SONALYSTS INC awarded $17.9M for Automated Info System Design & Integration Services by Naval Surface Warfare Center

Contract Overview

Contract Amount: $17,929,847 ($17.9M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2005-01-01

End Date: 2008-09-13

Contract Duration: 1,351 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200508!053366!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017804D4126 !A!N! !Y!0002 ! !20050101!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000574950!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B!E!Y!A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: WATERFORD, NEW LONDON County, CONNECTICUT, 06385

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to SONALYSTS INC for work described as: 200508!053366!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017804D4126 !A!N! !Y!0002 ! !20050101!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!21008!099!51!DAHLGREN !KING… Key points: 1. Contract value of $17.9M for system design and integration services. 2. Awarded by Naval Surface Warfare Center, indicating a focus on naval defense systems. 3. Contract duration of approximately 3.7 years suggests a need for sustained support. 4. Services fall under Engineering Services (NAICS 541330), a broad category. 5. Awarded via full and open competition, implying a competitive bidding process. 6. SONALYSTS INC is the sole contractor, raising questions about potential single-source reliance. 7. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The contract value of $17.9 million for Automated Information System Design & Integration Services appears to be within a reasonable range for a multi-year government contract of this nature. However, without specific benchmarks for similar system integration projects within the Department of Defense or for the Naval Surface Warfare Center, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. This necessitates robust oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the effort without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The data indicates 21 bids were received, which is a healthy level of competition. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The presence of multiple bidders implies that the market for these specialized system design and integration services is robust enough to support several interested parties.

Taxpayer Impact: A competitive bidding process with 21 offers likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. This ensures that taxpayer funds are used more efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center and potentially other branches of the U.S. Navy, who will receive enhanced or newly designed automated information systems. Services delivered include design, integration, and potentially development of complex information systems critical for naval operations. The geographic impact is primarily within the Naval Surface Warfare Center's operational areas, likely involving personnel at Dahlgren, Virginia. Workforce implications may include employment opportunities for systems engineers, software developers, and integration specialists, both within SONALYSTS INC and potentially at government facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending if not closely monitored.
The specific nature of 'Automated Info System Design & Integration' can be complex and prone to scope creep.
Reliance on a single contractor (SONALYSTS INC) for this specific award could pose a risk if performance issues arise.
Limited information on the specific performance metrics and quality control measures used.

Positive Signals

Awarded under full and open competition with 21 bids, indicating a competitive market.
The contract is for essential system design and integration services, supporting critical naval functions.
The contractor, SONALYSTS INC, has a track record of receiving federal contracts, suggesting some level of established capability.
The contract has defined start and end dates, providing a clear timeframe for service delivery.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), which encompasses a wide range of professional and technical services. This sector is crucial for government operations, particularly in defense, where complex systems require specialized design and integration. The market for these services is competitive, with numerous firms offering expertise in areas like software development, systems engineering, and IT integration. Government spending in this area is substantial, driven by the need to modernize and maintain sophisticated technological infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. The award was made to SONALYSTS INC, and there is no explicit mention of small business participation in the primary award. Further investigation into subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Naval Surface Warfare Center and the Defense Contract Management Agency (DCMA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are expected to monitor costs and ensure compliance with contract terms. Transparency is facilitated through contract award databases like FPDS, but detailed performance reports and Inspector General involvement would depend on specific program requirements and any identified issues.

Related Government Programs

Naval Surface Warfare Center Contracts
Automated Information Systems Development
Defense IT Services
Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Department of Defense IT Modernization

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for scope creep in complex system design and integration projects.
Limited public information on specific performance metrics and quality assurance.
Sole contractor for this specific award (SONALYSTS INC) could pose a risk if performance issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to SONALYSTS INC. 200508!053366!1700!N00178!NAVAL SURFACE WARFARE CENTER !N0017804D4126 !A!N! !Y!0002 ! !20050101!20050930!077317766!077317766!077317766!N!SONALYSTS, INC !215 PARKWAY N !WATERFORD !CT!06385!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !+000000574950!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!200

Who is the contractor on this award?

The obligated recipient is SONALYSTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2005-01-01. End: 2008-09-13.

What is the track record of SONALYSTS INC in delivering similar automated information system design and integration services to the Department of Defense?

SONALYSTS INC has a history of receiving federal contracts, including those related to information systems and engineering services. Analyzing their past performance on similar contracts, particularly those with a Cost Plus Fixed Fee structure, would provide insight into their ability to manage costs, meet deadlines, and deliver quality systems. A review of past performance evaluations and any contract modifications or disputes would be crucial. While this specific award is for $17.9 million, understanding their experience with projects of comparable scale and complexity is key to assessing their capability and reliability for this particular requirement.

How does the $17.9 million contract value compare to similar Automated Information System Design & Integration Services contracts awarded by the Navy or other DoD branches?

Benchmarking the $17.9 million contract value requires comparing it against similar contracts for Automated Information System Design & Integration Services within the Department of Defense. Factors such as contract duration (approximately 3.7 years), specific service requirements, and the complexity of the systems being developed are critical for a fair comparison. Contracts awarded by other Naval Warfare Centers or defense agencies for comparable system integration projects could serve as benchmarks. Without access to a detailed database of comparable contract values adjusted for scope and duration, it's difficult to definitively state if $17.9 million represents excellent, fair, or concerning value. However, given the specialized nature of defense IT systems, this figure appears plausible for a multi-year effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for system integration, and how are they mitigated in this case?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not properly managed. Mitigation strategies typically involve stringent oversight of incurred costs, detailed audits, and clear definitions of allowable expenses. The Naval Surface Warfare Center and DCMA would be responsible for monitoring these aspects. Additionally, the fixed fee itself should be negotiated to reflect a reasonable profit margin for the effort, and the contract should include clauses that allow for adjustments or penalties if performance deviates significantly from expectations or if costs escalate without justification.

What is the historical spending trend for Automated Information System Design & Integration Services by the Naval Surface Warfare Center?

To assess historical spending trends, one would need to analyze the Naval Surface Warfare Center's (NSWC) contract awards over several fiscal years for services categorized under NAICS code 541330 (Engineering Services) or similar IT/system integration codes. This analysis would involve aggregating spending data for similar contract types (e.g., CPFF, FFP) and service descriptions. Understanding whether spending in this area has been increasing, decreasing, or remaining stable can provide context for the current $17.9 million award. Significant year-over-year increases might indicate growing demand or inflationary pressures, while consistent spending could suggest a stable operational requirement.

How does the level of competition (21 bids) impact the government's ability to secure favorable pricing and terms for this contract?

A high level of competition, such as the 21 bids received for this contract, generally benefits the government by fostering a more competitive bidding environment. This increased competition typically drives down prices as contractors vie for the award. It also provides the government with a wider range of technical solutions and potentially better terms and conditions. The government can leverage the multiple offers to negotiate more effectively, selecting not only the lowest price but also the best value proposition. The presence of numerous bidders suggests that the market is healthy and that the government is not overly reliant on a single provider, which strengthens its negotiating position.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 215 PARKWAY NORTH, WATERFORD, CT, 06385

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0017804D4126

IDV Type: IDC

Timeline