DoD's $18.5M Geospatial Antenna Solution: A Deep Dive into Value, Competition, and Risk

Contract Overview

Contract Amount: $18,516,000 ($18.5M)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Defense

Start Date: 2021-06-04

End Date: 2025-11-30

Contract Duration: 1,640 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS DELIVERY ORDER IS FOR THE PROCUREMENT OF A GEOSPATIAL UNIVERSAL ANTENNA SOLUTION WITH FOUR OPTION YEARS OF 1 YEAR SOFTWARE MAINTENANCE.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to BLUE TECH INC. for work described as: THIS DELIVERY ORDER IS FOR THE PROCUREMENT OF A GEOSPATIAL UNIVERSAL ANTENNA SOLUTION WITH FOUR OPTION YEARS OF 1 YEAR SOFTWARE MAINTENANCE. Key points: 1. Analysis focuses on the value proposition and competitive landscape of a significant Department of Defense procurement. 2. Assesses the contract's alignment with broader IT and defense sector trends. 3. Identifies potential risk indicators and performance context for this geospatial solution. 4. Examines the implications of the contract's competition level on pricing and taxpayer value. 5. Highlights the role of this contract within the Department of the Navy's IT service acquisitions.

Value Assessment

Rating: good

The contract's total value of $18.5 million over its potential duration appears reasonable for a specialized geospatial antenna solution with software maintenance. Benchmarking against similar, albeit less specific, IT service contracts suggests competitive pricing. The firm-fixed-price structure provides cost certainty for the government, mitigating risk associated with performance variations. Further analysis would benefit from comparing the per-unit cost of the antenna solution and its maintenance to industry standards for comparable technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This delivery order was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. While the specific number of bidders is not provided, this approach generally fosters a competitive environment, driving down prices and encouraging innovation. The exclusion of sources suggests a specific technical requirement that may have limited the initial pool of potential offerors, but the subsequent full and open competition aims to maximize market participation.

Taxpayer Impact: The full and open competition model is beneficial for taxpayers as it increases the likelihood of securing the best value through a wider range of offers and potentially lower pricing due to market pressures.

Public Impact

The Department of Defense benefits from an advanced geospatial antenna solution crucial for intelligence, surveillance, and reconnaissance (ISR) operations. The contract delivers essential software maintenance, ensuring the ongoing functionality and security of the geospatial system. The primary geographic impact is likely within operational theaters where the Department of the Navy requires precise location and mapping capabilities. Workforce implications may include the need for specialized personnel to operate, maintain, and integrate the antenna system within existing military infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software maintenance is highly proprietary.
Dependence on a single vendor for critical hardware and software updates.
Risk of cost escalation in option years if not carefully managed.
Ensuring interoperability with existing and future DoD systems.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Clear definition of services (antenna solution and software maintenance).
Delivery order structure allows for phased implementation and payment.

Sector Analysis

This contract falls within the broader Information Technology (IT) and Defense sector, specifically focusing on specialized hardware and software for geospatial intelligence. The market for such solutions is driven by advancements in satellite technology, sensor development, and data processing capabilities. Comparable spending benchmarks in this niche area are difficult to establish without more specific technical details, but the overall IT services market for the federal government is substantial, with significant portions allocated to defense-related procurements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Blue Tech Inc. chooses to engage small businesses for specific components or services. Without explicit subcontracting plans, the direct benefit to small businesses from this particular award is likely limited.

Oversight & Accountability

Oversight for this delivery order would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Geospatial Intelligence Services
Satellite Communications Equipment
Defense IT Modernization Programs
Naval Information Warfare Systems Command
Command, Control, Communications, Computers, and Intelligence (C4I) Systems

Risk Flags

Potential for technology obsolescence
Integration complexity with existing systems
Dependence on vendor for software maintenance and updates
Ensuring adequate competition in option years

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to BLUE TECH INC.. THIS DELIVERY ORDER IS FOR THE PROCUREMENT OF A GEOSPATIAL UNIVERSAL ANTENNA SOLUTION WITH FOUR OPTION YEARS OF 1 YEAR SOFTWARE MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2021-06-04. End: 2025-11-30.

What is the track record of Blue Tech Inc. in delivering similar geospatial solutions to the Department of Defense?

Assessing Blue Tech Inc.'s track record requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards related to geospatial antenna systems, software maintenance, or related IT services for the DoD or other federal agencies. Key performance indicators to look for include on-time delivery, adherence to technical specifications, customer satisfaction ratings, and any history of contract disputes or modifications. A strong past performance record would indicate a lower risk for this current delivery order, suggesting a higher likelihood of successful execution and value delivery. Conversely, a history of issues could signal potential challenges and necessitate closer monitoring.

How does the $18.5 million cost compare to similar geospatial antenna solutions procured by the government?

Benchmarking the $18.5 million cost requires detailed comparison with similar geospatial antenna solutions. This involves identifying contracts with comparable technical specifications, quantities, and service periods. Factors such as the type of antenna (e.g., SATCOM, GPS), frequency bands supported, data throughput capabilities, and the scope of software maintenance are critical. Without access to specific technical details of this procurement and comparable contracts, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature suggests that the price was deemed competitive at the time of award. Further analysis could involve researching industry pricing for commercial off-the-shelf (COTS) geospatial antenna systems and comparing it to the pro-rated cost within this contract.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential technical obsolescence of the antenna technology over the contract's duration, challenges in integrating the solution with existing DoD networks, and the possibility of cost overruns if option years are exercised without careful review. Software maintenance risks involve ensuring timely updates, security patches, and vendor support. Mitigation strategies likely include robust technical specifications in the contract, thorough testing and validation before acceptance, and strong program management oversight. The firm-fixed-price structure inherently mitigates cost overrun risks for the base period. For option years, the government retains the ability to negotiate terms or seek alternative solutions if pricing becomes unfavorable.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for taxpayers?

This procurement approach aims to balance specialized needs with broad market participation. 'Exclusion of sources' initially narrows the field to technically capable vendors, potentially ensuring the government procures a solution that meets specific, demanding requirements. Subsequently, 'full and open competition' among these qualified sources drives price discovery and encourages competitive bidding. This combination can lead to better value for taxpayers by ensuring that the chosen solution is both technically appropriate and competitively priced, avoiding a situation where a sole-source award might be significantly more expensive due to lack of competition.

What is the historical spending trend for geospatial antenna solutions within the Department of the Navy?

Analyzing historical spending trends for geospatial antenna solutions within the Department of the Navy (DoN) would provide context for the $18.5 million award. This involves examining procurement data over several fiscal years to identify patterns in contract values, types of solutions procured (e.g., SATCOM, ground-based), and the primary contractors involved. Significant increases or decreases in spending could indicate evolving operational requirements, technological shifts, or changes in acquisition strategies. Understanding these trends helps assess whether the current contract represents a typical investment, a surge in demand, or a shift towards new capabilities within the DoN's intelligence and communication infrastructure.

What are the implications of the 'Other Computer Related Services' NAICS code on the scope and nature of this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services not classified elsewhere. For this contract, it suggests the geospatial universal antenna solution likely involves significant integration, installation, configuration, and potentially ongoing support services beyond just the hardware. This code implies that the procurement is focused on the service aspect of deploying and maintaining the technology, rather than solely the manufacturing or sale of the antenna itself. It allows flexibility in acquiring a comprehensive solution that may include software development, system integration, and technical consulting related to the geospatial capabilities.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6785421Q2019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,708,000

Exercised Options: $18,516,000

Current Obligation: $18,516,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline