DoD's $748M Contract for Missile Systems Engineering Services Awarded to Systems Planning and Analysis, Inc

Contract Overview

Contract Amount: $36,675,188 ($36.7M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-04-04

End Date: 2010-09-30

Contract Duration: 1,640 days

Daily Burn Rate: $22.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200607!06A136!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003006C0027 !A!N! !N! ! !20060404!20060930!074814948!074814948!074814948!N!SYSTEMS PLANNING AND ANALYSIS,!2001 N BEAUREGARD ST STE 1!ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002147878!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00030!0001! !

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.7 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: 200607!06A136!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003006C0027 !A!N! !N! ! !20060404!20060930!074814948!074814948!074814948!N!SYSTEMS PLANNING AND ANALYSIS,!2001 N BEAUREGARD ST STE 1!ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEX… Key points: 1. The contract is for engineering technical services related to the TRIDENT II MISSILE program. 2. Awarded to Systems Planning and Analysis, Inc., a single entity, raising questions about competition. 3. The contract duration is over 4 years, indicating a significant long-term investment. 4. The sector is Defense, specifically missile and space systems, a critical area for national security.

Value Assessment

Rating: questionable

The contract value is $748,149,480. Without specific per-unit cost data or benchmarks for similar missile systems engineering services, it is difficult to definitively assess pricing. However, the large value suggests a need for thorough cost analysis.

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 potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition on a nearly $750 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts future budget allocations for defense spending. The focus on strategic missile systems highlights the critical importance of these services to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Sole-source award

Positive Signals

Critical defense program support
Long-term engagement

Sector Analysis

This contract falls within the Defense sector, specifically supporting missile and space systems. Spending in this area is typically high due to national security requirements and the complexity of the technology involved.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is 'N'. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The 'aw' field is 'DCA', which may refer to a specific contracting activity or office. Oversight would involve monitoring contract performance, costs, and ensuring adherence to terms, especially given the sole-source nature.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
High contract value warrants close scrutiny of pricing and performance.
Lack of transparency regarding justification for sole-source award.
Potential for cost overruns in long-term, complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.7 million to SYSTEMS PLANNING AND ANALYSIS, INC.. 200607!06A136!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003006C0027 !A!N! !N! ! !20060404!20060930!074814948!074814948!074814948!N!SYSTEMS PLANNING AND ANALYSIS,!2001 N BEAUREGARD ST STE 1!ALEXANDRIA !VA!22311!01000!510!51!ALEXANDRIA !ALEXANDRIA (CITY) !VIRGINIA !+000002147878!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541330!E! !3! ! ! ! ! !999

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 $36.7 million.

What is the period of performance?

Start: 2006-04-04. End: 2010-09-30.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's impossible to confirm the exact reason, but it's crucial for ensuring the government isn't unnecessarily limiting competition.

How does the cost of these engineering services compare to similar contracts for missile systems?

Benchmarking the cost of these engineering services against similar contracts is challenging without access to detailed cost breakdowns and market research data. Given the sole-source nature, a thorough independent cost analysis by the government is essential to validate the pricing and ensure it represents fair value for the services provided.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators for engineering technical services contracts typically include adherence to schedule, technical accuracy, quality of deliverables, and cost control. The Department of the Navy would be responsible for establishing and monitoring these KPIs to ensure Systems Planning and Analysis, Inc. is meeting the contract's objectives effectively.

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

Financial Breakdown

Contract Ceiling: $24,854,914

Exercised Options: $9,109,775

Current Obligation: $36,675,188

Contract Characteristics

Cost or Pricing Data: YES

Timeline