DoD Awards $42.3M Engineering Services Contract to SBG Technology Solutions Inc
Contract Overview
Contract Amount: $42,352,952 ($42.4M)
Contractor: SBG Technology Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2017-07-20
End Date: 2022-07-19
Contract Duration: 1,825 days
Daily Burn Rate: $23.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT SERVICES FOR PEO SPACE SYSTEMS.
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $42.4 million to SBG TECHNOLOGY SOLUTIONS INC for work described as: IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT SERVICES FOR PEO SPACE SYSTEMS. Key points: 1. Contract awarded to SBG Technology Solutions Inc. for PEO Space Systems engineering support. 2. Significant contract value of $42.3 million over a 5-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Engineering Services sector (NAICS 541330).
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF contracts for engineering services is recommended to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally promotes competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential engineering support services for space systems, with competition aiming for cost-effectiveness.
Public Impact
Supports critical space systems development for the Department of Defense. Contract duration of 5 years allows for long-term project planning and execution. Potential for technological advancements in space systems due to specialized engineering support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize contractor to increase costs.
- Lack of specific performance metrics in provided data.
- Potential for scope creep in long-term engineering contracts.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense infrastructure.
- Long contract duration allows for sustained support.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for government agencies like the Department of Defense for complex project development. Spending benchmarks for similar engineering support contracts can vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to a small business (SB: false). Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA). The Cost Plus Fixed Fee structure necessitates diligent oversight to manage costs and ensure contractor performance aligns with contract requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No specific performance metrics provided.
- Not awarded to a small business.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.4 million to SBG TECHNOLOGY SOLUTIONS INC. IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT SERVICES FOR PEO SPACE SYSTEMS.
Who is the contractor on this award?
The obligated recipient is SBG TECHNOLOGY SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $42.4 million.
What is the period of performance?
Start: 2017-07-20. End: 2022-07-19.
What is the typical profit margin for Cost Plus Fixed Fee contracts in the defense engineering sector, and how does SBG Technology Solutions Inc.'s fee compare?
Profit margins for CPFF contracts in defense engineering can range from 7-15%, depending on the complexity and risk involved. Without specific details on the fixed fee percentage awarded to SBG Technology Solutions Inc., a direct comparison is difficult. However, the agency's oversight should ensure the fee is reasonable and reflects the level of effort and risk undertaken by the contractor.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured against them?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight requires clearly defined KPIs related to technical performance, schedule adherence, and cost control. The Defense Contract Management Agency (DCMA) should be monitoring these metrics to ensure the contractor meets its obligations and delivers value for taxpayer money.
How does the total contract value of $42.3 million compare to similar engineering support services contracts for PEO Space Systems or equivalent programs?
The $42.3 million contract value over five years represents a significant investment. Benchmarking against similar contracts requires access to a broader dataset of government procurements. Factors such as the specific technologies involved, the level of security clearance required, and the criticality of the space systems supported would influence comparable contract values.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003917R3045
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Document Storage Systems, Inc.
Address: 2 BRITTANY LN, STAFFORD, VA, 22554
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $50,130,581
Exercised Options: $50,130,581
Current Obligation: $42,352,952
Actual Outlays: $5,240,692
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017814D7913
IDV Type: IDC
Timeline
Start Date: 2017-07-20
Current End Date: 2022-07-19
Potential End Date: 2022-07-19 00:00:00
Last Modified: 2024-03-11
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