DoD's Navy IT Support Contract Awarded to Adsnyc Technologies for $5.26M, Covering Operations, Architecture, and Analysis

Contract Overview

Contract Amount: $5,258,569 ($5.3M)

Contractor: Adsync Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2026-04-30

Contract Duration: 365 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT NAVSEALOGCEN.

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to ADSYNC TECHNOLOGIES, INC. for work described as: THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT NAVSEALOGCEN. Key points: 1. The contract focuses on essential IT systems support, including operations, sustainment, architecture, and subject matter expertise. 2. Competition was full and open, suggesting a robust market for these specialized IT services. 3. The contract duration is one year, with a potential for renewal, indicating ongoing need. 4. The award type is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The pricing structure is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 6. The contract is for Engineering Services, aligning with NAICS code 541330.

Value Assessment

Rating: good

The contract value of $5.26 million for a one-year period appears reasonable for specialized IT systems support within the Department of Defense. Benchmarking against similar contracts for IT operations, sustainment, and analysis within the Navy or other defense agencies would provide a more precise value-for-money assessment. The CPFF structure necessitates close monitoring of costs to ensure efficiency and prevent unnecessary expenditures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of 17 bids suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a range of qualified offerors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, benefiting taxpayers by ensuring the government obtains services at a fair market value.

Public Impact

The primary beneficiaries are the Naval Sea Logistics Command (NAVSEALOGCEN) personnel who will receive enhanced IT systems support. Services delivered include critical IT operations, sustainment, architectural planning, systems analysis, and subject matter expertise. The geographic impact is likely concentrated at NAVSEALOGCEN facilities, primarily in Pennsylvania. Workforce implications include the potential for direct employment by Adsnyc Technologies and the utilization of specialized IT skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to achieve a higher fixed fee, requiring diligent oversight.
The specific details of the 'operations and sustainment' tasks are broad and require clear performance metrics to ensure effective service delivery.
Reliance on a single delivery order under a potential IDIQ structure means future task orders will need separate scrutiny.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contractor, Adsnyc Technologies, Inc., has secured a contract with a significant federal agency (Department of the Navy).
The contract specifies clear areas of IT support, suggesting a well-defined requirement.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on government IT infrastructure support and management. The federal IT services market is substantial, with agencies continually investing in maintaining and upgrading their systems. This contract represents a small but critical component of the Department of the Navy's overall IT spending, aimed at ensuring operational readiness and efficiency.

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 for small businesses stemming from a set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Navy contracting officers and technical representatives. Performance will be monitored against the terms and conditions of the Cost Plus Fixed Fee contract, including cost tracking and deliverable completion. Transparency will be maintained through contract reporting mechanisms, and any significant issues or potential fraud could fall under the jurisdiction of the Department of Defense Inspector General.

Related Government Programs

NAVSEA Logistics Command IT Support
Department of Defense IT Services
Naval Operations and Sustainment Contracts
Engineering Services for Federal Agencies

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires careful cost monitoring.
Scope definition for 'operations and sustainment' needs clear performance metrics.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to ADSYNC TECHNOLOGIES, INC.. THIS REQUIREMENT IS TO PROVIDE NAVSEALOGCEN IT SYSTEMS SUPPORT AND MAINTENANCE IN THE AREAS OF OPERATIONS AND SUSTAINMENT, ARCHITECTURE, SYSTEMS ANALYSIS, AND SUBJECT MATTER EXPERTISE AT NAVSEALOGCEN.

Who is the contractor on this award?

The obligated recipient is ADSYNC TECHNOLOGIES, 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 $5.3 million.

What is the period of performance?

Start: 2025-04-30. End: 2026-04-30.

What is the track record of Adsnyc Technologies, Inc. with federal contracts, particularly within the Department of Defense?

Adsnyc Technologies, Inc. has a history of securing federal contracts, primarily within the Department of Defense. While specific details on past performance metrics for this particular company are not provided in the summary data, their ability to win this contract suggests they meet the qualifications set forth by the Navy. A deeper dive into their contract history, including past performance reviews, any past issues, and the types of services they have previously provided to the government, would offer a more comprehensive understanding of their reliability and expertise. Examining their award history for similar IT support and engineering services contracts would be particularly relevant for assessing their suitability for this role.

How does the $5.26 million value compare to similar IT support contracts awarded by the Navy or DoD?

The $5.26 million contract value for a one-year IT support and maintenance requirement is within a typical range for specialized services within the Department of Defense. However, a precise comparison requires benchmarking against contracts with similar scopes of work, duration, and complexity. Factors such as the specific IT systems involved, the level of expertise required (e.g., cybersecurity, cloud integration), and the geographic location of service delivery can significantly influence pricing. Without access to a database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value. The fact that it was awarded under full and open competition with 17 bidders suggests market forces were at play, likely driving the price towards a competitive level.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This can incentivize contractors to incur higher costs, as their profit margin remains constant regardless of the total expenditure. For the government, this necessitates rigorous oversight and cost control measures to ensure that costs are reasonable and allocable to the contract. Effective management of scope, diligent tracking of expenditures, and clear performance metrics are crucial to mitigate the risk of the government paying more than necessary for the services rendered.

What is the expected impact of this contract on the operational effectiveness of NAVSEALOGCEN?

This contract is expected to have a positive impact on the operational effectiveness of NAVSEALOGCEN by ensuring the reliable functioning and continuous improvement of its IT systems. The services cover critical areas such as operations and sustainment, meaning that day-to-day IT operations should be stable and well-maintained. Furthermore, the focus on architecture, systems analysis, and subject matter expertise suggests that the contract will also contribute to the strategic planning and optimization of NAVSEALOGCEN's IT infrastructure. This can lead to enhanced efficiency, better data management, improved cybersecurity posture, and ultimately, stronger support for the command's overall mission.

How has federal spending on IT support services evolved, and where does this contract fit in?

Federal spending on IT support services has consistently been a significant portion of overall government expenditures, driven by the increasing reliance on technology across all agencies. Over the years, there has been a trend towards consolidating IT services, leveraging cloud computing, and enhancing cybersecurity. This contract, focusing on core IT operations, sustainment, and analysis for a specific command (NAVSEALOGCEN), represents a typical, albeit specialized, component of this broader spending. It fits within the category of maintaining and optimizing existing infrastructure, which remains a crucial area of investment even as agencies adopt newer technologies. The value of $5.26 million is modest in the context of the total federal IT budget but vital for the specific operational needs it addresses.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6572624R3000

Offers Received: 17

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Adsync Technologies Inc.

Address: 201 SOUTH F STREET, PENSACOLA, FL, 32502

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

Financial Breakdown

Contract Ceiling: $16,764,521

Exercised Options: $5,424,315

Current Obligation: $5,258,569

Actual Outlays: $2,497

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7040

IDV Type: IDC

Timeline