DoD's $12.3M SATCOM ISEA Support Contract Awarded to Centurum Information Technology Inc

Contract Overview

Contract Amount: $12,335,534 ($12.3M)

Contractor: Centurum Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2024-11-20

End Date: 2029-11-19

Contract Duration: 1,825 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SATELLITE COMMUNICATION (SATCOM) CAPABILITY-BASE (CB) IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to CENTURUM INFORMATION TECHNOLOGY INC for work described as: SATELLITE COMMUNICATION (SATCOM) CAPABILITY-BASE (CB) IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT Key points: 1. Contract focuses on essential engineering services for satellite communication capabilities. 2. Awarded via full and open competition, suggesting a robust market. 3. Performance period spans five years, indicating a long-term need. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The value appears moderate within the context of large defense IT contracts. 6. Geographic location of performance is California.

Value Assessment

Rating: good

The contract value of $12.3 million over five years for SATCOM ISEA support appears reasonable given the specialized nature of the services. Benchmarking against similar engineering support contracts for complex defense systems suggests this is within expected parameters. The Cost Plus Fixed Fee (CPFF) structure, while carrying some risk, allows for flexibility in evolving technical requirements. The fixed fee component provides a degree of cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages innovation. The open competition suggests that the Department of the Navy sought the best value solution from the widest possible pool of contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of technical solutions, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational units relying on satellite communication systems. Services delivered include in-service engineering support, crucial for maintaining and enhancing SATCOM capabilities. The geographic impact is centered in California, where the contractor is located. This contract supports specialized engineering roles within the defense sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely managed.
The long performance period requires sustained oversight to ensure continued value.
Dependence on a single contractor for critical engineering support poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The fixed fee component provides some cost predictability.
Specialized engineering support is critical for maintaining advanced SATCOM capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced satellite communication systems. The defense sector heavily relies on such specialized engineering support to maintain the operational readiness of complex communication networks. Comparable spending in defense IT and engineering services can range from millions to billions, making this a moderate-sized award for a specific, critical function.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific needs of the engineering support required.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Satellite Communications
Naval Information Warfare Systems Command
Engineering Services Contracts
Information Technology Support Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of contractor performance degradation over the long contract duration.
Need for continuous monitoring of technological advancements in SATCOM.
Reliance on a single entity for critical engineering support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to CENTURUM INFORMATION TECHNOLOGY INC. SATELLITE COMMUNICATION (SATCOM) CAPABILITY-BASE (CB) IN-SERVICE ENGINEERING ACTIVITY (ISEA) SUPPORT

Who is the contractor on this award?

The obligated recipient is CENTURUM INFORMATION TECHNOLOGY 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 $12.3 million.

What is the period of performance?

Start: 2024-11-20. End: 2029-11-19.

What is Centurum Information Technology Inc.'s track record with similar DoD contracts?

Centurum Information Technology Inc. has a history of performing various IT and engineering support services for the Department of Defense. While specific details on past SATCOM ISEA support contracts are not immediately available in this data snippet, their portfolio often includes complex system integration, sustainment, and technical support for defense platforms. Reviewing their past performance ratings, contract values, and client agencies (beyond the Navy) would provide a more comprehensive understanding of their capabilities and reliability in executing similar, large-scale engineering efforts. Their experience in related areas suggests a foundational understanding of the requirements for this type of specialized support.

How does the $12.3 million contract value compare to similar SATCOM engineering support contracts?

The $12.3 million contract value over five years, averaging approximately $2.46 million annually, is considered moderate for specialized engineering support within the defense sector, particularly for critical systems like SATCOM. Larger, more comprehensive SATCOM sustainment or development contracts can easily reach tens or hundreds of millions of dollars. However, for focused In-Service Engineering Activity (ISEA) support, which often involves troubleshooting, maintenance planning, and technical guidance rather than full system development, this value appears aligned with industry benchmarks. The specific scope of work and the complexity of the SATCOM systems supported would be key factors in a precise comparison.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns. While the contractor is paid their actual costs plus a predetermined fixed fee, there is less incentive for them to aggressively control costs compared to fixed-price contracts. If the contractor's actual costs exceed initial estimates significantly, the government bears that burden. Effective risk mitigation requires robust government oversight, detailed cost tracking, and clear definition of the scope of work to prevent scope creep, which could inflate costs beyond the initial expectations and the fixed fee.

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

Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages contractors to offer innovative solutions and high-quality services to win the contract. This broad competition increases the likelihood that the government will receive the best possible technical solution at the most reasonable price. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and performance often outweigh these initial investments.

What is the historical spending trend for SATCOM ISEA support within the Department of the Navy?

Historical spending data for SATCOM ISEA support within the Department of the Navy would reveal trends in investment in this critical capability. Analyzing past contracts for similar services would indicate whether spending has been consistent, increasing, or decreasing over time. Factors influencing these trends could include technological advancements in SATCOM, changes in operational requirements, budget allocations, and the number of SATCOM systems under Navy purview. A consistent or increasing spending trend might suggest a growing reliance on or complexity of SATCOM capabilities, necessitating sustained or enhanced ISEA support.

What are the potential performance challenges given the 5-year duration of the contract?

The five-year duration of this contract presents several potential performance challenges. Firstly, maintaining contractor focus and performance levels over such an extended period requires consistent oversight and performance management from the government. Secondly, technology in the SATCOM field evolves rapidly; ensuring the contractor remains current with the latest advancements and adapts their support accordingly is crucial. Thirdly, personnel retention by the contractor can be an issue, as key experienced personnel might leave for other opportunities, impacting institutional knowledge. Finally, the government must actively manage the contract to prevent scope creep or complacency, ensuring the services remain relevant and valuable throughout the entire period.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600124R3500

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 651 ROUTE 73 N STE 107, MARLTON, NJ, 08053

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,694,217

Exercised Options: $73,694,217

Current Obligation: $12,335,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7338

IDV Type: IDC

Timeline