DoD awards $22.4M task order to Systems Planning and Analysis, Inc. for research, development, and analysis support

Contract Overview

Contract Amount: $22,421,718 ($22.4M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2025-07-31

Contract Duration: 852 days

Daily Burn Rate: $26.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESEARCH, DEVELOPMENT, ANALYSIS TASK FORCE SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: RESEARCH, DEVELOPMENT, ANALYSIS TASK FORCE SUPPORT SERVICES Key points: 1. The contract's value of $22.4 million over approximately 2.4 years suggests a significant investment in specialized support services. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential price efficiencies and market responsiveness. 3. The 'All Other Professional, Scientific, and Technical Services' category is broad, making direct performance benchmarking challenging without more specific service details. 4. The firm-fixed-price contract type shifts performance risk to the contractor, which can be advantageous for budget predictability. 5. The contractor, Systems Planning and Analysis, Inc., has a history of government contracts, indicating established capabilities but also potential for vendor lock-in. 6. The award is managed by Washington Headquarters Services, suggesting a need for high-level, potentially sensitive, analytical support within the Department of Defense.

Value Assessment

Rating: fair

Benchmarking the value of this $22.4 million task order is difficult without specific details on the services rendered and comparable contracts. The firm-fixed-price structure is generally favorable for cost control. However, the lack of competition means there's no direct market comparison to assess if the pricing is optimal. The contract duration of approximately 2.4 years for this amount suggests a substantial per-year investment, warranting scrutiny of the scope and deliverables to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. The lack of competition limits the government's ability to solicit multiple bids, potentially leading to higher prices than if the contract had been openly competed. It also means that the government did not benefit from the innovation and cost-saving proposals that a competitive environment often fosters.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price. Without competitive pressure, the awarded price may not reflect the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are likely Department of Defense agencies requiring specialized research, development, and analytical support. The services delivered are expected to contribute to strategic planning, policy development, or technical assessments within the DoD. The geographic impact is primarily within the Washington D.C. metropolitan area, given the awardee's location and the managing agency (Washington Headquarters Services). Workforce implications may include the direct employment of personnel by Systems Planning and Analysis, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Broad service category ('All Other Professional, Scientific, and Technical Services') makes specific performance assessment difficult.
Lack of detailed public information on deliverables hinders value-for-money analysis.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Contractor has existing experience with government contracts.
Award managed by Washington Headquarters Services suggests alignment with high-priority DoD needs.

Sector Analysis

The contract falls under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990), a broad category encompassing a wide range of specialized support. The federal market for professional and technical services is substantial, with significant spending allocated to research, development, and analysis. This contract represents a portion of the Department of Defense's overall investment in acquiring specialized expertise to support its complex missions. Comparable spending benchmarks are difficult to establish due to the generic nature of the service code.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it does not appear to directly benefit small businesses through this specific award. The absence of set-aside provisions means opportunities for small business participation are not explicitly mandated within this contract's structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Washington Headquarters Services (WHS) contracting office and the relevant program managers within the Department of Defense. Accountability measures are typically embedded in the contract's performance work statement and reporting requirements. Transparency is limited due to the sole-source nature and the broad service category, with specific details on deliverables and performance metrics not publicly available.

Related Government Programs

Department of Defense Research and Development Contracts
Professional, Scientific, and Technical Services Contracts
Washington Headquarters Services Task Orders
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Broad service category hinders specific performance assessment.
Limited public data on deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to SYSTEMS PLANNING AND ANALYSIS, INC.. RESEARCH, DEVELOPMENT, ANALYSIS TASK FORCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SYSTEMS PLANNING AND ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2023-04-01. End: 2025-07-31.

What is the track record of Systems Planning and Analysis, Inc. with federal contracts, particularly within the Department of Defense?

Systems Planning and Analysis, Inc. (SPA) has a significant history of performing work for the federal government, including numerous contracts with the Department of Defense (DoD). Publicly available data indicates SPA has been awarded a substantial number of contracts across various agencies, often in areas related to systems engineering, technical support, research, and analysis. Their experience typically involves supporting complex defense programs and providing specialized expertise. While specific details on past performance quality for this particular task order are not readily available, SPA's continued success in securing government contracts suggests a generally positive track record and established capabilities in meeting federal requirements. Further investigation into contract performance reports or past performance evaluations, if accessible, would provide a more granular understanding of their reliability and effectiveness.

How does the $22.4 million value of this task order compare to similar research and analysis support contracts within the DoD?

The $22.4 million value for this task order, spanning approximately 2.4 years, places it in the mid-to-large range for specialized support services within the Department of Defense. Without knowing the precise nature of the 'research, development, and analysis task force support services,' direct comparisons are challenging. However, the DoD frequently awards contracts in the tens of millions for similar broad categories of professional, scientific, and technical services. Contracts for specialized engineering, strategic analysis, or program management support can easily reach or exceed this figure. The key differentiator here is the sole-source nature; competitive contracts of this size might yield lower unit costs or broader scope due to market pressures. The value itself is not inherently excessive but warrants scrutiny regarding the specific deliverables and the justification for a non-competitive award.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($22.4 million) include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or optimize costs, and the possibility that the selected contractor may not be the absolute best value provider available in the market. Without a competitive bidding process, the government foregoes the opportunity to explore alternative solutions or leverage market dynamics to secure more favorable terms. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider. Furthermore, the broad nature of the service category ('All Other Professional, Scientific, and Technical Services') increases the risk of scope creep or misinterpretation of requirements if not meticulously managed, potentially leading to cost overruns or unmet objectives, even under a firm-fixed-price contract.

How effective is the firm-fixed-price (FFP) contract type in managing costs and performance for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs and performance when the scope of work is well-defined and unlikely to change significantly. For research, development, and analysis services, FFP shifts the primary cost risk to the contractor, Systems Planning and Analysis, Inc. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides budget certainty for the government. However, the effectiveness hinges on the clarity and completeness of the contract's requirements. If the scope is ambiguous or subject to frequent changes, the contractor may seek change orders, potentially increasing the overall cost, or may deliver only the minimum required to meet the defined scope, potentially limiting innovation or exceeding expectations. For complex R&D, cost-plus contracts are sometimes preferred to encourage exploration, but FFP can be suitable if the objectives are clearly measurable.

What are the implications of this contract being classified under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990)?

Classifying this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' indicates that the services provided do not fit neatly into more specific categories like engineering, computer systems design, or research in specific sciences. This broad classification has several implications. Firstly, it makes direct benchmarking against specific industry standards or peer contracts more difficult, as the scope can vary widely. Secondly, it suggests the services are highly specialized or a unique combination of different professional services. For oversight and performance assessment, program managers must rely heavily on the detailed requirements outlined in the contract's Performance Work Statement (PWS) rather than relying on typical industry metrics. It also means that the contractor's expertise might span multiple disciplines, requiring a holistic evaluation of their capabilities.

What is the historical spending pattern for similar 'research, development, and analysis task force support services' within the Department of Defense?

Historical spending patterns for 'research, development, and analysis task force support services' within the Department of Defense are substantial and varied. The DoD consistently allocates significant portions of its budget to acquiring specialized expertise for R&D initiatives, strategic planning, and technical analysis. While specific data for this exact task force support category is not publicly itemized, the broader categories of professional, scientific, and technical services, as well as R&D services, represent billions of dollars annually. Spending in these areas often fluctuates based on geopolitical priorities, technological advancements, and specific program needs. The trend is generally towards increased reliance on external contractors for specialized skills that may not be resident within the government workforce. Awards can range from small, targeted studies to large, multi-year programs, with values often in the millions or tens of millions, similar to this $22.4M award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST., SUITE 100, ALEXANDRIA, VA, 22311

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

Financial Breakdown

Contract Ceiling: $22,421,718

Exercised Options: $22,421,718

Current Obligation: $22,421,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline