DoD's $6.2M contract for modeling and simulation services awarded to ISPA TECHNOLOGY LLC

Contract Overview

Contract Amount: $6,195,868 ($6.2M)

Contractor: Ispa Technology LLC

Awarding Agency: Department of Defense

Start Date: 2020-11-30

End Date: 2026-11-29

Contract Duration: 2,190 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE MODELING & SIMULATION SOLICITATION HAS BEEN EXTENDED THROUGH MAY 1, 2020 AT 16:00.

Place of Performance

Location: LITHIA, HILLSBOROUGH County, FLORIDA, 33547

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $6.2 million to ISPA TECHNOLOGY LLC for work described as: THE MODELING & SIMULATION SOLICITATION HAS BEEN EXTENDED THROUGH MAY 1, 2020 AT 16:00. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2190 days (6 years) indicates a long-term need for these services. 3. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges. 4. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 6. The contract is located in Florida, potentially impacting local economic and workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this $6.2 million contract is challenging without more specific details on the scope of work and deliverables. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed closely, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this to similar modeling and simulation contracts would require access to detailed performance metrics and pricing structures of comparable awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the number of bidders can influence price discovery.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and better value. The fact that four companies bid suggests that the government received multiple offers, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The Department of the Navy benefits from advanced modeling and simulation capabilities, likely supporting defense-related research, development, and operational planning. This contract delivers essential engineering services crucial for complex defense projects. The geographic impact is concentrated in Florida, where the contractor is located, potentially creating or sustaining jobs in the region. The contract may have implications for the specialized workforce in modeling and simulation engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to manage costs and prevent overruns.
Limited information on specific performance metrics makes it difficult to assess the contractor's track record on this particular award.
The long duration of the contract necessitates ongoing monitoring to ensure continued value and alignment with evolving needs.

Positive Signals

Awarded through full and open competition, indicating a robust and accessible bidding process.
The contract is a delivery order, suggesting it aligns with a pre-established IDIQ contract, which can streamline procurement.
The contractor, ISPA TECHNOLOGY LLC, is a known entity in the technology and engineering services space.

Sector Analysis

The modeling and simulation sector is a critical component of the defense industry, providing essential tools for design, analysis, training, and testing. This contract fits within the broader engineering services market, which is characterized by specialized expertise and often long-term engagements. Comparable spending benchmarks would depend on the specific type of modeling and simulation required, ranging from aerospace to naval applications.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The focus appears to be on securing the best technical solution through open competition, rather than specifically promoting small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including cost reporting and performance milestones. Transparency is facilitated by the contract award notice, but detailed performance data and cost breakdowns may not be publicly available.

Related Government Programs

Department of Defense Research and Development
Naval Warfare Simulation and Training
Engineering and Technical Services Contracts
Modeling and Simulation Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep Potential
Long-Term Requirement Stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.2 million to ISPA TECHNOLOGY LLC. THE MODELING & SIMULATION SOLICITATION HAS BEEN EXTENDED THROUGH MAY 1, 2020 AT 16:00.

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 $6.2 million.

What is the period of performance?

Start: 2020-11-30. End: 2026-11-29.

What is the specific nature of the modeling and simulation services provided under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330 and involves 'Modeling & Simulation'. However, the exact nature of these services is not detailed. Typically, modeling and simulation in a defense context can encompass a wide range of applications, including but not limited to, developing virtual prototypes, simulating combat scenarios, testing weapon systems performance, training personnel in virtual environments, and analyzing complex operational logistics. The specific deliverables and technical requirements would be outlined in the contract's Statement of Work (SOW), which is not included in the provided data. Further investigation into the contract's SOW would be necessary to understand the precise services rendered.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, common in research and development or complex engineering projects. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns, as the contractor has less incentive to control costs beyond what is necessary to complete the work. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives. For well-defined engineering services, FFP contracts are often preferred by the government for cost predictability, but CPFF can be suitable when innovation and adaptability are paramount, provided robust oversight is in place.

What is ISPA TECHNOLOGY LLC's track record with the Department of Defense or similar agencies?

Information on ISPA TECHNOLOGY LLC's specific track record with the Department of Defense (DoD) or similar agencies is not provided in the data snippet. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review would involve searching federal procurement databases and performance reporting systems. Without this external data, it's impossible to definitively evaluate their past performance on government contracts, which is a key indicator of future reliability and capability.

What are the potential risks associated with a 6-year contract duration for modeling and simulation services?

A 6-year duration for modeling and simulation services presents several potential risks. Firstly, technology in this field evolves rapidly; the systems and methodologies used at the start of the contract may become outdated by its end, potentially reducing effectiveness or requiring costly upgrades. Secondly, requirements can shift significantly over such a long period, especially in defense contexts. The initial scope of work might become misaligned with current strategic needs, leading to inefficiencies or the need for costly contract modifications. Thirdly, long-term contracts can reduce flexibility for the government to adopt new technologies or contractors if better solutions emerge. Finally, maintaining consistent performance and engagement from the contractor over an extended period requires sustained oversight and relationship management to prevent complacency or performance degradation.

How does the number of bidders (4) impact the value proposition for the government in this full and open competition?

Having four bidders in a full and open competition generally suggests a healthy level of market interest and a reasonable degree of competition. This number typically provides the government with multiple viable options, allowing for comparison of technical approaches, past performance, and pricing. A higher number of bidders often correlates with more aggressive pricing as companies vie for the contract. Conversely, if the market for highly specialized modeling and simulation services is limited, four bidders might represent a significant portion of the available qualified contractors. The value proposition is enhanced because the government can select the best overall offer, balancing cost and technical merit, rather than being limited to a single or very few providers, which could lead to higher prices and potentially less optimal solutions.

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: N6133120R3003

Offers Received: 4

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: $16,383,500

Exercised Options: $16,383,500

Current Obligation: $6,195,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7897

IDV Type: IDC

Timeline