DoD awards $53.7M Engineering Services contract to SYSTEMS PLANNING AND ANALYSIS, INC. via sole-source

Contract Overview

Contract Amount: $53,661,399 ($53.7M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-02-08

End Date: 2010-09-30

Contract Duration: 2,060 days

Daily Burn Rate: $26.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: Key points: 1. Contract awarded to a single vendor, limiting competitive pricing. 2. Significant contract value of $53.7M over 5 years. 3. Engineering services sector is critical for defense operations. 4. Lack of competition raises concerns about value for taxpayer money.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure with a duration of 2060 days and a value of $53.7M suggests potential for cost overruns. Without competitive benchmarking, assessing its value against similar engineering services contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process.

Taxpayer Impact: The lack of competition for a $53.7M contract could lead to inefficient use of taxpayer funds, as market-driven pricing pressures are absent.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these engineering services for critical operations. Long contract duration could lock in potentially inflated costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration
Lack of transparency in pricing

Positive Signals

Awarded to a single, potentially specialized vendor
Ensures continuity of critical engineering services

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's technical and operational support. Spending in this sector can vary widely based on project complexity and duration.

Small Business Impact

The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Sole-source awards often provide fewer opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective service delivery. Oversight should focus on cost reasonableness and performance metrics.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency
No indication of small business participation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to SYSTEMS PLANNING AND ANALYSIS, INC.. See the official description on USAspending.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $53.7 million.

What is the period of performance?

Start: 2005-02-08. End: 2010-09-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific research and development requirements. Without further details, it's difficult to ascertain the precise rationale, but it implies a lack of readily available alternatives in the market for the specific services required by the Department of Defense.

How can the government ensure cost-effectiveness in a sole-source, cost-plus-fixed-fee contract?

Ensuring cost-effectiveness in such contracts requires robust government oversight. This includes detailed cost analysis, regular audits of contractor expenditures, and strict adherence to contract terms. Negotiating a fair fixed fee based on realistic cost estimates and establishing clear performance metrics are crucial. The government should also actively seek opportunities to introduce competition in future contract renewals or related procurements.

What is the potential impact of this long-term sole-source contract on future technological advancements in the sector?

Long-term sole-source contracts can potentially stifle innovation by reducing the incentive for the incumbent contractor to invest heavily in new technologies or more efficient methods, as competition is limited. It may also deter other companies from developing competing solutions. However, if the contractor is incentivized and monitored effectively, it could foster deep expertise and lead to specialized advancements within the scope of the contract.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST STE 1, ALEXANDRIA, VA, 08

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline