DoD awards $9.7M for SWOOP OS Demo/Test to Systems Intelligence, LLC, citing no competition under SAP
Contract Overview
Contract Amount: $9,721,734 ($9.7M)
Contractor: Systems Intelligence, LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-03-31
Contract Duration: 550 days
Daily Burn Rate: $17.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SWOOP OPERATING SYSTEM DEMONSTRATION AND TEST REPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $9.7 million to SYSTEMS INTELLIGENCE, LLC for work described as: SWOOP OPERATING SYSTEM DEMONSTRATION AND TEST REPORT Key points: 1. Contract value of $9.7M for a demonstration and test report. 2. Sole-source award to Systems Intelligence, LLC. 3. Potential risk due to lack of competition and limited transparency. 4. Sector is IT/Electronic Computer Manufacturing.
Value Assessment
Rating: questionable
The contract value of $9.7M for a demonstration and test report is high, especially without a competitive bidding process. Benchmarking is difficult without comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not yield the best price discovery.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best value for this $9.7M expenditure.
Public Impact
Taxpayers may not have received the most cost-effective solution due to the sole-source nature of the award. The Missile Defense Agency is procuring a demonstration and test report for the SWOOP Operating System. The contract duration is 550 days, ending March 31, 2026.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award process
Positive Signals
- Clear contract end date
- Firm Fixed Price contract type
Sector Analysis
The contract falls within the Electronic Computer Manufacturing sector, specifically related to software demonstration and testing. Spending benchmarks for similar OS development and testing contracts are difficult to ascertain without competitive data.
Small Business Impact
The contract was awarded to Systems Intelligence, LLC, and there is no indication of small business participation or subcontracting requirements. The award was not competed under SAP, which often includes provisions for small businesses.
Oversight & Accountability
Oversight is crucial given the sole-source nature of this award. The Missile Defense Agency should ensure thorough review of the demonstration and test report to validate the necessity and effectiveness of the SWOOP OS.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- Reliance on a single vendor for critical OS demonstration
Tags
electronic-computer-manufacturing, department-of-defense, al, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.7 million to SYSTEMS INTELLIGENCE, LLC. SWOOP OPERATING SYSTEM DEMONSTRATION AND TEST REPORT
Who is the contractor on this award?
The obligated recipient is SYSTEMS INTELLIGENCE, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $9.7 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-03-31.
What is the justification for not competing this contract under SAP, and what specific capabilities does the SWOOP OS offer that warrant a limited competition approach?
The provided data states the contract was 'NOT COMPETED UNDER SAP'. A detailed justification would typically be required by federal acquisition regulations for such a decision. This justification would likely outline unique capabilities, proprietary technology, or urgent needs that only Systems Intelligence, LLC could fulfill, thereby necessitating a limited competition or sole-source award to ensure mission success for the Missile Defense Agency.
How will the Missile Defense Agency ensure fair pricing and value for money when the contract was not competitively bid?
The agency should conduct a thorough price analysis based on historical data, independent cost estimates, and market research, even for a limited competition. Robust oversight of the contractor's performance and deliverables is essential to ensure the $9.7M expenditure aligns with the expected outcomes of the SWOOP OS demonstration and test report, mitigating risks associated with non-competitive awards.
What are the potential risks to the Missile Defense Agency's mission if the SWOOP OS demonstration and test report does not meet expectations, given the sole-source award?
The primary risk is that the agency may have invested significant funds ($9.7M) into a system or report that is not fully effective or suitable for its intended purpose. Without competition, there's less assurance of the technology's maturity or the contractor's ability to deliver. This could lead to delays in critical defense capabilities, the need for costly rework, or the procurement of a suboptimal solution.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: HQ086224R0003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,721,734
Exercised Options: $9,721,734
Current Obligation: $9,721,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-27
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-06
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