GSA awards $11.5M for communications equipment to Sigma Defense Systems, with a 3-year performance period

Contract Overview

Contract Amount: $11,540,963 ($11.5M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2022-03-31

End Date: 2025-05-31

Contract Duration: 1,157 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DISA TECH REFRESH ID05180024 062

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $11.5 million to SIGMA DEFENSE SYSTEMS LLC for work described as: DISA TECH REFRESH ID05180024 062 Key points: 1. Value for money appears fair given the firm-fixed-price contract type, though detailed cost breakdowns are not public. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period mitigating some financial uncertainties. 4. Performance context is within the 'Other Communications Equipment Manufacturing' NAICS code, indicating a specific product category. 5. Sector positioning is within IT/Defense, supporting federal communications infrastructure needs. 6. The contract's duration of over three years requires ongoing monitoring for sustained value.

Value Assessment

Rating: fair

The contract value of $11.5 million over approximately 3 years suggests an average annual spend of around $3.8 million. Without specific line-item details or comparable contract data, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar procurements for specialized communications equipment would be necessary for a more robust evaluation of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of bidders. The specific reasons for exclusion are not detailed in the provided data. A limited competition can sometimes lead to higher prices if the pool of qualified bidders is small.

Taxpayer Impact: Taxpayers may benefit from a more streamlined procurement process if the exclusion of sources was justified by specific technical requirements. However, a smaller bidder pool could also mean less competitive pricing, potentially increasing costs for taxpayers.

Public Impact

The primary beneficiaries are likely federal agencies requiring specialized communications equipment, enhancing their operational capabilities. Services delivered include the provision of 'Other Communications Equipment Manufacturing' products, crucial for maintaining and upgrading federal communication networks. The geographic impact is centered in Maryland (ST: MD), suggesting a concentration of delivery or support activities in that region. Workforce implications could include support for specialized manufacturing and technical roles within Sigma Defense Systems and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could impact price discovery.
Lack of detailed cost breakdowns makes independent value-for-money assessment difficult.
The long performance period necessitates vigilant oversight to ensure continued relevance and cost-effectiveness.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Award to a single contractor (Sigma Defense Systems LLC) can streamline management and delivery.
The contract addresses a specific need within federal communications infrastructure.

Sector Analysis

This contract falls within the broader IT and Defense sectors, specifically focusing on the manufacturing of communications equipment. The market for such equipment is characterized by rapid technological advancements and stringent security requirements. Comparable spending benchmarks would typically involve analyzing procurements for similar specialized hardware by agencies like the Department of Defense or other federal entities reliant on secure and advanced communication systems. The size of this contract ($11.5M) is moderate within the context of large federal IT and defense spending.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses arising from a set-aside. The primary focus appears to be on fulfilling the agency's requirements through the awarded contractor, Sigma Defense Systems LLC.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA), specifically its Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited by the non-disclosure of detailed cost breakdowns and the specific rationale for excluding certain sources. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Communications Commission (FCC) Spectrum Management
Department of Defense (DoD) Command, Control, Communications, Computers, and Intelligence (C4I) Systems
General Services Administration (GSA) IT Schedule Programs
National Security Agency (NSA) Communications Security

Risk Flags

Limited competition due to source exclusion.
Lack of detailed cost transparency.
Potential for technological obsolescence over the contract term.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.5 million to SIGMA DEFENSE SYSTEMS LLC. DISA TECH REFRESH ID05180024 062

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 $11.5 million.

What is the period of performance?

Start: 2022-03-31. End: 2025-05-31.

What is the track record of Sigma Defense Systems LLC in fulfilling federal contracts, particularly for communications equipment?

Sigma Defense Systems LLC has a history of receiving federal contracts. To assess their track record specifically for communications equipment, a deeper dive into their past performance on similar contracts would be necessary. This would involve reviewing contract performance reports (CPARs), identifying any past issues related to delivery, quality, or cost overruns, and comparing their performance on this contract to previous ones. Without access to CPARs or a more extensive contract history, it's difficult to definitively state their specific expertise and reliability in this niche.

How does the pricing of this contract compare to similar procurements for communications equipment?

A direct comparison of pricing is challenging without access to detailed cost breakdowns for this $11.5 million contract and comparable data from other federal procurements. The firm-fixed-price nature provides cost certainty but doesn't inherently guarantee the best value. Benchmarking would require identifying contracts with similar specifications, quantities, and delivery timelines for communications equipment, ideally awarded through a similar competitive process. Factors like technological sophistication, security requirements, and vendor overhead contribute to price variations, making a simple dollar-for-dollar comparison unreliable.

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

Key risks include potential technological obsolescence given the rapid pace of change in communications equipment, the possibility of cost increases if the firm-fixed-price model doesn't adequately account for unforeseen expenses, and risks associated with the limited competition indicated by the 'exclusion of sources.' Management strategies include the defined performance period (ending May 2025) to limit exposure to obsolescence, the fixed-price structure to cap government liability, and the agency's presumed justification for source exclusion. Ongoing monitoring by GSA is crucial to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring optimal value for taxpayers?

The effectiveness of this approach hinges on the justification for excluding sources. If the exclusions were based on legitimate, documented technical requirements or security mandates that only a limited number of vendors could meet, it might be an efficient way to procure specialized equipment. However, if the exclusions were arbitrary or overly restrictive, it could stifle competition, potentially leading to higher prices for taxpayers. A thorough review of the justification for exclusion is needed to assess its impact on value.

What is the historical spending pattern for 'Other Communications Equipment Manufacturing' by the General Services Administration?

Analyzing historical spending patterns for NAICS code 334290 ('Other Communications Equipment Manufacturing') by GSA would reveal trends in procurement volume, average contract values, and the types of equipment typically purchased. This data could indicate whether this $11.5 million award is consistent with past spending levels, unusually large or small, or represents a shift in GSA's procurement strategy within this sector. Understanding these patterns provides context for the current award and helps identify potential areas for cost savings or efficiency improvements in future procurements.

What are the implications of the contract's end date (May 31, 2025) for future federal communications needs?

The end date of May 31, 2025, signifies that the current contract will fulfill specific communications equipment needs for approximately three years from its start. This provides a defined timeframe for the government to plan for future requirements. It implies that either the agency anticipates needing new or upgraded equipment beyond this date, or that the technology procured may reach its end-of-life or require replacement. Planning for follow-on contracts or alternative solutions should commence well in advance of this expiration to ensure continuity of essential communications services.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFLA22Q0053

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $11,540,963

Exercised Options: $11,540,963

Current Obligation: $11,540,963

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFLA19D0010

IDV Type: IDC

Timeline