DoD's $10.3M SATCOM Modernization Contract Awarded to Agile Decision Sciences Amidst Limited Competition

Contract Overview

Contract Amount: $10,281,293 ($10.3M)

Contractor: Agile Decision Sciences, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-01

End Date: 2026-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SATCOM MODERNIZATION SERVICES FOR AFWET

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to AGILE DECISION SCIENCES, LLC for work described as: SATCOM MODERNIZATION SERVICES FOR AFWET Key points: 1. Value for money is difficult to assess due to the cost-plus fixed fee structure and lack of competitive bidding. 2. The contract was awarded on a sole-source basis, raising questions about price discovery and potential overpayment. 3. Risk indicators include the cost-plus contract type, which can incentivize higher spending, and the absence of a competitive environment. 4. Performance context is limited as this is a definitive contract with a long duration, suggesting a need for ongoing services. 5. The contract falls within the engineering services sector, supporting critical satellite communications infrastructure. 6. The lack of small business participation is noted, as the contract was not set aside and the prime contractor is not a small business.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to its sole-source nature and cost-plus fixed fee (CPFF) pricing structure. CPFF contracts can lead to higher costs as the contractor is reimbursed for expenses plus a fee, potentially reducing the incentive for cost control. Without competitive bids or a clear statement of work with fixed deliverables, assessing whether the government is receiving good value for the $10.3 million is challenging. Comparisons to similar SATCOM modernization contracts are limited without more detailed performance and cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates 'NOT AVAILABLE FOR COMPETITION,' suggesting that the Department of the Air Force identified a specific need that could only be met by Agile Decision Sciences, LLC, or that circumstances precluded a competitive process. The lack of multiple bidders means there was no opportunity for price negotiation based on competing offers, which typically drives down costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through market competition, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive modernized satellite communication services. The services delivered are critical for maintaining and enhancing the Air Force's global communication capabilities. The geographic impact is likely global, given the nature of satellite communications, supporting operations worldwide. Workforce implications may include specialized engineering and technical roles required for SATCOM modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost-plus fixed fee contract type may not incentivize maximum cost efficiency.
Lack of transparency regarding the justification for sole-source award.
Long contract duration (1460 days) could lead to cost overruns if not managed effectively.
Absence of small business set-aside could limit opportunities for smaller firms in this sector.

Positive Signals

Contract supports critical national security infrastructure (SATCOM modernization).
Award to a single contractor may indicate specialized expertise required for the task.
Definitive contract structure allows for flexibility in service delivery over the contract period.
Contract duration suggests a long-term commitment to essential communication services.

Sector Analysis

The contract falls under Engineering Services (NAICS 541330), a sector crucial for national defense and technological advancement. The Satellite Communications (SATCOM) market is a significant segment within the broader aerospace and defense industry, characterized by high technological barriers to entry and substantial government investment. Spending in this area is driven by the need for secure, reliable, and high-bandwidth communication for military operations globally. Benchmarking is difficult without specific details on the modernization scope, but significant government contracts in this domain often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Agile Decision Sciences, LLC, is not listed as a small business. Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The absence of a small business focus in this award means that opportunities for small businesses to participate in this specific SATCOM modernization effort are limited to potential subcontracts awarded by the prime, which are not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the contract's cost-plus fixed fee structure, requiring the contractor to justify all incurred costs and adhere to the fixed fee. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed justifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Satellite Communications
Defense Communications Infrastructure
Space and Missile Systems Center Contracts
Engineering Services for Defense

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competitive bidding
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to AGILE DECISION SCIENCES, LLC. SATCOM MODERNIZATION SERVICES FOR AFWET

Who is the contractor on this award?

The obligated recipient is AGILE DECISION SCIENCES, 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 $10.3 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-06-30.

What is the specific justification for awarding this SATCOM modernization contract on a sole-source basis?

The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. While the specific justification is not detailed in the provided data, common reasons for sole-source awards in defense contracting include the existence of unique capabilities or proprietary technology held by a single contractor, urgent and compelling needs where competition is impractical, or situations where only one responsible source can fulfill the requirement. For this particular contract, the Department of the Air Force would have had to document and approve a formal justification and approval (J&A) process, outlining why full and open competition was not feasible or not in the government's best interest. This documentation is typically made public, though its accessibility can vary.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar SATCOM modernization projects?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, such as research and development or complex system integration. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government, as the contractor has less incentive to control costs beyond what is necessary to complete the work. For SATCOM modernization, FFP contracts might be preferred if requirements are very well-defined, offering greater cost certainty. However, the inherent complexity and evolving nature of SATCOM technology can make FFP challenging, leading agencies to opt for CPFF or other cost-reimbursement types when flexibility is paramount.

What are the potential risks associated with a 1460-day contract duration for SATCOM modernization?

A 1460-day (approximately 4-year) contract duration for SATCOM modernization presents several potential risks. Firstly, technological obsolescence is a significant concern; SATCOM technology evolves rapidly, and a system modernized over four years might be outdated by its completion or shortly thereafter. Secondly, cost escalation is a risk, especially with a CPFF structure, as longer durations provide more opportunities for unforeseen cost increases due to inflation, changing labor rates, or scope creep. Thirdly, contractor performance management becomes more complex over extended periods; maintaining consistent oversight and ensuring the contractor remains aligned with evolving requirements and performance standards requires sustained effort. Finally, the long duration might reduce the government's agility to adapt to new strategic priorities or technological breakthroughs that could render the current modernization approach suboptimal.

What is the historical spending pattern for SATCOM modernization services within the Department of the Air Force?

Historical spending on SATCOM modernization within the Department of the Air Force (and the broader DoD) has been substantial and consistent, reflecting the critical nature of these capabilities for global operations. While specific figures for 'SATCOM Modernization Services' can vary based on categorization, the Air Force consistently invests billions annually in space and communications systems. This includes funding for satellite acquisition, ground station upgrades, network integration, and associated engineering and support services. Spending trends are influenced by geopolitical factors, technological advancements (e.g., transition to software-defined satellites, increased use of protected communications), and evolving operational requirements. Contracts like this one, even at $10.3 million, represent a piece of a much larger, ongoing investment portfolio aimed at maintaining and enhancing the Air Force's strategic communication advantage.

How does the lack of competition impact the potential for innovation in this SATCOM modernization effort?

The lack of competition in a sole-source award can stifle innovation. When a contract is not competed, the government does not benefit from the diverse approaches, novel solutions, and technological advancements that multiple bidders might propose. Competitors often push the boundaries of what is possible to win contracts, leading to more innovative outcomes. In a sole-source scenario, the contractor may have less incentive to invest in developing and proposing cutting-edge solutions if they are already guaranteed the award. While the selected contractor might still be innovative, the absence of competitive pressure means the government is reliant solely on that contractor's internal drive for innovation, potentially missing out on more advanced or cost-effective alternatives that could have emerged from a competitive bidding process.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 350 VOYAGER WAY STE 100B, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $13,488,215

Exercised Options: $12,396,708

Current Obligation: $10,281,293

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline