DoD's $11M contract for utility system maintenance awarded to Spectrum Solutions Inc. amid full and open competition

Contract Overview

Contract Amount: $11,002,472 ($11.0M)

Contractor: Spectrum Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2026-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE PREVENTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND DIRECT DIGITAL CONTROL (DDC) SYSTEM AT THE NOLAN BUILDING AND INSCOM WORLDWIDE CORRECTIVE MAINTENANCE.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to SPECTRUM SOLUTIONS INC for work described as: PROVIDE PREVENTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND DIRECT DIGITAL CONTROL (DDC) SYSTEM AT THE NOLAN BUILDING AND INSCOM WORLDWIDE CORRECTIVE MAINTENANCE. Key points: 1. Contract focuses on preventive and corrective maintenance for critical utility monitoring systems. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of five years indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The services are essential for the operational continuity of the Nolan Building and INSCOM worldwide. 6. The contractor, Spectrum Solutions Inc., has been awarded this delivery order. 7. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar maintenance contracts for utility monitoring systems. However, the firm fixed-price structure generally promotes cost control by the contractor. The total value of $11 million over five years for comprehensive maintenance of complex systems appears reasonable, assuming the scope of work is adequately defined and executed. Further analysis would involve comparing the contractor's proposed pricing against industry standards for similar services and assessing the efficiency of the maintenance provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (indicated by 'br': 6029, likely representing bids received or a related metric) suggests a healthy level of competition. This competitive environment is expected to drive down prices and ensure the government receives the best value. The specific number of bids received would provide further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the value of federal spending.

Public Impact

The Department of Defense benefits from the reliable operation of its utility monitoring and control systems. Essential services include preventive maintenance to avoid system failures and corrective maintenance to address issues promptly. The contract supports the operational readiness and infrastructure integrity of the Nolan Building and INSCOM worldwide facilities. Workforce implications may include the need for skilled technicians employed by Spectrum Solutions Inc. to perform maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance requirements are not clearly defined.
Reliance on a single contractor for critical system maintenance could pose a risk if performance issues arise.
Ensuring consistent service quality across all covered facilities worldwide requires robust oversight.

Positive Signals

The firm fixed-price contract type incentivizes the contractor to manage costs effectively.
Award through full and open competition suggests a competitive selection process that likely yielded a strong value proposition.
The five-year duration provides stability for essential maintenance services, ensuring continuity.
The contract addresses both preventive and corrective maintenance, indicating a comprehensive approach to system upkeep.

Sector Analysis

The contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a wide range of companies offering design, development, and support for computer systems. The market size for IT services supporting government infrastructure is substantial, with agencies increasingly relying on sophisticated systems for operations. This contract represents spending on essential IT maintenance and support, crucial for maintaining the operational capabilities of defense agencies.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this contract, as 'sb' is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the competition was likely dominated by larger firms capable of meeting the technical and scale requirements. Further investigation into the subcontracting plan, if any, would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is facilitated through contract award databases. The specific Inspector General jurisdiction would likely be that of the Department of Defense's IG, responsible for overseeing the efficiency and effectiveness of DoD spending and operations.

Related Government Programs

Defense Infrastructure Maintenance
IT Support Services
Facility Management Contracts
Utility Systems Maintenance
Computer Systems Design Services

Risk Flags

Potential for system obsolescence over the contract duration.
Reliance on contractor performance for critical infrastructure.
Cybersecurity risks associated with networked control systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to SPECTRUM SOLUTIONS INC. PROVIDE PREVENTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND DIRECT DIGITAL CONTROL (DDC) SYSTEM AT THE NOLAN BUILDING AND INSCOM WORLDWIDE CORRECTIVE MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is SPECTRUM SOLUTIONS 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 $11.0 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-09-27.

What is the track record of Spectrum Solutions Inc. with government contracts, particularly within the Department of Defense?

Spectrum Solutions Inc. has a history of performing work for the federal government. A review of federal procurement data would reveal the extent and nature of their past contracts, including their performance ratings, any past performance issues, and the types of services they have provided. For this specific contract, the award itself suggests they met the requirements. However, a deeper dive into their contract history, including any awards, penalties, or contract terminations, would provide a more comprehensive understanding of their reliability and capability as a government contractor, especially within the demanding environment of the Department of Defense.

How does the awarded amount of $11 million compare to similar contracts for utility monitoring and control system maintenance?

To benchmark the value, we would need to compare this $11 million contract against similar contracts awarded by the Department of Defense or other federal agencies for the maintenance of Utility Monitoring and Control Systems (UMCS) and Direct Digital Control (DDC) systems. Key comparison points would include contract duration, scope of services (preventive vs. corrective maintenance, specific systems covered), geographic coverage, and the number of bidders. If comparable contracts over a similar five-year period for similar systems were significantly lower, it might indicate this contract is priced above market. Conversely, if it aligns with or is lower than benchmarks, it suggests good value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential performance failures by the contractor leading to system downtime, cost overruns if the fixed-price contract is poorly defined, and cybersecurity vulnerabilities within the monitored systems. Mitigation strategies likely include robust performance metrics and service level agreements (SLAs) within the contract, regular performance reviews, and potentially requiring the contractor to adhere to specific cybersecurity protocols. The firm fixed-price nature shifts some financial risk to the contractor, but the government bears the risk of non-performance. The five-year duration also presents a risk of technological obsolescence if the systems are not updated.

How effective is the maintenance of the UMCS and DDC systems likely to be under this contract?

The effectiveness hinges on several factors: the clarity and comprehensiveness of the contract's scope of work, the contractor's technical expertise and resources, and the government's oversight. The inclusion of both preventive and corrective maintenance suggests a proactive approach aimed at ensuring system reliability and minimizing disruptions. The fact that it was awarded under full and open competition implies that the selected contractor, Spectrum Solutions Inc., was deemed capable of meeting the performance requirements. However, ongoing monitoring of system uptime, response times for corrective actions, and adherence to maintenance schedules will be crucial indicators of effectiveness.

What are the historical spending patterns for utility monitoring and control system maintenance within the Department of Defense?

Historical spending patterns for such maintenance within the DoD are likely substantial, given the critical nature of these systems for military operations and infrastructure. Agencies typically allocate significant budgets to ensure the reliability of building management systems, power grids, and environmental controls. Analyzing past spending on similar contracts, including the number of awards, average contract values, and dominant contractors, would reveal trends. This could indicate whether spending on this specific contract is consistent with historical levels, increasing, or decreasing, and whether there's a trend towards consolidating such services or diversifying providers.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) for this contract?

The NAICS code 541512 signifies that the primary service procured under this contract involves the design, development, and integration of computer systems. While the contract focuses on maintenance of utility monitoring and control systems (UMCS) and Direct Digital Control (DDC) systems, these systems are inherently complex and rely heavily on integrated computer hardware and software. Therefore, the services required likely extend beyond simple mechanical repairs to include software updates, system diagnostics, network integration, and potentially upgrades or modifications to the computer systems that manage these utilities. This code places the contract within the broader IT services industry.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 114 CASTLE DR, MADISON, AL, 35758

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

Financial Breakdown

Contract Ceiling: $14,138,876

Exercised Options: $12,883,603

Current Obligation: $11,002,472

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0039

IDV Type: IDC

Timeline