DoD Awards $55.8M Contract to SIGMATECH INC for Security Cooperation Support Services

Contract Overview

Contract Amount: $55,857,887 ($55.9M)

Contractor: Sigmatech Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-15

End Date: 2025-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DASA-DE&C SECURITY COOPERATION REQUIREMENTS SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.9 million to SIGMATECH INC for work described as: DASA-DE&C SECURITY COOPERATION REQUIREMENTS SUPPORT SERVICES Key points: 1. Contract value of $55.8M over 5 years. 2. SIGMATECH INC is the sole awardee. 3. Risk of limited competition due to sole awardee. 4. Services fall under Administrative Management and General Management Consulting.

Value Assessment

Rating: fair

The contract's pricing is not directly benchmarked against similar contracts in the provided data. Further analysis would be needed to assess if the $55.8M value is competitive for the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, SIGMATECH INC is the sole awardee, which may indicate limited effective competition or a specific capability match.

Taxpayer Impact: Taxpayer funds are being used for essential security cooperation support services, with the initial price discovery influenced by the competitive bidding process.

Public Impact

Supports Department of the Army's security cooperation initiatives. Ensures continuity of critical administrative and management consulting services. Potential impact on international partnerships and defense cooperation efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole awardee raises questions about competitive pricing.
  • Contract duration of 5 years requires ongoing monitoring.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national security functions.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Benchmarks for similar large-scale support services contracts in the defense sector would be relevant for a comprehensive value assessment.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and SIGMATECH INC is not listed as a small business. There is no direct indication of small business participation in this specific award.

Oversight & Accountability

Oversight will be crucial to ensure SIGMATECH INC delivers on the contract requirements effectively and efficiently, especially given the significant value and duration. The Department of the Army is responsible for contract administration.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited effective competition due to sole awardee.
  • Potential for price creep over the 5-year term.
  • Dependence on a single contractor for critical support.
  • Lack of small business participation.

Tags

administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.9 million to SIGMATECH INC. DASA-DE&C SECURITY COOPERATION REQUIREMENTS 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 $55.9 million.

What is the period of performance?

Start: 2020-09-15. End: 2025-09-14.

What specific management consulting services are included under this contract, and how do they align with the Army's security cooperation objectives?

The contract specifies Administrative Management and General Management Consulting Services (NAICS 541611). These likely encompass strategic planning, program management, policy development, and operational support related to the Army's security cooperation activities, aiming to enhance partner nation capabilities and interoperability.

Given the sole awardee, what mechanisms are in place to ensure continued competitive pricing and prevent cost overruns throughout the contract's five-year term?

While awarded under full and open competition, the sole awardee status necessitates robust oversight. Mechanisms could include performance-based payment structures, regular price reviews, and clear deliverables with defined quality standards to incentivize efficiency and control costs.

How will the effectiveness of SIGMATECH INC's support services be measured to ensure they contribute meaningfully to the Department of the Army's security cooperation goals?

Effectiveness will likely be measured through key performance indicators (KPIs) tied to specific security cooperation objectives, such as successful program implementation, improved partner nation capacity, or enhanced interoperability. Regular performance reviews and feedback from stakeholders will be critical.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB20R0010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,857,887

Exercised Options: $55,857,887

Current Obligation: $55,857,887

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $202,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-09-15

Current End Date: 2025-09-14

Potential End Date: 2025-09-29 00:00:00

Last Modified: 2025-09-11

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