DoD Awards $42.2M for Computer Systems Design, Sole-Source to Fuse Integration, Inc
Contract Overview
Contract Amount: $42,191,647 ($42.2M)
Contractor: Fuse Integration, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-10
End Date: 2025-10-31
Contract Duration: 966 days
Daily Burn Rate: $43.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: RATTLER
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to FUSE INTEGRATION, INC. for work described as: RATTLER Key points: 1. Significant contract value of $42.2 million. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on computer systems design services within the Department of the Navy. 4. Long contract duration of 966 days suggests a substantial project.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the $42.2 million price is optimal compared to market rates for similar computer systems design services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to bid and offer competitive pricing.
Taxpayer Impact: The lack of competition for this $42.2 million contract means taxpayers may be paying a premium, as alternative, potentially lower-cost solutions were not explored.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Navy is receiving specialized computer systems design services. Potential for reduced innovation if alternative vendors are excluded from opportunities. Contract duration impacts long-term resource allocation and planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Specific service for Department of the Navy
- Long-term engagement potential
Sector Analysis
This contract falls under Computer Systems Design Services (NAICS 541512), a sector crucial for modern defense operations. The $42.2 million award is substantial, but without competitive benchmarks, its efficiency is hard to gauge.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). This represents a missed opportunity for small business participation in a significant federal contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract's duration.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can inflate costs.
- No small business participation.
- Long contract duration increases risk exposure.
- Potential for cost overruns without strict oversight.
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to FUSE INTEGRATION, INC.. RATTLER
Who is the contractor on this award?
The obligated recipient is FUSE INTEGRATION, 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 $42.2 million.
What is the period of performance?
Start: 2023-03-10. End: 2025-10-31.
What justification was provided for the sole-source award, and does it align with federal procurement regulations for non-competitive contracts?
Federal regulations allow for sole-source contracts under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification document is necessary to confirm its validity and ensure it meets the stringent criteria for non-competitive awards, thereby protecting taxpayer interests.
How will the Cost Plus Fixed Fee structure be monitored to prevent cost overruns and ensure value for money?
Effective oversight of a Cost Plus Fixed Fee contract requires rigorous monitoring of incurred costs against the estimated cost base. The government must ensure that the contractor's costs are reasonable, allocable, and allowable. Regular audits and performance reviews are essential to manage the fixed fee component and prevent potential cost escalations.
What is the projected impact of these computer systems design services on the Department of the Navy's operational effectiveness?
The computer systems design services are intended to enhance the Department of the Navy's technological capabilities, potentially improving command and control, data processing, or communication systems. The long-term effectiveness will depend on the successful implementation of the designed systems and their integration into existing naval infrastructure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042123R0051
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4863 SHAWLINE STREET SUITE D, SAN DIEGO, CA, 92111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $44,426,508
Exercised Options: $42,956,961
Current Obligation: $42,191,647
Actual Outlays: $1,765,417
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0042122G0002
IDV Type: BOA
Timeline
Start Date: 2023-03-10
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-10-29
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