NOAA's $31.7M radio frequency monitoring system contract awarded to LGS Innovations LLC

Contract Overview

Contract Amount: $31,681,748 ($31.7M)

Contractor: LGS Innovations LLC

Awarding Agency: Department of Commerce

Start Date: 2017-12-19

End Date: 2020-12-31

Contract Duration: 1,108 days

Daily Burn Rate: $28.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF RADIO FREQUENCY FREQUENCY INTERFERENCE MONITORING SYSTEM

Place of Performance

Location: HIGH POINT, GUILFORD County, NORTH CAROLINA, 27265

State: North Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $31.7 million to LGS INNOVATIONS LLC for work described as: IGF::OT::IGF RADIO FREQUENCY FREQUENCY INTERFERENCE MONITORING SYSTEM Key points: 1. The contract aims to enhance radio frequency interference monitoring capabilities. 2. Awarded under full and open competition, suggesting a robust market. 3. The contract duration of 1108 days indicates a significant, long-term need. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 5. The North Carolina location for performance may have implications for local economic impact. 6. The specific product code (PSC) is not detailed, limiting granular analysis of the goods/services procured.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable contract data. The cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to higher costs than fixed-price contracts if not managed tightly. However, it allows for adaptation to evolving technical requirements, which may be necessary for advanced monitoring systems. The total award amount of $31.7 million over approximately three years suggests a substantial investment in this capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and innovative solutions. The presence of three bidders, as suggested by the 'no' field (though this typically refers to the number of offers, not necessarily unique bidders), implies a degree of market interest and competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging efficient service delivery.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from improved spectrum monitoring. The contract supports the delivery of advanced radio frequency interference monitoring systems. Performance is located in North Carolina, potentially impacting the local technology sector. The acquisition of this system is crucial for maintaining the integrity of critical communication and weather monitoring frequencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
The specific technical requirements and performance metrics are not detailed, making it difficult to assess the full scope of work.
Limited information on the contractor's past performance specifically related to this type of system.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair process.
The contract addresses a critical need for radio frequency interference monitoring.
The duration of the contract suggests a sustained commitment to this capability.

Sector Analysis

The contract falls within the 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' sector. This sector is vital for national infrastructure, supporting everything from public safety communications to scientific research and commercial broadcasting. Spending in this area often reflects investments in upgrading and maintaining the nation's wireless communication backbone and ensuring the efficient use of the electromagnetic spectrum. Comparable spending benchmarks would typically involve other government procurements for spectrum management, signal intelligence, or advanced communication systems.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of advanced monitoring systems, it is possible that the prime contractor, LGS Innovations LLC, is a larger entity. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent of any subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to ensure costs are reasonable and allocable to the contract. Transparency would be enhanced through regular reporting requirements from the contractor. The Inspector General for the Department of Commerce would have jurisdiction for audits and investigations if any issues arise.

Related Government Programs

Spectrum Management Systems
Wireless Communication Infrastructure
National Telecommunications and Information Administration (NTIA) activities
Federal Communications Commission (FCC) regulatory support

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence over the contract duration.
Dependence on contractor performance for critical monitoring functions.
Need for rigorous oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $31.7 million to LGS INNOVATIONS LLC. IGF::OT::IGF RADIO FREQUENCY FREQUENCY INTERFERENCE MONITORING SYSTEM

Who is the contractor on this award?

The obligated recipient is LGS INNOVATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2017-12-19. End: 2020-12-31.

What is the specific nature of the radio frequency interference being monitored, and why is it critical for NOAA?

The specific nature of the radio frequency interference being monitored likely pertains to the electromagnetic spectrum used by NOAA for critical operations, such as weather forecasting, climate monitoring, satellite communications, and environmental data collection. Interference can disrupt these vital services, leading to inaccurate data, communication failures, and compromised scientific research. Ensuring the integrity of the spectrum is paramount for NOAA's mission, which includes protecting life and property through weather and climate information. This contract aims to provide systems that can detect, identify, and potentially mitigate such interference, thereby safeguarding NOAA's operational capabilities and the reliability of its data.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other pricing models for similar technology procurements?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not precisely defined at the outset or involves significant research and development, making a fixed-price contract impractical. In this model, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer greater flexibility for the buyer to adapt requirements but may carry a higher risk of cost overruns if not managed diligently. For technology procurements like advanced monitoring systems, where innovation and adaptation are key, CPFF can be suitable. However, it requires robust oversight from the government to ensure costs remain reasonable and the fixed fee provides adequate incentive for efficient performance, unlike firm-fixed-price contracts which place cost risk on the contractor.

What is LGS Innovations LLC's track record with similar government contracts, particularly in radio frequency monitoring or advanced communications systems?

LGS Innovations LLC, formerly part of Alcatel-Lucent, has a history of providing telecommunications and network solutions to government agencies. While specific details on their past performance with radio frequency interference monitoring systems for NOAA are not provided in this data snippet, their background suggests experience in complex communication technologies. Analyzing their contract history with agencies like the Department of Defense or other intelligence community components would provide further insight into their capabilities and reliability in delivering sophisticated systems. A deeper dive into contract databases and performance reports would be necessary to fully assess their track record for this specific type of procurement.

What are the potential risks associated with the 1108-day contract duration, and how are they mitigated?

The 1108-day duration (approximately three years) for this contract presents several potential risks. Technological obsolescence is a primary concern; advanced monitoring systems can become outdated quickly in a rapidly evolving field. Performance degradation over time or contractor performance issues are also risks. Mitigation strategies typically include phased delivery and acceptance, performance-based payment schedules tied to milestones, robust testing and validation protocols, and clear contract clauses for addressing deficiencies or non-performance. Furthermore, the CPFF structure, while flexible, requires continuous government oversight to ensure the contractor remains focused on delivering value throughout the extended period and does not allow costs to escalate unnecessarily.

How does this $31.7 million contract compare to historical federal spending on radio frequency monitoring or spectrum management technologies?

Comparing this $31.7 million contract to historical federal spending requires access to broader budget and procurement data. However, federal spending on spectrum management and related technologies is substantial, driven by the increasing demand for wireless services and the need to prevent interference. Agencies like the NTIA (within Commerce) and FCC manage significant portions of the spectrum. Contracts for advanced monitoring systems, signal analysis tools, and spectrum allocation software can range from a few million to tens of millions of dollars, depending on the scope and technological sophistication. This NOAA contract appears to be a significant, but not unprecedented, investment within this domain, reflecting the ongoing need for robust spectrum oversight.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

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: SP133E17RP0043

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc

Address: 4090 PREMIER DRIVE, HIGH POINT, NC, 27265

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $205,237,282

Exercised Options: $31,681,748

Current Obligation: $31,681,748

Actual Outlays: $426,008

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $632,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline