DoD's $48.8M Contract for Specialized Telecom Support Services Awarded to SMARTRONIX, LLC
Contract Overview
Contract Amount: $48,804,922 ($48.8M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2015-04-14
End Date: 2017-06-15
Contract Duration: 793 days
Daily Burn Rate: $61.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF PROVIDE SUPPORT SERVICES AND INCIDENTAL MATERIALS TO SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION FOR TELECOMMUNICATIONS AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS AND SUBSYSTEMS
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $48.8 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF PROVIDE SUPPORT SERVICES AND INCIDENTAL MATERIALS TO SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION FOR TELECOMMUNICATIONS AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS AND SUBSYSTEMS Key points: 1. Contract awarded to SMARTRONIX, LLC for telecommunications and communication-electronic systems support. 2. The contract value is $48.8 million over a period of 793 days. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. The sector appears to be Information Technology and Defense-related services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar engineering services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for specialized support services, with the expectation of receiving value through competitive procurement.
Public Impact
Ensures critical telecommunications and communication-electronic systems for the Navy are maintained and supported. Supports national defense by providing essential services to specialized communication requirements. The use of a competitive process aims to ensure efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics makes it hard to assess value for money.
- Limited information on the specific nature of 'Special Communications Requirements' (SCR).
Positive Signals
- Awarded under Full and Open Competition.
- Contract supports critical defense communication systems.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on engineering services for telecommunications and communication-electronic systems. Spending benchmarks for similar specialized support services can vary widely based on complexity and security requirements.
Small Business Impact
The data indicates that SMARTRONIX, LLC was the awardee, and there is no explicit mention of small business participation or subcontracting in the provided details. Further investigation would be needed to determine if small businesses were involved.
Oversight & Accountability
The contract was awarded as a Delivery Order under a larger contract, suggesting it has undergone some level of review. However, the specific oversight mechanisms for this particular order are not detailed.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for cost overruns.
- Lack of detailed performance metrics.
- Limited transparency on specific SCR needs.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.8 million to SMARTRONIX, LLC. IGF::OT::IGF PROVIDE SUPPORT SERVICES AND INCIDENTAL MATERIALS TO SPECIAL COMMUNICATIONS REQUIREMENTS (SCR) DIVISION FOR TELECOMMUNICATIONS AND RELATED COMMUNICATION-ELECTRONIC (C-E) SYSTEMS AND SUBSYSTEMS
Who is the contractor on this award?
The obligated recipient is SMARTRONIX, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $48.8 million.
What is the period of performance?
Start: 2015-04-14. End: 2017-06-15.
What specific services are included under 'Support Services and Incidental Materials' for SCR Division?
The provided data lacks specific details on the scope of 'Support Services and Incidental Materials'. It broadly covers telecommunications and communication-electronic systems. A deeper dive into the contract's Statement of Work (SOW) would be necessary to understand the precise nature of the services, including any hardware, software, maintenance, or specialized technical support provided to the SCR Division.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness for these specialized systems?
The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While it allows for flexibility in evolving requirements, it can potentially lead to higher costs if not tightly managed, as the incentive for cost control is reduced compared to fixed-price contracts. Effective oversight is crucial to ensure costs remain reasonable.
What is the strategic importance of these 'Special Communications Requirements' (SCR) to the Department of the Navy?
The 'Special Communications Requirements' (SCR) likely pertain to highly sensitive, classified, or unique communication needs critical for naval operations, intelligence gathering, or command and control. Ensuring the reliability and security of these systems is paramount for national security, making sustained support services essential for maintaining operational readiness and technological advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002415R3269
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Smartronix LLC
Address: 22685 THREE NOTCH RD STE E, CALIFORNIA, MD, 20619
Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $59,466,676
Exercised Options: $59,466,676
Current Obligation: $48,804,922
Subaward Activity
Number of Subawards: 107
Total Subaward Amount: $9,771,204
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017805D4563
IDV Type: IDC
Timeline
Start Date: 2015-04-14
Current End Date: 2017-06-15
Potential End Date: 2017-06-15 00:00:00
Last Modified: 2023-08-31
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