DoD's Missile Defense Agency Spends $11.6M on Electronic Security System Maintenance

Contract Overview

Contract Amount: $11,656,093 ($11.7M)

Contractor: Systems Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2017-02-22

End Date: 2022-04-30

Contract Duration: 1,893 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ELECTRONIC SECURITY SYSTEM MAINTENANCE

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SYSTEMS ENGINEERING INC for work described as: IGF::OT::IGF ELECTRONIC SECURITY SYSTEM MAINTENANCE Key points: 1. The contract awarded to SYSTEMS ENGINEERING INC for $11.6M covers electronic security system maintenance. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The Missile Defense Agency is the primary customer, indicating a focus on national security infrastructure. 4. The service category 'Other Computer Related Services' (NAICS 541519) is broad and could encompass various technical support aspects.

Value Assessment

Rating: fair

The contract value of $11.6M over approximately 5 years for electronic security system maintenance appears reasonable given the specialized nature of defense systems. Benchmarking against similar contracts for complex security systems is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and promotes competitive pricing. This method suggests that the agency sought the best value through a transparent process.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The full and open competition aims to ensure efficient use of these funds by fostering a competitive environment.

Public Impact

Ensures the operational readiness of critical electronic security systems for the Missile Defense Agency. Supports national security by maintaining the integrity of sensitive defense infrastructure. The contract's duration and value indicate a significant investment in maintaining advanced security capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Lack of specific details on the 'Other Computer Related Services' could obscure the true scope and cost-effectiveness.
The contract duration of nearly 5 years might limit flexibility in adopting newer technologies or renegotiating terms.

Positive Signals

Awarded under full and open competition, indicating a commitment to competitive sourcing.
The contract supports a critical national security function within the Department of Defense.

Sector Analysis

This contract falls under the 'Other Computer Related Services' sector, which is a broad category within IT services. Spending in this area is often driven by the need for specialized technical support for complex systems, particularly in government and defense.

Small Business Impact

The data indicates that this contract was not awarded to a small business (SB is false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not explicitly detailed.

Oversight & Accountability

The contract was awarded by the Department of Defense's Missile Defense Agency. Oversight would typically involve contract management by the agency to ensure performance and adherence to terms, with potential review by DoD Inspector General.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Potential for technological obsolescence over the contract duration.
Lack of specific details on the services provided under 'Other Computer Related Services'.
Contract awarded to a large business, with no explicit small business subcontracting noted.
The specific systems maintained are not identified, making detailed risk assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SYSTEMS ENGINEERING INC. IGF::OT::IGF ELECTRONIC SECURITY SYSTEM MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SYSTEMS ENGINEERING INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2017-02-22. End: 2022-04-30.

What specific electronic security systems are covered under this maintenance contract, and how does their complexity justify the $11.6M expenditure?

The provided data lacks specificity regarding the exact electronic security systems maintained. 'Other Computer Related Services' is a broad NAICS code. To justify the $11.6M, detailed information on the systems' criticality, technological sophistication, required expertise for maintenance, and the scope of services (e.g., preventative, corrective, upgrades) would be necessary. Without this, a precise value assessment is challenging.

What are the potential risks associated with a nearly five-year maintenance contract for electronic security systems, particularly concerning technological obsolescence?

A significant risk with a long-term maintenance contract is technological obsolescence. Electronic security systems can evolve rapidly. If the contract does not include provisions for technology refresh or adaptation, the agency might be locked into maintaining outdated systems, potentially reducing their effectiveness against emerging threats and leading to higher long-term costs compared to adopting newer solutions.

How effectively does the 'full and open competition' method ensure optimal pricing and service quality for specialized electronic security system maintenance?

Full and open competition is designed to maximize the pool of potential bidders, thereby fostering price competition and encouraging vendors to offer their best value. For specialized services like electronic security system maintenance, this method can be effective if the solicitation clearly defines requirements and evaluation criteria, allowing qualified companies to compete. However, the complexity of the systems might limit the number of truly capable bidders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ014717Q0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Systems Engineering Services Corporation

Address: 21351 GENTRY DR STE 100, DULLES, VA, 20166

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,937,967

Exercised Options: $12,298,302

Current Obligation: $11,656,093

Actual Outlays: $664,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0301T

IDV Type: FSS

Timeline