amount: $42,519,626 ($42.5M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2015-07-01

End Date: 2016-06-30

Contract Duration: 365 days

Daily Burn Rate: $116.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF LOGISTICS, ACQUISITION SECURITY AND SYSTEMS ENGINEERING SUPPORT FOR MILSATCOM SYSTEMS DIRECTORATE (SMC/MC)

Place of Performance

Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: IGF::OT::IGF LOGISTICS, ACQUISITION SECURITY AND SYSTEMS ENGINEERING SUPPORT FOR MILSATCOM SYSTEMS DIRECTORATE (SMC/MC) Key points: 1. Contract provides critical logistics, acquisition security, and systems engineering support. 2. Focus on Milsatcom systems highlights strategic importance in defense communications. 3. Contract duration of one year suggests a need for agile support. 4. Firm Fixed Price contract type aims to control costs. 5. Awarded by the Department of the Air Force, indicating a specific service need. 6. NAICS code 541712 points to R&D in physical, engineering, and life sciences. 7. The contract was competed under 'full and open competition after exclusion of sources'.

Value Assessment

Rating: good

The contract's value of approximately $42.5 million for a one-year period appears reasonable for specialized systems engineering and logistics support within the defense sector. Benchmarking against similar contracts for Milsatcom systems engineering is challenging without more specific service details, but the firm fixed-price structure suggests an effort to manage costs effectively. The award to a single contractor, Odyssey Systems Consulting Group, Ltd., implies they were selected based on a competitive evaluation of their technical capabilities and proposed pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources,' which suggests that while the competition was intended to be broad, certain sources were excluded for specific reasons, potentially related to security, prior performance, or specialized knowledge. The presence of 5 bids indicates a moderate level of competition. This approach can sometimes lead to higher prices if the pool of eligible bidders is significantly reduced, but it can also ensure that the most qualified and secure vendors are considered for critical defense systems.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure specialized expertise for critical defense infrastructure, while the exclusion of sources warrants scrutiny to ensure it was justified and did not unduly limit cost-saving opportunities.

Public Impact

The primary beneficiaries are the Department of Defense and the Milsatcom Systems Directorate, receiving essential support for critical satellite communication systems. Services delivered include logistics, acquisition security, and systems engineering, crucial for maintaining and advancing military satellite capabilities. The geographic impact is national, supporting a key component of U.S. defense infrastructure. Workforce implications include the employment of specialized engineers and logistics professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure it was fully justified and did not limit competitive pricing.
The relatively short one-year duration might indicate a need for ongoing re-competition or potential instability in long-term support planning.
Reliance on a single contractor for critical systems engineering and security could pose a risk if performance issues arise.

Positive Signals

The contract is firm fixed-price, which is a positive indicator for cost control and predictability.
The award followed a competitive process, suggesting that multiple vendors were evaluated.
The specialized nature of the support indicates a focus on critical defense capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, as indicated by the NAICS code 541712. The market for defense-related R&D and systems engineering is highly specialized, with a limited number of contractors possessing the requisite security clearances and technical expertise. Spending in this area is driven by the need for advanced communication and defense technologies, with significant government investment in maintaining and upgrading complex systems like Milsatcom.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of Milsatcom systems engineering and security, it is likely that the prime contractor, Odyssey Systems Consulting Group, Ltd., is not a small business. Subcontracting opportunities for small businesses may exist, but they would depend on the prime contractor's strategy and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet performance requirements within the agreed-upon budget. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Military Satellite Communications (Milsatcom)
Space Systems Command (SSC)
Defense Acquisition Programs
Systems Engineering Support Services
Logistics Support Services

Risk Flags

Competition Method: 'Full and open competition after exclusion of sources' warrants review to ensure justification and lack of undue restriction.
Contract Duration: One-year term may require frequent re-competition or indicate short-term needs.
Specialized Support: High reliance on a single contractor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. IGF::OT::IGF LOGISTICS, ACQUISITION SECURITY AND SYSTEMS ENGINEERING SUPPORT FOR MILSATCOM SYSTEMS DIRECTORATE (SMC/MC)

Who is the contractor on this award?

