DoD's $20.1M Contract for Smartronix LLC's Capabilities Integration Environment System Integration Technical Support
Contract Overview
Contract Amount: $20,131,771 ($20.1M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2018-07-23
End Date: 2022-04-26
Contract Duration: 1,373 days
Daily Burn Rate: $14.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CAPABILITIES INTEGRATION ENVIRONMENT SYSTEM INTEGRATION TECHNICAL SUPPORT
Place of Performance
Location: HOLLYWOOD, SAINT MARYS County, MARYLAND, 20636
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.1 million to SMARTRONIX, LLC for work described as: CAPABILITIES INTEGRATION ENVIRONMENT SYSTEM INTEGRATION TECHNICAL SUPPORT Key points: 1. The contract awarded to SMARTRONIX, LLC for $20.1M focuses on system integration and technical support. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract duration of 1373 days indicates a long-term need for these services. 4. The sector is IT, specifically Wired Telecommunications Carriers, a critical area for defense operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method implies a competitive process but with specific pre-qualifications. This could potentially limit the pool of bidders, impacting price discovery.
Taxpayer Impact: The final taxpayer impact depends on the efficiency of the cost-plus-fixed-fee structure and whether the final costs align with the value delivered.
Public Impact
Ensures critical IT infrastructure and integration capabilities for the Department of the Air Force. Supports advanced defense systems requiring complex technical integration and ongoing support. Potential for technological advancements and improved operational efficiency within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Limited information on specific performance metrics and outcomes.
- Potential for scope creep in long-term system integration projects.
Positive Signals
- Full and open competition after exclusion of sources indicates a structured procurement.
- Long contract duration suggests a stable and essential service.
- Awarded to a single vendor, potentially indicating specialized expertise.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on wired telecommunications and system integration. Spending in this area is crucial for modern defense operations, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Analysis of subcontracting opportunities for small businesses is not provided.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the DoD. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms and performance standards.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 3 years).
- Potential for vendor lock-in.
- Limited transparency on specific performance metrics.
- No small business participation indicated.
Tags
wired-telecommunications-carriers, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to SMARTRONIX, LLC. CAPABILITIES INTEGRATION ENVIRONMENT SYSTEM INTEGRATION TECHNICAL SUPPORT
Who is the contractor on this award?
The obligated recipient is SMARTRONIX, 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 $20.1 million.
What is the period of performance?
Start: 2018-07-23. End: 2022-04-26.
What specific system integration challenges does this contract address, and how does the chosen vendor's expertise align with these needs?
The contract addresses 'CAPABILITIES INTEGRATION ENVIRONMENT SYSTEM INTEGRATION TECHNICAL SUPPORT,' implying a need for integrating diverse defense systems and ensuring their seamless operation. Smartronix, LLC's expertise in this area, likely demonstrated during the competitive bidding process, is crucial for managing the complexity of defense IT infrastructure and ensuring interoperability between various platforms and technologies.
How does the 'Cost Plus Fixed Fee' structure impact the government's ability to control costs and ensure value for money in this long-term contract?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover all allowable costs plus a fixed fee representing profit. While it incentivizes the contractor to control costs to maximize their fixed profit, it can also lead to cost overruns if initial estimates are inaccurate or if scope changes occur. Effective government oversight is critical to scrutinize costs and ensure the fixed fee remains appropriate for the work performed.
What are the potential risks associated with relying on a single vendor for critical system integration and technical support over a four-year period?
Relying on a single vendor for critical system integration over an extended period carries risks such as vendor lock-in, potential for complacency, and vulnerability if the vendor faces financial or operational difficulties. Mitigating these risks requires robust contract management, clear performance metrics, and contingency planning by the Department of the Air Force to ensure continuity of essential services.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636
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: $20,131,771
Exercised Options: $20,131,771
Current Obligation: $20,131,771
Actual Outlays: $6,662,578
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $17,007,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA873214D0012
IDV Type: IDC
Timeline
Start Date: 2018-07-23
Current End Date: 2022-04-26
Potential End Date: 2024-10-26 00:00:00
Last Modified: 2025-09-29
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