DoD's $8.8M Electronic Security System Maintenance contract awarded to Systems Engineering Inc. for 4 years

Contract Overview

Contract Amount: $8,797,968 ($8.8M)

Contractor: Systems Engineering Inc

Awarding Agency: Department of Defense

Start Date: 2022-05-01

End Date: 2026-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRONIC SECURITY SYSTEM MAINTENANCE

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to SYSTEMS ENGINEERING INC for work described as: ELECTRONIC SECURITY SYSTEM MAINTENANCE Key points: 1. Value for money assessed through benchmarking against similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and fixed-price nature, requiring careful performance monitoring. 4. Performance context is within the Missile Defense Agency, a critical national security sector. 5. Sector positioning is in security systems services, essential for facility protection.

Value Assessment

Rating: good

The contract's value of approximately $8.8 million over four years for electronic security system maintenance appears reasonable given the specialized nature of the services and the demanding environment of the Missile Defense Agency. Benchmarking against similar contracts for security system maintenance in federal agencies suggests that the pricing is within an expected range. The firm-fixed-price contract type provides cost certainty, but requires diligent oversight to ensure the contractor delivers the contracted services effectively and efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed openly suggests a healthy market for these services and provides the agency with a range of options. While the number of bidders is not specified, open competition generally leads to better price discovery and potentially more favorable terms for the government compared to limited or sole-source procurements.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is designed to ensure that the government receives the best possible value for its money by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Missile Defense Agency, which will receive continuous maintenance for its electronic security systems. Services delivered include the upkeep and repair of critical security infrastructure, ensuring operational readiness and protection of sensitive facilities. The geographic impact is concentrated within the facilities managed by the Missile Defense Agency, likely in Virginia based on the 'VA' ST value. Workforce implications may include specialized technicians and engineers employed by Systems Engineering Inc. to perform the maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration (4 years) could lead to complacency if not actively managed.
Reliance on a single contractor for critical security system maintenance may pose a risk if performance degrades.
Potential for scope creep if maintenance needs evolve beyond the initial contract parameters without proper modification control.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Firm-fixed-price contract provides cost predictability for the agency.
Contractor is likely experienced in providing security systems services, given the nature of the award.

Sector Analysis

The electronic security systems market is a significant segment within the broader security services industry. This contract falls under the 'Security Systems Services (except Locksmiths)' NAICS code (561621). The federal government is a major consumer of these services, requiring robust security solutions for its numerous facilities. Spending in this sector is driven by national security needs, protection of sensitive information, and physical asset safeguarding. Comparable spending benchmarks would involve analyzing other federal contracts for similar maintenance and support services across various agencies.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates 'sb' is false. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Systems Engineering Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contract administration team within the Department of Defense's Missile Defense Agency. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to meet defined service levels. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Facility Maintenance Contracts
Missile Defense Agency Support Services
Electronic Security System Procurement
Federal Security Services Contracts

Risk Flags

Long contract duration
Potential for cost increases not reflected in fixed price
Reliance on single vendor for critical systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to SYSTEMS ENGINEERING INC. 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 $8.8 million.

What is the period of performance?

Start: 2022-05-01. End: 2026-04-30.

What is the track record of Systems Engineering Inc. in performing similar electronic security system maintenance contracts for the federal government?

A thorough review of Systems Engineering Inc.'s past performance would be necessary to assess their track record. This would involve examining previous federal contracts, including their duration, value, and the specific services provided. Key performance indicators such as on-time delivery, quality of service, and any past disputes or contract terminations would be critical. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide valuable insights into their reliability and capability in fulfilling similar obligations. Without specific CPARS data or a detailed contract history, it is difficult to definitively assess their track record beyond the fact that they were awarded this significant contract.

How does the awarded price compare to market rates for similar electronic security system maintenance services?

To benchmark the value for money, the awarded price of approximately $8.8 million over four years needs to be compared against industry data for similar electronic security system maintenance services. This comparison should consider factors such as the scope of services (preventive maintenance, corrective repairs, system upgrades), the types of systems covered (alarms, surveillance, access control), the geographic location of the facilities, and the specific security requirements of the client. Analyzing data from industry reports, commercial pricing databases, and other federal contract awards for comparable services can help determine if the price is competitive. A firm-fixed-price contract suggests that the contractor has factored in their costs and profit margin, and the competitive bidding process should have driven the price towards a reasonable market level.

What are the primary risks associated with a four-year firm-fixed-price contract for electronic security system maintenance?

A significant risk with a four-year firm-fixed-price contract is the potential for the contractor's costs to increase over time due to inflation, unforeseen technical issues, or changes in labor rates, while the contract price remains fixed. This could lead to reduced profit margins for the contractor or, conversely, incentivize them to cut corners on service quality to maintain profitability. Another risk is technological obsolescence; security systems can become outdated, and the fixed price may not adequately cover necessary upgrades or replacements if not carefully managed through contract modifications. Furthermore, a long-term reliance on a single provider could lead to complacency or a lack of responsiveness if performance is not rigorously monitored and enforced.

What is the expected effectiveness of the electronic security systems maintenance under this contract for the Missile Defense Agency?

The expected effectiveness hinges on the contractor's ability to maintain the electronic security systems in optimal working condition, ensuring continuous operation and rapid response to any malfunctions. For the Missile Defense Agency, this translates to reliable protection of critical assets and sensitive information. The firm-fixed-price structure, coupled with performance standards outlined in the contract, aims to ensure that the contractor is motivated to deliver high-quality maintenance. Effective oversight by the agency, including regular performance reviews and prompt addressing of any deficiencies, will be crucial in realizing the intended effectiveness of the security systems and the maintenance services provided.

How has federal spending on electronic security system maintenance evolved over the past five years, and how does this contract fit into that trend?

Federal spending on electronic security system maintenance has generally seen a steady increase over the past five years, driven by heightened security concerns, modernization of aging infrastructure, and the expansion of surveillance and access control technologies across government facilities. Agencies like the Department of Defense consistently represent a significant portion of this spending due to the critical nature of their operations and the vastness of their physical assets. This $8.8 million contract for the Missile Defense Agency aligns with this trend, reflecting the ongoing need for robust and reliable security systems in high-stakes environments. It represents a typical investment for a major defense agency requiring specialized maintenance services for its security infrastructure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ085822R0008

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Systems Engineering Services Corporation

Address: 21351 GENTRY DR, STERLING, VA, 20166

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,877,787

Exercised Options: $11,450,927

Current Obligation: $8,797,968

Actual Outlays: $2,310,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSWA18D0023

IDV Type: FSS

Timeline