GSA awards $17.7M for Joint AISR Integration Sustainment, with SIGMA DEFENSE SYSTEMS LLC securing the contract

Contract Overview

Contract Amount: $17,723,626 ($17.7M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2022-06-02

End Date: 2026-06-01

Contract Duration: 1,460 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JOINT AISR INTEGRATION SUSTAINMENT TO07 ACC

Place of Performance

Location: GRAND FORKS AFB, GRAND FORKS County, NORTH DAKOTA, 58205

State: North Dakota Government Spending

Plain-Language Summary

General Services Administration obligated $17.7 million to SIGMA DEFENSE SYSTEMS LLC for work described as: JOINT AISR INTEGRATION SUSTAINMENT TO07 ACC Key points: 1. Contract value of $17.7M over approximately 4 years suggests a moderate investment in sustainment services. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for the government if managed effectively. 4. The primary service area is engineering, aligning with the need for technical sustainment of complex systems. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The award to SIGMA DEFENSE SYSTEMS LLC represents a specific instance of federal spending within the engineering services sector.

Value Assessment

Rating: fair

The contract value of $17.7 million over nearly four years averages to approximately $4.4 million annually. Benchmarking this against similar sustainment contracts for complex defense or intelligence systems is challenging without more specific details on the scope of 'Joint AISR Integration Sustainment'. However, the firm-fixed-price nature suggests the government has negotiated a set price for defined services, which can offer cost predictability. The award amount itself does not immediately indicate over or under-pricing without a detailed cost breakdown or comparison to independent government cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust bidding environment, potentially resulting in better pricing and terms for the government. The number of bidders is not specified, but the 'full and open' designation implies that the government actively sought multiple proposals to ensure a competitive outcome.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple contractors.

Public Impact

The primary beneficiaries are likely military or intelligence agencies requiring the sustainment of Air, Intelligence, Surveillance, and Reconnaissance (AISR) integration systems. The services delivered will focus on maintaining and supporting the operational readiness and functionality of these critical AISR integration systems. The geographic impact is primarily associated with the contractor's location in North Dakota, though the systems supported may have a global operational footprint. Workforce implications include employment opportunities for engineers and technical specialists within SIGMA DEFENSE SYSTEMS LLC, particularly in North Dakota.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's track record on similar sustainment efforts.
The 'delivery order' nature suggests this is part of a larger IDIQ, and the overall performance of the IDIQ vehicle is not detailed here.
Without a breakdown of costs, it's hard to determine if the firm-fixed-price is truly competitive or if there are hidden inefficiencies.
The specific nature of 'Joint AISR Integration Sustainment' is broad and could encompass a wide range of technical complexities and risks.

Positive Signals

Awarded under full and open competition, indicating a potentially competitive and fair process.
Firm-fixed-price contract type aligns incentives for cost control with the contractor.
The contract duration of nearly four years provides stability for sustainment activities.
SIGMA DEFENSE SYSTEMS LLC's selection suggests they met the government's technical and capability requirements.
The contract is for sustainment, indicating a focus on maintaining existing capabilities rather than developing new ones, which can be more predictable.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant component of federal contracting, supporting a wide array of technical and scientific needs across government agencies. This contract falls within the broader defense and intelligence technology market, where sustainment of complex integrated systems is crucial for operational readiness. Spending in this area is often driven by the need to maintain legacy systems while integrating newer technologies. Comparable spending benchmarks would typically involve analyzing other sustainment contracts for ISR platforms or integrated command and control systems.

Small Business Impact

This contract does not appear to have a small business set-aside (SB=false) and the contractor is SIGMA DEFENSE SYSTEMS LLC, which is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on the scope of work and their own subcontracting plans. The absence of a set-aside suggests the primary focus was on obtaining the best solution through open competition.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service, which awarded the contract. The firm-fixed-price nature provides a degree of financial oversight by establishing a ceiling cost. Performance monitoring would be conducted by the government's contracting officer's representative (COR) to ensure services meet the defined requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports or cost breakdowns are typically not public.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems Sustainment
Defense Engineering Services Contracts
General Services Administration (GSA) IT/Technical Services IDIQs
Federal Acquisition Service Contracts
Airborne Systems Support Contracts

Risk Flags

Potential for scope creep if 'sustainment' is interpreted broadly.
Risk of contractor performance issues impacting critical AISR systems.
Dependence on the overall health and performance of the parent IDIQ contract.
Limited transparency into specific performance metrics and cost breakdowns.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.7 million to SIGMA DEFENSE SYSTEMS LLC. JOINT AISR INTEGRATION SUSTAINMENT TO07 ACC

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 $17.7 million.

