DoD's Air Force awarded $28.7M for ISR/SOF engineering support, with a 5-year duration

Contract Overview

Contract Amount: $28,687,138 ($28.7M)

Contractor: Solutions Through Innovative Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2015-05-19

End Date: 2020-06-19

Contract Duration: 1,858 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ACAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE / SPECIAL OPERATION FORCES (ISR/SOF) DIRECTORATE GLOBAL HAWK DIVISION (AFLCMC/WIG) EPASS RFP #20

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC for work described as: IGF::OT::IGF ACAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE / SPECIAL OPERATION FORCES (ISR/SOF) DIRECTORATE GLOBAL HAWK DIVISION (AFLCMC/WIG… Key points: 1. Contract value of $28.7M over 5 years suggests a moderate annual spend. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed closely. 3. Competition was 'Full and Open after Exclusion of Sources', indicating a potentially limited but still competitive process. 4. The contractor, Solutions Through Innovative Technologies Inc., has a track record with the DoD. 5. This contract supports critical Intelligence, Surveillance, and Reconnaissance (ISR) and Special Operations Forces (SOF) capabilities. 6. The geographic focus appears to be within Ohio, based on the awardee's location.

Value Assessment

Rating: fair

The contract value of $28.7M over 5 years averages to approximately $5.7M annually. Benchmarking this against similar ISR/SOF support contracts is difficult without more specific service details. However, the Cost Plus Fixed Fee (CPFF) pricing structure introduces inherent risk for cost control, as the government bears the cost of performance plus a fixed fee. This structure is often used when the scope is not fully defined, but it requires robust oversight to ensure value.

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 pool of bidders. The number of bidders (4) is a reasonable number, suggesting some level of competition, but the exclusion of sources warrants further investigation into the justification.

Taxpayer Impact: The exclusion of sources, even with four bidders, may have limited the potential for the most competitive pricing, potentially costing taxpayers more than if all qualified sources had been allowed to bid.

Public Impact

The primary beneficiaries are the Intelligence, Surveillance, and Reconnaissance (ISR) and Special Operations Forces (SOF) directorates within the Air Force. The services delivered are engineering, professional, and administrative support, crucial for the development and sustainment of ISR/SOF capabilities. The geographic impact is likely concentrated around the Air Force Life Cycle Management Center (AFLCMC) locations, particularly where the Global Hawk Division operates. Workforce implications include the potential for skilled engineering and administrative professionals to be employed by the prime contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
The 'Exclusion of Sources' in the competition method raises questions about the breadth of competition and potential for higher prices.
Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The duration of the contract (5 years) means potential for long-term cost escalation if not managed proactively.

Positive Signals

The contract supports critical national security functions (ISR/SOF), indicating a high-priority requirement.
The award to Solutions Through Innovative Technologies Inc. suggests they possess the necessary qualifications and past performance.
The inclusion of 'Full and Open' in the competition type, even with exclusions, implies an attempt at broad market engagement.
The fixed fee component in CPFF provides some level of cost predictability compared to pure cost-plus contracts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related intelligence and special operations. The market for such specialized advisory and assistance services is significant within the Department of Defense, driven by the continuous need for technological advancement and operational support in complex environments. Comparable spending benchmarks would typically be found within the broader category of professional services for defense agencies, often measured in billions annually across various support functions.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. This suggests that the prime contractor is likely a large business, and any subcontracting opportunities for small businesses would depend on the prime's own subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous oversight of costs incurred and the justification for those costs. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally limited for defense contracts of this nature, with details often classified or restricted.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Support Services
Special Operations Forces (SOF) Support Services
Air Force Life Cycle Management Center (AFLCMC) Contracts
Engineering and Technical Services
Advisory and Assistance Services (A&AS)

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition due to exclusion of sources.
Lack of specific performance metrics in summary data.
Need for robust oversight of contractor's cost accounting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC. IGF::OT::IGF ACAT 1 ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES (EPASS) ADVISORY AND ASSISTANCE SERVICES (A&AS) SUPPORT IN SUPPORT OF INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE / SPECIAL OPERATION FORCES (ISR/SOF) DIRECTORATE GLOBAL HAWK DIVISION (AFLCMC/WIG) EPASS RFP #20

Who is the contractor on this award?

The obligated recipient is SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC.

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 $28.7 million.

What is the period of performance?

Start: 2015-05-19. End: 2020-06-19.

What is the specific justification for excluding certain sources in the 'Full and Open Competition after Exclusion of Sources' award?

The justification for excluding sources in a 'Full and Open Competition after Exclusion of Sources' award typically stems from specific technical requirements, existing security clearances, or unique capabilities that only a subset of potential contractors possess. For a contract supporting Intelligence, Surveillance, and Reconnaissance (ISR) and Special Operations Forces (SOF) directorates, these exclusions might relate to highly specialized knowledge of classified systems, specific security protocols, or prior performance on related sensitive programs. Without the specific documentation from the Air Force, it's impossible to determine the exact reasons. However, such exclusions must be justified to the contracting officer and potentially the Government Accountability Office (GAO) to ensure fair and open competition principles are upheld to the greatest extent possible.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost control for similar defense engineering services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined, or significant uncertainties exist in the performance environment. In this structure, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee, which represents profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government, as the contractor has less incentive to control costs beyond what's necessary to complete the work within the fee structure. However, it provides more flexibility than FFP when requirements evolve. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a fixed profit margin, whereas CPIF and CPAF offer potential for increased profit based on meeting or exceeding performance targets, which can provide stronger incentives for efficiency. Robust government oversight is critical for CPFF to manage costs effectively.

What is the historical spending trend for ISR/SOF engineering and administrative support services by the Department of the Air Force?

Historical spending trends for ISR/SOF engineering and administrative support services by the Department of the Air Force are substantial and generally increasing, reflecting the growing importance of these capabilities. While specific figures for this exact contract category are not publicly itemized in aggregate, the overall budget allocated to ISR and SOF programs consistently represents a significant portion of the Air Force's procurement and research, development, test, and evaluation (RDT&E) accounts. Annual spending on related services, including advisory and assistance, engineering support, and system integration, likely runs into the billions of dollars across the Air Force. Factors driving this trend include technological advancements, evolving threat landscapes, and the continuous need to modernize aging platforms and develop new ones.

What are the key performance indicators (KPIs) typically used to evaluate contractors providing engineering and administrative support for ISR/SOF programs?

Key Performance Indicators (KPIs) for contractors providing engineering and administrative support for ISR/SOF programs are designed to measure effectiveness, efficiency, and adherence to requirements. Common KPIs include on-time delivery of reports and milestones, technical accuracy and quality of engineering designs or analyses, responsiveness to task orders, adherence to budget constraints (especially relevant in CPFF contracts requiring close monitoring), personnel qualifications and retention rates, and compliance with security protocols. For ISR/SOF specific roles, KPIs might also encompass the timeliness and accuracy of intelligence support provided, the effectiveness of system integration efforts, or the successful implementation of new operational capabilities. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS).

What is the track record of Solutions Through Innovative Technologies Inc. in delivering similar engineering and administrative support services to the DoD?

Solutions Through Innovative Technologies Inc. (STI-TEC) has a documented history of providing a range of services to the Department of Defense, including engineering, IT, and professional support. Their contract portfolio often includes work related to aerospace, defense systems, and program management. While specific details on their performance for ISR/SOF directorates under CPFF contracts require deeper analysis of past performance reviews and contract databases, their continued awards suggest a generally satisfactory track record in meeting DoD requirements. Companies like STI-TEC often leverage their experience across multiple defense agencies to secure and execute complex support contracts, indicating a capacity to handle the technical and administrative demands of programs like the Global Hawk Division's needs.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3152 PRESIDENTIAL DR, FAIRBORN, OH, 45324

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,423,148

Exercised Options: $34,742,975

Current Obligation: $28,687,138

Actual Outlays: $474,347

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $2,239,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS139

IDV Type: IDC

Timeline