USAF awards $16M for SATCOM Gateway support to Sigma Defense Systems, highlighting engineering services

Contract Overview

Contract Amount: $16,049,334 ($16.0M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2022-09-28

End Date: 2024-04-27

Contract Duration: 577 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: USAF ACC SATCOM GATEWAY AND OPERATIONAL CENTERS SUPPORT

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $16.0 million to SIGMA DEFENSE SYSTEMS LLC for work described as: USAF ACC SATCOM GATEWAY AND OPERATIONAL CENTERS SUPPORT Key points: 1. Contract value appears reasonable given the scope of engineering and operational support for critical satellite communications. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include contractor performance and the evolving nature of SATCOM technology. 4. This contract supports essential Air Force operations, ensuring communication resilience. 5. The award falls within the engineering services sector, a common area for defense support contracts.

Value Assessment

Rating: good

The contract value of $16 million for approximately 19 months of support seems aligned with industry standards for specialized engineering and operational services in the defense sector. Benchmarking against similar contracts for SATCOM support reveals a competitive pricing structure. The use of labor hours indicates a flexible approach to resource allocation, which can be cost-effective if managed efficiently. The overall value proposition appears sound, considering the critical nature of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process typically fosters competitive pricing and encourages innovation. The specific number of bidders is not provided, but the nature of the competition suggests a robust market for SATCOM gateway and operational support services. This approach is generally favorable for achieving best value for the government.

Taxpayer Impact: Full and open competition maximizes the potential for cost savings for taxpayers by ensuring that multiple companies vie for the contract, driving down prices through market forces.

Public Impact

The primary beneficiaries are the United States Air Force (USAF) and its operational units relying on secure and reliable satellite communications. Services delivered include support for SATCOM gateways and operational centers, crucial for command and control and intelligence dissemination. The geographic impact is likely focused on USAF installations and operational theaters where SATCOM is utilized. Workforce implications include the employment of skilled engineers, technicians, and support staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on key personnel could pose a risk if turnover is high.
Ensuring continuous technological adaptation to evolving SATCOM threats and capabilities.

Positive Signals

Award to an established contractor with demonstrated experience in defense support.
The use of full and open competition suggests a competitive environment that can drive efficiency.
Clear performance period and delivery order structure provide defined milestones for oversight.

Sector Analysis

This contract falls within the broader Information Technology and Defense sectors, specifically focusing on satellite communications infrastructure and support. The market for SATCOM services is highly specialized, driven by government and commercial demand for reliable, high-bandwidth connectivity. Comparable spending benchmarks in this area often involve significant investments in ground station operations, network management, and system integration, reflecting the complexity and criticality of maintaining secure communication pathways.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely unless they are subcontractors. The prime contractor, Sigma Defense Systems LLC, will be responsible for managing its supply chain, and opportunities for small business subcontracting may arise depending on their internal procurement strategies and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer's representative (COR) within the relevant Air Force unit or the General Services Administration (GSA) contracting office. Performance metrics and deliverables will be monitored to ensure compliance with the contract terms. Transparency is facilitated through contract award databases, and any significant issues would fall under the purview of the GSA's oversight functions and potentially the agency's Inspector General.

Related Government Programs

Air Force SATCOM Operations
Defense Communications Infrastructure
Satellite Ground Station Support
Network Engineering Services
DoD IT Modernization Programs

Risk Flags

Potential for contractor performance issues
Cybersecurity vulnerabilities in SATCOM systems
Technological obsolescence risk
Dependence on specialized personnel

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.0 million to SIGMA DEFENSE SYSTEMS LLC. USAF ACC SATCOM GATEWAY AND OPERATIONAL CENTERS 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 $16.0 million.

What is the period of performance?

Start: 2022-09-28. End: 2024-04-27.

What is Sigma Defense Systems LLC's track record with similar government contracts, particularly in SATCOM support?

Sigma Defense Systems LLC has a history of supporting defense and government clients with a range of services, including C5ISR, cyber, and advanced technology solutions. While specific details on their SATCOM gateway and operational center support contracts are not fully elaborated in public databases, their overall profile suggests experience in complex defense systems. Analyzing past performance evaluations and contract awards for similar scope and complexity would provide a more comprehensive understanding of their capabilities and reliability in this specialized domain. Their ability to secure this contract under full and open competition indicates they met the required technical and performance standards.

How does the $16 million contract value compare to similar SATCOM support contracts awarded by the USAF or other branches?

The $16 million contract value for approximately 19 months of support for USAF SATCOM Gateway and Operational Centers appears to be within a reasonable range for specialized defense IT and engineering services. Benchmarking against publicly available data for similar contracts reveals that costs for such critical infrastructure support can vary significantly based on the scope of work, duration, geographic location, and specific technologies involved. Contracts for maintaining and operating complex communication networks, especially those with high security requirements like SATCOM, often represent substantial investments. Without detailed scope comparisons, it's challenging to provide a precise value-for-money assessment, but the award seems aligned with typical expenditures for comparable services in the defense sector.

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

Primary performance risks for this SATCOM support contract include potential technical failures of critical systems, cybersecurity threats targeting communication networks, and the contractor's ability to maintain highly skilled personnel. Evolving SATCOM technologies also present a risk if the contractor cannot adapt quickly. Mitigation strategies likely involve stringent performance metrics, regular system audits, robust cybersecurity protocols mandated by the contract, and requirements for contractor personnel qualifications and retention. The Air Force's oversight through a Contracting Officer's Representative (COR) and defined delivery order milestones are also key to managing and mitigating these risks throughout the contract's duration.

What is the historical spending trend for USAF SATCOM gateway and operational center support?

Historical spending on USAF SATCOM gateway and operational center support has generally trended upwards, reflecting the increasing reliance on satellite communications for global operations, intelligence gathering, and command and control. This trend is driven by technological advancements, the need for enhanced bandwidth and security, and the expansion of global military presence. Specific figures fluctuate annually based on modernization efforts, new system deployments, and the duration of existing support contracts. Analyzing aggregated spending data over the past 5-10 years would reveal the overall investment trajectory in this critical capability area.

How does the 'Engineering Services' NAICS code (541330) align with the contract's stated purpose?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' aligns well with the contract's stated purpose of providing 'USAF ACC SATCOM GATEWAY AND OPERATIONAL CENTERS SUPPORT.' Engineering services in this context encompass a broad range of activities, including the design, development, analysis, and integration of complex systems like satellite communication gateways and operational centers. This includes tasks such as system architecture, technical consulting, performance analysis, and potentially the oversight of system maintenance and upgrades, all of which are critical for ensuring the functionality and reliability of vital military communication infrastructure.

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: 47QFLA22Q0140

Pricing Type: LABOR HOURS (Z)

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: $16,049,334

Exercised Options: $16,049,334

Current Obligation: $16,049,334

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,545,244

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