SIGMA DEFENSE SYSTEMS LLC Awarded $29.7M for Army ISR Task Force Upgrade, Signaling Key Technology Investment

Contract Overview

Contract Amount: $29,686,314 ($29.7M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2024-04-05

End Date: 2029-04-04

Contract Duration: 1,825 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ARMY INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE ISR TASK FORCE TF UPGRADE STING TO 78

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $29.7 million to SIGMA DEFENSE SYSTEMS LLC for work described as: ARMY INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE ISR TASK FORCE TF UPGRADE STING TO 78 Key points: 1. Contract value of $29.7 million indicates significant investment in intelligence capabilities. 2. Award to SIGMA DEFENSE SYSTEMS LLC suggests a focus on specialized defense technology providers. 3. The contract's duration of 5 years points to a long-term commitment to system sustainment and enhancement. 4. Fixed-price contract type aims to control costs and provide budget certainty for the government. 5. The procurement method, 'Full and Open Competition After Exclusion of Sources,' warrants further examination for potential competitive limitations. 6. This award aligns with broader trends in modernizing military intelligence, surveillance, and reconnaissance (ISR) platforms.

Value Assessment

Rating: good

The contract value of $29.7 million for an ISR task force upgrade appears reasonable given the specialized nature of defense technology. Benchmarking against similar ISR system upgrades would provide more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but without detailed cost breakdowns, a definitive value assessment is challenging. The award to a single entity, SIGMA DEFENSE SYSTEMS LLC, necessitates understanding their unique qualifications and market position to gauge competitive 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 procurement method implies that while competition was sought, certain sources were initially excluded, potentially limiting the breadth of bidders. Further details are needed to understand the rationale behind the exclusion and the extent of the competition that ultimately occurred. The number of bidders and the evaluation process would clarify if this method yielded optimal price discovery.

Taxpayer Impact: This procurement approach may have limited the number of potential offerors, potentially impacting the government's ability to secure the lowest possible price through maximum competition. Taxpayers benefit when a wide range of qualified vendors can compete, driving down costs.

Public Impact

The primary beneficiaries are the U.S. Army's intelligence units, who will receive upgraded ISR capabilities. The contract will deliver enhanced intelligence, surveillance, and reconnaissance functionalities, crucial for modern military operations. The geographic impact is likely focused on operational theaters where the Army deploys ISR assets. Workforce implications may include specialized technical support and integration roles for SIGMA DEFENSE SYSTEMS LLC personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to 'Exclusion of Sources' could lead to higher costs for taxpayers.
Lack of transparency regarding the exclusion rationale may obscure potential competitive disadvantages.
The long-term nature of the contract requires ongoing monitoring to ensure sustained performance and value.
Dependence on a single contractor for critical ISR upgrades could pose supply chain or innovation risks.

Positive Signals

Award to a specialized firm like SIGMA DEFENSE SYSTEMS LLC suggests access to advanced ISR technology.
Firm fixed-price contract provides cost certainty and incentivizes contractor efficiency.
The substantial investment signals a commitment to modernizing vital military intelligence capabilities.
The 5-year duration allows for comprehensive system integration and potential future enhancements.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Intelligence, Surveillance, and Reconnaissance (ISR) systems. The ISR market is a critical and evolving segment of the defense industry, driven by the need for advanced situational awareness and data processing. Spending in this area is substantial, with numerous contractors vying for opportunities to provide cutting-edge technology and services. Comparable spending benchmarks would involve analyzing other large-scale ISR platform upgrades or sustainment contracts within the Department of Defense.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this award. This suggests that the primary focus was on specialized capabilities likely held by larger, established defense contractors. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific contract, as it does not appear to be structured to foster small business prime contracting or significant subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the relevant Army contracting command and program executive office responsible for ISR systems. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified capabilities. Transparency is facilitated through contract award announcements and public databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Intelligence Systems
ISR Modernization Programs
Defense Technology Development
Special Operations Forces Support
Tactical Data Links
Electronic Warfare Systems

Risk Flags

Limited competition procurement method
Potential for vendor lock-in
Lack of small business subcontracting requirements
Proprietary technology integration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $29.7 million to SIGMA DEFENSE SYSTEMS LLC. ARMY INTELLIGENCE SURVEILLANCE AND RECONNAISSANCE ISR TASK FORCE TF UPGRADE STING TO 78

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 $29.7 million.

