DoD's $45M contract for Human Systems Integration Support awarded to SONALYSTS INC

Contract Overview

Contract Amount: $45,069,603 ($45.1M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-24

End Date: 2017-09-23

Contract Duration: 2,556 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HUMAN SYSTEMS INTEGRATION (HSI) SUPPORT TO NSWC DAHLGREN DIVISION FOLLOW-ON TO N00178-04-D-4126-0011

Place of Performance

Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.1 million to SONALYSTS INC for work described as: HUMAN SYSTEMS INTEGRATION (HSI) SUPPORT TO NSWC DAHLGREN DIVISION FOLLOW-ON TO N00178-04-D-4126-0011 Key points: 1. Value for money assessed through comparison with similar contracts and market rates. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are evaluated based on contractor performance and contract type. 4. Performance context is framed by the duration and nature of the services provided. 5. Sector positioning places this contract within Engineering Services for the Department of Defense. 6. The contract type (Cost Plus Fixed Fee) warrants scrutiny for cost control.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure can incentivize cost overruns if not managed tightly. Benchmarking against similar engineering support contracts is crucial to determine if the $45M award represents fair value over its 7-year duration. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging. However, the fixed fee component suggests some level of cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The presence of two bidders, as indicated by 'no': 2, provides a basis for comparison, though a higher number of bidders would typically indicate stronger competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple sources.

Public Impact

This contract directly benefits the Department of Defense by providing essential human systems integration support. Services delivered likely include analysis, design, and testing related to human factors in defense systems. The geographic impact is centered around Dahlgren, Virginia, where NSWC Dahlgren Division is located. Workforce implications may involve specialized engineers and technical personnel contributing to defense readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not managed effectively.
Limited transparency on specific performance metrics makes value assessment difficult.
The duration of the contract (7 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The fixed fee component provides some cost certainty for the government.
The contract supports critical defense functions at NSWC Dahlgren.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the defense industrial base. The market for such specialized support is often characterized by a mix of large defense contractors and niche service providers. Spending in this area is driven by the need for advanced technical expertise to develop and maintain complex defense systems. Comparable spending benchmarks would typically be found within other Department of Defense contracts for systems engineering and human factors analysis.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As a large contract awarded through full and open competition, the primary focus is likely on larger, established firms. The impact on the small business ecosystem would depend on whether prime contractors engage small businesses for subcontracting opportunities, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy and the Naval Surface Warfare Center (NSWC) Dahlgren Division. Accountability measures are typically embedded within the contract's terms, including performance standards and reporting requirements. Transparency is facilitated through contract award data, but detailed operational oversight and Inspector General jurisdiction would depend on specific program reviews and audits.

Related Government Programs

Naval Surface Warfare Center Contracts
Department of Defense Engineering Services
Human Systems Integration Support Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited number of bidders (2) may reduce competitive pressure on pricing.
Long contract duration (7 years) necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.1 million to SONALYSTS INC. HUMAN SYSTEMS INTEGRATION (HSI) SUPPORT TO NSWC DAHLGREN DIVISION FOLLOW-ON TO N00178-04-D-4126-0011

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 $45.1 million.

What is the period of performance?

Start: 2010-09-24. End: 2017-09-23.

What is the track record of SONALYSTS INC. in performing similar human systems integration contracts for the Department of Defense?

SONALYSTS INC. has a history of performing various technical and engineering support services for the Department of Defense. While specific details on their track record for 'Human Systems Integration' require deeper analysis of past performance reviews and contract histories, their award on this significant contract suggests they possess the requisite capabilities. Further investigation into their past performance ratings, any past issues or commendations on similar contracts, and their overall financial stability would provide a more comprehensive understanding of their reliability and expertise in this domain. Examining their portfolio of previous DoD contracts can reveal patterns in the types of services they provide and the complexity of projects they have managed.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry standards for similar engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common in defense and R&D where the scope of work may evolve or is not fully defined at the outset. For CPFF contracts, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Industry standards suggest that CPFF can be advantageous when innovation and flexibility are paramount, but it carries a higher risk of cost growth compared to fixed-price contracts if not rigorously managed. Benchmarking this contract's fee against the total contract value and comparing it to the typical fee percentages for similar engineering services in the defense sector would be necessary. A fee that deviates significantly from the norm (e.g., above 15-20% of total costs) might warrant further investigation into the justification for the higher profit margin.

What are the primary risks associated with a 7-year Cost Plus Fixed Fee contract for engineering services?

The primary risks associated with a 7-year Cost Plus Fixed Fee (CPFF) contract for engineering services include potential cost overruns, scope creep, and contractor complacency. Given the extended duration, there's a heightened risk that costs could escalate beyond initial projections if the contractor does not maintain strict cost controls, or if unforeseen technical challenges arise. Scope creep is also a concern, as the flexibility inherent in CPFF contracts can sometimes lead to the expansion of work beyond the original intent without adequate adjustments to the fixed fee or overall budget. Furthermore, over the long term, there's a risk that the contractor might become less incentivized to find efficiencies or innovate, especially if the fixed fee is substantial, potentially leading to a decline in value for money. Robust government oversight, clear performance metrics, and regular reviews are essential to mitigate these risks.

What is the historical spending pattern for Human Systems Integration support at NSWC Dahlgren Division or similar Navy commands?

Analyzing historical spending patterns for Human Systems Integration (HSI) support at NSWC Dahlgren Division or similar Navy commands is crucial for context. This contract, valued at approximately $45 million over seven years, represents an average annual spend of roughly $6.4 million. To assess if this is typical, one would need to examine prior contracts awarded for similar HSI services to Dahlgren or comparable commands like NSWC Indian Head, NAVAIR, or NAVSEA. Trends in spending, the number and value of previous sole-source versus competitive awards, and the evolution of contract types (e.g., shift from cost-reimbursement to fixed-price) would provide valuable insights. Understanding this historical context helps determine if the current contract's value and structure align with past practices or represent a significant deviation.

How does the competition level (2 bidders) for this contract potentially impact the government's ability to secure favorable pricing?

A competition with only two bidders, as indicated for this contract, presents a moderate level of competition. While better than a sole-source award, it is less ideal than a scenario with numerous bidders vying for the contract. With only two competitors, the government might not achieve the most aggressive pricing possible, as the bidders may have a clearer understanding of their primary competitor and potentially less pressure to offer deeply discounted rates. The government's negotiation leverage is somewhat reduced compared to a multi-bidder scenario where intense rivalry can drive prices down. However, the 'full and open' nature of the competition means that the process was designed to attract all qualified sources, and the final price is still subject to negotiation and evaluation based on established criteria.

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: N0002410R3169

Offers Received: 2

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

Financial Breakdown

Contract Ceiling: $94,526,146

Exercised Options: $61,127,852

Current Obligation: $45,069,603

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4126

IDV Type: IDC

Timeline