DoD's $54M Radar Support Task Order Awarded to SEV1TECH, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $54,152,338 ($54.2M)
Contractor: Sev1tech, LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-21
End Date: 2017-06-20
Contract Duration: 1,642 days
Daily Burn Rate: $33.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF THIS PERFORMANCE-BASED TASK ORDER 0025 ENTITLED, "PRODUCT MANAGEMENT, ENGINEERING, LOGISTICS AND BUSINESS OPERATIONS SUPPORT FOR PRODUCT MANAGER (PDM) RADARS" IS ISSUED ON A COST-PLUS-FIXED-FEE TERM FORM (CPFF-TF) TYPE ORDER FOR LABOR SERVICES AND COST FOR MATERIALS, TRAVEL, AND OTHER DIRECT COSTS. THE S3 ORDER NUMBER ASSOCIATED WITH THIS TASK IS S3R-0538.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $54.2 million to SEV1TECH, LLC for work described as: IGF::OT::IGF THIS PERFORMANCE-BASED TASK ORDER 0025 ENTITLED, "PRODUCT MANAGEMENT, ENGINEERING, LOGISTICS AND BUSINESS OPERATIONS SUPPORT FOR PRODUCT MANAGER (PDM) RADARS" IS ISSUED ON A COST-PLUS-FIXED-FEE TERM FORM (CPFF-TF) TYPE ORDER FOR LABOR SERVICES AND COST FOR MATERIALS… Key points: 1. The task order is for Product Management, Engineering, Logistics, and Business Operations Support for PDM Radars. 2. Awarded on a Cost-Plus-Fixed-Fee Term form, it covers labor, materials, travel, and other direct costs. 3. The contract was awarded under full and open competition, indicating a competitive bidding process. 4. The sector is primarily Engineering Services, with a significant value of over $54 million.
Value Assessment
Rating: fair
The Cost-Plus-Fixed-Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common for complex services, it can present cost control challenges if not closely monitored. Benchmarking against similar CPFF contracts for engineering support is necessary for a full assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors vie for the contract.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.
Public Impact
Taxpayers are impacted by the $54 million expenditure on radar product support services. The Department of the Army benefits from specialized engineering and logistics support for its radar systems. SEV1TECH, LLC receives significant revenue from this performance-based task order. The duration of the contract (over 4 years) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- The specific performance metrics and their impact on the fixed fee are not detailed.
- Potential for scope creep in long-term service contracts.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Performance-based task order structure aligns payment with desired outcomes.
- Long contract duration indicates sustained need and potential for stable support.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is crucial for government operations, particularly in defense for R&D, design, and maintenance of complex systems like radars. Benchmarks for similar engineering support contracts would provide further context.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB is false). Therefore, small businesses were likely not the primary focus of this specific award, though they may participate as subcontractors.
Oversight & Accountability
The performance-based nature of the task order suggests oversight is tied to achieving specific performance outcomes. Further details on reporting requirements and agency oversight mechanisms would be needed for a comprehensive assessment.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- Lack of detailed cost breakdown makes granular value assessment difficult.
- Long contract duration increases exposure to changing technological needs.
- No explicit mention of small business subcontracting goals.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.2 million to SEV1TECH, LLC. IGF::OT::IGF THIS PERFORMANCE-BASED TASK ORDER 0025 ENTITLED, "PRODUCT MANAGEMENT, ENGINEERING, LOGISTICS AND BUSINESS OPERATIONS SUPPORT FOR PRODUCT MANAGER (PDM) RADARS" IS ISSUED ON A COST-PLUS-FIXED-FEE TERM FORM (CPFF-TF) TYPE ORDER FOR LABOR SERVICES AND COST FOR MATERIALS, TRAVEL, AND OTHER DIRECT COSTS. THE S3 ORDER NUMBER ASSOCIATED WITH THIS TASK IS S3R-0538.
Who is the contractor on this award?
The obligated recipient is SEV1TECH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $54.2 million.
What is the period of performance?
Start: 2012-12-21. End: 2017-06-20.
What is the breakdown of labor categories and their estimated hours/rates within the Cost-Plus-Fixed-Fee structure, and how do these compare to market rates for similar engineering support services?
The provided data does not detail the specific labor categories, hours, or rates. A Cost-Plus-Fixed-Fee (CPFF) contract reimburses actual labor costs plus a predetermined fixed fee. To assess value, a detailed breakdown is needed to compare the proposed labor rates against industry benchmarks for comparable engineering, product management, and logistics support roles. Without this, it's difficult to ascertain if the labor component is priced competitively.
Given the CPFF structure and the potential for cost growth, what specific mechanisms are in place to manage risks associated with cost overruns and ensure the government receives the best value?
The CPFF structure inherently carries a risk of cost growth if not rigorously managed. Effective oversight mechanisms, such as detailed cost monitoring, regular performance reviews against defined metrics, and strict change control processes, are crucial. The agency must ensure that the fixed fee remains appropriate and that any cost increases are justified and directly linked to necessary project scope adjustments, not inefficiencies.
How effectively does this task order contribute to the Department of the Army's overall mission readiness and technological advancement in radar systems?
This task order directly supports the Product Manager (PDM) for Radars, indicating a critical role in the lifecycle management of these systems. The 'Product Management, Engineering, Logistics and Business Operations Support' suggests comprehensive assistance. Its effectiveness hinges on the quality of support provided, leading to improved radar system performance, reliability, and potentially faster technological upgrades, thereby enhancing overall mission readiness.
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
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,103,777
Exercised Options: $54,152,338
Current Obligation: $54,152,338
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE406
IDV Type: IDC
Timeline
Start Date: 2012-12-21
Current End Date: 2017-06-20
Potential End Date: 2017-06-20 12:06:00
Last Modified: 2020-05-26
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