Navy's $32.3M C4S/Comms Support Contract Awarded to Stratascor, LLC

Contract Overview

Contract Amount: $32,273,378 ($32.3M)

Contractor: Stratascor, LLC

Awarding Agency: Department of Defense

Start Date: 2022-01-01

End Date: 2022-12-31

Contract Duration: 364 days

Daily Burn Rate: $88.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FLEET C4S/COMMS SUPPORT OY2

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to STRATASCOR, LLC for work described as: FLEET C4S/COMMS SUPPORT OY2 Key points: 1. Contract value represents a significant investment in fleet command, control, communications, and intelligence systems. 2. The award to Stratascor, LLC indicates a competitive procurement process, likely ensuring fair market pricing. 3. Performance period of one year suggests a focus on immediate operational needs or a stepping stone for longer-term solutions. 4. The contract type (Firm Fixed Price) shifts cost risk to the contractor, potentially leading to more predictable government spending. 5. Computer Facilities Management Services (NAICS 541513) is a critical sector for maintaining modern defense capabilities. 6. The contract's value is substantial within its specific service category, highlighting its importance to naval operations.

Value Assessment

Rating: good

The contract's value of approximately $32.3 million for a one-year period for fleet C4S/Comms support appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for complex IT and communications support within the Department of Defense suggests this falls within expected spending ranges. The firm-fixed-price contract type further supports value by incentivizing contractor efficiency and cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a robust competitive process where all responsible sources were permitted to submit offers. This approach typically fosters price discovery and allows the government to select the best value solution from a wide pool of qualified contractors. The specific exclusion of sources clause might relate to prior performance or specific technical requirements, but the overall framework suggests significant competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives the most advantageous offer, maximizing the return on investment for public funds.

Public Impact

Naval forces benefit from enhanced command, control, and communication capabilities, crucial for operational effectiveness. The contract supports the maintenance and management of critical IT infrastructure for fleet operations. Geographic impact is likely global, supporting deployed naval assets and shore-based command centers. Workforce implications include potential employment opportunities for IT and communications specialists within Stratascor, LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized systems are implemented without clear exit strategies.
Reliance on a single contractor for critical communications infrastructure could pose a risk if performance degrades.
The firm-fixed-price nature, while beneficial for cost control, could lead to scope creep if not managed meticulously.

Positive Signals

Award to an established contractor suggests a degree of confidence in their ability to deliver.
The firm-fixed-price contract structure aligns government and contractor incentives towards efficient service delivery.
Full and open competition indicates a thorough vetting process and likely competitive pricing.

Sector Analysis

The IT services sector, particularly within defense, is characterized by rapid technological advancement and high demand for specialized expertise. Contracts for command, control, communications, and intelligence (C4S) systems are vital for maintaining military readiness and operational superiority. Spending in this area often involves complex integration, cybersecurity, and ongoing support, making it a significant portion of the defense budget. Comparable spending benchmarks for similar IT support services within the Department of Defense can range widely based on scope, duration, and technology involved.

Small Business Impact

While this contract was awarded to Stratascor, LLC, and the data does not indicate a specific small business set-aside, the analysis of subcontracting opportunities is crucial. Large prime contracts often include provisions for small business participation. The extent to which Stratascor, LLC engages small businesses for specialized support or component provision will significantly impact the small business ecosystem within this sector. Further review of the subcontracting plan would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers, ensuring adherence to the contract terms and performance standards. Accountability measures are embedded within the firm-fixed-price structure and performance metrics. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may remain classified. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Navy C4ISR Programs
Defense Information Systems Network (DISN)
Fleet Readiness Support Contracts
Naval IT Modernization Initiatives

Risk Flags

Potential for performance degradation if contractor resources are overstretched.
Risk of scope creep in evolving C4S/Comms requirements.
Dependence on contractor's cybersecurity posture for critical naval communications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to STRATASCOR, LLC. FLEET C4S/COMMS SUPPORT OY2

Who is the contractor on this award?

The obligated recipient is STRATASCOR, 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 $32.3 million.

What is the period of performance?

Start: 2022-01-01. End: 2022-12-31.

What is Stratascor, LLC's track record with similar Department of Defense contracts, particularly in C4S/Comms support?

Stratascor, LLC has a history of performing IT and communications-related services for the Department of Defense. While specific details on past C4S/Comms support contracts require deeper database analysis, their presence as a prime contractor in this domain suggests prior successful engagements. Evaluating their performance on previous contracts, including any past performance ratings, contract modifications, or disputes, would provide a clearer picture of their reliability and expertise in delivering complex communication solutions for naval operations. Their ability to secure this significant award indicates a positive assessment of their capabilities by the Navy.

How does the $32.3 million contract value compare to the average annual spending on similar fleet C4S/Comms support services by the Navy?

The $32.3 million contract value for one year of fleet C4S/Comms support represents a substantial but not necessarily outlier investment. Average annual spending on such services can fluctuate significantly based on fleet modernization cycles, geopolitical demands, and specific technological upgrades. However, for a comprehensive, year-long support contract covering critical communication infrastructure for a fleet, this figure aligns with the high costs associated with specialized IT services in the defense sector. Benchmarking against similar contracts awarded over the past 3-5 years for comparable scope and duration would provide a more precise comparison, but the amount suggests a significant operational requirement being met.

What are the primary risks associated with this firm-fixed-price contract for fleet C4S/Comms support?

The primary risks with a firm-fixed-price (FFP) contract, even for specialized services like fleet C4S/Comms support, revolve around potential scope creep and contractor performance. While FFP shifts cost risk to the contractor, if the government's requirements evolve or are not clearly defined initially, the contractor may resist changes or seek additional compensation, leading to disputes. Conversely, if the contractor underbids or faces unforeseen technical challenges, they might cut corners on quality or service delivery to maintain profitability, impacting operational readiness. Robust contract management, clear performance metrics, and proactive communication are essential to mitigate these risks.

What is the expected impact of this contract on the Navy's operational readiness and communication capabilities?

This contract is expected to have a direct and positive impact on the Navy's operational readiness and communication capabilities. By ensuring the effective management, maintenance, and potentially upgrade of Command, Control, Communications, Computers, and Intelligence (C4I) systems, it underpins the Navy's ability to conduct missions effectively across various environments. Reliable and secure communications are fundamental to coordinating fleet movements, sharing intelligence, and executing command decisions. The successful execution of this contract should translate to enhanced situational awareness, improved interoperability between assets, and overall greater mission success rates for the supported naval forces.

How has the Navy's spending on Computer Facilities Management Services (NAICS 541513) trended over the past five years?

Analyzing the Navy's spending trends in Computer Facilities Management Services (NAICS 541513) over the past five years would reveal patterns related to modernization efforts, operational tempo, and technological shifts. Generally, defense spending in this area has seen sustained investment due to the increasing reliance on digital infrastructure and cybersecurity. We would expect to see fluctuations driven by major platform procurements, cybersecurity initiatives, and the transition to cloud-based services. A detailed trend analysis would likely show a steady or increasing demand for these services, reflecting the critical role of IT infrastructure in modern naval operations and the ongoing need for expert management and support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N3220518R1015

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3351 STONESHORE RD STE 203, VIRGINIA BEACH, VA, 23452

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,273,378

Exercised Options: $32,273,378

Current Obligation: $32,273,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N3220519D1000

IDV Type: IDC

Timeline