DoD awards $32.6M Nuclear Weapon Surety Support contract to SPA, Inc. via sole-source negotiation

Contract Overview

Contract Amount: $32,617,597 ($32.6M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2025-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $17.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NUCLEAR WEAPON SURETY SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: NUCLEAR WEAPON SURETY SUPPORT Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant value suggests critical, specialized services are being procured. 3. Long duration (5 years) indicates a sustained need for these services. 4. The 'NOT COMPETED' status is a key area for scrutiny.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive benchmarking, assessing the fairness of the fixed fee is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential nuclear weapon surety support services.

Public Impact

Ensures the safety and reliability of nuclear weapons, a critical national security function. Supports the Department of the Navy's strategic deterrence capabilities. Potential for cost inefficiencies due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
CPFF contract type can incentivize cost growth.
Lack of small business participation noted.

Positive Signals

Addresses a critical national security need.
Long-term contract provides stability for essential services.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise. The spending benchmark for this category is highly variable, but the value here is substantial for a single, non-competed award.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the prime contractor is not listed as a small business. This suggests limited opportunities for small businesses to participate in this significant contract.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Robust monitoring by the Department of the Navy is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition.
Potential for cost overruns (CPFF).
No small business participation.
High contract value.
Critical national security service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to SYSTEMS PLANNING AND ANALYSIS, INC.. NUCLEAR WEAPON SURETY 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 $32.6 million.

What is the period of performance?

Start: 2020-04-01. End: 2025-03-31.

What specific justification was provided for the sole-source award of this critical nuclear weapon surety support contract?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required services, often due to unique capabilities, proprietary data, or urgent needs. For nuclear weapon surety, this could relate to highly specialized knowledge, security clearances, or existing infrastructure that only the incumbent contractor possesses, making competition impractical or detrimental to national security.

How is the cost-plus-fixed-fee structure being managed to mitigate potential cost overruns and ensure value for taxpayer money?

Effective management of a CPFF contract involves rigorous oversight of direct costs, detailed audits, and strict adherence to the fixed fee. The procuring agency must establish clear performance metrics and milestones, regularly review the contractor's cost proposals, and ensure that the contractor is incentivized to control expenses. Transparency in reporting and regular progress reviews are essential to prevent uncontrolled cost escalation.

What measures are in place to ensure the effectiveness and quality of the nuclear weapon surety support services provided by SYSTEMS PLANNING AND ANALYSIS, INC.?

Effectiveness is typically ensured through stringent performance standards, key performance indicators (KPIs), and regular quality assurance reviews. The contract likely includes detailed specifications for the services, penalties for non-performance, and mechanisms for feedback and corrective actions. The government's quality assurance personnel play a vital role in monitoring service delivery and ensuring compliance with all technical and security requirements.

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: N0003020R0037

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $38,225,914

Exercised Options: $38,225,914

Current Obligation: $32,617,597

Actual Outlays: $3,590,499

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,440,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline