DoD's $30.7M contract to NEXTECH SOLUTIONS LLC for manufacturing services shows strong competition

Contract Overview

Contract Amount: $30,690,472 ($30.7M)

Contractor: Nextech Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-21

End Date: 2024-12-20

Contract Duration: 640 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: I-23-3-4 DIAMOND HEAD

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33611

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $30.7 million to NEXTECH SOLUTIONS LLC for work described as: I-23-3-4 DIAMOND HEAD Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and competitive award. 2. The contract was awarded under full and open competition, indicating a healthy market. 3. Risk indicators are low due to the fixed-price nature and established contractor. 4. Performance context is within the 'All Other Miscellaneous Manufacturing' sector. 5. This contract positions the agency to leverage specialized manufacturing capabilities. 6. The award amount is modest relative to the overall defense manufacturing sector.

Value Assessment

Rating: good

The contract's value of approximately $30.7 million over 640 days (roughly 21 months) appears competitive. Awarded under full and open competition, the pricing is likely benchmarked against market rates for specialized manufacturing. The firm-fixed-price (FFP) contract type shifts cost risk to the contractor, which is generally favorable for the government when the scope is well-defined. Without specific per-unit data or direct comparisons to identical services, a precise value assessment is challenging, but the competitive award suggests a fair price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders indicates a reasonable level of competition for this specialized manufacturing requirement. A competitive environment generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. Multiple bidders mean the government is likely receiving a fair market price for the goods or services procured.

Public Impact

The U.S. Special Operations Command (SOCOM) benefits from acquiring specialized manufacturing capabilities. Services delivered include the production of goods within the 'All Other Miscellaneous Manufacturing' category. The contract is geographically focused in Florida (ST, SN). The contract supports the defense industrial base and potentially specialized manufacturing jobs within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited visibility into the specific end-products or their ultimate use due to the nature of defense contracts.
Dependence on a single contractor for the duration of the contract, though competition was present at award.
The 'All Other Miscellaneous Manufacturing' category is broad, potentially masking specific risks or dependencies.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type minimizes cost overrun risk for the government.
Contract awarded to NEXTECH SOLUTIONS LLC, a known entity in the contracting space.
Clear performance period (March 2023 - December 2024) provides defined expectations.

Sector Analysis

The defense manufacturing sector encompasses a wide array of industries, from aerospace and electronics to specialized materials and components. This contract falls under 'All Other Miscellaneous Manufacturing,' suggesting it may involve niche or less commonly categorized production activities critical to defense operations. The total contract value of $30.7 million is a relatively small component within the broader defense industrial base, which sees hundreds of billions in annual spending. Comparable spending benchmarks would depend heavily on the specific type of manufacturing, but the competitive award suggests alignment with market norms for such specialized services.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award went to NEXTECH SOLUTIONS LLC, and its size category is not specified. The lack of set-aside or explicit subcontracting goals means the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses as part of its supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command (SOCOM) contracting and program management offices. As a delivery order under a larger vehicle (implied by 'AW' - DELIVERY ORDER), oversight may also be tied to the parent contract's structure. Transparency is facilitated by the contract award data being publicly available. Accountability measures are inherent in the firm-fixed-price structure and delivery schedules. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Manufacturing Contracts
Special Operations Command Procurement
Miscellaneous Manufacturing Services
Firm Fixed Price Contracts
Federal Supply Schedule (if applicable)
Defense Production Act Investments (potential)

Risk Flags

Broad NAICS code may obscure specific risks.
Limited insight into specific product performance requirements.
Contractor performance history not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.7 million to NEXTECH SOLUTIONS LLC. I-23-3-4 DIAMOND HEAD

Who is the contractor on this award?

The obligated recipient is NEXTECH SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2023-03-21. End: 2024-12-20.

What is the specific nature of the 'All Other Miscellaneous Manufacturing' goods or services being procured under this contract?

The provided data classifies the procurement under NAICS code 339999, 'All Other Miscellaneous Manufacturing.' This category is broad and encompasses establishments primarily engaged in manufacturing manufactured products, not elsewhere classified. Examples could include sporting goods, dolls, toys, musical instruments, flags, buttons, and brooms. For this specific Department of Defense contract awarded to NEXTECH SOLUTIONS LLC, the exact nature of the manufactured goods is not detailed. However, given the awarding agency (U.S. Special Operations Command), it is plausible that these manufactured items are specialized equipment, components, or gear critical for special operations missions, potentially involving advanced materials or custom fabrication.

How does the awarded price of approximately $30.7 million compare to similar manufacturing contracts awarded by the DoD or SOCOM?

Benchmarking this $30.7 million contract requires comparing it to similar 'All Other Miscellaneous Manufacturing' procurements by the DoD or SOCOM. Without access to a comprehensive database of all defense contracts and their specific details, a direct comparison is difficult. However, the contract's duration of 640 days (approx. 21 months) suggests a significant, but not exceptionally large, scope. The fact that it was awarded under full and open competition with 3 bidders implies the price achieved is likely competitive within the market for the specific (though undefined) manufacturing services. Larger, more complex defense manufacturing programs often run into hundreds of millions or billions, placing this contract in a mid-to-lower tier in terms of overall value within the DoD's vast procurement landscape.

What are the key performance indicators (KPIs) or metrics used to assess the performance of NEXTECH SOLUTIONS LLC on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, typical performance assessment for manufacturing contracts focuses on several areas. These often include adherence to delivery schedules (on-time delivery), quality control (meeting specifications, defect rates), compliance with technical requirements, and potentially cost control, although the latter is less critical for the government under a firm-fixed-price contract. For SOCOM-related procurements, mission-critical requirements might also include reliability, durability, and performance under specific operational conditions. The contracting officer and program managers at SOCOM would be responsible for monitoring these aspects throughout the contract's performance period.

What is the track record of NEXTECH SOLUTIONS LLC in performing similar manufacturing contracts for the federal government?

Information on NEXTECH SOLUTIONS LLC's specific track record for similar federal manufacturing contracts is not detailed in the provided data snippet. To assess their performance history, one would typically need to consult federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) to review past awards, contract performance evaluations (e.g., CPARS - Contractor Performance Assessment Reporting System), and any history of disputes or terminations. Without this external data, we can only infer that their selection for this $30.7 million competitive contract suggests they met the qualifications and demonstrated capability required by the U.S. Special Operations Command at the time of award.

Are there any identified risks associated with this contract, such as technical challenges, supply chain dependencies, or contractor performance issues?

Based solely on the provided data, specific risks are not explicitly detailed. However, general risks associated with manufacturing contracts include potential technical challenges in production, reliance on specific raw materials or components (supply chain dependencies), and the possibility of contractor performance issues (delays, quality defects). The 'All Other Miscellaneous Manufacturing' category is broad, which could imply unique or less standardized production processes, potentially introducing unforeseen technical hurdles. The firm-fixed-price nature mitigates cost overrun risks for the government, but performance failures could still lead to mission impacts for SOCOM. A thorough risk assessment would require deeper insight into the specific product and NEXTECH SOLUTIONS LLC's operational capabilities.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › All Other Miscellaneous Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: H9240120R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6701 S DALE MABRY HWY, TAMPA, FL, 33611

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,690,472

Exercised Options: $30,690,472

Current Obligation: $30,690,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9240121D0003

IDV Type: IDC

Timeline