DoD's AUKUS Program Office Support Contract Exceeds $150M for Engineering Services
Contract Overview
Contract Amount: $150,611,434 ($150.6M)
Contractor: Systems Planning and Analysis, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-29
End Date: 2026-12-16
Contract Duration: 1,358 days
Daily Burn Rate: $110.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AUKUS PROGRAM OFFICE SUPPORT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $150.6 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: AUKUS PROGRAM OFFICE SUPPORT Key points: 1. Contract awarded to SYSTEMS PLANNING AND ANALYSIS, INC. for engineering services. 2. Significant funding of $150.6M allocated, indicating a substantial need for specialized support. 3. The contract is not available for competition, raising questions about price discovery. 4. Focus on engineering services suggests a critical role in complex defense initiatives like AUKUS.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without a competitive bidding process, it's difficult to assess if the pricing is optimal compared to market rates for similar engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source or limited competition award. This limits price discovery and potentially increases costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for a contract of this magnitude may result in higher costs for taxpayers compared to a fully competitive procurement.
Public Impact
Supports the critical AUKUS security pact, impacting international relations and defense capabilities. Funding allocated for engineering services highlights the technical complexity and importance of the program. Long contract duration (through 2026) suggests sustained and ongoing support requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- High contract value
Positive Signals
- Supports a high-priority national security initiative (AUKUS)
- Long-term engagement indicates program stability
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense and national security projects. Spending benchmarks for similar large-scale engineering support contracts can vary widely based on scope and duration, but $150M is a significant investment.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. Given the large value and specialized nature of the services, it is likely that larger, established firms are involved, potentially limiting opportunities for small businesses.
Oversight & Accountability
The Department of the Navy is the awarding agency, with the Department of Defense overseeing the broader AUKUS initiative. Oversight will be critical to ensure cost control and effective delivery of engineering services under this non-competitive contract.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with Cost Plus Fixed Fee structure
- Limited transparency on specific services provided
- No clear small business participation noted
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $150.6 million to SYSTEMS PLANNING AND ANALYSIS, INC.. AUKUS PROGRAM OFFICE 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 $150.6 million.
What is the period of performance?
Start: 2023-03-29. End: 2026-12-16.
What specific engineering services are being provided under this contract, and how do they directly contribute to the AUKUS program's objectives?
The contract is for 'Systems Planning and Analysis, Inc.' to provide engineering services. While the exact nature of these services isn't detailed, they likely encompass technical analysis, design support, integration, and strategic planning crucial for the complex, multi-national AUKUS security pact. This support is vital for advancing shared capabilities in areas like cyber, AI, and quantum technologies, as well as advanced maritime capabilities.
Given the 'NOT AVAILABLE FOR COMPETITION' status, what measures are in place to ensure the government receives fair and reasonable pricing for these engineering services?
With a limited competition award, the government relies on robust negotiation strategies and cost analysis techniques to ensure fair and reasonable pricing. This includes detailed review of the contractor's proposed costs, comparison with historical data for similar services, and potentially independent government cost estimates. However, the absence of a competitive environment inherently reduces the pressure for the lowest possible price.
How will the effectiveness of SYSTEMS PLANNING AND ANALYSIS, INC.'s support be measured to ensure the AUKUS program meets its strategic goals?
Effectiveness will likely be measured through performance metrics defined in the contract, such as timely delivery of technical reports, successful completion of analytical tasks, and adherence to program milestones. Regular progress reviews between the Navy and the contractor, along with feedback from AUKUS program stakeholders, will be essential to gauge the quality and impact of the engineering support provided.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002423R2103
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2001 N BEAUREGARD ST, 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: $277,742,414
Exercised Options: $253,951,053
Current Obligation: $150,611,434
Actual Outlays: $340,343
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $15,476,472
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-29
Current End Date: 2026-12-16
Potential End Date: 2026-12-16 00:00:00
Last Modified: 2025-12-22
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