SIGMA DEFENSE SYSTEMS LLC awarded $20.8M for Joint AISR Integration Sustainment, with contract ending Sept 2026

Contract Overview

Contract Amount: $20,846,839 ($20.8M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2021-09-27

End Date: 2026-09-26

Contract Duration: 1,825 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JOINT AISR INTEGRATION SUSTAINMENT TO5 PMO

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $20.8 million to SIGMA DEFENSE SYSTEMS LLC for work described as: JOINT AISR INTEGRATION SUSTAINMENT TO5 PMO Key points: 1. Contract value appears reasonable for sustainment services over a multi-year period. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type may limit cost overrun risks for the government. 4. The contract duration of five years provides long-term support for the program. 5. The award falls within the Engineering Services NAICS code, indicating specialized technical support. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $20.8 million over five years, averaging around $4.16 million annually, seems aligned with sustainment and integration services for complex systems. Benchmarking against similar large-scale engineering support contracts would provide further context, but the fixed-price nature suggests a degree of cost certainty for the government. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the 'full and open' designation implies multiple interested parties participated.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs through market forces and encouraging innovative solutions from multiple providers.

Public Impact

The primary beneficiaries are likely military or intelligence agencies requiring integrated airborne intelligence, surveillance, and reconnaissance (AISR) capabilities. The services delivered include sustainment and integration, ensuring the continued operational effectiveness of AISR systems. The geographic impact is primarily within Maryland (MD), where the contractor is located and likely where the services are performed or managed. Workforce implications may include the employment of engineers, technicians, and project managers by SIGMA DEFENSE SYSTEMS LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if sustainment requirements are not clearly defined.
Dependence on a single contractor for critical sustainment could pose a risk if performance issues arise.
The long contract duration might lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Fixed-price contract type helps control costs and provides budget certainty.
The contract is for sustainment, implying support for existing, critical capabilities.
The contractor, SIGMA DEFENSE SYSTEMS LLC, is likely experienced in defense contracting.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related intelligence, surveillance, and reconnaissance (ISR) systems. The market for ISR system sustainment and integration is substantial within the defense industrial base, driven by ongoing modernization efforts and the need to maintain operational readiness. Comparable spending benchmarks would involve looking at other large sustainment contracts for complex aerospace or C4ISR platforms, where annual values can range from millions to tens of millions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor may still engage small businesses as subcontractors, contributing to the broader small business ecosystem, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA) or the end-user agency. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Airborne Systems Sustainment
Defense Engineering Services
General Services Administration (GSA) Contracts
Federal Acquisition Service (FAS) Contracts

Risk Flags

Contract duration exceeds 3 years
Contract type is Firm Fixed Price
Awarded under Full and Open Competition
Contract is a Delivery Order

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.8 million to SIGMA DEFENSE SYSTEMS LLC. JOINT AISR INTEGRATION SUSTAINMENT TO5 PMO

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 $20.8 million.

What is the period of performance?

Start: 2021-09-27. End: 2026-09-26.

What is the track record of SIGMA DEFENSE SYSTEMS LLC in performing similar large-scale defense sustainment contracts?

SIGMA DEFENSE SYSTEMS LLC has a history of performing various defense-related contracts. While specific details on their track record for large-scale AISR integration sustainment are not provided in this data snippet, their presence as a recipient of this significant contract suggests they possess the necessary capabilities and clearances. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous awards, would be necessary for a comprehensive assessment. Reviewing their portfolio for similar complexity and value in ISR or related engineering services would offer further insight into their experience and reliability in this specialized domain.

How does the annual value of this contract compare to industry benchmarks for similar sustainment services?

The annual value of this contract, approximately $4.16 million ($20.8M / 5 years), needs to be benchmarked against industry standards for sustaining complex Integrated Air Defense Systems (IADS) or similar Intelligence, Surveillance, and Reconnaissance (ISR) platforms. Factors influencing this benchmark include the specific technologies involved, the level of integration required, the criticality of the systems, and the geographic location of support. Without detailed technical specifications or a breakdown of labor categories and rates, a precise comparison is difficult. However, for multi-year sustainment of sophisticated defense systems, this annual figure appears within a plausible range, assuming it covers essential maintenance, upgrades, and technical support.

What are the primary risks associated with the firm-fixed-price contract type for this specific service?

The primary risk associated with a firm-fixed-price (FFP) contract for sustainment services like this is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs exceed initial estimates. While FFP is generally advantageous for the government by providing cost certainty, it places the cost risk on the contractor. If unforeseen technical challenges arise during sustainment or integration, or if the scope of work expands beyond initial expectations without a formal modification, SIGMA DEFENSE SYSTEMS LLC might face financial strain. This could potentially impact performance or lead to disputes if not managed proactively through clear contract terms and vigilant oversight.

How effective is the 'full and open competition' approach likely to be in ensuring optimal value for this $20.8M contract?

The 'full and open competition' approach is generally considered highly effective in ensuring optimal value for contracts of this magnitude. It allows the government to solicit bids from the widest possible pool of qualified contractors, fostering a competitive environment that drives down prices and encourages innovation. For this $20.8 million contract, this method likely resulted in multiple proposals being evaluated, allowing the GSA to select the offer that presented the best combination of technical merit and cost. The success in achieving optimal value hinges on the clarity of the solicitation requirements and the rigor of the evaluation process, but the competitive nature itself is a strong indicator of potential value.

What are the historical spending patterns for Joint AISR Integration Sustainment or similar programs managed by GSA?

Analyzing historical spending patterns for Joint AISR Integration Sustainment or comparable programs under GSA requires access to detailed federal procurement databases. This specific contract, valued at $20.8 million over five years, represents a significant but potentially isolated award for this particular sustainment effort. Broader spending trends within GSA's Federal Acquisition Service (FAS) for engineering and technical support services would show a much larger aggregate figure, often in the billions annually, distributed across numerous agencies and contract vehicles. Understanding the historical context involves looking at the lifecycle costs of similar ISR systems, previous sustainment contracts awarded, and the overall budget allocated to related defense modernization initiatives.

What are the implications of this contract being a 'delivery order' under a larger IDIQ contract?

This contract being a 'delivery order' signifies that it is a task-specific order issued against a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQs provide a flexible framework for agencies to procure services or supplies over a period, with specific quantities and delivery dates defined by individual orders. For this Joint AISR Integration Sustainment contract, it means that SIGMA DEFENSE SYSTEMS LLC was likely awarded a broader IDIQ contract previously, and this $20.8 million order represents a specific call for services under that umbrella agreement. This approach allows for streamlined procurement and potentially pre-negotiated rates, but the overall value and scope are distributed across multiple orders.

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

Solicitation ID: 47QFLA21Q0434

Pricing Type: FIRM FIXED PRICE (J)

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: $20,846,839

Exercised Options: $20,846,839

Current Obligation: $20,846,839

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