DoD's $82.3M Navy Contract for Computer Services Awarded to SMARTRONIX, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $82,348,999 ($82.3M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-01
End Date: 2012-09-30
Contract Duration: 2,009 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: LABOR
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $82.3 million to SMARTRONIX, LLC for work described as: LABOR Key points: 1. Significant contract value of over $82 million awarded to SMARTRONIX, LLC. 2. Procurement was conducted under full and open competition, suggesting a competitive bidding process. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519), a broad IT category. 4. Awarded by the Department of the Navy, indicating a focus on defense-related IT needs.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. Without specific performance metrics or a comparison to similar contracts, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the Time and Materials pricing structure might limit the extent of price discovery compared to fixed-price contracts.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the T&M structure warrants close monitoring to ensure cost efficiency.
Public Impact
Taxpayers funded a substantial IT services contract for the Navy. The contract supported 'Other Computer Related Services', crucial for modern defense operations. SMARTRONIX, LLC, a private company, benefited from this significant government expenditure. The duration of the contract (2007-2012) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can inflate costs.
- Lack of specific performance data makes value assessment difficult.
- Broad NAICS code may obscure specific service details.
Positive Signals
- Awarded under full and open competition.
- Contract awarded by a major federal agency (DoD).
Sector Analysis
This contract falls within the broad Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, supporting everything from infrastructure to specialized software development. Benchmarks for similar IT services contracts vary widely based on scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee, SMARTRONIX, LLC, is not explicitly identified as a small business in this record. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense, which has established oversight mechanisms. However, the Time and Materials pricing model necessitates diligent oversight to control costs and ensure effective service delivery.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Time and Materials pricing structure.
- Lack of detailed service description.
- Potential for cost overruns.
- Limited insight into specific performance outcomes.
Tags
other-computer-related-services, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $82.3 million to SMARTRONIX, LLC. LABOR
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 $82.3 million.
What is the period of performance?
Start: 2007-04-01. End: 2012-09-30.
What specific computer-related services were provided under this contract, and how did they align with the Navy's strategic IT goals?
The contract falls under NAICS code 541519, 'Other Computer Related Services,' which is very broad. Without further details, it's impossible to know if the services included software development, IT support, network management, or cybersecurity. Understanding the specific services is crucial to assessing their alignment with the Navy's strategic IT objectives and whether they represented a critical capability or a routine operational need.
Given the Time and Materials pricing, what measures were in place to control costs and prevent scope creep over the contract's five-year duration?
Time and Materials (T&M) contracts are inherently susceptible to cost increases and scope creep. Effective oversight would require detailed tracking of labor hours and material costs, clear task definitions, and robust change control processes. The government contracting officer and technical representatives would need to actively manage the contractor's performance and expenditures to ensure the $82.3 million ceiling was not exceeded unnecessarily and that the services delivered provided good value.
How did the pricing of this contract compare to market rates for similar 'Other Computer Related Services' at the time of award, considering the competitive bidding process?
While the contract was awarded under full and open competition, the Time and Materials structure makes direct price comparison difficult without knowing the actual hours and rates billed. A thorough analysis would involve benchmarking the contractor's proposed labor rates and estimated material costs against industry standards for comparable services and skill sets. The government likely performed some level of price analysis, but the T&M nature means the final cost is variable.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: TIME AND MATERIALS (Y)
Contractor Details
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 05
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $82,806,427
Exercised Options: $82,348,999
Current Obligation: $82,348,999
Parent Contract
Parent Award PIID: GS35F0362J
IDV Type: FSS
Timeline
Start Date: 2007-04-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2012-08-09
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