DoD's Navy Awards $10.5M Engineering Services Contract to SPA, Inc. for SSTP Support
Contract Overview
Contract Amount: $10,466,367 ($10.5M)
Contractor: Systems Planning and Analysis, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-11-09
End Date: 2026-12-06
Contract Duration: 1,123 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OPNAV SSTP SUPPORT SERVICES
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.5 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: OPNAV SSTP SUPPORT SERVICES Key points: 1. Contract value of $10.5M for engineering services. 2. Sole-source award to Systems Planning and Analysis, Inc. 3. Potential risk due to lack of competition. 4. Services fall under Engineering Services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The absence of competition raises concerns about the optimal use of taxpayer funds, as a potentially lower price may have been achievable through a competitive bidding process.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source award. Lack of transparency in the procurement process. Potential for reduced innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can be prone to overruns.
- Lack of detailed scope for benchmarking.
Positive Signals
- Contract awarded to a single, potentially specialized vendor.
- Clear contract end dates provided.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for supporting complex government programs. Spending in this sector can vary widely based on project scope and duration.
Small Business Impact
The contract was not awarded to a small business, indicating no direct benefit to small business entities in this specific award.
Oversight & Accountability
Oversight will be critical to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs and that the services delivered meet the Navy's requirements effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Lack of transparency in the procurement justification.
- No small business participation noted.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.5 million to SYSTEMS PLANNING AND ANALYSIS, INC.. OPNAV SSTP SUPPORT SERVICES
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 $10.5 million.
What is the period of performance?
Start: 2023-11-09. End: 2026-12-06.
What is the specific justification for the sole-source award, and were any attempts made to explore competitive options?
The justification for a sole-source award typically involves unique capabilities or a critical need that only one vendor can fulfill. Without further details on the justification, it's difficult to assess if competitive options were adequately explored. This lack of competition raises concerns about potential overpayment and reduced innovation, impacting the overall value for taxpayer investment.
How will the Department of the Navy ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded on a sole-source basis?
Effective oversight is paramount. The Navy must implement rigorous monitoring of costs, regular performance reviews, and clear milestones to manage the Cost Plus Fixed Fee structure. Benchmarking against similar sole-source contracts, if available, and ensuring the fixed fee is reasonable are also crucial steps to mitigate risks and ensure value for taxpayer money.
What is the expected impact of these support services on the OPNAV SSTP program's effectiveness and timeline?
The OPNAV SSTP Support Services are intended to contribute to the program's success by providing essential engineering expertise. The effectiveness and timeline impact depend heavily on the quality of services delivered by Systems Planning and Analysis, Inc., and the alignment of their support with the program's strategic objectives. Close monitoring of deliverables and program milestones will be key.
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: N0003023R7001
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: $19,411,688
Exercised Options: $11,656,267
Current Obligation: $10,466,367
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-09
Current End Date: 2026-12-06
Potential End Date: 2028-12-06 00:00:00
Last Modified: 2025-12-04
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