Dod's $31.5M Mesh Network Manager Support Contract Awarded to Kranze Technology Solutions Inc

Contract Overview

Contract Amount: $31,479,131 ($31.5M)

Contractor: Kranze Technology Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-29

End Date: 2025-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: MESH NETWORK MANAGER (MNM) SUPPORT

Place of Performance

Location: DES PLAINES, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to KRANZE TECHNOLOGY SOLUTIONS INC for work described as: MESH NETWORK MANAGER (MNM) SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Long contract duration of 1827 days suggests a need for sustained support. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. The specific NAICS code (336413) points to a specialized manufacturing sector. 5. Geographic location of performance is Illinois. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the lack of publicly available comparable contract data for MESH NETWORK MANAGER support. The Cost Plus Fixed Fee structure, while common for complex or evolving requirements, carries inherent risks of cost escalation. Without competitive bids or detailed cost breakdowns, it's difficult to definitively assess if the pricing represents fair market value or optimal value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities, proprietary technology, or when urgent circumstances preclude a competitive process. The lack of competition means there was no direct price negotiation driven by multiple bids, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing, potentially resulting in less favorable terms for taxpayers.

Public Impact

The Department of Defense benefits from specialized support for its MESH NETWORK MANAGER system. This contract ensures the continued operation and maintenance of critical network infrastructure. The services delivered are likely to support military communications and operational readiness. Workforce implications may include specialized technical roles within KRANZE TECHNOLOGY SOLUTIONS INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of transparency in pricing due to sole-source nature.
Long contract duration may not reflect evolving technological needs.
No small business set-aside, potentially limiting opportunities for smaller firms.

Positive Signals

Award to a single, potentially specialized vendor ensures continuity of critical support.
Long-term contract provides stability for both the government and the contractor.
The contract is for a specific, likely critical, defense system.

Sector Analysis

The contract falls within the broader aerospace and defense manufacturing sector, specifically related to aircraft parts and auxiliary equipment. This sector is characterized by high technological demands, stringent quality requirements, and often involves specialized components and systems. The market size for such specialized support services can be niche, with a limited number of qualified providers capable of meeting the unique needs of defense agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. The absence of a small business set-aside or subcontracting plan may not significantly impact the broader small business ecosystem, but it does represent a missed opportunity for specific small firms within this niche.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures would be embedded within the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the proprietary aspects of the technology supported. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Aerospace Manufacturing Support
Network Infrastructure Maintenance
Aircraft Parts Manufacturing

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to KRANZE TECHNOLOGY SOLUTIONS INC. MESH NETWORK MANAGER (MNM) SUPPORT

Who is the contractor on this award?

The obligated recipient is KRANZE TECHNOLOGY 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 $31.5 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-09-30.

What is the track record of KRANZE TECHNOLOGY SOLUTIONS INC. with the Department of Defense?

KRANZE TECHNOLOGY SOLUTIONS INC. has a history of contracts with the Department of Defense, though specific details on past performance, including the value and nature of previous awards, are not readily available in this summary data. To fully assess their track record, a deeper dive into contract databases like SAM.gov or FPDS would be necessary to review past performance evaluations, any contract disputes, and the types of services they have previously provided to the DoD. Understanding their history with similar sole-source or cost-plus contracts would also be beneficial in evaluating their reliability and efficiency in delivering complex technical support.

How does the pricing of this contract compare to similar MESH NETWORK MANAGER support contracts?

Direct comparison of pricing for this $31.5 million MESH NETWORK MANAGER (MNM) SUPPORT contract is difficult due to its sole-source award and the specialized nature of the services. Without competitive bids or publicly disclosed cost breakdowns, it's challenging to benchmark against market rates or similar contracts. Typically, sole-source awards, especially those using a Cost Plus Fixed Fee structure, may not achieve the same level of price efficiency as competitively awarded contracts. Further analysis would require access to detailed cost proposals and potentially data on other MNM support contracts, if they exist and were competitively procured.

What are the primary risks associated with this sole-source, Cost Plus Fixed Fee contract?

The primary risks associated with this sole-source, Cost Plus Fixed Fee (CPFF) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than if the contract had been competed. The government has less leverage to negotiate favorable pricing. Secondly, the CPFF contract type, while suitable for uncertain scope or R&D, can incentivize the contractor to incur higher costs, as their fee is fixed regardless of the actual expenses. This increases the risk of cost overruns and requires robust government oversight to manage expenditures effectively and ensure value for money.

How effective is the MESH NETWORK MANAGER (MNM) system supported by this contract?

The effectiveness of the MESH NETWORK MANAGER (MNM) system itself is not directly detailed by the contract data. However, the fact that the Department of Defense has awarded a significant, multi-year contract for its support suggests that the MNM system is considered critical to the agency's operations. The contract's purpose is to ensure the continued functionality, maintenance, and potentially enhancement of this system. The effectiveness of the support provided by KRANZE TECHNOLOGY SOLUTIONS INC. will be a key factor in the overall operational readiness and communication capabilities enabled by the MNM system.

What are the historical spending patterns for MESH NETWORK MANAGER support within the Department of Defense?

Historical spending patterns for MESH NETWORK MANAGER (MNM) support are not explicitly provided in the given data. This contract represents a significant investment of $31.5 million over its duration. To understand historical spending, one would need to analyze past contracts for MNM support, including previous awards to KRANZE TECHNOLOGY SOLUTIONS INC. or other vendors, and their respective values and durations. Analyzing trends in spending for similar network management systems within the DoD could also provide context, but specific data for MNM is required for a precise historical overview.

What is the significance of the NAICS code 336413 in relation to this contract?

The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates that the primary business activity of the contractor, KRANZE TECHNOLOGY SOLUTIONS INC., is related to the manufacturing of parts and auxiliary equipment for aircraft. While the contract is for 'MESH NETWORK MANAGER (MNM) SUPPORT,' this NAICS code suggests that the support is likely tied to aircraft systems or operations where such network management is critical. This implies a specialized technical domain, potentially involving complex integration with aviation platforms and stringent regulatory compliance.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1794 WINTHROP DR, DES PLAINES, IL, 60018

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $43,272,722

Exercised Options: $31,479,180

Current Obligation: $31,479,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001920G0004

IDV Type: BOA

Timeline