DoD awards $17.6M for Army SETA support to PM TRADE, with full and open competition

Contract Overview

Contract Amount: $17,572,784 ($17.6M)

Contractor: OST Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-15

End Date: 2026-02-14

Contract Duration: 364 days

Daily Burn Rate: $48.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: TASK ORDER FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT TO PROJECT MANAGER TRAINING DEVICES. (PM TRADE)

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32826

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to OST INC for work described as: TASK ORDER FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT TO PROJECT MANAGER TRAINING DEVICES. (PM TRADE) Key points: 1. Contract value is $17.6M for 1 year of SETA support. 2. Competition was full and open after exclusion of sources. 3. Risk appears moderate given the contract type and duration. 4. Spending is within the Engineering Services sector.

Value Assessment

Rating: good

The contract value of $17.6M for one year of SETA support appears reasonable. Benchmarking against similar engineering services contracts of this scope and duration suggests competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds for essential engineering services.

Public Impact

Supports critical training device programs for the U.S. Army. Ensures technical expertise is available for project management. Impacts personnel involved in Army training and readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in SETA support.
  • Reliance on a single contractor for critical expertise.

Positive Signals

  • Full and open competition ensures best value.
  • Clear contract duration limits long-term commitment.
  • Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under Engineering Services, a sector often characterized by specialized technical expertise. Spending benchmarks for similar SETA support contracts vary based on scope and duration, but this award appears within typical ranges.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The Department of the Army's contracting process, including the use of full and open competition, suggests established oversight. However, ongoing monitoring of performance and adherence to scope is crucial.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for scope creep.
  • Reliance on contractor expertise.
  • No small business participation noted.
  • Contract duration is relatively short, requiring potential re-competition.

Tags

engineering-services, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to OST INC. TASK ORDER FOR SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT TO PROJECT MANAGER TRAINING DEVICES. (PM TRADE)

Who is the contractor on this award?

The obligated recipient is OST 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 $17.6 million.

What is the period of performance?

Start: 2025-02-15. End: 2026-02-14.

What specific technical areas does SETA support encompass for PM TRADE?

SETA support likely includes a range of technical services such as systems engineering, technical analysis, program management support, risk assessment, and potentially acquisition strategy development. The specific focus would be on ensuring the effective development, integration, and sustainment of training devices critical to Army operations.

What are the primary risks associated with this type of SETA contract?

Key risks include potential scope creep, where the contractor's responsibilities expand beyond the initial agreement, leading to cost overruns. Another risk is over-reliance on the contractor's expertise, potentially hindering organic government capability development. Ensuring clear deliverables and performance metrics is vital to mitigate these risks.

How does this contract contribute to the overall effectiveness of Army training programs?

This contract is crucial for ensuring that Army training devices are technically sound, effectively managed, and meet the evolving needs of soldiers. By providing specialized engineering and technical assistance, it helps maintain the quality and relevance of training simulations and equipment, directly impacting operational readiness and soldier proficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 L ST NW SUITE 800, WASHINGTON, DC, 20037

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,607,313

Exercised Options: $17,607,313

Current Obligation: $17,572,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK17D0002

IDV Type: IDC

Timeline

Start Date: 2025-02-15

Current End Date: 2026-02-14

Potential End Date: 2026-02-14 00:00:00

Last Modified: 2025-12-05

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