Missile Defense Agency awards $968.8M contract for ballistic missile defense systems to Zen Technology, Inc

Contract Overview

Contract Amount: $77,058,657 ($77.1M)

Contractor: ZEN Technology, Inc

Awarding Agency: Department of Defense

Start Date: 2002-10-09

End Date: 2007-10-31

Contract Duration: 1,848 days

Daily Burn Rate: $41.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200301!000012!9700!ZD60 !MISSILE DEFENSE AGENCY !GS35F0242J !C!N! !N!HQ000603F0001 !20021009!20031003!968781617!968781617!968781617!N!ZEN TECHNOLOGY, INC !8120 WOODMONT AVENUE !BETHESDA !MD!20814!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000800000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541519!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!Y!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $77.1 million to ZEN TECHNOLOGY, INC for work described as: 200301!000012!9700!ZD60 !MISSILE DEFENSE AGENCY !GS35F0242J !C!N! !N!HQ000603F0001 !20021009!20031003!968781617!968781617!968781617!N!ZEN TECHNOLOGY, INC !8120 WOODMONT AVENUE !BETHESDA !MD!20814!03000!013!51!ARLINGTON !ARLIN… Key points: 1. Contract value represents a significant investment in national defense capabilities. 2. Zen Technology, Inc. secured this award through full and open competition. 3. The contract duration spans over 1800 days, indicating a long-term need for these services. 4. The primary service category is 'Other Professional Services', suggesting a broad scope of work. 5. The contract's fixed-price nature aims to control costs for the government. 6. This award highlights the critical role of specialized technology firms in defense.

Value Assessment

Rating: good

The total award amount of $968.8 million over approximately five years is substantial. Benchmarking this against similar large-scale defense contracts is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to establish clear cost expectations upfront. The contract's duration and value indicate a significant commitment by the Missile Defense Agency, implying a perceived value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive process is generally expected to yield fair market pricing and encourage innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide the required services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, which typically leads to better pricing and a wider range of solutions, ultimately maximizing the value of taxpayer dollars.

Public Impact

The primary beneficiary is the U.S. Department of Defense, specifically the Missile Defense Agency, enhancing national security. Services delivered are related to ballistic missile defense systems, crucial for protecting against threats. The geographic impact is national, focusing on defense infrastructure and readiness. Workforce implications include specialized technical and professional roles within Zen Technology, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope creep could be a risk given the broad 'Other Professional Services' category.
Dependence on a single contractor for critical defense systems warrants close monitoring.
Potential for cost overruns if not managed tightly, despite fixed-price structure.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type helps in budget predictability.
Long contract duration indicates a stable, ongoing need and potential for sustained performance.
Zen Technology, Inc. is a specialized provider in a critical defense sector.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the Missile Defense Agency's mission. The market for ballistic missile defense systems is highly specialized, involving advanced technology and significant government investment. Comparable spending benchmarks would typically involve other large-scale, multi-year defense procurements focused on advanced weapon systems and related support services, often running into hundreds of millions or billions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract, it may offer subcontracting opportunities for small businesses, but this is not explicitly detailed. The primary awardee, Zen Technology, Inc., is likely a significant entity, and its role in the broader small business ecosystem would depend on its subcontracting practices and overall market position.

Oversight & Accountability

Oversight for this contract would primarily fall under the Missile Defense Agency and the Department of Defense's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified services within agreed costs. Transparency is facilitated through contract award databases, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Ballistic Missile Defense
Advanced Technology Development
National Security Programs
Department of Defense Procurement

Risk Flags

Potential for scope creep due to broad service category.
Long contract duration requires sustained oversight.
Complexity of missile defense systems may introduce technical risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.1 million to ZEN TECHNOLOGY, INC. 200301!000012!9700!ZD60 !MISSILE DEFENSE AGENCY !GS35F0242J !C!N! !N!HQ000603F0001 !20021009!20031003!968781617!968781617!968781617!N!ZEN TECHNOLOGY, INC !8120 WOODMONT AVENUE !BETHESDA !MD!20814!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000800000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541519!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ZEN TECHNOLOGY, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $77.1 million.