What is the period of performance?

Start: 2024-04-05. End: 2029-04-04.

What is the specific nature of the 'TF Upgrade STING' and how does it enhance existing ISR capabilities?

The 'TF Upgrade STING' likely refers to an upgrade package for an existing Intelligence, Surveillance, and Reconnaissance (ISR) Task Force (TF) system, possibly named STING. Enhancements could include improved sensor capabilities (e.g., higher resolution, wider spectrum detection), advanced data processing and analysis tools, enhanced communication links for real-time data dissemination, or improved platform integration. The goal is typically to provide warfighters with more accurate, timely, and actionable intelligence, improving situational awareness and decision-making in complex operational environments. The specific technical details of the upgrade would be proprietary but generally aim to counter evolving threats and leverage new technological advancements in the ISR domain.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' procurement method?

The 'Full and Open Competition After Exclusion of Sources' method is typically employed when specific circumstances necessitate limiting the initial pool of potential offerors. Common reasons include the need for highly specialized technology or expertise that only a few contractors possess, urgent requirements where extensive market research is impractical, or when prior experience with a specific system or platform is critical for successful performance. For this ISR upgrade, exclusions might have been based on unique intellectual property, proprietary technology integration requirements, or a demonstrated track record with similar sensitive Army intelligence systems. The justification for exclusion must be documented and approved by the contracting authority to ensure fairness and compliance with procurement regulations.

How does the $29.7 million contract value compare to other recent ISR system upgrade contracts awarded by the Department of Defense?

A comprehensive comparison requires access to a database of recent ISR contracts. However, $29.7 million for a 5-year upgrade and sustainment of a specialized task force system is within the typical range for significant defense technology investments. Larger platform procurements (e.g., new aircraft, satellites) would be in the hundreds of millions or billions. Smaller, individual component upgrades or software licenses might be in the low millions. This contract appears to represent a mid-to-large scale investment focused on enhancing existing ISR capabilities rather than acquiring entirely new systems, suggesting a strategic upgrade of critical intelligence assets.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the performance of SIGMA DEFENSE SYSTEMS LLC?

While specific KPIs are not publicly detailed, typical performance metrics for ISR system upgrade contracts include system uptime and availability, data processing speed and accuracy, sensor performance (e.g., detection range, resolution), reliability of communication links, successful integration with existing networks, and adherence to delivery schedules. For SIGMA DEFENSE SYSTEMS LLC, success would be measured by meeting or exceeding these technical performance standards, delivering the upgraded capabilities within the agreed-upon timeline and budget, and providing effective sustainment support throughout the contract's 5-year duration. Contractual milestones and acceptance criteria would form the basis for performance evaluation.

What is SIGMA DEFENSE SYSTEMS LLC's track record with similar ISR or intelligence-related contracts, particularly with the U.S. Army?

SIGMA DEFENSE SYSTEMS LLC is a defense contractor known for providing advanced technology solutions, including in areas related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR). While specific contract details are often sensitive, their portfolio typically includes systems integration, software development, and hardware support for military intelligence applications. Their experience likely encompasses working with various branches of the U.S. military, including the Army, on projects requiring specialized technical expertise. A deeper dive into their contract history, available through federal procurement databases, would reveal the scale and nature of their past performance in delivering similar ISR capabilities.

What are the potential risks associated with relying on a single contractor, SIGMA DEFENSE SYSTEMS LLC, for this critical ISR upgrade over a 5-year period?

Relying on a single contractor for a critical 5-year ISR upgrade introduces several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on SIGMA DEFENSE SYSTEMS LLC's proprietary technology and expertise, making future transitions or upgrades more complex and costly. Secondly, reduced competition over the contract's life could lead to complacency or less aggressive pricing for any modifications or sustainment needs. Thirdly, the contractor's financial stability or strategic business decisions could impact program continuity. Finally, if the contractor faces unforeseen technical challenges or performance issues, the government has limited immediate alternatives for remediation, potentially impacting operational readiness.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFLA24Q0076

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: $51,397,298

Exercised Options: $29,686,314

Current Obligation: $29,686,314

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $20,030,455

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