DoD's PEO IWS 2.0 contract awarded to SYSTEMS PLANNING AND ANALYSIS, INC. for $112.3M in engineering and program management support

Contract Overview

Contract Amount: $112,283,031 ($112.3M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-07-21

End Date: 2022-09-30

Contract Duration: 1,897 days

Daily Burn Rate: $59.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROFESSIONAL SUPPORT SERVICES TO PEO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL PEO IWS 2.0 PROGRAMS (RADAR AND ELECTRONIC WARFARE (EW)). THE CONTRACTOR SHALL ALSO PROVIDE ENGINEERING, TECHNICAL, AND PROFESSIONAL SUPPORT SERVICES TO PEO IWS 2.0 IN THE AREAS OF ENGINEERING AND TEST AND EVALUATION FOR DEVELOPMENT OF ADVANCED AND FUTURE SENSOR SYSTEMS.

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $112.3 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROFESSIONAL SUPPORT SERVICES TO PEO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL PEO IWS 2.0 PROGRAMS (RADAR AND ELECTRONIC WARFARE (EW)). THE CONTRACTOR SHALL ALSO PROVIDE ENGINEERING, TECHNICAL, AND PR… Key points: 1. Contract focuses on critical Radar and Electronic Warfare (EW) programs, indicating a need for specialized technical expertise. 2. The duration of the contract (over 5 years) suggests a long-term requirement for sustained support. 3. Awarded under full and open competition, implying a broad search for qualified contractors. 4. The contract type (Cost Plus Fixed Fee) can incentivize cost control while ensuring contractor effort. 5. Services encompass program management, engineering, and test & evaluation, covering a wide range of support needs. 6. The geographic location of performance is Washington D.C., a hub for defense contracting and government operations.

Value Assessment

Rating: good

The contract value of $112.3 million over approximately five years for specialized engineering and program management support to PEO IWS 2.0 appears reasonable given the critical nature of Radar and Electronic Warfare systems. Benchmarking against similar complex defense support contracts, this value aligns with industry standards for high-level technical and programmatic assistance. The Cost Plus Fixed Fee (CPFF) contract type, while potentially leading to higher costs than fixed-price, allows for flexibility in evolving technical requirements and ensures contractor effort is compensated, which can be beneficial for complex R&D and system development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Navy sought proposals from all responsible sources. The presence of two bids suggests a competitive environment, though the exact number of proposals received is not detailed. Full and open competition generally promotes price discovery and allows the government to select the best value offering based on technical merit and cost. The fact that it was competed broadly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most capable and cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the Department of the Navy's Program Executive Office for Integrated Warfare Systems (PEO IWS) 2.0, which receives essential support for its advanced Radar and Electronic Warfare programs. Services delivered include crucial engineering, technical, and professional support for program management, as well as engineering and test & evaluation for sensor systems. The geographic impact is concentrated in Washington D.C., where the contractor will perform the services, supporting the defense acquisition ecosystem in the capital region. Workforce implications include the potential for skilled engineers and program managers to be employed by the contractor, contributing to the specialized defense industry workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher final costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The broad scope of services could lead to potential cost overruns if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical program management and engineering support for multiple PEO IWS 2.0 programs could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract supports critical defense capabilities in Radar and Electronic Warfare, aligning with national security priorities.
The contractor, SYSTEMS PLANNING AND ANALYSIS, INC., has a history of supporting defense programs, indicating relevant experience.
The contract duration of over five years allows for continuity of essential support services for complex programs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a significant segment of the federal contracting market focused on providing specialized technical expertise. The defense sector, particularly in areas like Radar and Electronic Warfare, represents a substantial portion of this market, driven by continuous technological advancement and modernization needs. Spending in this area is often characterized by long-term development cycles and high-value contracts due to the complexity and criticality of the systems involved. Comparable spending benchmarks would involve other large-scale engineering support contracts for major defense acquisition programs.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. The prime contractor, SYSTEMS PLANNING AND ANALYSIS, INC., is not typically classified as a small business. Therefore, the direct impact on small business set-asides is likely minimal. However, the contract may create subcontracting opportunities for small businesses with specialized engineering or technical skills, depending on the prime contractor's subcontracting plan and the specific needs of the PEO IWS 2.0 programs.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers within PEO IWS 2.0. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. The Inspector General of the Department of Defense may also conduct audits or investigations into contract performance and spending to ensure accountability and identify any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases and reporting requirements.

Related Government Programs

PEO IWS Programs
Naval Sea Systems Command (NAVSEA) Contracts
Electronic Warfare Systems Development
Radar Systems Engineering
Defense Program Management Support

Risk Flags

Potential for cost overruns due to CPFF contract type.
Ensuring continuity of critical support if contractor performance issues arise.
Scope creep in complex engineering and program management requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.3 million to SYSTEMS PLANNING AND ANALYSIS, INC.. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ENGINEERING, TECHNICAL, AND PROFESSIONAL SUPPORT SERVICES TO PEO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL PEO IWS 2.0 PROGRAMS (RADAR AND ELECTRONIC WARFARE (EW)). THE CONTRACTOR SHALL ALSO PROVIDE ENGINEERING, TECHNICAL, AND PROFESSIONAL SUPPORT SERVICES TO PEO IWS 2.0 IN THE AREAS OF ENGINEERING AND TEST AND EVALUATION FOR DEVELOPMENT OF ADVANCED AND FUTURE SENSOR SYSTEMS.

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 $112.3 million.

What is the period of performance?

Start: 2017-07-21. End: 2022-09-30.

What is the track record of SYSTEMS PLANNING AND ANALYSIS, INC. in supporting similar defense programs, particularly in Radar and Electronic Warfare?

SYSTEMS PLANNING AND ANALYSIS, INC. (SPA) has a demonstrated history of supporting various defense programs, including those related to command, control, communications, computers, and intelligence (C4I), as well as electronic warfare and radar systems. Their expertise often lies in program management, systems engineering, and technical support for complex defense acquisition efforts. SPA has previously held contracts with agencies such as the Department of the Navy, Department of the Air Force, and Missile Defense Agency, providing services that align with the scope of this PEO IWS 2.0 contract. Their experience suggests a capacity to handle the technical and programmatic demands of advanced sensor systems and integrated warfare capabilities, contributing to the successful execution of critical defense initiatives.

How does the awarded value of $112.3 million compare to other contracts for similar engineering and program management support services within the Department of Defense?

The awarded value of $112.3 million over approximately five years for specialized engineering and program management support to PEO IWS 2.0 is within a typical range for large-scale, complex defense contracts. Contracts supporting critical acquisition programs, especially in areas like Radar and Electronic Warfare, often involve significant funding due to the high level of technical expertise, research and development, and long-term system sustainment required. Benchmarking against similar contracts awarded by Naval Sea Systems Command (NAVSEA) or other Program Executive Offices (PEOs) for advanced systems development and program oversight would likely show comparable values. The Cost Plus Fixed Fee (CPFF) structure also influences the overall financial profile, allowing for cost reimbursement plus a defined profit margin, which is common for services with evolving technical requirements.

What are the key performance indicators (KPIs) used to assess the performance of SYSTEMS PLANNING AND ANALYSIS, INC. under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the provided data, contracts of this nature typically include performance metrics related to schedule adherence, cost control, technical accuracy, and responsiveness to government requirements. For PEO IWS 2.0's Radar and EW programs, KPIs might include timely delivery of technical reports, successful completion of test and evaluation milestones, effective program management support leading to on-time and within-budget program execution, and the quality of engineering analyses provided. Contractor performance is usually assessed through formal evaluations, such as Contractor Performance Assessment Reporting System (CPARS) reviews, which provide a structured framework for rating the contractor's adherence to contractual obligations and overall performance quality.

What is the historical spending trend for engineering and technical support services for PEO IWS 2.0 programs prior to this award?

Historical spending data for PEO IWS 2.0 programs prior to this specific award would require access to detailed federal procurement databases and budget reports. However, it is reasonable to infer that PEO IWS 2.0, responsible for critical Radar and Electronic Warfare systems, has consistently required substantial funding for engineering, technical, and program management support. Such programs often involve multi-year development and sustainment efforts, necessitating ongoing investment in specialized contractor support. Trends in defense spending, particularly in modernization efforts for naval warfare capabilities, would likely indicate a sustained or increasing demand for these types of services over time, making this $112.3 million award part of a larger, ongoing investment in these critical defense areas.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific requirement?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for evolving technical requirements, carries inherent risks. For this PEO IWS 2.0 contract, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as they are reimbursed for allowable costs plus a predetermined fixed fee. This could potentially lead to higher overall expenditures if cost overruns occur. Effective government oversight is crucial to monitor allowable costs, ensure efficiency, and prevent unnecessary spending. Additionally, defining the scope of 'allowable costs' and the 'fixed fee' requires careful negotiation and management to ensure fairness and prevent contractor profit from being disproportionately high relative to the effort expended or risks assumed.

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: N0002416R3208

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST., SUITE 100, 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: $121,510,989

Exercised Options: $121,510,989

Current Obligation: $112,283,031

Actual Outlays: $15,550,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7952

IDV Type: IDC

Timeline