DoD's $13.9M program management contract to Synectic Solutions, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $13,890,445 ($13.9M)

Contractor: Synectic Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-03-09

End Date: 2014-11-08

Contract Duration: 2,070 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT SUPPORT

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93033

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to SYNECTIC SOLUTIONS, INC. for work described as: PROGRAM MANAGEMENT SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2070 days (approx. 5.7 years) indicates a long-term need for program management support. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting specialized technical expertise was required. 5. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contract was awarded by the Defense Contract Management Agency, a key oversight body within the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific $13.9 million contract is challenging without access to the original IDIQ contract details and the specific services rendered. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. The fixed fee component provides some cost control, but the government bears the risk of actual costs incurred by the contractor. Comparing this to similar program management support contracts within the DoD would require detailed service scope and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing value, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring program management support for their initiatives. The services delivered likely include planning, execution, monitoring, and control of defense programs. The geographic impact is primarily within the United States, where the Defense Contract Management Agency operates. Workforce implications include the employment of program managers, analysts, and support staff by the contractor, Synectic Solutions, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to incur higher costs to achieve a fixed profit margin, potentially leading to cost overruns.
Limited competition (3 bidders) may not have fully leveraged market forces to achieve the lowest possible price.
The long contract duration (over 5 years) increases the risk of scope creep or changing requirements not being adequately addressed without contract modifications.
Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and value for money.
The nature of 'program management support' is broad and could mask inefficiencies if not tightly defined and monitored.

Positive Signals

Awarded through 'full and open competition,' which is the preferred method for ensuring broad market access and competitive pricing.
The contract was awarded to Synectic Solutions, Inc., suggesting they possess the necessary qualifications and experience for program management support.
The Defense Contract Management Agency's involvement implies a level of oversight and quality assurance.
The delivery order structure indicates it was part of a potentially larger, pre-vetted contract vehicle, suggesting some level of due diligence.
The fixed fee component in the CPFF contract provides a ceiling on the contractor's profit, offering some cost predictability.

Sector Analysis

The defense sector is characterized by complex, long-term projects requiring specialized program management. Contracts for these services are essential for the efficient execution of military objectives. The market for program management support within the DoD is substantial, with numerous firms competing for these lucrative contracts. This specific contract falls under the broader category of professional, scientific, and technical services, often involving engineering and management consulting.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Synectic Solutions, Inc., is likely a larger entity. There is no direct information on subcontracting plans or their impact on the small business ecosystem from the provided data. Further analysis would be needed to determine if small business subcontracting goals were established and met.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases, but detailed performance data and Inspector General reports would provide a more comprehensive assessment.

Related Government Programs

Defense Program Management Services
Engineering Services Contracts
Department of Defense IT Support Contracts
Professional Services Contracts
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited number of bidders (3) may indicate potential for suboptimal price discovery.
Lack of specific performance metrics makes objective value assessment difficult.
Broad nature of 'program management support' requires diligent oversight to prevent scope creep or inefficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to SYNECTIC SOLUTIONS, INC.. PROGRAM MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is SYNECTIC SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2009-03-09. End: 2014-11-08.

What specific program management functions did Synectic Solutions, Inc. perform under this contract?

The provided data indicates the contract was for 'PROGRAM MANAGEMENT SUPPORT' under NAICS code 541330 (Engineering Services). While specific functions are not detailed, typical program management support within the DoD includes tasks such as strategic planning, resource allocation, risk management, schedule development and tracking, cost estimation and control, performance monitoring, stakeholder communication, and ensuring compliance with regulatory and policy requirements. Given the engineering services classification, it's probable that Synectic Solutions supported programs with significant technical or engineering components, potentially involving oversight of design, development, testing, or deployment phases.

How does the $13.9 million total value compare to similar program management contracts within the DoD?

Comparing the $13.9 million total value requires context regarding the contract's duration and scope. This contract spanned approximately 5.7 years (2070 days). For long-term, complex program management support within the DoD, $13.9 million over nearly six years represents a moderate investment. Larger, more critical programs can involve hundreds of millions or even billions of dollars in program management support over their lifecycles. However, without knowing the specific programs supported and the complexity involved, a direct comparison is difficult. The value should be assessed against the criticality and scale of the programs managed.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here?

The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns. While the contractor's profit is fixed (the 'fee'), they are reimbursed for their actual allowable costs. If the contractor's costs exceed initial estimates, the government pays the higher amount. This can incentivize less cost-consciousness from the contractor, as their profit remains constant regardless of efficiency. Effective oversight, detailed cost tracking, and robust auditing are crucial to mitigate these risks and ensure the contractor operates efficiently within the estimated cost parameters.

What does the 'Delivery Order' award type signify in this context?

The 'Delivery Order' award type signifies that this contract was likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. IDIQ contracts allow agencies to order goods or services up to a certain ceiling amount over a specified period. A delivery order represents a specific task or order placed against that overarching IDIQ contract. This approach streamlines the procurement process for recurring needs, as the foundational contract terms, conditions, and pricing structures have already been negotiated and competed.

How does the Defense Contract Management Agency (DCMA) typically oversee contracts like this?

The Defense Contract Management Agency (DCMA) plays a critical role in overseeing contracts awarded by the Department of Defense. For a contract like this, DCMA would typically provide contract administration services, which can include monitoring contractor performance against contract requirements, verifying cost and pricing data, ensuring compliance with labor laws and regulations, approving payments, and managing contract modifications. Their oversight aims to ensure that the contractor delivers the required program management support effectively, efficiently, and in accordance with the contract terms, safeguarding taxpayer interests.

What is the significance of NAICS code 541330 (Engineering Services) for this program management contract?

The assignment of NAICS code 541330 (Engineering Services) to a 'PROGRAM MANAGEMENT SUPPORT' contract suggests that the program management activities were closely tied to engineering disciplines. This implies that the support required involved technical expertise, potentially overseeing complex engineering projects, systems integration, research and development oversight, or ensuring adherence to engineering standards and best practices. It indicates that the contractor needed personnel with engineering backgrounds or the ability to manage technically complex endeavors, rather than purely administrative program support.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3449

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 400 MOBIL AVE, CAMARILLO, CA, 93010

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,396,963

Exercised Options: $16,396,963

Current Obligation: $13,890,445

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4130

IDV Type: IDC

Timeline