What is the period of performance?

Start: 2022-06-02. End: 2026-06-01.

What is the specific nature of the 'Joint AISR Integration Sustainment' being provided?

The provided data abbreviates the contract description as 'JOINT AISR INTEGRATION SUSTAINMENT TO07 ACC'. 'AISR' typically refers to Air, Intelligence, Surveillance, and Reconnaissance systems. 'Integration Sustainment' implies the ongoing support, maintenance, and potentially minor upgrades required to keep these integrated systems operational and effective. The 'Joint' aspect suggests the systems involve multiple branches of the military or different intelligence agencies. Without further details, the exact technical components and functionalities supported remain unspecified, but it likely involves complex software and hardware systems critical for data collection, processing, and dissemination in surveillance and reconnaissance missions.

How does the $17.7 million contract value compare to similar sustainment contracts in the defense sector?

Direct comparison of the $17.7 million value is difficult without knowing the precise scope and complexity of the 'Joint AISR Integration Sustainment'. However, sustainment contracts for complex defense systems, especially those involving intelligence and ISR capabilities, can range from a few million to hundreds of millions of dollars over their lifecycle. This contract, valued at approximately $4.4 million per year, appears to be a moderate-sized award for ongoing technical support. Larger, more comprehensive sustainment programs for major weapon systems or enterprise-level IT infrastructure would typically command significantly higher annual expenditures. This contract likely supports a specific set of integrated AISR capabilities rather than an entire platform or agency-wide system.

What are the key risks associated with this firm-fixed-price contract for sustainment services?

The primary risk with a firm-fixed-price (FFP) contract, especially for sustainment, is that the contractor may cut corners on quality or service to maximize profit if the initial price was set too low or if unforeseen technical issues arise. For the government, the risk is receiving substandard support that impacts system readiness. Conversely, if the contractor underestimated the effort, they could incur losses, potentially leading to financial instability or a desire to renegotiate, though FFP contracts aim to prevent this. Effective government oversight is crucial to monitor performance and ensure the contractor meets all contractual obligations despite the fixed price.

What is SIGMA DEFENSE SYSTEMS LLC's track record with similar government contracts?

Information on SIGMA DEFENSE SYSTEMS LLC's specific track record with similar 'Joint AISR Integration Sustainment' contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS reports), the types and values of previous contracts awarded to them, and their history of delivering complex engineering and sustainment services, particularly within the defense and intelligence communities. Their ability to secure this contract suggests they met the technical qualifications and demonstrated capability required by the General Services Administration for this specific requirement.

How does the 'delivery order' aspect impact the overall contract structure and potential spending?

This contract is a 'delivery order' (awarded as 'DELIVERY ORDER'), which means it is issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure services or supplies over a period, with specific tasks or quantities ordered via individual delivery orders. This structure provides flexibility for the government to order services as needed, up to a certain ceiling amount for the IDIQ contract. The $17.7 million is the value of this specific delivery order. The overall potential spending could be higher if this is one of multiple delivery orders issued against the parent IDIQ contract, which would have its own total ceiling and duration.

What is the significance of the contract being awarded by the General Services Administration (GSA)?

The General Services Administration (GSA) acts as a procurement and real estate arm for the federal government. When GSA awards a contract, particularly through its Federal Acquisition Service (FAS), it often leverages established contract vehicles (like IDIQs) that have already undergone competition and are available for use by multiple federal agencies. This means GSA is facilitating the procurement process, potentially offering better pricing and streamlined acquisition for the end-user agency. The award signifies that SIGMA DEFENSE SYSTEMS LLC is an approved vendor on a GSA schedule or IDIQ, making their services accessible to various government entities.

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: 47QFLA22Q0123

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: $23,641,501

Exercised Options: $17,772,961

Current Obligation: $17,723,626

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