DoD's $12.4M Engineering Services Contract for EWIF Integration, Awarded to ISPA Technology LLC

Contract Overview

Contract Amount: $12,403,029 ($12.4M)

Contractor: Ispa Technology LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-18

End Date: 2021-08-31

Contract Duration: 1,596 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF EXPEDITIONARY WARFARE INTEGRATION FACILITY. THE CONTRACTOR WILL PROVIDE TECHNICAL AND PROGRAMMATIC SUPPORT TO THE EXPEDITIONARY WARFARE INTEGRATION FACILITY (EWIF) INTEGRATED CONCEPT TEAM (ICT).

Place of Performance

Location: LITHIA, HILLSBOROUGH County, FLORIDA, 33547

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to ISPA TECHNOLOGY LLC for work described as: IGF::OT::IGF EXPEDITIONARY WARFARE INTEGRATION FACILITY. THE CONTRACTOR WILL PROVIDE TECHNICAL AND PROGRAMMATIC SUPPORT TO THE EXPEDITIONARY WARFARE INTEGRATION FACILITY (EWIF) INTEGRATED CONCEPT TEAM (ICT). Key points: 1. Contract provides critical technical and programmatic support for Expeditionary Warfare Integration Facility. 2. Awarded via full and open competition, suggesting a robust market for these services. 3. Contract duration of 1596 days indicates a long-term need for specialized expertise. 4. The cost-plus-fixed-fee (CPFF) structure allows for flexibility but requires careful cost monitoring. 5. Performance is in Florida, potentially impacting local technical workforce and economic activity. 6. The contract value of over $12 million signifies a substantial investment in naval warfare integration.

Value Assessment

Rating: good

The contract value of approximately $12.4 million over nearly four years for specialized engineering and programmatic support appears reasonable given the scope. Benchmarking against similar contracts for technical support to defense integration facilities is challenging without more specific service details. However, the fixed fee component within the CPFF structure suggests a degree of cost control by the government. The number of bids received (3) indicates some level of competition, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Three bids were received, indicating a moderate level of competition for this specialized service. While three bidders is not exceptionally high, it suggests that the market is not overly concentrated and that the government had options to choose from, which can contribute to price discovery and a more competitive outcome.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiaries are the Department of the Navy and the Expeditionary Warfare Integration Facility (EWIF), receiving essential support for their operations. Services delivered include technical and programmatic support crucial for integrating concepts and capabilities in expeditionary warfare. The geographic impact is concentrated in Florida, where the contractor, ISPA Technology LLC, is located and likely performs the work. Workforce implications include the potential for skilled engineering and program management jobs in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely managed.
Limited competition (3 bidders) may not have driven the absolute lowest price possible.
The specific technical and programmatic support details are not fully elaborated, making a precise value assessment difficult.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential offerors.
The contract duration suggests a stable and ongoing need for the services provided.
ISPA Technology LLC's role in supporting a critical defense integration facility highlights its specialized capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and naval warfare integration. The market for such specialized technical and programmatic support is often characterized by a limited number of highly qualified firms with specific domain expertise. Comparable spending benchmarks are difficult to establish without more granular data on the specific services rendered, but the overall value suggests a significant project within the defense R&D and support services sub-sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, ISPA Technology LLC, is likely a mid-to-large-sized business given the contract value and scope.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract's performance work statement and the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Expeditionary Warfare Programs
Naval Warfare Integration
Defense Engineering Services
Technical Support Contracts
Program Management Support

Risk Flags

Cost-plus-fixed-fee contract requires diligent oversight to manage costs.
Limited number of bidders (3) may indicate a niche market or potential barriers to entry.
Specific performance metrics and outcomes are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to ISPA TECHNOLOGY LLC. IGF::OT::IGF EXPEDITIONARY WARFARE INTEGRATION FACILITY. THE CONTRACTOR WILL PROVIDE TECHNICAL AND PROGRAMMATIC SUPPORT TO THE EXPEDITIONARY WARFARE INTEGRATION FACILITY (EWIF) INTEGRATED CONCEPT TEAM (ICT).

Who is the contractor on this award?

The obligated recipient is ISPA TECHNOLOGY 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 $12.4 million.

What is the period of performance?

Start: 2017-04-18. End: 2021-08-31.

What is the track record of ISPA Technology LLC in performing similar defense support contracts?

Assessing ISPA Technology LLC's track record requires a deeper dive into their contract history beyond this single award. Publicly available data often includes contract vehicles, award amounts, and agencies served. To evaluate their performance on similar defense support contracts, one would look for past performance evaluations, any reported issues or disputes, and the successful completion of projects with comparable technical complexity and scope. A review of their portfolio would reveal if they have consistently delivered on time and within budget for other government clients, particularly within the Department of Defense or naval warfare domains. Without specific past performance reports for this contractor, it's difficult to definitively assess their reliability for this specific EWIF support role.

How does the value of this contract compare to similar engineering support services for defense integration facilities?

Directly comparing the $12.4 million value of this contract to similar services is challenging without more specific details on the scope of work and the exact nature of the technical and programmatic support provided. However, contracts for specialized engineering and integration support within the defense sector can range significantly, from a few million to tens or even hundreds of millions of dollars, depending on the complexity, duration, and criticality of the facility or program. Given the 1596-day duration (over 4 years), the value suggests a substantial, long-term engagement. Benchmarking would ideally involve analyzing contracts for support to other naval or joint warfare integration centers, looking at factors like labor rates, overhead, and the specific technical expertise required.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for services like those provided to the EWIF is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a ceiling on the profit. While the government pays the actual allowable costs, the contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) remains constant regardless of cost fluctuations. This necessitates robust government oversight to ensure costs are reasonable, allocable, and allowable. Another risk is scope creep, where the scope of work expands without a corresponding adjustment to the fee, potentially leading to increased costs and contractor dissatisfaction. Effective management and clear definition of the Statement of Work are crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for money in specialized defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, thereby fostering competition. This competitive pressure typically drives down prices and encourages innovation. For specialized defense engineering services, however, the market may be limited to a few highly specialized firms. In such cases, while full and open competition is still the preferred method, the number of bids might be lower (as seen with 3 bidders here). The effectiveness then relies on the government's ability to clearly define requirements and evaluate proposals not just on price but also on technical merit and past performance, ensuring the chosen contractor offers the best overall value, not just the lowest initial price.

What are the implications of awarding this contract in Florida for the local defense industry and workforce?

Awarding this contract to ISPA Technology LLC, presumably based in or operating significantly within Florida, has several implications for the local defense industry and workforce. It signifies Florida's continued importance as a hub for defense contracting and naval operations support. The contract likely creates or sustains high-skilled jobs in engineering, program management, and technical support within the state. Furthermore, it may foster collaboration with other local businesses, including subcontractors or suppliers, strengthening the regional defense industrial base. The presence of such contracts can also attract further investment and talent to the area, reinforcing Florida's position in the national defense landscape.

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: N0002417R3001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6232 KINGBIRD MANOR DR, LITHIA, FL, 33547

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,038,250

Exercised Options: $13,038,250

Current Obligation: $12,403,029

Actual Outlays: $556,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7776

IDV Type: IDC

Timeline