SIGMA DEFENSE SYSTEMS LLC awarded $15.1M for Joint AISR Integration and Sustainment by GSA

Contract Overview

Contract Amount: $15,088,991 ($15.1M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2021-04-26

End Date: 2026-04-25

Contract Duration: 1,825 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: JOINT AISR INTEGRATION AND SUSTAINMENT TO1 SOCOM

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $15.1 million to SIGMA DEFENSE SYSTEMS LLC for work described as: JOINT AISR INTEGRATION AND SUSTAINMENT TO1 SOCOM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Performance period spans 5 years, indicating a long-term need for these services. 4. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. No small business set-aside was utilized, meaning opportunities for small businesses may be limited. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this $15.1 million contract is challenging without specific performance metrics or comparable contract data. The Time and Materials pricing structure necessitates careful oversight to ensure costs remain reasonable relative to the services delivered. Without more granular data on labor rates and material markups, a definitive value assessment is difficult. However, the duration of the contract suggests a sustained need and potentially a fair market price if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The use of this procurement method suggests the agency sought the best value from a broad range of potential contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most advantageous pricing and terms for the government.

Public Impact

The primary beneficiaries are likely the U.S. Special Operations Command (SOCOM) through enhanced intelligence, surveillance, and reconnaissance (ISR) capabilities. Services delivered include integration and sustainment of AISR systems, crucial for operational effectiveness. The contract is based in Florida, suggesting a concentration of related activities and potential workforce impact in that state. The nature of the services implies a need for specialized technical and engineering personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess true value for money.
No small business participation noted, potentially limiting broader economic impact.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Long contract duration (5 years) suggests a stable, ongoing requirement and potential for contractor expertise development.
Contract supports critical SOCOM ISR capabilities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense and intelligence industries. The market for ISR integration and sustainment services is highly specialized, driven by government demand for advanced technological solutions. Spending in this area is significant, reflecting the ongoing need for sophisticated surveillance and reconnaissance capabilities. Comparable spending benchmarks would typically involve other large-scale defense contracts for system integration and maintenance.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. This suggests that the primary contractor, SIGMA DEFENSE SYSTEMS LLC, is likely a larger entity, and opportunities for small businesses may be limited to direct subcontracting if not explicitly mandated. The absence of set-aside provisions means the contract was competed broadly, potentially overlooking opportunities to foster small business growth within this specialized defense sector.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) and the U.S. Special Operations Command (SOCOM), the end-user. Mechanisms likely include contract performance reviews, financial audits, and adherence to delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

ISR Systems Integration
Defense Engineering Services
Special Operations Command Support
Information Technology Services
Logistics and Sustainment Contracts

Risk Flags

Time and Materials contract type
Potential for cost overruns
Lack of specific performance metrics provided
No small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.1 million to SIGMA DEFENSE SYSTEMS LLC. JOINT AISR INTEGRATION AND SUSTAINMENT TO1 SOCOM

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 $15.1 million.

What is the period of performance?

Start: 2021-04-26. End: 2026-04-25.

What is SIGMA DEFENSE SYSTEMS LLC's track record with similar government contracts, particularly those involving ISR integration and sustainment?

SIGMA DEFENSE SYSTEMS LLC has a history of performing various defense-related contracts. While specific details on their ISR integration and sustainment performance for SOCOM under this particular contract require deeper analysis of performance reports and past performance evaluations, their presence in the defense sector suggests experience. Examining their contract history for similar scope, complexity, and agency (like SOCOM or other branches of the military) would provide a clearer picture of their capabilities and reliability. Past performance information, often available through government databases like the Federal Procurement Data System (FPDS), can highlight successes, challenges, and any corrective actions taken on previous engagements. A review of their financial stability and any past disputes or litigation would also be pertinent.

How does the awarded amount of $15.1 million compare to the estimated value or budget for similar Joint AISR Integration and Sustainment contracts?

Comparing the $15.1 million award to benchmarks for similar Joint AISR Integration and Sustainment contracts requires access to detailed market research and historical pricing data for comparable procurements. Without specific data points on the scope, duration (1825 days), and complexity of services rendered, a direct comparison is difficult. However, the contract's five-year duration suggests an average annual value of approximately $3 million. This figure should be benchmarked against other GSA or SOCOM contracts for ISR system sustainment and integration, considering factors like the number of systems, types of technologies involved, and required support levels. If this contract was awarded through full and open competition, the pricing is presumed to be market-driven, but a detailed analysis would involve comparing labor rates, overhead, and material costs against industry standards and other government contracts.

What are the primary risks associated with a Time and Materials (T&M) contract for ISR system sustainment, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage. This structure can incentivize longer project durations or higher labor rates if not managed diligently. For ISR system sustainment, risks include scope creep, inefficient use of labor, and inflated material costs. Mitigation strategies employed by agencies typically involve robust oversight, including detailed monitoring of labor hours, verification of material purchases, establishing ceiling prices, and requiring regular progress reports. Strong contract administration, clear definition of tasks, and performance metrics are crucial to ensure the contractor remains focused on efficient delivery and value for the government.

What is the expected impact of this contract on SOCOM's overall ISR capabilities and readiness?

This contract is expected to significantly enhance SOCOM's Intelligence, Surveillance, and Reconnaissance (ISR) capabilities by ensuring the seamless integration and ongoing operational readiness of critical AISR systems. Sustained support means that these complex systems will be maintained, updated, and repaired effectively, minimizing downtime and maximizing their availability for operational missions. Improved ISR capabilities directly translate to better situational awareness, enhanced intelligence gathering, and more precise targeting for special operations forces. The reliability and performance of these systems are paramount for mission success and the safety of personnel operating in complex environments. Therefore, this contract plays a vital role in maintaining SOCOM's technological edge and operational effectiveness.

How has federal spending on ISR integration and sustainment services evolved over the past five years, and where does this contract fit within that trend?

Federal spending on ISR integration and sustainment services has generally seen a consistent or increasing trend over the past five years, driven by evolving geopolitical landscapes and the increasing reliance on advanced surveillance technologies across various defense and intelligence agencies. This $15.1 million contract with SIGMA DEFENSE SYSTEMS LLC for SOCOM fits within this trend as a specific investment in maintaining and enhancing critical ISR assets. While this single contract represents a modest portion of the overall federal ISR budget, it highlights the ongoing commitment to ensuring the operational readiness of specialized ISR platforms. Analyzing broader spending patterns within agencies like SOCOM, DoD, and intelligence community components would reveal the scale of investment in this domain and indicate whether this contract aligns with or deviates from established spending trajectories.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1812 MACON RD, PERRY, GA, 31069

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: $15,477,191

Exercised Options: $15,477,191

Current Obligation: $15,088,991

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 47QFLA21D0007

IDV Type: IDC

Timeline