DoD awards $113M contract for engineering and technical support to IWS 2.0 programs

Contract Overview

Contract Amount: $113,296,034 ($113.3M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-08

End Date: 2026-12-07

Contract Duration: 1,460 days

Daily Burn Rate: $77.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SHALL PROVIDE ENG, TECH, AND PROF SUPP SERV TO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL IWS 2.0 PROGS. THE CONTRACTOR SHALL ALSO PROVIDE ENG, TECH, AND PROF SUPP SERV IN THE AREAS OF ENG AND T&E FOR DEV 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 $113.3 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: SHALL PROVIDE ENG, TECH, AND PROF SUPP SERV TO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL IWS 2.0 PROGS. THE CONTRACTOR SHALL ALSO PROVIDE ENG, TECH, AND PROF SUPP SERV IN THE AREAS OF ENG AND T&E FOR DEV OF ADVANCED AND FUTURE SENSOR SYSTEMS. Key points: 1. The contract focuses on program management and advanced sensor systems development. 2. Systems Planning and Analysis, Inc. is the sole awardee. 3. The contract is for a duration of four years. 4. This award falls under engineering services within the Department of Defense.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) might indicate a broader contract vehicle was used.

Taxpayer Impact: Taxpayer funds are being used for critical defense program support, with the expectation of value derived from the specialized engineering and technical services provided.

Public Impact

Supports the development of advanced and future sensor systems, potentially impacting national security capabilities. Provides essential program management support for Integrated Warfare Systems (IWS) 2.0. The contract duration of four years ensures continuity of services for critical defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of detailed cost breakdown makes per-unit cost benchmarking difficult.
Small business participation is not indicated.

Positive Signals

Awarded under full and open competition.
Supports critical defense programs (IWS 2.0).
Long-term contract duration provides stability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology development. Spending in this sector is substantial, driven by national security priorities and technological advancements.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities exist within this award.

Oversight & Accountability

The Department of the Navy is the contracting agency, responsible for oversight. The contract type and duration will require diligent monitoring to ensure cost control and performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Lack of transparency in detailed cost breakdown.
No explicit mention of small business participation.
Reliance on a single contractor for critical support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.3 million to SYSTEMS PLANNING AND ANALYSIS, INC.. SHALL PROVIDE ENG, TECH, AND PROF SUPP SERV TO IWS 2.0 IN THE AREA OF PROGRAM MANAGEMENT FOR ALL IWS 2.0 PROGS. THE CONTRACTOR SHALL ALSO PROVIDE ENG, TECH, AND PROF SUPP SERV IN THE AREAS OF ENG AND T&E FOR DEV 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 $113.3 million.

What is the period of performance?

Start: 2022-12-08. End: 2026-12-07.

What specific metrics will be used to evaluate the effectiveness of the engineering and technical support provided for IWS 2.0 programs?

Effectiveness will likely be measured through key performance indicators (KPIs) related to program milestones, technical performance of sensor systems, and adherence to project timelines. The contract should outline specific deliverables and acceptance criteria to ensure the support meets the Navy's requirements for IWS 2.0 development and advanced sensor systems.

How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns for these complex engineering services?

Mitigation strategies for CPFF contracts typically involve robust oversight, detailed cost tracking, and regular performance reviews. The Navy will need to establish clear baseline costs, monitor expenditures closely against the fixed fee, and implement change control processes to manage any scope adjustments that could impact the total contract cost.

What is the anticipated return on investment for taxpayers given the $113 million expenditure on engineering and technical support services?

The return on investment is expected through the successful development and deployment of advanced sensor systems and the effective management of IWS 2.0 programs, which are critical for national defense. Quantifying ROI is challenging but can be inferred from improved operational capabilities, enhanced threat detection, and potential cost savings from efficient program execution.

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: N0016422R3007

Offers Received: 3

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: $163,892,905

Exercised Options: $141,189,526

Current Obligation: $113,296,034

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $77,664,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8627

IDV Type: IDC

Timeline