Sigma Defense Systems LLC Awarded $3.1M for Navair Spares Kits by GSA

Contract Overview

Contract Amount: $3,119,505 ($3.1M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2022-09-30

End Date: 2028-09-29

Contract Duration: 2,191 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STING III ID05180024068 NAVAIR SPARES KITS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $3.1 million to SIGMA DEFENSE SYSTEMS LLC for work described as: STING III ID05180024068 NAVAIR SPARES KITS Key points: 1. Contract awarded to SIGMA DEFENSE SYSTEMS LLC for $3.1M. 2. The contract is for NAVAIR SPARES KITS. 3. Awarded by the General Services Administration (GSA). 4. Contract type is FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES. 5. The contract has a duration of 2191 days. 6. The contract is a DELIVERY ORDER. 7. The contract is FIRM FIXED PRICE.

Value Assessment

Rating: fair

The total award amount of $3.1 million for NAVAIR SPARES KITS appears to be a reasonable sum for specialized defense components. Without specific unit cost data or a detailed breakdown of the kits' contents, a direct value-for-money assessment is challenging. Benchmarking against similar spare parts contracts for naval aviation would provide a clearer picture of whether this price reflects competitive market rates for the specified equipment and services.

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, making it difficult to assess the true level of competition and its impact on price discovery. A more transparent competition process could yield better pricing.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of vendors had been allowed to bid.

Public Impact

This contract supports the Naval Air Systems Command (NAVAIR) by providing essential spare parts and kits. The availability of these kits ensures the operational readiness and maintenance of naval aircraft. The contract's impact is primarily on the defense sector and the personnel maintaining naval aviation assets. Geographic impact is likely concentrated around naval air stations and maintenance facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price optimization.
Lack of detailed cost breakdown hinders value assessment.
Exclusion of sources needs further clarification to ensure fairness.

Positive Signals

Award to a single vendor for specialized kits can streamline procurement.
Firm Fixed Price contract provides cost certainty for the government.
Long contract duration suggests a stable need for these components.

Sector Analysis

This contract falls within the broader defense manufacturing and aerospace sector, specifically focusing on the supply of communication equipment components. The market for specialized military spare parts is often characterized by unique requirements and a limited number of qualified suppliers. The total spending in this niche can vary significantly based on defense budgets and specific platform needs, but contracts like this are crucial for maintaining fleet readiness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, SIGMA DEFENSE SYSTEMS LLC, is responsible for fulfilling the contract requirements, and any subcontracting would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which typically has established oversight mechanisms for delivery orders issued under its schedules. The firm fixed price nature of the contract provides a degree of cost control. Transparency regarding the reasons for excluding certain sources in the competition would enhance accountability. Further oversight would involve monitoring contract performance and adherence to terms.

Related Government Programs

NAVAIR Procurement
Defense Logistics Agency (DLA) Spare Parts
Communications Equipment Manufacturing
Federal Acquisition Service Contracts

Risk Flags

Limited competition concerns
Lack of detailed cost breakdown
Unclear justification for source exclusion

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.1 million to SIGMA DEFENSE SYSTEMS LLC. STING III ID05180024068 NAVAIR SPARES KITS

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 $3.1 million.

What is the period of performance?

Start: 2022-09-30. End: 2028-09-29.

What is the specific nature of the 'NAVAIR SPARES KITS' being procured?

The provided data identifies the National Stock Number (NSN) as 334290, which corresponds to 'Other Communications Equipment Manufacturing'. Therefore, the 'NAVAIR SPARES KITS' likely consist of components, sub-assemblies, or complete kits related to communication systems used by the Naval Air Systems Command (NAVAIR). These could include parts for radios, data links, intercom systems, or other electronic communication hardware essential for naval aircraft operations. The exact composition would be detailed in the contract's statement of work, which is not publicly available in this dataset.

How does the $3.1 million award compare to historical spending on similar NAVAIR spare parts contracts?

A direct comparison of the $3.1 million award to historical spending on similar NAVAIR spare parts contracts requires access to a comprehensive database of past procurements. Without specific details on the types of kits and their components, it's difficult to find exact matches. However, the General Services Administration (GSA) Federal Acquisition Service (FAS) manages numerous contracts for defense-related supplies. Benchmarking this award against other delivery orders for communication equipment spares or general aviation parts issued by GSA or NAVAIR over the last few years would be necessary. The duration of the contract (approx. 6 years) suggests a significant, ongoing need, making the total value potentially moderate for such a long-term requirement.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The primary risk with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is that the exclusion of potential bidders, even if justified, can limit the competitive landscape. This can lead to reduced price innovation and potentially higher costs for the government compared to a truly open competition where all qualified vendors could participate. There's also a risk that the excluded sources might have offered unique capabilities or more cost-effective solutions. Transparency regarding the rationale for exclusion is crucial to mitigate concerns about fairness and to ensure the government is not inadvertently foregoing better value.

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

Assessing SIGMA DEFENSE SYSTEMS LLC's track record requires examining their past performance on contracts with the Department of Defense, particularly with NAVAIR or other naval commands, and for similar types of spare parts or communication equipment. Information on their contract history, including award values, types of services rendered, and performance ratings (if available), would indicate their experience and reliability. A review of their contract portfolio would reveal if they have a history of successful delivery on complex defense supply contracts or if there have been any performance issues or disputes.

How does the firm fixed price (FFP) contract type impact the government's risk and potential for cost savings?

A Firm Fixed Price (FFP) contract type places the majority of the cost risk on the contractor, SIGMA DEFENSE SYSTEMS LLC. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the government, this offers significant cost certainty and predictability, as the total expenditure is known upfront. It incentivizes the contractor to manage their costs efficiently to maximize profit. However, if the contractor significantly underestimates costs, they may face financial losses, potentially impacting their ability or willingness to perform on future contracts. For the government, FFP is generally preferred for well-defined requirements like spare parts, as it minimizes cost overrun risks.

What is the significance of the contract being a 'DELIVERY ORDER'?

The designation of this award as a 'DELIVERY ORDER' implies that it is likely issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the overall contract framework (terms, conditions, pricing structure) was established previously, possibly through a broader competition. The 'DELIVERY ORDER' itself then specifies the exact quantity, delivery schedule, and price for a particular segment of goods or services. This approach allows the government to procure needed items incrementally as requirements arise, offering flexibility while leveraging a previously competed framework.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFLA22Q0251

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: $14,306,092

Exercised Options: $14,306,092

Current Obligation: $3,119,505

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