DoD Awards $6.3M for SBIRS SOF AV/ESS Systems to D7, LLC, with Limited Competition
Contract Overview
Contract Amount: $6,291,395 ($6.3M)
Contractor: D7, LLC
Awarding Agency: Department of Defense
Start Date: 2022-12-21
End Date: 2026-07-31
Contract Duration: 1,318 days
Daily Burn Rate: $4.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPACE-BASED INFRARED SYSTEM (SBIRS) SUPPORT OPERATIONAL FACILITY (SOF) AUDIO VISUAL (AV) SYSTEMS AND ELECTRONIC SECURITY SYSTEMS (ESS)
Place of Performance
Location: AURORA, ARAPAHOE County, COLORADO, 80011
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $6.3 million to D7, LLC for work described as: SPACE-BASED INFRARED SYSTEM (SBIRS) SUPPORT OPERATIONAL FACILITY (SOF) AUDIO VISUAL (AV) SYSTEMS AND ELECTRONIC SECURITY SYSTEMS (ESS) Key points: 1. The contract focuses on critical audio-visual and electronic security systems for the Space-Based Infrared System (SBIRS) support facility. 2. D7, LLC, a single awardee, will provide these specialized services. 3. The firm-fixed-price contract runs through July 2026, indicating a medium-term commitment. 4. The primary risk lies in the lack of competitive bidding, potentially impacting price efficiency.
Value Assessment
Rating: fair
The award amount of $6.3M for specialized AV and ESS systems is difficult to benchmark without comparable contracts. The lack of competition makes a direct pricing assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded on a limited competition basis, suggesting potential justifications for not seeking broader bids. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive scenario.
Taxpayer Impact: The limited competition raises concerns about maximizing taxpayer value, as alternative, potentially more cost-effective solutions may not have been explored.
Public Impact
Ensures operational readiness of critical SBIRS infrastructure. Supports national security by maintaining advanced surveillance capabilities. Potential for increased costs due to limited competition. Impacts a specialized segment of the defense contracting market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdown
- Potential for cost overruns
Positive Signals
- Supports critical national security infrastructure
- Firm-fixed-price contract provides cost certainty
Sector Analysis
This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector, specifically supporting advanced defense systems. Spending in this niche is driven by technological advancements and national security requirements.
Small Business Impact
The data indicates this was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will focus on contract performance, adherence to specifications, and financial management, especially given the limited competition.
Related Government Programs
- Electrical Contractors and Other Wiring Installation Contractors
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of robust competition
- Potential for price escalation
- Dependence on a single contractor
- Limited transparency in cost structure
- National security implications of system failure
Tags
electrical-contractors-and-other-wiring-, department-of-defense, co, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.3 million to D7, LLC. SPACE-BASED INFRARED SYSTEM (SBIRS) SUPPORT OPERATIONAL FACILITY (SOF) AUDIO VISUAL (AV) SYSTEMS AND ELECTRONIC SECURITY SYSTEMS (ESS)
Who is the contractor on this award?
The obligated recipient is D7, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $6.3 million.
What is the period of performance?
Start: 2022-12-21. End: 2026-07-31.
What specific factors justified the limited competition for these critical SBIRS support systems, and were these justifications thoroughly documented?
The justification for limited competition typically involves factors such as urgent and compelling needs, unique technical requirements, or the unavailability of other sources. For the SBIRS SOF AV/ESS systems, it's crucial that the Department of the Air Force documented why only D7, LLC could meet these specific, potentially highly specialized, technical demands or security requirements within the necessary timeframe.
How does the pricing structure of this firm-fixed-price contract compare to industry benchmarks for similar AV and ESS installations in secure government facilities?
Without access to detailed cost breakdowns or comparable contract data, a precise comparison is difficult. However, firm-fixed-price contracts aim to shift risk to the contractor. If D7, LLC's pricing is significantly higher than benchmarks for comparable, albeit less sensitive, installations, it could indicate a premium for specialized security, limited competition, or potentially inflated costs.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure the effectiveness of the AV and ESS systems?
Key performance indicators would likely include system uptime, response times for security alerts, successful integration with existing SBIRS infrastructure, and adherence to stringent security protocols. Effectiveness will be measured through regular system testing, performance monitoring reports, and potentially user feedback from SBIRS operational personnel to ensure the systems meet their intended mission-critical functions.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA254322Q0001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1755 TELSTAR DR, COLORADO SPRINGS, CO, 80920
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $7,051,652
Exercised Options: $6,291,395
Current Obligation: $6,291,395
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $63,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-12-21
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-12-15
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