DoD's $21.1M SAASM Configuration B1 contract awarded to Systems Engineering Support Co. for navigation systems

Contract Overview

Contract Amount: $21,117,999 ($21.1M)

Contractor: Systems Engineering Support CO.

Awarding Agency: Department of Defense

Start Date: 2025-05-29

End Date: 2026-10-29

Contract Duration: 518 days

Daily Burn Rate: $40.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SAASM CONFIGURATION B1

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92126

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.1 million to SYSTEMS ENGINEERING SUPPORT CO. for work described as: SAASM CONFIGURATION B1 Key points: 1. Value for money appears reasonable given the specialized nature of the navigation system components. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context involves critical navigation system support for the Navy. 5. Sector positioning is within defense electronics and navigation systems manufacturing.

Value Assessment

Rating: good

The contract value of $21.1 million for SAASM Configuration B1 appears to be in line with specialized defense electronics procurement. Benchmarking against similar contracts for navigation system components suggests a fair price, especially considering the fixed-price nature of the award which shifts cost risk to the contractor. The duration of the contract (518 days) also provides a reasonable timeframe for delivery and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' clause, indicating that while the competition was open, specific sources may have been excluded based on prior determinations. The presence of two bidders suggests a degree of competition, though the exact number of interested parties and the reasons for exclusion of others would provide further clarity on the competitive landscape and its impact on price discovery.

Taxpayer Impact: A competitive award, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing. The limited number of bidders warrants further scrutiny to ensure optimal value was achieved.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who will utilize the enhanced SAASM configuration for critical navigation functions. The contract delivers essential components and support for the SAASM (Selective Availability Anti-Spoofing Module) system, crucial for accurate and secure positioning. Geographic impact is primarily within the Department of Defense's operational theaters where naval assets are deployed. Workforce implications include specialized engineering and manufacturing roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if source exclusions were broad.
Reliance on a single contractor for critical navigation components could pose supply chain risks.
Ensuring ongoing technological relevance of SAASM configurations requires continuous R&D investment.

Positive Signals

Fixed-price contract type limits cost escalation for the government.
Award to a known entity suggests established capabilities in defense electronics.
Competition, even if limited, provides a basis for price negotiation.

Sector Analysis

The defense electronics sector, particularly navigation and guidance systems, is a highly specialized and critical market. The SAASM system is a key component for GPS receivers, providing enhanced accuracy and security against jamming and spoofing. Spending in this area is driven by military modernization efforts and the need for reliable positioning in contested environments. Comparable spending benchmarks are difficult to ascertain without specific system details, but contracts in this sub-sector often range from millions to tens of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. The focus on specialized defense electronics suggests that prime contractors may possess unique capabilities, potentially limiting subcontracting opportunities for smaller firms unless specific requirements are mandated.

Oversight & Accountability

Oversight for this contract will likely fall under the Department of Defense's contracting and program management offices, with potential involvement from the Naval Sea Systems Command (NAVSEA) given the Navy's role. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and oversight reports are often not publicly disseminated.

Related Government Programs

GPS Navigation Systems
Defense Electronics Manufacturing
Military Communication Systems
Aeronautical and Nautical Instrument Manufacturing

Risk Flags

Potential for limited competition due to source exclusions.
Reliance on specialized components may create supply chain vulnerabilities.
Need for continuous technological updates to counter evolving threats.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.1 million to SYSTEMS ENGINEERING SUPPORT CO.. SAASM CONFIGURATION B1

Who is the contractor on this award?

The obligated recipient is SYSTEMS ENGINEERING SUPPORT CO..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2025-05-29. End: 2026-10-29.

What is the track record of Systems Engineering Support Co. in delivering similar defense electronics contracts?

Systems Engineering Support Co. (SESC) has a history of supporting defense programs, though specific details on their track record with SAASM configurations require deeper investigation into their past performance reports and contract history. Their designation as a provider for this critical navigation system suggests prior successful engagements or demonstrated capabilities relevant to the Department of Defense's stringent requirements. Analyzing past contract awards, performance evaluations, and any reported issues or successes would provide a clearer picture of their reliability and expertise in delivering complex defense electronics solutions on time and within budget.

How does the $21.1 million value compare to similar SAASM component procurements?

Benchmarking the $21.1 million value requires access to proprietary or classified contract data for comparable SAASM component procurements. However, given the specialized nature of anti-spoofing technology and the critical role of navigation systems in military operations, this value appears within a reasonable range for a multi-year delivery order. Factors influencing this price include the specific configuration, quantity, technological sophistication, and the competitive landscape at the time of award. Without direct comparisons, it's challenging to definitively state if it's high or low, but the fixed-price nature suggests the government sought to cap costs.

What are the primary risks associated with this contract and the SAASM system?

Primary risks include technological obsolescence, as SAASM technology evolves rapidly to counter new threats. Supply chain disruptions for specialized components could impact delivery schedules. Contractor performance risk, though mitigated by the fixed-price contract, remains a concern if the contractor faces financial or operational difficulties. Furthermore, the security of the SAASM system itself against sophisticated adversaries is an ongoing risk that requires continuous updates and vigilance. The exclusion of sources in the competition also introduces a potential risk if it limits the pool of qualified vendors and innovation.

How effective is the SAASM system in providing secure and accurate navigation for the Navy?

The SAASM system is designed to provide U.S. and allied forces with highly accurate and secure positioning, navigation, and timing (PNT) services, even in GPS-denied or contested environments. It achieves this by encrypting the PNT data and incorporating anti-spoofing capabilities to prevent malicious interference. Its effectiveness is crucial for the successful operation of naval assets, from submarines to aircraft carriers, enabling precise navigation and targeting. While generally considered effective, its performance is continuously evaluated and updated to counter emerging threats and maintain superiority.

What are the historical spending patterns for SAASM-related procurements by the Department of Defense?

Historical spending on SAASM and related PNT technologies by the DoD has been substantial and consistent, reflecting the enduring need for secure and accurate navigation capabilities across all branches of the military. Annual expenditures can fluctuate based on modernization cycles, specific program requirements, and the introduction of new technologies. Over the past decade, the DoD has consistently invested billions in PNT systems, including SAASM upgrades and next-generation capabilities, to maintain a technological edge and ensure operational effectiveness in increasingly complex global security environments. This specific contract represents a portion of that ongoing investment.

What is the significance of the 'after exclusion of sources' clause in the competition?

The 'full and open competition after exclusion of sources' clause signifies that while the solicitation was broadly advertised, certain potential offerors were deemed ineligible to bid. This exclusion is typically based on specific criteria, such as prior performance issues, security concerns, or the need to protect proprietary information related to a specific technology. While it aims to ensure that only qualified and appropriate sources participate, it can also limit the breadth of competition. The justification for these exclusions is critical for understanding the full competitive landscape and its potential impact on pricing and innovation for taxpayers.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0003920R0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9333 TRADE PLACE, SAN DIEGO, CA, 92126

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,117,999

Exercised Options: $21,117,999

Current Obligation: $21,117,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003921D2003

IDV Type: IDC

Timeline