Army Awards $5.9M R&D Contract to Sigmatech Inc. for FMS Support
Contract Overview
Contract Amount: $5,944,198 ($5.9M)
Contractor: Sigmatech Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2026-09-29
Contract Duration: 364 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION REQUIRES NONPERSONAL PROFESSIONAL SERVICES IN SUPPORT OF THE UNITED STATES ARMY FMS, OPERATIONS AND MAINTENANCE, AND RESEARCH, DEVELOPMENT, TEST AND EVALUATION ACTIVITIES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.9 million to SIGMATECH INC for work described as: THE DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION REQUIRES NONPERSONAL PROFESSIONAL SERVICES IN SUPPORT OF THE UNITED STATES ARMY FMS, OPERATIONS AND MAINTENANCE, AND RESEARCH, DEVELOPMENT, TEST AND EVALUATION ACTIVITIES Key points: 1. Contract supports critical Army Foreign Military Sales (FMS) and R&D activities. 2. Sigmatech Inc. is the sole awardee under full and open competition. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee structure. 4. The R&D sector is vital for maintaining technological superiority.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
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, the CPFF structure may not incentivize the most cost-effective solutions.
Taxpayer Impact: Taxpayer funds are being used for essential R&D and FMS support, with the potential for cost efficiencies through competitive bidding.
Public Impact
Enhances U.S. Army's capabilities through research and development. Supports international partnerships via Foreign Military Sales. Ensures technological advancement in defense. Potential impact on future defense procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Lack of specific performance metrics makes oversight challenging.
- Limited visibility into subcontractor costs.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Contract duration aligns with project needs.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
The contract was awarded to Sigmatech Inc., which is not identified as a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers on R&D objectives effectively and within budget. The Department of the Army will be responsible for monitoring performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Potential for scope creep in R&D projects.
- Reliance on a single contractor (Sigmatech Inc.).
- Limited information on specific performance metrics.
- No explicit small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.9 million to SIGMATECH INC. THE DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION REQUIRES NONPERSONAL PROFESSIONAL SERVICES IN SUPPORT OF THE UNITED STATES ARMY FMS, OPERATIONS AND MAINTENANCE, AND RESEARCH, DEVELOPMENT, TEST AND EVALUATION ACTIVITIES
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 $5.9 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-09-29.
How will the Army ensure cost control with a Cost Plus Fixed Fee contract for R&D services?
The Army will likely implement robust oversight mechanisms, including regular performance reviews, detailed cost tracking, and potentially establishing cost ceilings or incentive clauses within the contract. Regular communication and audits will be crucial to monitor expenditures and ensure alignment with the fixed fee and project objectives, mitigating the risk of uncontrolled cost escalation.
What are the primary risks associated with this R&D contract for the Department of the Army?
The primary risks include potential cost overruns due to the CPFF structure, which may not always incentivize maximum efficiency. There's also a risk that the R&D outcomes may not meet the Army's evolving requirements or technological expectations. Ensuring effective knowledge transfer and managing intellectual property rights associated with the research are also key considerations.
How does this contract contribute to the overall effectiveness of the Army's Foreign Military Sales program?
This contract supports the Army's FMS program by providing essential professional services for operations, maintenance, and R&D activities related to foreign military sales. This ensures that partner nations receive necessary technical support and that the U.S. Army maintains the technological edge required to equip and train allied forces effectively.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91CRB25RA006
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
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, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $52,422,053
Exercised Options: $9,186,377
Current Obligation: $5,944,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0133
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-01-06
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