DoD awards $215.8M for Computer Systems Design Services to SMARTRONIX, LLC under full and open competition
Contract Overview
Contract Amount: $215,800,139 ($215.8M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2019-03-30
End Date: 2025-11-01
Contract Duration: 2,408 days
Daily Burn Rate: $89.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $215.8 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF Key points: 1. Contract awarded to SMARTRONIX, LLC for computer systems design services. 2. Significant contract value of $215.8 million over its period of performance. 3. Procured via full and open competition, indicating a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can pose cost control challenges. 5. The period of performance extends to November 2025.
Value Assessment
Rating: good
The contract value of $215.8M for computer systems design services appears reasonable given the 2408-day duration. Benchmarking against similar contracts for complex IT services is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market competition and potentially lower prices.
Public Impact
Ensures continued availability of critical computer systems design services for the Department of the Navy. Supports technological advancements and maintenance of defense-related IT infrastructure. Potential for job creation within the IT services sector, particularly in Maryland.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may require ongoing monitoring for scope creep and efficiency.
- Potential for vendor lock-in if specific proprietary systems are developed.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract supports essential IT services for a major government agency.
- Clear period of performance with defined end date.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is crucial for modernizing government operations and defense capabilities. Benchmarks for similar large-scale IT service contracts vary widely based on complexity and duration.
Small Business Impact
The contract was awarded to SMARTRONIX, LLC, a large business. There is no explicit indication of small business subcontracting goals within the provided data, which warrants further investigation to ensure small business participation.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight to ensure cost efficiency and adherence to scope. Regular performance reviews and audits will be critical for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (approx. 6.7 years).
- No explicit small business subcontracting information provided.
- Potential for vendor lock-in depending on system specifics.
- Complexity of IT services requires diligent oversight.
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $215.8 million to SMARTRONIX, LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is SMARTRONIX, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $215.8 million.
What is the period of performance?
Start: 2019-03-30. End: 2025-11-01.
What specific computer systems design services are included in this contract, and how do they align with current and future Navy IT needs?
The contract specifies 'Computer Systems Design Services' under NAICS code 541512. This typically encompasses designing and integrating computer hardware and software systems. For the Navy, this likely includes network infrastructure, cybersecurity solutions, data management systems, and potentially specialized command and control systems. Alignment with future needs would depend on the specific technical requirements and modernization roadmaps of the Department of the Navy, which are not detailed in the provided data.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The primary risk with CPFF contracts is that the contractor is reimbursed for all allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control costs, as higher costs do not reduce their profit margin (the fee is fixed). This structure can lead to cost overruns if not managed diligently through strong government oversight, detailed cost tracking, and clear performance metrics.
How effectively does the 'full and open competition' method ensure value for money for these complex IT services?
Full and open competition is designed to maximize the number of potential bidders, thereby increasing competition and driving down prices. For complex IT services, this method can be effective if the solicitation clearly defines requirements and evaluation criteria, allowing vendors to propose innovative and cost-effective solutions. However, the effectiveness also depends on the government's ability to accurately assess proposals and manage the contract post-award to ensure the chosen solution delivers the best value over its lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0042119R0016
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 44150 SMARTRONIX WAY STE 200, HOLLYWOOD, MD, 20636
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $219,532,701
Exercised Options: $219,532,701
Current Obligation: $215,800,139
Actual Outlays: $2,355,740
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $36,446,182
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0007
IDV Type: GWAC
Timeline
Start Date: 2019-03-30
Current End Date: 2025-11-01
Potential End Date: 2025-11-01 00:00:00
Last Modified: 2025-11-18
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