DoD's $9.8M contract for Air-to-Air Missiles/Strike Defense Suppression Weapons awarded to Synectic Solutions, Inc

Contract Overview

Contract Amount: $9,845,985 ($9.8M)

Contractor: Synectic Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-01

End Date: 2012-08-21

Contract Duration: 2,120 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: AIR TO AIR MISSILES/STRIKE DEFENSE SUPPRESSION WEAPONS

Place of Performance

Location: PATUXENT RIVER, ST. MARY'S County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to SYNECTIC SOLUTIONS, INC. for work described as: AIR TO AIR MISSILES/STRIKE DEFENSE SUPPRESSION WEAPONS Key points: 1. Contract value of $9.8M for specialized defense weapons. 2. Synectic Solutions, Inc. is the sole awardee. 3. Contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. The procurement falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) contract structure can lead to higher costs if not managed effectively, as it incentivizes contractor performance beyond base cost. Benchmarking against similar CPAF contracts for defense systems is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award fee structure needs careful monitoring to ensure price discovery and prevent cost overruns.

Taxpayer Impact: Taxpayer funds are utilized for advanced defense capabilities. Effective oversight of the CPAF structure is crucial to ensure the $9.8M delivers optimal value and avoids unnecessary expenditure.

Public Impact

Enhances national defense capabilities with advanced missile and suppression weapon systems. Supports military readiness and operational effectiveness in air-to-air combat scenarios. Potential for technological advancements in defense weaponry through performance incentives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep with CPAF contract type.
Limited visibility into specific performance metrics driving award fees.
Long contract duration (2120 days) increases risk of scope changes or obsolescence.

Positive Signals

Awarded under full and open competition.
Focus on performance incentives through CPAF.
Supports critical national defense mission.

Sector Analysis

This contract is within the defense sector, specifically focusing on advanced weapon systems. Spending benchmarks for similar engineering services and weapon system development contracts are typically high due to R&D and specialized requirements.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract's Cost Plus Award Fee structure necessitates robust oversight from the Department of the Navy to ensure performance targets are met and costs are controlled. Regular audits and performance reviews are essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Award Fee (CPAF) structure can lead to higher costs.
Long contract duration increases risk of obsolescence and scope creep.
Lack of detail on specific performance metrics for award fee.
Potential for contractor to prioritize fee achievement over strict cost control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to SYNECTIC SOLUTIONS, INC.. AIR TO AIR MISSILES/STRIKE DEFENSE SUPPRESSION WEAPONS

Who is the contractor on this award?

The obligated recipient is SYNECTIC SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2006-11-01. End: 2012-08-21.

What specific performance metrics are tied to the award fee, and how are they measured to ensure fair and effective incentive alignment?

The specific performance metrics tied to the award fee are not detailed in the provided data. Typically, for a Cost Plus Award Fee (CPAF) contract, these metrics would relate to technical performance, schedule adherence, cost control, and management effectiveness. The Department of the Navy would establish objective and subjective criteria for evaluating Synectic Solutions, Inc.'s performance against these metrics, with the award fee determined based on the degree to which these targets are achieved or exceeded.

Given the CPAF structure and the nature of defense systems, what are the primary risks to cost control and taxpayer value?

The primary risk to cost control with a CPAF contract is the potential for 'cost creep' if the award fee criteria are too broad or poorly defined, incentivizing the contractor to incur additional costs to achieve higher fees. For defense systems, the inherent complexity and evolving threat landscape can also lead to scope changes, further impacting costs. Ensuring rigorous oversight and clearly defined performance metrics are crucial to mitigate these risks and protect taxpayer value.

How does the long contract duration (2120 days) impact the effectiveness and relevance of the delivered defense systems?

A long contract duration of 2120 days (approximately 5.8 years) for advanced defense systems presents a significant risk of technological obsolescence and potential misalignment with evolving military requirements. While it allows for sustained development and integration, it necessitates continuous monitoring and adaptation. The effectiveness hinges on the contractor's ability to maintain cutting-edge technology and the DoD's agility in managing scope adjustments to ensure the final systems remain relevant and capable throughout their lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3268

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 400 MOBIL AVE, CAMARILLO, CA, 26

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,184,628

Exercised Options: $10,184,628

Current Obligation: $9,845,985

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4130

IDV Type: IDC

Timeline