SIGMA DEFENSE SYSTEMS LLC awarded $23.8M contract for engineering services by GSA

Contract Overview

Contract Amount: $23,793,157 ($23.8M)

Contractor: Sigma Defense Systems LLC

Awarding Agency: General Services Administration

Start Date: 2024-08-26

End Date: 2026-08-25

Contract Duration: 729 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: NSWC PCD SYSTEMS SUPPORT LI TO 19

Place of Performance

Location: LYNN HAVEN, BAY County, FLORIDA, 32444

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $23.8 million to SIGMA DEFENSE SYSTEMS LLC for work described as: NSWC PCD SYSTEMS SUPPORT LI TO 19 Key points: 1. Contract value of $23.8M over two years suggests a significant investment in engineering support. 2. The contract was awarded using full and open competition, indicating a competitive bidding process. 3. The use of Time and Materials pricing may present cost control challenges if not closely managed. 4. This contract supports engineering services, a critical component for defense system lifecycle management. 5. The award to SIGMA DEFENSE SYSTEMS LLC positions them as a key provider for NSWC PCD. 6. The contract duration of 729 days allows for sustained support and project continuity.

Value Assessment

Rating: good

The contract value of $23.8 million over two years for engineering services appears reasonable given the scope of supporting naval systems. Benchmarking against similar large-scale engineering support contracts for defense agencies would provide a more precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, requires diligent oversight to ensure costs remain within expected parameters and do not escalate beyond market rates for specialized engineering expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offering. A competitive process is expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically leads to more cost-effective solutions and prevents potential overspending associated with less competitive or sole-source procurements.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center Port Hueneme Division (NSWC PCD), which receives essential engineering support for its systems. Services delivered include engineering support, crucial for the maintenance, upgrade, and sustainment of naval platforms and systems. The contract's geographic impact is centered in Florida, where the contractor is located, but the ultimate impact is on naval readiness nationwide. Workforce implications include potential job creation or utilization of skilled engineers and technical personnel within SIGMA DEFENSE SYSTEMS LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed rigorously.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
The contract's duration, while providing continuity, could also lock in potentially suboptimal pricing if market rates decrease.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration of two years provides stability for critical engineering support.
SIGMA DEFENSE SYSTEMS LLC's role suggests established capabilities in defense systems support.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical segment supporting the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and technological advancement of military platforms. This award represents a portion of broader government spending on technical and engineering support, essential for maintaining national security and operational readiness. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded to prime contractors by various defense agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The focus appears to be on the prime contractor's capabilities rather than small business utilization goals within this particular procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the Naval Surface Warfare Center Port Hueneme Division (NSWC PCD). Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services
Systems Engineering Support
Federal IT and Engineering Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of detailed performance metrics in public award data.
Dependence on contractor efficiency for value realization.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.8 million to SIGMA DEFENSE SYSTEMS LLC. NSWC PCD SYSTEMS SUPPORT LI TO 19

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 $23.8 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-08-25.

What is SIGMA DEFENSE SYSTEMS LLC's track record with government contracts, particularly in engineering services?

SIGMA DEFENSE SYSTEMS LLC has a history of receiving government contracts, primarily within the defense sector. While specific details on their performance metrics for past contracts are not publicly detailed in this summary, their ability to secure a $23.8 million award from the General Services Administration for engineering services suggests a demonstrated capability and a positive track record with federal agencies. Further analysis of their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment of their reliability and expertise in delivering complex engineering solutions.

How does the $23.8 million contract value compare to similar engineering support contracts for naval systems?

The $23.8 million contract value over two years for engineering services is substantial and aligns with the typical scale of support required for major naval systems. Contracts for similar services, such as systems engineering, technical support, and lifecycle management for naval platforms, often range from tens to hundreds of millions of dollars, depending on the complexity and duration. This award appears to be within the expected range for a significant engineering support requirement, indicating a competitive market price for specialized defense engineering expertise. A detailed comparison would involve analyzing contract award data for comparable services provided to entities like NAVSEA or other warfare centers.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor. Unlike fixed-price contracts, T&M offers less upfront cost certainty. This structure can incentivize contractors to extend project timelines or increase labor hours if not managed with stringent oversight. For taxpayers, this means the final cost could exceed initial estimates if the contractor's efficiency is low or if scope creep occurs without adequate controls. Effective management requires detailed tracking of hours, rates, and materials, along with robust performance monitoring by the government.

How effective is the General Services Administration (GSA) in overseeing contracts of this nature to ensure value for money?

The General Services Administration (GSA) plays a significant role in federal procurement, including overseeing contracts for services like engineering support. GSA's Federal Acquisition Service (FAS) manages numerous contract vehicles and awards, aiming to provide efficient and cost-effective solutions for government agencies. Their oversight typically involves establishing contract terms, monitoring contractor performance, and ensuring compliance with procurement regulations. For contracts like this one, GSA's role is crucial in setting the framework for competition and ensuring that the awarded services meet the government's needs at a fair and reasonable price. However, the ultimate effectiveness of oversight also depends on the specific program management and technical expertise within the end-user agency (NSWC PCD in this case).

What are the historical spending patterns for engineering services by NSWC PCD or similar naval commands?

Naval Surface Warfare Centers (NSWC) and similar commands historically allocate significant portions of their budgets to engineering services, encompassing research, development, testing, evaluation, and sustainment of naval systems. Spending patterns in this area are driven by the continuous need to modernize aging fleets, develop new technologies, and ensure the operational readiness of complex platforms. Annual spending can fluctuate based on strategic priorities, defense budgets, and specific program requirements. Analyzing historical data for NSWC PCD would reveal trends in contract awards for engineering support, identifying key service areas, dominant contractors, and average contract values, providing context for the current $23.8 million award.

What is the potential impact of this contract on the broader defense engineering services market?

This $23.8 million contract award to SIGMA DEFENSE SYSTEMS LLC for engineering services has several implications for the broader defense engineering market. Firstly, it reinforces the company's position as a key player in supporting naval systems, potentially leading to future contract opportunities. Secondly, it signifies continued government investment in specialized engineering expertise, highlighting the demand within the sector. Thirdly, the competitive nature of the award suggests that multiple firms are vying for such contracts, fostering a dynamic market environment. The success of SIGMA DEFENSE SYSTEMS LLC on this contract could influence how other firms approach similar bids and showcase the capabilities valued by naval commands.

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: 47QFLA24Q0123

Pricing Type: TIME AND MATERIALS (Y)

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: $97,277,593

Exercised Options: $35,668,505

Current Obligation: $23,793,157

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $23,276,041

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