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 ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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