GSA awards $63M+ for Joint Airborne ISR Sensor Data Transport Infrastructure Enterprise Advise and Assist Support to Sigma Defense Systems

Contract Overview

Contract Amount: $63,152,938 ($63.2M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2018-05-31

End Date: 2023-05-30

Contract Duration: 1,825 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: JOINT AIRBORNE INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE AISR SENSOR DATA TRANSPORT INFRASTRUCTURE ENTERPRISE ADVISE AND ASSIST SUPPORT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $63.2 million to SIGMA DEFENSE SYSTEMS LLC for work described as: JOINT AIRBORNE INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE AISR SENSOR DATA TRANSPORT INFRASTRUCTURE ENTERPRISE ADVISE AND ASSIST SUPPORT Key points: 1. Contract value exceeds $63 million over its five-year duration. 2. The contract was awarded under full and open competition. 3. Performance is concentrated in Florida, indicating a specific geographic focus. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The award was made to a single contractor, Sigma Defense Systems LLC. 6. The contract duration is 1825 days, spanning five years.

Value Assessment

Rating: fair

The total contract value of over $63 million for five years of advisory and assistance support for ISR data transport infrastructure appears substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the Time and Materials (T&M) contract type, while flexible, can lead to higher costs if not closely managed, as it reimburses the contractor for direct labor hours and materials. The average annual value is approximately $12.6 million, which needs to be assessed against the scope and criticality of the support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The data indicates four bids were received, which is a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to the best solutions, the specific number of bidders (four) means that the price discovery mechanism might not have been as robust as it could be with a larger pool of competitors. Further analysis would be needed to determine if the competition was sufficiently vigorous.

Taxpayer Impact: A full and open competition, even with four bidders, generally provides taxpayers with a better opportunity to receive competitive pricing compared to sole-source or limited competition awards. This approach helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are likely military or intelligence agencies requiring support for airborne intelligence, surveillance, and reconnaissance (AISR) data transport. The services delivered involve advising and assisting with the enterprise infrastructure for AISR sensor data transport. Geographic impact is concentrated in Florida, where the contractor will likely perform the majority of the work. Workforce implications could include the need for specialized personnel in areas like network engineering, cybersecurity, and intelligence analysis to support the contractor's efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost overruns if not meticulously managed and monitored.
A single award to Sigma Defense Systems LLC, while potentially efficient, limits the potential for broader market engagement and innovation from other firms.
The specific nature of 'advise and assist' support can sometimes be subjective, making performance metrics and value assessment more complex.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The contract duration of five years provides stability for the program and the contractor.
The contract supports critical national security functions related to airborne intelligence, surveillance, and reconnaissance.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related IT infrastructure and data transport. The market for defense IT and intelligence support services is substantial, driven by continuous technological advancements and evolving operational requirements. Comparable spending benchmarks would typically involve analyzing other large-scale advisory and assistance contracts for complex defense systems, particularly those involving data management and network infrastructure in secure environments.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically set aside for small businesses. There is no explicit information on subcontracting plans, but given the nature of the prime contractor and the contract's focus, it's possible that specialized small businesses could be involved as subcontractors if their expertise is required. However, the primary award was not driven by small business set-aside goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), Federal Acquisition Service, which awarded the contract. The contract type (Time and Materials) necessitates robust oversight to monitor labor hours, material costs, and ensure that the work performed aligns with the contract's objectives and is performed efficiently. Accountability measures would be tied to performance metrics and deliverables outlined in the contract. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Information Technology Infrastructure
Aerospace Engineering Services
Data Transport and Network Services
Federal Advisory and Assistance Contracts

Risk Flags

Cost Control Risk (T&M Contract Type)
Limited Competition Pool (4 Bidders)
Potential for Scope Creep
Dependence on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $63.2 million to SIGMA DEFENSE SYSTEMS LLC. JOINT AIRBORNE INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE AISR SENSOR DATA TRANSPORT INFRASTRUCTURE ENTERPRISE ADVISE AND ASSIST SUPPORT

Who is the contractor on this award?