What is the period of performance?

Start: 2002-10-09. End: 2007-10-31.

What specific services does Zen Technology, Inc. provide under this contract for ballistic missile defense systems?

The contract identifies the Product Service Code (PSC) as 'R499 - Other Professional Services' and the North American Industry Classification System (NAICS) code as '541519 - Other Computer Related Services'. This broad categorization suggests that Zen Technology, Inc. is likely providing a range of professional and technical services essential for the development, integration, testing, or sustainment of ballistic missile defense systems. These could include systems engineering, software development, technical consulting, program management support, cybersecurity services, or specialized analytical support. Without more granular detail in the award data, the exact nature of these 'other professional services' remains generalized, but their application within the context of missile defense implies high-level technical expertise and critical support functions.

How does the $968.8 million contract value compare to historical spending on similar missile defense systems by the MDA?

The $968.8 million award to Zen Technology, Inc. represents a significant investment by the Missile Defense Agency (MDA). To provide a precise comparison, one would need to analyze historical MDA spending trends for contracts with similar scopes, such as system development, integration, or sustainment for major defense programs. However, given the nature of missile defense, which involves complex, cutting-edge technology and long development cycles, contracts of this magnitude are not uncommon. Historical data often shows multi-billion dollar investments spread across various programs and contractors over many years. This specific award, valued at nearly $1 billion over its term, aligns with the substantial financial commitments typically required to maintain and advance national missile defense capabilities, suggesting it is in line with the agency's strategic investment priorities.

What are the key performance indicators (KPIs) or metrics used to evaluate Zen Technology, Inc.'s performance on this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific metrics used to evaluate Zen Technology, Inc.'s performance under this contract. However, for a contract of this nature and value, particularly one supporting ballistic missile defense systems, performance evaluation would typically involve a rigorous set of criteria. These often include adherence to technical specifications, meeting delivery schedules, quality of deliverables (e.g., system performance, reliability), cost control within the fixed-price framework, and successful completion of milestones. The Missile Defense Agency would likely employ a combination of technical reviews, testing outcomes, and programmatic assessments to gauge contractor performance. Contract clauses would typically outline reporting requirements and the government's right to inspect and accept deliverables.

What is the track record of Zen Technology, Inc. in performing large-scale defense contracts, particularly within the missile defense domain?

Information regarding Zen Technology, Inc.'s specific track record on large-scale defense contracts, especially within the missile defense domain, is not detailed in the provided data snippet. The award itself signifies that the Missile Defense Agency deemed Zen Technology, Inc. capable of fulfilling the contract's requirements. To assess their track record thoroughly, one would need to examine past performance evaluations, previous contract awards, and any publicly available information on their project history with government agencies. Companies operating in this specialized sector often possess unique expertise, but their history with similar complex, high-value projects is crucial for understanding their reliability and capability in delivering critical defense solutions.

Are there any identified risks associated with this contract, such as technical challenges, schedule delays, or cost overruns, given its scope and duration?

While the data does not explicitly detail risks, any contract of this magnitude and duration, especially in a technologically advanced field like missile defense, inherently carries potential risks. Technical challenges are possible given the complexity of the systems involved. Schedule delays could arise from unforeseen technical hurdles, integration issues, or changes in program requirements. Although the contract is firm fixed-price, which aims to mitigate cost overrun risks for the government, scope creep or unforeseen complexities could still strain the contractor's ability to deliver within budget. The Missile Defense Agency would typically have risk management plans in place to monitor and mitigate these potential issues throughout the contract lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Serco Inc (UEI: 928859149)

Address: 8120 WOODMONT AVE STE 260, BETHESDA, MD, 08

Business Categories: Category Business, Small Business, Woman Owned Business

Parent Contract

Parent Award PIID: GS35F0242J

IDV Type: FSS

Timeline