DoD Awards $32.5M Engineering Services Contract to Systems Planning and Analysis, Inc. for SLCM-N SPA UCA

Contract Overview

Contract Amount: $32,536,066 ($32.5M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-12

End Date: 2026-07-11

Contract Duration: 729 days

Daily Burn Rate: $44.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SLCM-N SPA UCA CONTRACT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: SLCM-N SPA UCA CONTRACT Key points: 1. Contract awarded to a single, established vendor. 2. Focus on specialized engineering services for a critical defense program. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited transparency on pricing due to sole-source nature.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure allows for flexibility but can lead to higher costs if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns.

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 a higher price than if multiple vendors had bid, impacting taxpayer value.

Public Impact

Supports the Navy's strategic weapons systems development. Ensures specialized engineering expertise is available for a critical program. Potential for long-term reliance on a single contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost Plus Fixed Fee structure can inflate costs.
Lack of transparency in pricing.
Potential for contractor lock-in.

Positive Signals

Provides critical engineering services.
Supports a key defense initiative.
Contractor has relevant expertise.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and long-term project lifecycles. Spending benchmarks vary widely based on project scope and complexity.

Small Business Impact

The award went to Systems Planning and Analysis, Inc., a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

Oversight will be crucial to manage costs and ensure performance under this sole-source, Cost Plus Fixed Fee contract, especially given its duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding
Potential for cost overruns
Limited transparency on pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to SYSTEMS PLANNING AND ANALYSIS, INC.. SLCM-N SPA UCA CONTRACT

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 $32.5 million.

What is the period of performance?

Start: 2024-07-12. End: 2026-07-11.

What is the estimated total cost if the fixed fee is applied to the full duration and potential cost overruns?

The provided data does not detail the fixed fee percentage or the estimated cost base. Therefore, calculating the total estimated cost, including potential overruns, is not possible. Further analysis would require access to the contract's detailed financial structure and fee arrangements.

What are the specific risks associated with the SLCM-N SPA UCA program that necessitated a sole-source award?

Sole-source awards are typically justified by unique capabilities, urgent needs, or the unavailability of alternative sources. For the SLCM-N SPA UCA program, the justification likely stems from highly specialized technical requirements or intellectual property held exclusively by Systems Planning and Analysis, Inc., making competition impractical or detrimental to program timelines.

How will the Department of Defense ensure effective performance and cost control given the Cost Plus Fixed Fee structure and sole-source nature?

Effective oversight will involve rigorous monitoring of contractor expenditures, performance metrics, and adherence to the Statement of Work. The DoD will likely employ Earned Value Management (EVM) and regular progress reviews to identify and mitigate cost variances and performance issues proactively, ensuring accountability despite the contract type.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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, 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: $98,585,373

Exercised Options: $46,103,183

Current Obligation: $32,536,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline