DoD's $73.4M JCR/BFT-2 Fielding contract awarded to SevTech, LLC for communication equipment repair

Contract Overview

Contract Amount: $73,411,210 ($73.4M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Defense

Start Date: 2011-09-29

End Date: 2015-11-20

Contract Duration: 1,513 days

Daily Burn Rate: $48.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JCR/BFT-2 FIELDING IN OEF.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $73.4 million to SEV1TECH, LLC for work described as: JCR/BFT-2 FIELDING IN OEF. Key points: 1. Contract value of $73.4M over 4 years indicates significant investment in communication systems. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract's duration and scope point to ongoing operational needs for communication equipment. 4. Performance context is tied to OEF operations, highlighting the critical nature of the services. 5. Sector positioning within Defense indicates specialized technical support for military communications.

Value Assessment

Rating: fair

The contract value of $73.4M over approximately 4 years averages to about $18.35M annually. Benchmarking this against similar contracts for communication equipment repair and maintenance is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) contract type suggests that costs can escalate, and the fixed fee component needs careful monitoring to ensure value for money. The absence of a clear per-unit cost benchmark makes a precise value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this approach generally fosters price discovery and allows the government to select the most advantageous offer. The competitive nature suggests that SevTech, LLC was selected based on a combination of technical merit and price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and potentially leads to lower overall costs for the government.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel relying on functional communication equipment. Services delivered include repair and maintenance of JCR/BFT-2 systems, crucial for battlefield awareness and command. Geographic impact is likely global, supporting operations in theaters like OEF. Workforce implications include the need for skilled technicians to perform specialized repairs and maintenance.

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 quality assurance measures are not detailed, posing a potential risk to service quality.
Dependence on a single contractor for critical communication equipment maintenance could pose a risk if the contractor faces performance issues.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
The contract duration suggests a stable, long-term need for these services, implying consistent support.
The contract is for fielding and maintenance, indicating a focus on operational readiness.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the maintenance and repair of communication equipment. The market for military communication systems is highly specialized, with a limited number of contractors possessing the necessary security clearances and technical expertise. Spending in this area is driven by the need for reliable and advanced communication capabilities in complex operational environments. Comparable spending benchmarks would typically be found within other large-scale defense logistics and technical support contracts.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a set-aside. However, the prime contractor, SevTech, LLC, may engage small businesses as subcontractors, which would depend on their own procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and their representatives. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed performance reports and financial oversight details are generally not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Joint Capabilities Integration and Management System (JCIMS)
Command, Control, Communications, Computers, and Information Management (C4IM)
Tactical Data Networks
Warfighter Information Network-Tactical (WIN-T)

Risk Flags

Cost-Plus-Fixed-Fee contract type can lead to cost escalation.
Performance metrics and quality assurance details not publicly available.
Dependence on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.4 million to SEV1TECH, LLC. JCR/BFT-2 FIELDING IN OEF.

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 $73.4 million.

What is the period of performance?

Start: 2011-09-29. End: 2015-11-20.

What is SevTech, LLC's track record with similar Department of Defense contracts?

Assessing SevTech, LLC's track record requires a deeper dive into their contract history beyond this single award. Information on past performance, including successful completion of similar communication equipment repair and maintenance contracts, adherence to schedules, and quality of service, would be crucial. Reviewing past performance evaluations, any contract disputes, or awards for outstanding performance would provide a more comprehensive understanding of their capabilities and reliability. Without this additional data, it's difficult to definitively assess their suitability beyond the fact they were selected in a competitive process for this specific contract.

How does the $73.4M contract value compare to similar JCR/BFT-2 fielding and maintenance efforts?

Direct comparison of the $73.4M contract value for JCR/BFT-2 fielding and maintenance is challenging without access to a broader dataset of similar contracts. Factors influencing cost include the number of units fielded, the complexity of the systems, the duration of the contract, and the specific services required (e.g., depot-level repair vs. field support). If this contract covers a significant portion of the JCR/BFT-2 lifecycle or a large number of systems, the value might be considered reasonable. However, without benchmarks for comparable procurements, it's difficult to ascertain if this represents optimal value for money or if it's on the higher end.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts, performance failures impacting critical communication capabilities, and contractor viability. Mitigation strategies would typically involve robust government oversight, clearly defined performance metrics and deliverables, regular progress reviews, and contingency planning. The CPFF structure requires careful monitoring of allowable costs to prevent excessive spending. Performance risks are managed through contract clauses that incentivize timely and quality service, with penalties for deficiencies. Contractor viability is assessed during the initial selection process and monitored throughout the contract lifecycle.

How effective has the JCR/BFT-2 system been in supporting operations like OEF, and what is the role of this contract in that effectiveness?

The Joint Capabilities Release (JCR) and Blue Force Tracking (BFT) systems are designed to provide real-time situational awareness and enhance command and control on the battlefield. Their effectiveness in operations like OEF is generally considered high, enabling commanders to track friendly forces and improve coordination. This contract directly supports that effectiveness by ensuring the JCR/BFT-2 systems are properly fielded and maintained. Reliable repair and maintenance are critical to the operational readiness and continued functionality of these vital communication and tracking assets, thereby directly contributing to mission success.

What are the historical spending patterns for JCR/BFT-2 fielding and maintenance within the Department of Defense?

Historical spending on JCR/BFT-2 fielding and maintenance would likely show a significant investment over the system's lifecycle, particularly during periods of active conflict like OEF. Initial fielding costs are typically higher, followed by sustained spending on maintenance, upgrades, and sustainment. Analyzing past budgets and contract awards for these systems would reveal trends in spending, identify peak investment periods, and indicate the long-term commitment to this technology. This specific $73.4M contract represents a portion of that ongoing sustainment expenditure.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $74,585,446

Exercised Options: $73,600,507

Current Obligation: $73,411,210

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T09DB201

IDV Type: IDC

Timeline