Army Awards $42.8M for Tactical Radios Engineering and Program Management Support to Sigmatech Inc
Contract Overview
Contract Amount: $42,801,844 ($42.8M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2024-02-15
End Date: 2026-03-10
Contract Duration: 754 days
Daily Burn Rate: $56.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AWARD OF RS3-20-0051 FOR THE UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL AND COMMUNICATIONS TACTICAL, PROJECT MANAGER TACTICAL RADIOS SYSTEMS ENGINEERING TECHNICAL ASSISTANCE AND PROGRAM MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to SIGMATECH INC for work described as: AWARD OF RS3-20-0051 FOR THE UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL AND COMMUNICATIONS TACTICAL, PROJECT MANAGER TACTICAL RADIOS SYSTEMS ENGINEERING TECHNICAL ASSISTANCE AND PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, indicating a competitive bidding process. 2. Focus on R&D in physical, engineering, and life sciences, specifically tactical radios. 3. Sigmatech Inc. is the prime contractor for this significant Army program. 4. Contract duration is 754 days, ending in March 2026.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This is common for R&D efforts where final costs may be uncertain. Pricing will be assessed against similar R&D support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense services.
Public Impact
Enhances critical communication systems for the U.S. Army. Supports advanced research and development in tactical radio technology. Ensures program management expertise for complex military projects. Contributes to national defense capabilities through technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not managed closely.
- Reliance on a single awardee for a critical support function.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded through full and open competition.
- Supports a vital Army program.
- Clear end date for services.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on tactical communication systems. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates the prime contractor is Sigmatech Inc. and that small business participation (sb) is false. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The award is managed by the Department of the Army, Program Executive Office, Command, Control and Communications Tactical. Oversight will focus on ensuring adherence to the Cost Plus Fixed Fee structure and successful project delivery.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No explicit small business participation noted.
- Potential for scope creep in R&D.
- Long contract duration requires sustained oversight.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to SIGMATECH INC. AWARD OF RS3-20-0051 FOR THE UNITED STATES ARMY PROGRAM EXECUTIVE OFFICE, COMMAND, CONTROL AND COMMUNICATIONS TACTICAL, PROJECT MANAGER TACTICAL RADIOS SYSTEMS ENGINEERING TECHNICAL ASSISTANCE AND PROGRAM MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SIGMATECH INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.8 million.
What is the period of performance?
Start: 2024-02-15. End: 2026-03-10.
What is the historical performance of Sigmatech Inc. on similar government contracts, particularly those involving Cost Plus Fixed Fee structures?
Assessing Sigmatech Inc.'s past performance on comparable contracts is crucial. Reviewing their track record with Cost Plus Fixed Fee (CPFF) awards, especially within the Department of Defense and for R&D services, will reveal their ability to manage costs effectively and deliver within agreed-upon parameters. This includes examining any past cost overruns, schedule delays, or quality issues to gauge their reliability and predict future performance.
How does the awarded amount compare to the estimated value or budget for this specific R&D support requirement?
Understanding the relationship between the awarded amount ($42.8M) and the government's initial budget or estimate for this R&D support is key to assessing value. If the award is significantly lower than the estimate, it suggests strong competition and good price negotiation. Conversely, if it's close to or exceeds the estimate, further scrutiny of the bidding process and cost drivers may be warranted to ensure taxpayer funds are being used judiciously.
What are the specific performance metrics and deliverables expected under this contract, and how will their achievement be measured?
Defining clear performance metrics and deliverables is essential for evaluating the effectiveness of this contract. The government must have robust mechanisms to track Sigmatech Inc.'s progress against defined objectives in systems engineering, technical assistance, and program management for tactical radios. Regular reviews and objective assessments of these metrics will determine if the contractor is meeting expectations and delivering the intended value and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sigmatech, Inc.
Address: 4901 CORPORATE DR NW STE C, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $157,646,318
Exercised Options: $48,109,653
Current Obligation: $42,801,844
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0133
IDV Type: IDC
Timeline
Start Date: 2024-02-15
Current End Date: 2026-03-10
Potential End Date: 2029-02-14 00:00:00
Last Modified: 2025-09-05
More Contracts from Sigmatech Inc
- Nssi Instructor and Support Services — $103.5M (General Services Administration)
- THE Purpose of This Modification P00037 IS ADD Incremental Funding in Accordance With Federal Acquistion Regulation (FAR) 52.232-22 " Limitation of Funds." — $100.5M (Department of Defense)
- Pks-Sanghott-Allen-Award for Space Systems Engineering and Techincal Assistance (seta) — $85.6M (Department of Defense)
- NEW Task Order for Programmatic Support — $76.6M (Department of Defense)
- Engineering Services — $73.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)