DoD's $54.3M Engineering Services Contract Awarded to Solutions Through Innovative Technologies Inc

Contract Overview

Contract Amount: $54,346,229 ($54.3M)

Contractor: Solutions Through Innovative Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2017-08-15

End Date: 2022-07-31

Contract Duration: 1,811 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF "NDSEG OASIS TASK ORDER"

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $54.3 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC for work described as: IGF::OT::IGF "NDSEG OASIS TASK ORDER" Key points: 1. Contract value represents a significant investment in engineering services for the Department of Defense. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (1811 days) indicates a long-term need for these services. 4. The 'Cost No Fee' contract type implies that the contractor bears the financial risk for cost overruns. 5. The specific North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services. 6. The contract was awarded by the Defense Contract Management Agency, a key oversight body within the DoD. 7. The contractor, Solutions Through Innovative Technologies Inc., has secured a substantial award, indicating potential past performance or market position. 8. The contract's completion in July 2022 suggests a recent or ongoing service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this $54.3 million contract is challenging without more specific details on the scope of engineering services provided. However, the 'Cost No Fee' (CNF) contract type suggests a risk-sharing arrangement where the contractor is incentivized to manage costs effectively. Comparing this to similar large-scale engineering service contracts within the Department of Defense would provide a clearer picture of its value proposition. The absence of detailed performance metrics or a breakdown of services makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that the solicitation was made available to all responsible prospective contractors. While the 'after exclusion of sources' phrasing might suggest some initial limitations, the overall intent is to maximize competition. The number of bidders is not specified, but this type of competition generally aims to foster price discovery and ensure the government receives competitive pricing. The specific details of the exclusion, if any, would be crucial for a complete understanding of the competitive landscape.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is intended to drive down costs through market forces and ensure the government is obtaining services at the best possible price.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring specialized engineering expertise. Services delivered would encompass a range of engineering disciplines, supporting military readiness and technological advancement. The geographic impact is likely concentrated around DoD facilities or operational areas where these engineering services are deployed. Workforce implications could include the direct employment of engineers and technical staff by the contractor, as well as indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it difficult to assess if the full value of the contract was realized.
The 'Cost No Fee' structure, while shifting risk, could potentially limit contractor innovation if not managed carefully.
The 'after exclusion of sources' clause warrants further investigation to understand any potential limitations on competition.
Without specific performance metrics, it's hard to gauge the effectiveness and quality of the engineering services provided.
The duration of the contract (over 4 years) means that initial requirements may have evolved, potentially impacting relevance.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The 'Cost No Fee' contract type aligns contractor incentives with cost control.
The contract was managed by the Defense Contract Management Agency, suggesting established oversight.
The contractor, Solutions Through Innovative Technologies Inc., has secured a significant award, implying a level of trust and capability.
The contract addresses a clear need for engineering services within the Department of Defense.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential support for military platforms, research and development, and infrastructure. This contract falls within the broader professional, scientific, and technical services market, which is characterized by a mix of large prime contractors and specialized small businesses. The Department of Defense is a major consumer of these services, often requiring highly specialized expertise. Comparable spending benchmarks would typically be found in other large-scale engineering support contracts awarded to prime contractors for complex defense projects.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Solutions Through Innovative Technologies Inc., may engage small businesses as subcontractors to fulfill specific aspects of the engineering services required, depending on their own subcontracting plans and the nature of the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. The 'Cost No Fee' contract type implies a focus on cost monitoring and adherence to the agreed-upon fee structure. Transparency is generally facilitated through contract databases and reporting mechanisms, although specific details of performance and cost may be subject to confidentiality. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Engineering Services Contracts
OASIS Task Orders
Professional, Scientific, and Technical Services
Defense Contract Management Agency Awards
Cost-Reimbursement Contracts (though this is CNF, related)

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed service scope hinders full value assessment.
Performance metrics not publicly available to gauge effectiveness.
Contractor risk in CNF structure if costs exceed expectations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.3 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC. IGF::OT::IGF "NDSEG OASIS TASK ORDER"

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $54.3 million.

What is the period of performance?

Start: 2017-08-15. End: 2022-07-31.

What specific engineering services were provided under this contract, and how do they align with the Department of Defense's strategic objectives?

The provided data identifies the contract under NAICS code 541330 as 'Engineering Services.' However, the specific nature of these services is not detailed. Typically, engineering services for the DoD can range from systems engineering, design, and development of military hardware and software, to infrastructure engineering, cybersecurity engineering, and operational support. Without a Statement of Work (SOW) or task order details, it's impossible to definitively link these services to specific strategic objectives. These objectives could include enhancing weapon system capabilities, improving logistical support, developing new technologies, or maintaining existing infrastructure. The contract's duration suggests a sustained need for these engineering capabilities.

How does the 'Cost No Fee' (CNF) contract type influence contractor performance and risk management in this specific instance?

A 'Cost No Fee' (CNF) contract means the contractor is reimbursed for allowable costs but receives no fee or profit. This structure places the financial risk squarely on the contractor. For this $54.3 million contract, Solutions Through Innovative Technologies Inc. would be motivated to control costs meticulously to avoid incurring losses. This can lead to efficient operations but might also disincentivize the contractor from undertaking potentially costly but innovative solutions if they are not clearly within the scope and budget. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to ensure that cost controls do not compromise the quality or timely delivery of essential engineering services.

What was the competitive landscape for this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award, and what does it imply for price discovery?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the solicitation was initially intended for broad competition, but certain sources may have been excluded based on specific criteria before the final award. The exact reasons for exclusion are not provided. While 'full and open' aims for maximum competition, the 'exclusion of sources' clause suggests a potential narrowing of the field. The number of bids received is not specified. If only a few bidders responded after exclusions, price discovery might be less robust than in a truly unrestricted full and open competition. However, if multiple capable bidders still competed, it likely resulted in competitive pricing for the government.

What is the track record of Solutions Through Innovative Technologies Inc. in securing and performing on large federal contracts, particularly within the Department of Defense?

The award of a $54.3 million contract by the Department of Defense to Solutions Through Innovative Technologies Inc. suggests a demonstrated capability to secure and potentially perform on significant federal agreements. Without access to detailed contract performance history (e.g., past performance evaluations, CPARS reports), it's difficult to provide a comprehensive assessment of their track record. However, securing such a substantial award, especially under a competitive bidding process, typically implies that the contractor met the government's requirements regarding technical expertise, financial stability, and past performance. Further investigation into their contract portfolio and performance reviews would be necessary for a complete evaluation.

How does the spending on this specific engineering services contract compare to historical DoD spending trends in similar categories?

The $54.3 million awarded to Solutions Through Innovative Technologies Inc. for engineering services represents a significant, but not necessarily anomalous, expenditure within the Department of Defense's vast budget. The DoD consistently spends billions annually on a wide array of engineering, technical, and professional services to support its complex operations, research, development, and acquisition programs. To compare this contract's spending, one would need to analyze historical data for contracts with similar NAICS codes (e.g., 541330), contract types (CNF), and agencies within the DoD. Trends might show increasing or decreasing reliance on external engineering support, shifts in technology focus, or changes in contracting strategies over time.

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: 1

Pricing Type: COST NO FEE (S)

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: $54,567,940

Exercised Options: $54,446,257

Current Obligation: $54,346,229

Actual Outlays: $1,189,607

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