DoD Awards $32.1M for Emergency Response Systems Sustainment to Hexagon US Federal
Contract Overview
Contract Amount: $32,135,702 ($32.1M)
Contractor: Hexagon US Federal, Inc
Awarding Agency: Department of Defense
Start Date: 2023-03-31
End Date: 2026-08-14
Contract Duration: 1,232 days
Daily Burn Rate: $26.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONSOLIDATED EMERGENCY RESPONSE SYSTEMS - SUSTAINMENT
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to HEXAGON US FEDERAL, INC for work described as: CONSOLIDATED EMERGENCY RESPONSE SYSTEMS - SUSTAINMENT Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant funding allocated for IT facilities management services. 3. Long contract duration (over 3 years) with a substantial value. 4. Potential for cost savings if competition were introduced.
Value Assessment
Rating: fair
The contract value of $32.1M over approximately 3.5 years suggests a significant investment. Benchmarking against similar IT facilities management contracts is difficult without more detailed scope information, but the price appears substantial for sustainment services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The lack of competition may result in a higher overall cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continuity of critical emergency response systems for the Department of the Navy. Supports essential IT infrastructure and services for military operations. Potential impact on future technology adoption due to single vendor reliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Ensures critical system sustainment
- Long-term contract provides stability
Sector Analysis
This contract falls under IT facilities management services, a crucial sector for government operations. Spending in this area is consistently high, with a focus on maintaining secure and reliable infrastructure.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as the prime contractor is Hexagon US Federal, Inc. There is no indication of subcontracting opportunities for small businesses within this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable. Further oversight should focus on performance metrics and justification for continued sole-source arrangements.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited vendor options for future needs
- Reliance on a single provider for critical systems
Tags
computer-facilities-management-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to HEXAGON US FEDERAL, INC. CONSOLIDATED EMERGENCY RESPONSE SYSTEMS - SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is HEXAGON US FEDERAL, 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 $32.1 million.
What is the period of performance?
Start: 2023-03-31. End: 2026-08-14.
What is the justification for awarding this contract on a sole-source basis, and has a thorough market research been conducted to confirm no other vendors could meet the requirements?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or specific government requirements that only one vendor can fulfill. A comprehensive market research report should be available to validate that no other sources exist or could be developed within a reasonable timeframe. Without this documentation, the lack of competition raises concerns about potential overspending and missed opportunities for innovation.
How does the per-unit cost or overall pricing compare to industry benchmarks for similar sustainment services, especially considering the lack of competitive bidding?
Benchmarking pricing for sole-source contracts is challenging due to the absence of competitive bids. However, the government should still conduct price analysis using historical data, commercial price lists, and cost-plus-incentive-fee structures if applicable. If the $32.1M award significantly exceeds benchmarks for comparable IT sustainment services, it indicates potential overpricing and warrants a deeper dive into the cost components and profit margins.
What are the key performance indicators (KPIs) for this contract, and how will the Department of the Navy ensure Hexagon US Federal, Inc. is meeting these metrics to guarantee effective sustainment of
Effective sustainment relies on clearly defined KPIs tied to system uptime, response times, security compliance, and user satisfaction. The Department of the Navy must have robust monitoring mechanisms in place to track Hexagon's performance against these KPIs. Regular performance reviews and clear contractual remedies for deficiencies are essential to ensure the government receives the full value of the $32.1M investment and that the critical emergency response systems remain operational and effective.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: M6785423R4902
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $42,060,176
Exercised Options: $32,135,702
Current Obligation: $32,135,702
Actual Outlays: $2,518,761
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-31
Current End Date: 2026-08-14
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2025-08-26
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