DoD awards $8M+ contract for Safety Engineering Support to SPA, Inc

Contract Overview

Contract Amount: $8,047,969 ($8.0M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-17

End Date: 2030-02-15

Contract Duration: 1,886 days

Daily Burn Rate: $4.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SP2012 SAFETY ENGINEERING SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: SP2012 SAFETY ENGINEERING SUPPORT Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. Significant duration (over 6 years) suggests a long-term need for these services. 3. The 'NOT COMPETED' status is a key area for scrutiny. 4. Engineering services sector often involves specialized expertise, potentially limiting competition.

Value Assessment

Rating: questionable

The contract value of $8M+ over 6 years is substantial. Without competitive bids, it's difficult to assess if this pricing is optimal compared to similar engineering support contracts.

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.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for these critical engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock in potentially inflated costs for an extended period. Lack of transparency in the procurement process raises concerns about accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition
Potential for overpayment

Positive Signals

Essential safety engineering support
Experienced contractor

Sector Analysis

This contract falls under Engineering Services (NAICS 541330). Spending in this sector can vary widely based on project complexity and agency needs. Benchmarking is difficult without competitive data.

Small Business Impact

The contract data indicates that small businesses were not involved in this award, as the 'sb' field is false. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

The 'NOT COMPETED' status warrants close oversight to ensure the justification for a sole-source award is valid and that the pricing is fair and reasonable.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to SYSTEMS PLANNING AND ANALYSIS, INC.. SP2012 SAFETY ENGINEERING 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 $8.0 million.

What is the period of performance?

Start: 2024-12-17. End: 2030-02-15.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's impossible to confirm the validity of this decision. Agencies must provide a compelling reason when not competing contracts to ensure taxpayer funds are used efficiently and effectively.

How does the cost-plus-fixed-fee structure impact overall cost control?

Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While this can incentivize efficiency, it also shifts some risk to the government. Close monitoring of costs is crucial to prevent overruns and ensure the fixed fee remains reasonable relative to the work performed.

What are the potential risks associated with a long-term sole-source contract for safety engineering?

Long-term sole-source contracts for safety engineering pose risks such as potential complacency from the contractor, lack of innovation due to reduced competitive pressure, and the possibility of escalating costs over time. Without periodic re-competition, the government may not benefit from market advancements or more competitive pricing.

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: N0003025R1037

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: $43,539,863

Exercised Options: $9,784,757

Current Obligation: $8,047,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline