Dod's $107M Smart Transmission Test System Contract Awarded to Federal Program Integrators, LLC

Contract Overview

Contract Amount: $106,936,448 ($106.9M)

Contractor: Federal Program Integrators, LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-16

End Date: 2015-12-31

Contract Duration: 2,085 days

Daily Burn Rate: $51.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SMART TRANSMISSION TEST SYSTEM

Place of Performance

Location: INDIAN ISLAND, PENOBSCOT County, MAINE, 04468

State: Maine Government Spending

Plain-Language Summary

Department of Defense obligated $106.9 million to FEDERAL PROGRAM INTEGRATORS, LLC for work described as: SMART TRANSMISSION TEST SYSTEM Key points: 1. The contract value is substantial at over $106.9 million. 2. The award was not available for competition, raising questions about price discovery. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. The sector is Industrial Machinery Manufacturing, a niche area within defense procurement.

Value Assessment

Rating: questionable

The contract value is high, but the pricing structure (Cost Plus Fixed Fee) and lack of competition make it difficult to assess value for money without further data. Benchmarking is challenging due to the specific nature of the system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This likely impacted the government's ability to achieve the lowest possible price through robust market vetting.

Taxpayer Impact: The lack of competition and cost-plus contract type may lead to higher taxpayer costs than a competitively bid, fixed-price contract.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration of the contract (over 5 years) suggests a significant, ongoing need for this system. The specific nature of the 'SMART TRANSMISSION TEST SYSTEM' implies a specialized defense application.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No small business participation indicated

Positive Signals

Awarded to a specific company, indicating a potential long-term relationship.
Contract duration suggests a critical need for the system.

Sector Analysis

This contract falls under the Industrial Machinery Manufacturing sector, specifically for a specialized test system for the Department of Defense. Spending in this niche area is often driven by unique defense requirements rather than broad market trends.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may have been missed.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for limited competition was sound and that the government received fair pricing. The contract type also requires diligent monitoring of costs.

Related Government Programs

All Other Industrial Machinery Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition limits price discovery.
Cost Plus Fixed Fee contract type can lead to cost overruns.
No indication of small business participation.
High contract value requires diligent oversight.
Specific system may have limited market alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.9 million to FEDERAL PROGRAM INTEGRATORS, LLC. SMART TRANSMISSION TEST SYSTEM

Who is the contractor on this award?

The obligated recipient is FEDERAL PROGRAM INTEGRATORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $106.9 million.

What is the period of performance?

Start: 2010-04-16. End: 2015-12-31.

What was the specific justification for awarding this contract on a limited competition basis, and how was the price determined to be fair and reasonable?

The justification for limited competition is crucial for understanding why market forces were not fully leveraged. Without this information, it's difficult to assess if the government explored all viable options to secure competitive pricing. The Cost Plus Fixed Fee structure necessitates rigorous cost monitoring and auditing to ensure the final price reflects actual, allowable costs plus a reasonable fixed fee, rather than an inflated amount.

What are the potential risks associated with a Cost Plus Fixed Fee contract for a specialized system like this, particularly given the lack of competition?

A Cost Plus Fixed Fee (CPFF) contract carries inherent risks, especially when competition is limited. The CPFF structure can incentivize the contractor to incur higher costs, as the fee remains fixed regardless of the total cost. Without competitive pressure, the government has less leverage to negotiate cost reductions. This combination increases the risk of cost overruns and potentially paying more than necessary for the system.

How effective is the 'SMART TRANSMISSION TEST SYSTEM' in meeting the Department of the Army's operational requirements, and has it delivered the expected performance?

Assessing the effectiveness of the 'SMART TRANSMISSION TEST SYSTEM' requires performance metrics and user feedback, which are not provided in the data. While the contract's duration and value suggest a significant need, actual effectiveness hinges on whether the system performs as intended and contributes to the Army's mission objectives. Post-award performance reviews and operational assessments would be necessary to determine its true value.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Penobscot Indian Nation Enterprises (UEI: 832154145)

Address: 31B WABANAKI WAY, INDIAN ISLAND, ME, 04468

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, HUBZone Firm, Native American Tribal Government, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $106,936,448

Exercised Options: $106,936,448

Current Obligation: $106,936,448

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline