DoD's $25.4M Human Systems Engineering Contract to Sonalysts Inc. Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $25,383,217 ($25.4M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2016-02-01

End Date: 2024-01-25

Contract Duration: 2,915 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE COMPREHENSIVE HUMAN SYSTEMS ENGINEERING AND ANALYSIS SUPPORT, AND WORKFORCE AUGMENTATION TO THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISIONS (NSWCDD) HUMAN SYSTEMS INTEGRATION (HSI) BRANCH, SPONSORS, AND CUSTOMERS.

Place of Performance

Location: COLCHESTER, CHITTENDEN County, VERMONT, 05446

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $25.4 million to SONALYSTS INC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE COMPREHENSIVE HUMAN SYSTEMS ENGINEERING AND ANALYSIS SUPPORT, AND WORKFORCE AUGMENTATION TO THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISIONS (NSWCDD) HUMAN SYSTEMS INTEGRATION (HSI) BRANCH, SPONSORS, AND CUSTOMERS. Key points: 1. Contract awarded via full and open competition, suggesting a potentially competitive bidding process. 2. The contract's duration of nearly 8 years (2915 days) indicates a long-term need for specialized engineering and analysis support. 3. The cost-plus-fixed-fee (CPFF) contract type can lead to cost overruns if not closely managed. 4. The absence of small business set-aside flags raises questions about opportunities for smaller firms in this specialized sector. 5. The contract's focus on human systems integration for the Naval Surface Warfare Center highlights critical defense capabilities. 6. Performance context is crucial given the extended period and the CPFF structure, requiring diligent oversight.

Value Assessment

Rating: fair

The contract's total value of approximately $25.4 million over nearly eight years suggests a significant investment in human systems engineering and analysis. Benchmarking this against similar long-term, specialized support contracts for naval warfare centers is challenging without more granular data on the specific services provided and the complexity involved. The cost-plus-fixed-fee (CPFF) structure, while allowing for flexibility, inherently carries a risk of cost escalation if not meticulously managed and monitored by the agency. Without detailed breakdowns of labor categories, overhead, and profit margins, a precise value-for-money assessment is difficult, placing it in the 'fair' category pending further cost analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The specific number of bids received is not provided, but this procurement method generally fosters price discovery and allows the government to select from a broad range of qualified contractors. The open competition suggests that the Naval Surface Warfare Center sought the best available technical solution and pricing from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a competitive environment, which can lead to more reasonable pricing and a wider array of innovative solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center, Dahlgren Division (NSWCDD) and its Human Systems Integration (HSI) Branch, who receive critical support for their operations. Services delivered include comprehensive human systems engineering and analysis, along with workforce augmentation, crucial for developing and integrating human factors into naval systems. The geographic impact is centered around NSWCDD, a key naval research and development facility, supporting national defense initiatives. Workforce implications include the provision of specialized expertise to the government, potentially augmenting the government's own workforce in human systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can incentivize contractor spending without direct cost-saving pressure, potentially leading to higher overall costs if not managed stringently.
The long duration of the contract (nearly 8 years) increases the risk of scope creep or evolving requirements that may not be optimally priced from the outset.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess the true effectiveness and efficiency of the services rendered.
The absence of small business subcontracting goals or set-asides, if applicable, might limit opportunities for smaller, specialized firms in this domain.

Positive Signals

Awarded through full and open competition, suggesting a robust process for selecting the most capable and cost-effective provider.
The contract addresses a critical need for human systems integration within naval warfare, a highly specialized and important area for defense.
The long contract duration indicates a stable, ongoing requirement, providing continuity of essential support services to a key defense entity.
Sonalysts Inc. is a specialized firm, implying they possess the necessary expertise for complex human systems engineering and analysis tasks.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on human systems integration (HSI) for defense applications. The market for HSI support is specialized, often involving a blend of engineering, human factors psychology, and systems analysis. Companies in this space typically support government agencies, particularly in defense and aerospace, where the human element is critical to system performance and safety. Comparable spending benchmarks would involve looking at other large, long-term contracts for specialized engineering and technical support services awarded to defense contractors by agencies like the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all qualified offerors, including large businesses. While this ensures broad competition, it may limit direct opportunities for small businesses to secure prime contracts in this specialized engineering services area. However, it does not preclude Sonalysts Inc. from subcontracting with small businesses to fulfill parts of the contract, which would be a positive outcome for the small business ecosystem if implemented.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. The contract type (CPFF) necessitates rigorous oversight to control costs and ensure performance aligns with requirements. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Surface Warfare Center Dahlgren Division Support Contracts
Human Systems Integration Services
Defense Engineering Services
Naval Warfare Technology Support
Systems Engineering and Analysis Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Long-Term Contract Management Complexity
Lack of Publicly Available Performance Metrics
Potential for Limited Small Business Prime Contracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.4 million to SONALYSTS INC. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE COMPREHENSIVE HUMAN SYSTEMS ENGINEERING AND ANALYSIS SUPPORT, AND WORKFORCE AUGMENTATION TO THE NAVAL SURFACE WARFARE CENTER, DAHLGREN DIVISIONS (NSWCDD) HUMAN SYSTEMS INTEGRATION (HSI) BRANCH, SPONSORS, AND CUSTOMERS.

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 $25.4 million.

What is the period of performance?

Start: 2016-02-01. End: 2024-01-25.

What is Sonalysts Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Sonalysts Inc. has a history of performing work for the Department of Defense, often in areas related to systems engineering, technical support, and human factors analysis. Their contract portfolio typically includes support for naval systems, training, and simulation. While this specific contract is for comprehensive human systems engineering and analysis support for NSWCDD, their broader experience suggests a capability to handle complex defense-related tasks. A deeper dive into their past performance ratings, any past performance issues, and the scale of previous DoD contracts would provide a more robust assessment of their track record. However, the award of a nearly $25.4 million, multi-year contract indicates a level of trust and demonstrated capability by the DoD.

How does the $25.4 million value compare to similar human systems engineering contracts within the DoD?

The $25.4 million value over approximately eight years positions this contract as a significant, long-term engagement for specialized human systems engineering and analysis support. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity within the defense sector. Contracts for large-scale systems integration, advanced research and development support, or extensive technical advisory services for major defense programs can reach similar or higher values. However, contracts focused on more narrowly defined technical support or shorter durations would naturally be lower. The value here reflects the sustained need for expert human factors integration in naval systems development and sustainment, a critical but niche area.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude ($25.4M over ~8 years) revolve around cost control and potential inefficiencies. CPFF contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This structure can reduce the contractor's incentive to control costs rigorously, as the government bears the brunt of cost overruns. For taxpayers, the risk is paying more than necessary if the contractor does not manage expenses efficiently. The long duration amplifies this risk, as unforeseen cost increases over nearly a decade can significantly inflate the total contract value beyond initial projections. Robust government oversight, detailed cost monitoring, and clear performance standards are essential to mitigate these risks.

How effective is 'full and open competition' in ensuring optimal value for taxpayer money in specialized defense engineering services?

Full and open competition is generally considered the most effective method for ensuring optimal value for taxpayer money, especially in specialized fields like defense engineering. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process allows the government to compare a wider range of technical solutions and pricing structures, increasing the likelihood of selecting the best value proposition. While it requires more upfront effort in solicitation and evaluation, the potential for cost savings and superior performance typically outweighs these initial investments. For specialized services, it ensures that niche expertise is sought from across the market, rather than being limited to pre-qualified vendors.

What are the potential implications of this contract on the broader defense engineering services market, particularly for small businesses?

This contract, awarded through full and open competition and not specifically set aside for small businesses, primarily benefits larger, established firms like Sonalysts Inc. that can compete for substantial, long-term engagements. While it signifies a significant government investment in human systems engineering, it may present fewer direct prime contracting opportunities for small businesses in this specific solicitation. However, the impact on small businesses is not entirely negative. Sonalysts Inc. may engage small businesses as subcontractors, providing them with valuable work and exposure. Furthermore, the existence of such contracts can stimulate the overall market, potentially leading to growth and opportunities for specialized small firms to develop capabilities that align with future government needs.

Are there specific performance metrics or KPIs associated with this contract that indicate its success?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, contracts of this nature would outline measurable objectives related to the quality of engineering analysis, timeliness of deliverables, effectiveness of workforce augmentation, and adherence to project milestones. The success of this contract would be evaluated based on how well Sonalysts Inc. meets these defined requirements and contributes to the mission objectives of the Naval Surface Warfare Center, Dahlgren Division's Human Systems Integration Branch. Without access to the contract's statement of work and performance clauses, a definitive assessment of its success based on KPIs is not possible.

Industry Classification

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

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: N0002415R3007

Offers Received: 1

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: $33,176,554

Exercised Options: $33,176,554

Current Obligation: $25,383,217

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4126

IDV Type: IDC

Timeline