DoD Awards $18.2M Contract for Signal Solutions, Inc. to Provide Electronics and Communication Equipment

Contract Overview

Contract Amount: $10,544,331 ($10.5M)

Contractor: Signal Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-21

End Date: 2007-03-20

Contract Duration: 545 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200512!500737!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB3200D0001 !A!N! !Y!0503 ! !20050921!20060921!181986670!116187758!001381284!N!SIGNAL SOLUTIONS, INC !3040 WILLIAMS DR # 200 !FAIRFAX !VA!22031!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !+000009330245!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !D! !20200930!B! ! !A! !A!U!J!1!001!B! !Z!N!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SIGNAL SOLUTIONS, LLC for work described as: 200512!500737!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB3200D0001 !A!N! !Y!0503 ! !20050921!20060921!181986670!116187758!001381284!N!SIGNAL SOLUTIONS, INC !3040 WILLIAMS DR # 200 !FAIRFAX !VA!22031!24670!003!04!FORT HUACHUCA !COCH… Key points: 1. The contract value of $18.2 million is significant for a single award. 2. Signal Solutions, Inc. is the sole awardee, raising questions about competition. 3. The contract falls under IT and Defense sectors, with potential for broad application. 4. Risk assessment is needed to understand the impact of sole-source awards on pricing and innovation.

Value Assessment

Rating: questionable

The contract value of $18.2 million is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to definitively assess if this pricing is competitive. The sole-source nature further complicates a direct value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the data indicates a single awardee, which might suggest that only one offer was received or deemed acceptable. This could impact price discovery if other potential bidders were deterred.

Taxpayer Impact: The full and open competition method is generally favorable for taxpayers, aiming to secure the best value. However, the effectiveness in this specific instance depends on the number of bids received and the final negotiated price.

Public Impact

This contract supports the Department of Defense's operational capabilities. The award to Signal Solutions, Inc. could impact other companies in the electronics and communication equipment sector. Taxpayers are funding the acquisition of essential communication equipment for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award despite 'full and open' designation
Lack of transparency on competition details
Potential for inflated pricing due to limited competition

Positive Signals

Award supports critical defense needs
Contract duration provides stability for the vendor

Sector Analysis

This contract falls within the IT and Defense sectors, specifically related to electronics and communication equipment. Spending benchmarks in this area can vary widely based on technological advancements and specific military requirements.

Small Business Impact

The data does not indicate if Signal Solutions, Inc. is a small business. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

Oversight is crucial for sole-source or limited-competition contracts to ensure fair pricing and prevent waste. The Department of Defense's contracting oversight mechanisms should be applied rigorously.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential lack of true competition despite 'full and open' designation
Risk of overpayment due to limited price discovery
Need for detailed cost justification
Impact on small business participation unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SIGNAL SOLUTIONS, LLC. 200512!500737!2100!W9128Z!USA COMMUNICATIONS-ELECTRONICS !DAAB3200D0001 !A!N! !Y!0503 ! !20050921!20060921!181986670!116187758!001381284!N!SIGNAL SOLUTIONS, INC !3040 WILLIAMS DR # 200 !FAIRFAX !VA!22031!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !+000009330245!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !D! !202

Who is the contractor on this award?

The obligated recipient is SIGNAL SOLUTIONS, 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 $10.5 million.

What is the period of performance?

Start: 2005-09-21. End: 2007-03-20.

What was the rationale for awarding this contract as full and open competition if only one offer was received?

The designation of 'full and open competition' indicates the initial solicitation aimed to attract all interested and capable sources. If only one offer was received, it could be due to various factors, including market research indicating limited qualified vendors, a highly specialized requirement, or a lack of interest from other potential bidders. The agency would typically document the reasons for a single offer in the contract file.

How can we ensure fair pricing when a contract is awarded to a single vendor under full and open competition?

Ensuring fair pricing with a single vendor requires robust cost analysis by the procuring agency. This involves scrutinizing the vendor's proposed costs, comparing them to historical data, industry benchmarks, and potentially conducting audits. Negotiation strategies should focus on challenging any unreasonable cost elements and verifying the necessity of all proposed expenses to achieve a fair and reasonable price.

What is the potential impact on future innovation and competition in the electronics and communication equipment sector from this award?

A sole-source award, even if initiated under full and open competition, can potentially stifle innovation and future competition if it signals a lack of market breadth or if the awarded vendor does not face significant pressure to innovate. If other capable firms were deterred from bidding, it could reduce the overall competitive landscape, potentially leading to higher prices or slower technological advancement in the long run.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DAAB3200D0001

IDV Type: IDC

Timeline