DoD's $12.17M contract for R&D in physical and engineering sciences awarded to SENTAR, INC

Contract Overview

Contract Amount: $12,171,100 ($12.2M)

Contractor: Sentar, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-10-31

End Date: 2023-10-30

Contract Duration: 1,825 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE OBJECTIVE OF THIS PROGRAM IS TO PROVIDE ENGINEERING RESEARCH AND ANALYSIS, PLANNING, SYSTEMS MAINTENANCE, SYSTEMS OPERATION, SYSTEMS INSTRUCTION, NETWORK MANAGEMENT, AND INFORMATION ASSURANCE MANAGEMENT TO PROVIDE EXPERTISE TO THE COMBAT TRAINING, TESTING AND SIMULATION SUPPORT TO OPERATIONAL UNITS USING HARDWARE IN THE LOOP.

Plain-Language Summary

Department of Defense obligated $12.2 million to SENTAR, INC. for work described as: THE OBJECTIVE OF THIS PROGRAM IS TO PROVIDE ENGINEERING RESEARCH AND ANALYSIS, PLANNING, SYSTEMS MAINTENANCE, SYSTEMS OPERATION, SYSTEMS INSTRUCTION, NETWORK MANAGEMENT, AND INFORMATION ASSURANCE MANAGEMENT TO PROVIDE EXPERTISE TO THE COMBAT TRAINING, TESTING AND SIMULATION SUPPO… Key points: 1. Contract focuses on critical combat training, testing, and simulation support. 2. Services include engineering analysis, planning, systems maintenance, and network management. 3. Hardware-in-the-loop expertise is a key component of the support provided. 4. Contract duration of 5 years indicates a long-term need for these services. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control. 6. This award represents a significant investment in advanced military simulation capabilities.

Value Assessment

Rating: good

The contract's value of $12.17 million over five years suggests a moderate investment in specialized R&D services. Benchmarking against similar contracts for engineering research and analysis in the defense sector would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility but requires careful oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies a competitive process but with specific limitations or exclusions. Understanding the rationale behind the exclusion of certain sources is crucial for assessing the breadth of competition. While competition occurred, the specific nature of the exclusion might limit the number of potential bidders and impact price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process, even if limited, as it aims to secure the best value. However, the exclusion of sources warrants scrutiny to ensure no potential cost savings were foregone.

Public Impact

Operational units benefit from enhanced combat training, testing, and simulation capabilities. Services provided are crucial for maintaining and improving military readiness. The contract supports advanced technological development in defense engineering. Workforce implications include specialized engineering and IT support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' in the competition type needs further clarification to ensure maximum competition.
CPFF contracts require diligent oversight to prevent cost overruns.
The specific nature of 'hardware in the loop' expertise may limit the pool of qualified contractors.

Positive Signals

The contract addresses a critical need for advanced combat simulation and training.
A 5-year duration suggests a stable and predictable requirement, allowing for focused development.
The award to a single contractor implies a focused relationship for specialized services.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This area is critical for defense modernization, involving the development and application of advanced technologies for military operations. Spending in this sector is often characterized by long-term investments, specialized expertise, and a need for close collaboration between government and industry.

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 engage small businesses for specialized support, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements and potential reviews by the Inspector General.

Related Government Programs

Combat Training Systems Development
Military Simulation and Modeling
Defense Engineering Services
Information Assurance Management
Systems Maintenance and Operation

Risk Flags

Competition limitations due to 'Exclusion of Sources'.
Potential for cost overruns with CPFF contract type.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to SENTAR, INC.. THE OBJECTIVE OF THIS PROGRAM IS TO PROVIDE ENGINEERING RESEARCH AND ANALYSIS, PLANNING, SYSTEMS MAINTENANCE, SYSTEMS OPERATION, SYSTEMS INSTRUCTION, NETWORK MANAGEMENT, AND INFORMATION ASSURANCE MANAGEMENT TO PROVIDE EXPERTISE TO THE COMBAT TRAINING, TESTING AND SIMULATION SUPPORT TO OPERATIONAL UNITS USING HARDWARE IN THE LOOP.

Who is the contractor on this award?

The obligated recipient is SENTAR, 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 $12.2 million.

What is the period of performance?

Start: 2018-10-31. End: 2023-10-30.

What is the specific rationale behind the 'Exclusion of Sources' in the competition process for this contract?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the competition was intended to be broad, certain potential sources were deliberately excluded. This exclusion could be due to various reasons, such as proprietary technology, unique capabilities held by specific entities, national security concerns, or prior performance issues with certain contractors. Without further documentation or agency explanation, the precise reasons remain unclear. Understanding this rationale is crucial for assessing whether the exclusion limited competition unnecessarily and potentially impacted the final price or the range of innovative solutions considered by the Department of Defense.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar R&D services in the defense sector?

The CPFF contract type is common for research and development efforts where the scope of work is not precisely defined at the outset, allowing for flexibility as the project evolves. In this structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. Compared to fixed-price contracts, CPFF offers greater flexibility for the government if requirements change but can lead to higher costs if not managed diligently. Other R&D contracts might use Cost Plus Incentive Fee (CPIF) to incentivize performance targets or Firm-Fixed-Price (FFP) for well-defined projects. The choice of CPFF here suggests the DoD anticipated evolving technical requirements and prioritized flexibility over strict cost certainty upfront.

What are the key performance indicators (KPIs) used to measure the success of SENTAR, INC. under this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract focused on engineering research, analysis, planning, and systems support for combat training and simulation, typical KPIs would likely revolve around the technical performance and reliability of the systems developed or maintained, the accuracy and timeliness of engineering analyses, the effectiveness of network management and information assurance, and user satisfaction from operational units. Meeting delivery schedules, adhering to budget constraints (especially concerning the fixed fee), and demonstrating innovation in solutions would also be critical measures of success.

What is the historical spending pattern for similar engineering research and analysis services within the Department of the Army?

The provided data focuses on a single contract award. To assess historical spending patterns for similar services within the Department of the Army, a broader analysis of contract databases (like FPDS or SAM.gov) would be necessary. This would involve querying for contracts under relevant NAICS codes (e.g., 541712) and PSC codes related to R&D and engineering services, specifically within the Army. Such an analysis would reveal trends in contract values, durations, awardees, and competition levels over several fiscal years, providing context for the $12.17 million awarded to SENTAR, INC. and identifying any significant shifts in spending priorities or market dynamics.

What are the potential risks associated with relying on a single contractor for critical combat training and simulation support?

Relying on a single contractor, such as SENTAR, INC. for this $12.17 million contract, presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary knowledge and systems, making it difficult and costly to switch providers. Secondly, reduced competition can lead to complacency and potentially higher prices or less innovation over time. Thirdly, the contractor's financial stability or operational capacity could be a single point of failure; if SENTAR, INC. faces significant challenges, the critical combat training and simulation support could be jeopardized. Finally, a lack of diverse perspectives from multiple vendors might limit the exploration of alternative or more advanced technological solutions.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sentar Inc.

Address: 675 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $13,896,626

Exercised Options: $13,896,626

Current Obligation: $12,171,100

Actual Outlays: $3,993,987

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M16D0010

IDV Type: IDC

Timeline