The obligated recipient is ODYSSEY SYSTEMS CONSULTING GROUP, LTD..

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 $42.5 million.

What is the period of performance?

Start: 2015-07-01. End: 2016-06-30.

What is the track record of Odyssey Systems Consulting Group, Ltd. with Department of Defense contracts, particularly in Milsatcom?

Odyssey Systems Consulting Group, Ltd. has a history of performing contracts for the Department of Defense, often in specialized areas such as systems engineering, acquisition support, and program management. While specific details on their Milsatcom performance for this particular contract would require deeper analysis of past performance reviews and award data, their continued selection for such roles suggests a satisfactory track record. It is important to review their performance on prior, similar contracts to assess their reliability, technical proficiency, and adherence to schedule and budget. Data from contract databases often reveals patterns in contract awards and performance ratings, which can provide insights into their capabilities and client satisfaction.

How does the $42.5 million value compare to similar Milsatcom systems engineering contracts?

Comparing the $42.5 million value requires access to a benchmark of similar Milsatcom systems engineering and logistics support contracts. Such contracts are highly specialized and their value can fluctuate significantly based on the scope of work, duration, specific technologies involved, and the level of security required. Generally, contracts supporting major defense systems like Milsatcom, which involve complex engineering, integration, and security aspects, can range from tens to hundreds of millions of dollars over their lifecycle. This particular contract, valued at $42.5 million for a one-year period, appears to be a significant but potentially standard investment for specialized support within this domain. A detailed comparison would necessitate analyzing contracts with similar objectives, agencies, and contractor capabilities.

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

Key risks associated with this contract include potential technical challenges in supporting complex Milsatcom systems, security vulnerabilities in acquisition and operations, and contractor performance issues. Mitigation strategies likely involve rigorous oversight from the Air Force, adherence to strict security protocols, and performance-based metrics within the firm fixed-price contract. The 'exclusion of sources' in the competition method, while potentially limiting competition, might also be a risk mitigation strategy if it ensures only highly vetted and capable vendors participate. Furthermore, the specialized nature of the work means that a loss of key personnel or expertise by the contractor could pose a risk, which might be addressed through contractual requirements for knowledge transfer and staffing stability.

How effective is the firm fixed-price contract type in ensuring value for money for this specific service?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks of cost overruns are manageable. For specialized services like logistics, acquisition security, and systems engineering for Milsatcom, FFP incentivizes the contractor to control costs and improve efficiency to maximize profit. This structure shifts much of the cost risk to the contractor. However, if unforeseen technical complexities arise that were not adequately anticipated during the bidding process, the contractor might be less willing to absorb additional costs, potentially impacting the quality or scope of services delivered. The success of FFP here depends on the accuracy of the initial scope definition and the contractor's ability to manage inherent risks.

What are the historical spending patterns for Milsatcom systems support within the Department of Defense?

Historical spending patterns for Milsatcom systems support within the Department of Defense are substantial and reflect the critical nature of satellite communications for national security. The DoD consistently invests billions of dollars annually across various programs related to satellite acquisition, launch, operations, and sustainment. This includes significant expenditures on systems engineering, cybersecurity, logistics, and ground support infrastructure. Spending can fluctuate based on program lifecycles, technological advancements, and evolving geopolitical threats. Contracts like the one awarded to Odyssey Systems Consulting Group, Ltd., represent a portion of this broader investment, focusing on specific support functions for the Milsatcom directorate. Analyzing trends over several fiscal years would reveal the scale and consistency of investment in this vital area.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 EDGEWATER DR STE 270, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $59,422,127

Exercised Options: $44,063,373

Current Obligation: $42,519,626

Actual Outlays: $1,360,565

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS611

IDV Type: IDC

Timeline