DoD's $84M Engineering Services Contract with SPA Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $84,254,701 ($84.3M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2025-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $46.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ODCS FOR OPERATIONAL CLINS

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $84.3 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: ODCS FOR OPERATIONAL CLINS Key points: 1. Significant contract value of $84.25M awarded to a single vendor. 2. Engineering Services sector sees substantial government spending, but this contract's lack of competition is notable. 3. Risk of inflated costs due to sole-source award and limited price discovery. 4. Potential for improved value through competitive bidding in future procurements.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, raises concerns about cost control. Without competitive benchmarking, it's difficult to assess if the fixed fee and overall pricing are reasonable compared to market rates for similar engineering services.

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. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to drive down the price.

Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than a competitively awarded contract would have achieved.

Public Impact

Taxpayers may be overpaying for engineering services due to the absence of competitive bidding. The Department of the Navy is reliant on a single contractor for critical operational planning services. Future contract awards in this category could benefit from a more competitive approach to ensure best value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of competition

Positive Signals

Long-term contract duration
Specific agency need addressed

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector that consistently sees high government spending. Benchmarks for similar services vary widely, but competitive procurements typically yield better pricing than sole-source awards.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors. The sole-source nature of this large contract suggests limited opportunities for small business prime contractors.

Oversight & Accountability

The sole-source justification and the cost-plus fixed fee structure warrant close oversight to ensure the contractor is delivering value and that costs are managed effectively throughout the contract period.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition may lead to higher costs.
Cost-plus contract type carries inherent cost risk for the government.
Sole-source award limits price discovery and market leverage.
Potential for contractor inefficiency without competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.3 million to SYSTEMS PLANNING AND ANALYSIS, INC.. ODCS FOR OPERATIONAL CLINS

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 $84.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2025-09-30.

What was the justification for awarding this significant contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Agencies typically cite unique capabilities, urgent needs, or lack of market availability. Without this information, it's difficult to assess if the government received the best possible value or if competitive processes could have yielded better results and potentially lower costs.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar engineering services, and what is the potential risk of cost overruns?

Assessing the fixed fee requires benchmarking against similar contracts and industry norms. A CPFF contract shifts some cost risk to the government, and without robust oversight and clear performance metrics, there's a risk of cost overruns if the contractor's efforts are inefficient or scope creep occurs. The lack of competition exacerbates this risk.

What mechanisms are in place to ensure the effectiveness and efficiency of the services provided by Systems Planning and Analysis, Inc., given the sole-source nature of the contract?

Effective oversight mechanisms are crucial for sole-source contracts. This includes rigorous performance monitoring, clear deliverables, regular progress reviews, and strong contract management. Without competition, the government must rely heavily on its internal controls and contract specialists to ensure the contractor is meeting objectives and providing services efficiently and 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

Solicitation ID: N0003020R0019

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: $94,913,370

Exercised Options: $94,029,046

Current Obligation: $84,254,701

Actual Outlays: $3,147,797

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $240,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline