DoD's $33.6M Engineering Services Contract Awarded to Systems Planning and Analysis, Inc. via Sole Source

Contract Overview

Contract Amount: $33,616,556 ($33.6M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-02-24

End Date: 2018-08-31

Contract Duration: 919 days

Daily Burn Rate: $36.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::OT::IGF OVERARCHING PROGRAM MANAGEMENT / ADVANCED SENSORS SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.6 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: IGF::OT::IGF OVERARCHING PROGRAM MANAGEMENT / ADVANCED SENSORS SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of 919 days suggests a long-term need for these services. 3. Cost-plus incentive fee contract type introduces potential for cost overruns. 4. The contract falls under Engineering Services, a broad category with varying market rates. 5. The small business set-aside status is false, indicating no specific preference for small businesses. 6. The contract was awarded by the Department of the Navy, a major defense procurement entity.

Value Assessment

Rating: fair

Benchmarking the value of this $33.6 million contract is challenging without specific performance metrics or comparable sole-source awards. The cost-plus incentive fee structure allows for costs to exceed initial estimates, with the government paying a base fee plus a share of cost savings or overruns. This can lead to less predictable final costs compared to fixed-price contracts. Without detailed breakdowns of labor categories, hours, and rates, a precise per-unit cost comparison is not feasible.

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 typically occurs when only one vendor possesses the unique capabilities or proprietary technology required for the service. The lack of competition means that the government did not benefit from the price reductions that often result from a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust oversight to ensure fair pricing and value.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its advanced sensor programs. This contract likely supports critical defense capabilities related to sensor technology and program management. The geographic impact is primarily within the United States, supporting naval operations and research. Workforce implications include employment for engineers and technical specialists at Systems Planning and Analysis, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus incentive fee structure can lead to cost uncertainty.
Lack of detailed performance metrics makes value assessment difficult.

Positive Signals

Contract awarded to a single, specialized provider (Systems Planning and Analysis, Inc.).
Long contract duration suggests sustained need and potential for stable support.
The contract is for engineering services, a critical component of defense acquisition.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced sensors for the Department of Defense. The market for specialized engineering services in defense is substantial, with significant government spending allocated to research, development, and acquisition of advanced technologies. Comparable spending benchmarks would involve analyzing other sole-source or competed contracts for similar engineering support services within the defense sector.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are direct subcontractors to Systems Planning and Analysis, Inc. without a formal set-aside mandate.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The cost-plus incentive fee structure requires careful monitoring of costs and performance to ensure the government receives value. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Research and Development
Naval Systems Engineering Support
Advanced Sensor Technology Programs
Cost-Plus Contract Management

Risk Flags

Sole-source award
Cost-plus contract type
Limited transparency on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.6 million to SYSTEMS PLANNING AND ANALYSIS, INC.. IGF::OT::IGF OVERARCHING PROGRAM MANAGEMENT / ADVANCED SENSORS SUPPORT

Who is the contractor on this award?

The obligated recipient is SYSTEMS PLANNING AND ANALYSIS, 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 $33.6 million.

What is the period of performance?

Start: 2016-02-24. End: 2018-08-31.

What is the track record of Systems Planning and Analysis, Inc. with the Department of Defense, particularly on sole-source contracts?

Systems Planning and Analysis, Inc. (SPA) has a significant history of contracting with the Department of Defense (DoD), including the Department of the Navy. They specialize in providing analytical and engineering support services. While specific details on their sole-source contract performance require deeper database analysis, SPA is generally recognized for its expertise in areas like naval systems, advanced technologies, and program management. Their long-standing relationship with the DoD suggests a level of trust and capability. However, the nature of sole-source awards means that direct comparisons of their performance against competitors in a bidding scenario are not available for these specific contracts. Further investigation into past performance reviews and any reported issues on similar sole-source contracts would provide a more comprehensive understanding of their track record.

How does the cost-plus incentive fee (CPIF) structure compare to other contract types for similar engineering services?

The Cost-Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and receives an incentive fee based on meeting or exceeding certain performance objectives. Compared to fixed-price contracts, CPIF offers more flexibility for projects with uncertain scope or technical challenges, like advanced sensor development. However, it carries a higher risk of cost growth for the government if performance targets are not met or if costs escalate beyond projections. Other contract types, such as Firm-Fixed-Price (FFP) contracts, offer greater cost certainty but are less suitable for R&D-intensive or evolving requirements. Cost-Plus-Fixed-Fee (CPFF) contracts provide a fixed fee regardless of cost variations, while Cost-Plus-Award-Fee (CPAF) contracts link the fee to subjective performance evaluations. CPIF aims to balance cost control with performance incentives, but requires diligent government oversight to manage effectively.

What are the potential risks associated with a sole-source award for engineering services valued at over $33 million?

The primary risk associated with a sole-source award of this magnitude is the potential for inflated pricing due to the absence of competitive bidding. Without competing offers, the government may not achieve the most cost-effective solution. There's also a risk that the contractor may have less incentive to innovate or improve efficiency if they are the only provider. Furthermore, a sole-source award can create vendor lock-in, making it difficult and costly to switch providers in the future. Ensuring fair and reasonable pricing requires rigorous negotiation and justification from the sole-source provider, along with strong government oversight to validate costs and performance against industry benchmarks, which can be challenging without direct competitive data.

What specific advanced sensor support services does this contract likely encompass?

Given the contract title 'IGF::OT::IGF OVERARCHING PROGRAM MANAGEMENT / ADVANCED SENSORS SUPPORT' and the awarding agency (Department of the Navy), this contract likely encompasses a broad range of services related to the lifecycle management and technical support of advanced sensor systems. This could include program management, systems engineering, technical analysis, requirements definition, acquisition support, testing and evaluation, integration of new sensor technologies, and potentially sustainment planning. The 'OT' designation might refer to 'Other Transaction Authority,' though the award type is listed as 'DEFINITIVE CONTRACT,' suggesting a more traditional procurement. The focus on 'advanced sensors' implies support for cutting-edge technologies used in naval platforms for surveillance, targeting, navigation, or communication.

How has federal spending on engineering services for advanced sensors evolved over the past five years?

Federal spending on engineering services for advanced sensors has likely seen a consistent increase over the past five years, driven by evolving geopolitical landscapes and the continuous need for technological superiority in defense. Agencies like the Department of Defense (DoD) and its branches, such as the Department of the Navy, are major investors in sensor technology research, development, and procurement. This includes advancements in areas like electro-optical, infrared, radar, acoustic, and cyber sensors. The trend reflects a broader push towards modernization of military platforms and the integration of artificial intelligence and machine learning with sensor data. While specific aggregate spending figures require dedicated market research reports, the strategic importance of advanced sensing capabilities suggests sustained and potentially growing investment in related engineering and analytical support services.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002416R5376

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST., SUITE 100, ALEXANDRIA, VA, 22311

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,262,602

Exercised Options: $35,262,094

Current Obligation: $33,616,556

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline