DoD's $47.9M Telecommunication Services Contract with SMARTRONIX, LLC Under Scrutiny
Contract Overview
Contract Amount: $47,913,561 ($47.9M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2013-06-20
End Date: 2016-09-16
Contract Duration: 1,184 days
Daily Burn Rate: $40.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF TELECOMMUNICATION SERVICES
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $47.9 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF TELECOMMUNICATION SERVICES Key points: 1. Contract awarded to SMARTRONIX, LLC for computer systems design services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was 1184 days, ending in September 2016. 4. The contract's value was approximately $47.9 million. 5. The primary service category is Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: fair
The contract value of $47.9M for computer systems design services over nearly 4 years appears within a reasonable range for complex IT solutions. However, without specific performance metrics or detailed cost breakdowns, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a definitive contract suggests a structured procurement process, but the impact on price discovery is not explicitly detailed.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting competitive pricing and potentially reducing overall costs.
Public Impact
Telecommunication services are critical for military operations and communication infrastructure. The contract supported the Department of the Navy, highlighting its importance for naval operations. The duration of the contract suggests a long-term need for these services. The specific nature of 'Computer Systems Design Services' implies support for complex IT systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Limited insight into price negotiation and justification.
- Contract ended in 2016, making current relevance uncertain.
Positive Signals
- Awarded under full and open competition.
- Utilized a definitive contract type.
- Clear agency and service provided.
Sector Analysis
The IT services sector, particularly computer systems design, is a significant area of government spending. Benchmarks for similar contracts are highly variable based on scope, complexity, and duration, but $47.9M over nearly 4 years is substantial.
Small Business Impact
The data indicates the contract was awarded to SMARTRONIX, LLC, a single entity. There is no information provided regarding subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to terms and conditions.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is lengthy.
- Specific deliverables and performance metrics are not detailed.
- Contract concluded several years ago.
- Limited information on price justification beyond competition type.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.9 million to SMARTRONIX, LLC. IGF::OT::IGF TELECOMMUNICATION SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $47.9 million.
What is the period of performance?
Start: 2013-06-20. End: 2016-09-16.
What was the specific scope of 'Computer Systems Design Services' provided under this contract, and how did it align with the Navy's telecommunication needs?
The provided data categorizes the service as 'Computer Systems Design Services' (NAICS 541512) under a telecommunication services contract. This likely encompassed the design, integration, and potentially maintenance of complex IT and communication systems for the Department of the Navy. Without further details, the precise alignment with specific telecommunication needs remains unclear, but it suggests a focus on the underlying IT infrastructure supporting communication.
Given the contract ended in 2016, what are the potential risks associated with analyzing its value and effectiveness today?
Analyzing a contract that concluded in 2016 presents risks related to outdated technology, market price fluctuations, and the difficulty in obtaining current performance data. The relevance of cost benchmarks from that era may be diminished. Furthermore, without access to post-contract reviews or performance reports, assessing the true effectiveness and long-term impact is challenging.
How did the 'Full and Open Competition' method ensure optimal value for taxpayers on this $47.9M contract?
Full and open competition theoretically maximizes value by allowing all responsible sources to submit bids, fostering a competitive environment that drives down prices and encourages innovation. For this $47.9M contract, it suggests that multiple vendors vied for the opportunity, and the Department of the Navy selected the best value proposal. However, the ultimate value realized depends on the specific evaluation criteria and the effectiveness of the negotiation process.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M0026413R0007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,446,451
Exercised Options: $47,913,561
Current Obligation: $47,913,561
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $19,496,773
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-06-20
Current End Date: 2016-09-16
Potential End Date: 2016-09-16 00:00:00
Last Modified: 2019-09-26
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