The obligated recipient is SIGMA DEFENSE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $63.2 million.

What is the period of performance?

Start: 2018-05-31. End: 2023-05-30.

What is the specific nature of the 'advise and assist' support provided under this contract, and how is its effectiveness measured?

The 'advise and assist' support under this contract pertains to the Joint Airborne Intelligence Surveillance and Reconnaissance (AISR) Sensor Data Transport Infrastructure Enterprise. This likely involves providing expert guidance, technical recommendations, and operational insights to government personnel on the design, implementation, maintenance, and optimization of the complex network infrastructure required to transport data from airborne sensors. Effectiveness is typically measured through performance metrics defined in the contract, such as timely delivery of recommendations, successful integration of proposed solutions, achievement of system uptime or performance targets, and positive feedback from government stakeholders. Without access to the specific Performance Work Statement (PWS) and associated metrics, a precise evaluation is not possible, but these are common methods for assessing such support services.

How does the $63 million contract value compare to historical spending on similar AISR data transport infrastructure support?

Comparing the $63 million contract value to historical spending requires access to detailed historical contract data for similar AISR data transport infrastructure support services, ideally from the same or comparable agencies. The General Services Administration (GSA) award suggests a broad federal need. If this is a new enterprise-wide contract or a significant expansion, the $63 million over five years (averaging $12.6 million annually) could represent a substantial investment. However, without specific benchmarks for comparable contracts – considering factors like scope, complexity, duration, and the specific technologies involved – it's difficult to definitively state whether this represents an increase or decrease in historical spending patterns. Analysis of prior contracts for similar advisory and assistance services within the defense and intelligence community would be necessary for a robust comparison.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific service, and what mitigation strategies are in place?

The primary risk with a Time and Materials (T&M) contract type for 'advise and assist' services is the potential for cost overruns, as the government pays for the labor hours and materials used by the contractor. This can be exacerbated if the scope of work is not clearly defined or if contractor efficiency is low. For AISR data transport infrastructure, risks could include scope creep, inefficient use of highly-paid technical experts, or unexpected material costs. Mitigation strategies typically involve stringent oversight by the contracting officer's representative (COR), detailed tracking of labor hours and material expenses, establishing labor hour ceilings, and defining clear milestones and deliverables. The government must actively manage the contract to ensure value for money and prevent uncontrolled cost growth.

Given the 'full and open competition' award, what does the receipt of only four bids suggest about the market for these specialized services?

The receipt of four bids under a 'full and open competition' for the Joint Airborne ISR Sensor Data Transport Infrastructure Enterprise Advise and Assist Support suggests a moderately competitive market for these specialized services. While four bidders indicate that the opportunity was known and accessible to multiple firms, it might also imply that the number of companies possessing the highly specific expertise required for advanced AISR data transport infrastructure support is limited. This could be due to the technical complexity, security clearances needed, or the specific nature of the government's requirements. A larger number of bids might have been expected for more common IT services, but for niche defense-related technical support, four competitive offers can still lead to reasonable pricing, though perhaps not the absolute lowest possible.

What is Sigma Defense Systems LLC's track record with similar large-scale government contracts, particularly in the defense and intelligence sectors?

Assessing Sigma Defense Systems LLC's track record requires a review of their contract history, past performance evaluations, and experience with similar large-scale government contracts, especially within the defense and intelligence sectors. Information available through federal procurement databases (like SAM.gov or FPDS) can provide insights into their previous awards, contract types, and agencies served. Positive past performance is a critical factor in contract awards. Without specific details on their prior performance on contracts of comparable size, scope (e.g., ISR, data transport, advisory services), and complexity, it is difficult to definitively characterize their track record. However, winning a contract of this magnitude from GSA suggests they met the government's criteria for capability and experience.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID05170063

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 500 CORPORATE POINTE, WARNER ROBINS, GA, 31088

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,152,938

Exercised Options: $63,152,938

Current Obligation: $63,152,938

Actual Outlays: $22,819,474

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline