Navy's $135M contract for missile systems support awarded to Spry Networks Inc. shows fair competition

Contract Overview

Contract Amount: $23,071,067 ($23.1M)

Contractor: Spry Methods, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-10-19

End Date: 2009-11-06

Contract Duration: 1,844 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200505!00A115!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0025 !A!N! !Y! !P00001!20041019!20090930!135174253!135174253!135174253!N!SPRY NETWORKS INC !1555 WILSON BLVD SUITE 320!ARLINGTON !VA!22209!69104!013!51!ROSSLYN !ARLINGTON !VIRGINIA !+000003042000!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541611!E! !3! ! !C! ! !20200930!B! ! !A! !A!N!J!2!007!B! !Z!N!Z! ! !Y!A!N!N!C! ! ! !A!A!000!A!B!N! ! ! ! !1700!N00030!0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.1 million to SPRY METHODS, INC. for work described as: 200505!00A115!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0025 !A!N! !Y! !P00001!20041019!20090930!135174253!135174253!135174253!N!SPRY NETWORKS INC !1555 WILSON BLVD SUITE 320!ARLINGTON !VA!22209!69104!013!51!ROSSLYN !ARLI… Key points: 1. Contract awarded for strategic systems programs, specifically supporting the Trident II missile. 2. The contract value of $135,174,253 was awarded under a firm-fixed-price definitive contract. 3. Competition was full and open, with 7 bidders vying for the contract. 4. The contract duration was 1844 days, spanning from October 2004 to November 2009. 5. The primary service category was 'Other Management Support Services' within 'Missile and Space Systems'. 6. The contractor, Spry Networks Inc., is based in Arlington, VA.

Value Assessment

Rating: fair

The contract's value of approximately $135 million over five years for missile systems support appears to be within a reasonable range for such specialized defense services. Benchmarking against similar contracts is challenging without more specific details on the scope of 'Other Management Support Services' for the Trident II missile. However, the firm-fixed-price structure suggests that the government aimed to control costs, and the presence of multiple bidders indicates a degree of price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven distinct bidders participating. This level of competition is generally positive as it allows for a wider range of potential contractors to submit proposals, theoretically leading to better pricing and service offerings for the government. The multiple bids suggest that the market for these specialized support services is not overly concentrated.

Taxpayer Impact: The full and open competition indicates that taxpayers benefited from a potentially more competitive pricing environment, as multiple companies vied to win the contract by offering their best terms.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving critical support services for strategic missile systems. Services delivered include 'Other Management Support Services' essential for the operation and maintenance of the Trident II missile system. The geographic impact is primarily within Virginia, where the contractor Spry Networks Inc. is located, but the services support national defense capabilities. Workforce implications include employment for individuals with specialized skills in management support and defense systems within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'Other Management Support Services' makes it difficult to fully assess value for money.
The contract duration of nearly five years could lead to potential cost overruns if not managed effectively.
Reliance on a single contractor for critical missile system support could pose a long-term risk if capabilities are not maintained or transferred.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
The contractor is based in Virginia, potentially supporting local economic activity.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on missile and space systems. The market for specialized management support services for strategic weapon systems is typically characterized by high barriers to entry due to security requirements and technical expertise. Spending in this area is critical for national security and often involves long-term, high-value contracts. Comparable spending benchmarks are difficult to establish without detailed service breakdowns, but defense spending on strategic systems is a significant portion of the overall defense budget.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information regarding subcontracting plans. Given the nature of strategic missile systems support, it is likely that the prime contractor possesses specialized capabilities that may not be readily available from small businesses. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's Strategic Systems Programs office. Accountability measures are inherent in the firm-fixed-price contract structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally limited for defense contracts involving strategic systems, but contract award details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Trident II D5 Missile Program
Strategic Systems Programs (SSP)
Department of Defense Management Support Services
Missile Defense Agency Contracts
Naval Sea Systems Command (NAVSEA) Contracts

Risk Flags

Contract awarded for critical strategic weapon systems support.
Long contract duration (nearly 5 years) may present management challenges.
Limited public detail on the specific nature of 'management support services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.1 million to SPRY METHODS, INC.. 200505!00A115!1700!N00030!STRATEGIC SYSTEMS PROGRAMS !N0003005C0025 !A!N! !Y! !P00001!20041019!20090930!135174253!135174253!135174253!N!SPRY NETWORKS INC !1555 WILSON BLVD SUITE 320!ARLINGTON !VA!22209!69104!013!51!ROSSLYN !ARLINGTON !VIRGINIA !+000003042000!N!N!000000000000!R799!OTHER MANAGEMENT SUPPORT SERVICES !A2 !MISSILE AND SPACE SYSTEMS !178 !TRIDENT II MISSILE !541611!E! !3! ! !C! ! !202

Who is the contractor on this award?

The obligated recipient is SPRY METHODS, 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 $23.1 million.

What is the period of performance?

Start: 2004-10-19. End: 2009-11-06.

What specific management support services were provided under this contract?

The contract data indicates the service category as 'Other Management Support Services' (NAICS 541611) for 'MISSILE AND SPACE SYSTEMS', specifically related to the 'TRIDENT II MISSILE'. However, the precise nature of these management support services is not detailed in the provided data. This could encompass a wide range of activities such as program management, logistical support analysis, technical documentation, systems engineering support, or operational planning. Without further documentation, it's difficult to ascertain the exact scope and deliverables beyond the general classification.

How does the awarded amount of $135,174,253 compare to similar contracts for missile systems support?

Direct comparison of the $135 million award for 'Other Management Support Services' for the Trident II missile is challenging without access to a comprehensive database of similar, highly specialized defense contracts. However, for major strategic weapon systems, multi-year support contracts in the tens to hundreds of millions of dollars are not uncommon. The firm-fixed-price nature of this contract suggests a defined scope, and the competition level (7 bidders) implies a market capable of supporting such contracts. The value appears substantial but potentially justified given the critical nature of strategic missile systems.

What were the key performance indicators (KPIs) or metrics used to evaluate Spry Networks Inc.'s performance?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics that were used to evaluate Spry Networks Inc. for this contract. Typically, government contracts, especially those for defense systems, include detailed performance standards, delivery schedules, and quality requirements. Contractor performance is often assessed through mechanisms like Contractor Performance Assessment Reporting System (CPARS). Without access to the contract's statement of work or performance clauses, it is impossible to detail the specific KPIs used for this particular award.

What is the track record of Spry Networks Inc. in performing defense-related management support services?

The data indicates Spry Networks Inc. was awarded this significant contract for missile and space systems support, suggesting they had the necessary qualifications and experience at the time of award. However, a comprehensive track record would require examining their past performance on other government contracts, including any awards, past performance reviews, and any instances of contract disputes or terminations. The fact that they were awarded this substantial contract through full and open competition implies a positive assessment of their capabilities by the Department of the Navy.

Were there any identified risks associated with this contract, and how were they mitigated?

The provided data does not explicitly list identified risks or mitigation strategies for this contract. However, general risks associated with large, long-term defense contracts include cost overruns, schedule delays, technical obsolescence, and contractor performance issues. The firm-fixed-price structure helps mitigate cost overrun risks for the government. The full and open competition with multiple bidders could also be seen as a risk mitigation strategy, ensuring a viable alternative if the primary contractor falters. Specific mitigation plans would typically be detailed within the contract's statement of work and associated clauses.

How has federal spending on 'Other Management Support Services' in the missile and space systems sector evolved since this contract?

This contract, awarded in 2004 and ending in 2009, represents a snapshot of spending during that period. Since then, federal spending on defense, including missile and space systems support, has fluctuated based on geopolitical events, technological advancements, and budget priorities. While specific data on 'Other Management Support Services' (NAICS 541611) within this niche sector is not readily available for trend analysis, overall defense spending has seen significant increases and shifts in allocation. Modernization programs for strategic assets like the Trident II missile likely continue to drive demand for related support services, though the specific contractors and contract vehicles may have changed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1555 WILSON BLVD STE 320, ARLINGTON, VA, 22209

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline