DoD's $31.3M HSI Support Contract to SONALYSTS Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $31,330,119 ($31.3M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2010-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: ANALYTICAL AND OPERATIONS SUPPORT SERVICES IN HUMAN SYSTEMS INTEGRATION (HSI)

Place of Performance

Location: WATERFORD, NEW LONDON County, CONNECTICUT, 06385

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to SONALYSTS INC for work described as: ANALYTICAL AND OPERATIONS SUPPORT SERVICES IN HUMAN SYSTEMS INTEGRATION (HSI) Key points: 1. Value for money assessed against comparable engineering services contracts. 2. Competition dynamics indicate a robust bidding environment for this requirement. 3. Risk indicators are moderate, given the contract's duration and type. 4. Performance context is within the scope of analytical and operations support. 5. Sector positioning is within the defense engineering services market.

Value Assessment

Rating: good

The contract's total value of $31.3 million over three years for analytical and operations support services appears reasonable when benchmarked against similar engineering services contracts awarded by the Department of Defense. While specific cost breakdowns are not provided, the pricing structure (Cost No Fee) suggests that the government is primarily responsible for costs incurred by the contractor, with the fee being fixed. This structure can sometimes lead to cost overruns if not managed carefully, but the absence of a fee might indicate a focus on service delivery over profit maximization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was a delivery order suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The specific number of bidders is not detailed, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and increasing the likelihood of selecting the best value solution.

Public Impact

Benefits the Department of the Navy by providing essential analytical and operations support for Human Systems Integration (HSI). Services delivered likely include research, analysis, and strategic planning related to HSI. Geographic impact is primarily within the operational areas of the Department of the Navy. Workforce implications include the employment of skilled analysts and engineers by SONALYSTS INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-reimbursement contracts can sometimes lead to cost overruns if not closely monitored.
The duration of the contract (3 years) requires sustained oversight to ensure continued value.
Dependence on a single contractor for critical analytical support could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
SONALYSTS INC. is the sole awardee for this specific delivery order, implying they met the requirements.
The contract type (Cost No Fee) may indicate a focus on essential service delivery rather than profit.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. The defense industry, particularly the Department of the Navy, frequently procures specialized analytical and operational support services to enhance human systems integration. Spending in this area is crucial for optimizing military operations, personnel effectiveness, and technological integration. Comparable spending benchmarks would involve analyzing other contracts for similar HSI support services across various defense agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that small businesses were exclusively targeted. However, SONALYSTS INC. may engage small businesses as subcontractors, contributing to the broader small business ecosystem. Further analysis would be needed to determine subcontracting plans and their impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Navy. Performance monitoring, financial reviews, and adherence to contract terms are key accountability measures. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Human Systems Integration (HSI) Programs
Defense Engineering Services
Naval Operations Support
Analytical Services Contracts
Cost-Plus-Fixed-Fee Contracts (if applicable to base IDIQ)

Risk Flags

Cost Control Risk (CNF Contract)
Performance Monitoring Requirement
Contract Duration Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to SONALYSTS INC. ANALYTICAL AND OPERATIONS SUPPORT SERVICES IN HUMAN SYSTEMS INTEGRATION (HSI)

Who is the contractor on this award?

The obligated recipient is SONALYSTS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.3 million.

What is the period of performance?

Start: 2007-09-27. End: 2010-09-26.

What is the track record of SONALYSTS INC. in performing similar analytical and operations support services for the Department of Defense?

SONALYSTS INC. has a history of providing technical and analytical support services to various government agencies, including the Department of Defense. Their expertise often lies in areas such as systems engineering, human factors, and operational analysis. For this specific contract, the award suggests they met the technical and performance requirements outlined by the Department of the Navy. A deeper dive into their past performance reviews, any past disputes, or contract modifications on similar projects would provide a more comprehensive understanding of their track record. Examining their financial stability and capacity to handle contracts of this magnitude is also crucial for assessing their reliability.

How does the $31.3 million contract value compare to other HSI support contracts awarded by the Navy or DoD?

The $31.3 million contract value for three years of HSI analytical and operations support is a significant but not extraordinary amount within the defense sector. To benchmark effectively, one would need to compare it against similar contracts for HSI, systems engineering, or operational analysis awarded by the Department of the Navy or other DoD branches over a comparable timeframe. Factors such as the specific scope of work, duration, contract type (e.g., cost-plus, fixed-price), and the number of bidders influence pricing. Without access to a detailed database of comparable contract values and scopes, a precise comparison is difficult, but this figure suggests a substantial requirement for specialized expertise.

What are the primary risks associated with a Cost No Fee (CNF) contract of this nature and duration?

A Cost No Fee (CNF) contract, while potentially beneficial for ensuring service delivery without excessive profit motive, carries specific risks. For the government, the primary risk is that the contractor may not be sufficiently motivated to control costs, as their profit is not directly tied to cost savings. This can lead to cost overruns if not managed diligently through robust oversight and reporting. For the contractor, the risk is that they may incur costs exceeding the contract ceiling without recourse for additional profit, potentially leading to financial losses if unforeseen issues arise. The three-year duration amplifies these risks, necessitating continuous monitoring of expenditures and performance to ensure value for taxpayer money.

What specific Human Systems Integration (HSI) functions are likely covered under this contract?

Under this contract, Human Systems Integration (HSI) functions likely encompass a broad range of activities aimed at optimizing the interaction between humans and complex systems within the Department of the Navy's operational environment. This could include areas such as human factors engineering, manpower and personnel integration, training system development, habitability, survivability, and health and medical system integration. The 'analytical and operations support' aspect suggests that SONALYSTS INC. would be involved in research, data analysis, modeling, simulation, and providing recommendations to improve system design, operational procedures, and overall mission effectiveness by considering human capabilities and limitations.

What does the 'Delivery Order' designation imply about the contracting vehicle used?

The 'Delivery Order' designation typically implies that this contract was issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar multiple-award framework. IDIQ contracts allow agencies to procure a range of supplies or services over a set period, with specific quantities and delivery schedules defined by individual delivery orders. This approach provides flexibility for the agency to order services as needed and allows contractors to compete for specific task orders. The fact that this was a delivery order suggests that SONALYSTS INC. was likely one of multiple awardees on a broader IDIQ contract, and this specific order represents a defined scope of work within that larger agreement.

How does the engineering services sector (NAICS 541330) typically perform in terms of competition and pricing for defense contracts?

The engineering services sector, particularly within defense contracting (NAICS 541330), is characterized by a mix of intense competition for large, high-profile contracts and more specialized, potentially less competitive bidding for niche requirements. Full and open competition, as seen here, generally drives competitive pricing. However, the highly specialized nature of some defense engineering services can limit the number of qualified bidders. Pricing is often influenced by factors such as the complexity of the technical requirements, the need for specialized expertise, security clearances, and the overall duration and risk profile of the contract. Benchmarking requires careful consideration of these variables.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3336

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 215 PARKWAY NORTH, WATERFORD, CT, 06385

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,767,348

Exercised Options: $36,767,348

Current Obligation: $31,330,119

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4126

IDV Type: IDC

Timeline