DoD awards $35.9M engineering services contract to Sonalysts Inc. for HSI Support Services

Contract Overview

Contract Amount: $35,893,692 ($35.9M)

Contractor: Sonalysts Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-09

End Date: 2026-05-08

Contract Duration: 1,095 days

Daily Burn Rate: $32.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HSI SUPPORT SERVICES

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to SONALYSTS INC for work described as: HSI SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk of cost overruns. 3. Performance period of 1095 days (3 years) provides a stable, long-term engagement. 4. The contract is a delivery order under a larger contract vehicle, indicating potential for follow-on work. 5. The base value of $32,780 appears low relative to the total potential award, suggesting significant option periods or task orders. 6. Engineering services are critical for defense operations, supporting complex technical requirements.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and comparable engineering services contracts. The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. The relatively low base award compared to the total potential suggests that the majority of the value is in future taskings, making a comprehensive value assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The fact that it's a delivery order suggests it was competed as part of a larger contract vehicle, which may have its own competition history.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include technical analysis, design, development, and integration for HSI (Human Systems Integration) related projects. The geographic impact is likely concentrated around naval facilities or defense installations where HSI support is required. Workforce implications may involve highly skilled engineers and technical specialists, potentially creating or sustaining jobs in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The low base award compared to the total potential award requires close monitoring of future task orders to ensure value.
The specific nature of HSI support services can be complex and require specialized expertise, posing a risk if contractor capabilities are misaligned.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Long performance period (3 years) provides stability and allows for deep integration of services.
Sonalysts Inc. likely has a track record in providing similar engineering and technical support services to the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant market supporting defense and other government agencies. The total addressable market for engineering services is vast, with defense spending representing a substantial portion. This contract likely supports specialized Human Systems Integration (HSI) requirements, a niche within engineering that focuses on the interaction between humans and systems, crucial for optimizing performance and safety in complex environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Sonalysts Inc., may engage small businesses as subcontractors depending on the specific needs of the HSI support services, but this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases, though specific task order details may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Defense Engineering Services
Human Systems Integration Programs
Cost Plus Fixed Fee Contracts
Department of Defense IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
The low base award relative to the total potential award necessitates monitoring of future task orders for value.
The specific scope of HSI support services needs clear definition and management to avoid scope creep.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to SONALYSTS INC. HSI SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SONALYSTS 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 $35.9 million.

What is the period of performance?

Start: 2023-05-09. End: 2026-05-08.

What is Sonalysts Inc.'s track record with the Department of Defense, particularly in HSI support services?

Sonalysts Inc. has a history of contracting with the Department of Defense, often providing technical and engineering support services. While specific details on their Human Systems Integration (HSI) support services require deeper analysis of their contract portfolio, their presence in this sector suggests experience. A review of past performance evaluations and contract awards would provide a clearer picture of their capabilities, past project successes, and any performance issues. Their ability to secure this $35.9 million contract indicates a level of trust and demonstrated capability by the Navy.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for engineering services in the defense sector?

The Cost Plus Fixed Fee (CPFF) contract type is common in defense for services where the scope is not fully defined or is expected to evolve, such as research and development or complex engineering projects. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overruns. It differs from Cost-Plus-Incentive-Fee (CPIF) by having a fixed fee rather than one that can be adjusted based on performance targets. For taxpayers, CPFF requires robust oversight to ensure costs are reasonable and the fixed fee is justified.

What are the primary risks associated with a $35.9 million Cost Plus Fixed Fee contract for engineering services?

The primary risks associated with this CPFF contract include potential cost overruns, as the contractor is reimbursed for all allowable costs. Without stringent oversight and clear performance metrics, costs could escalate beyond initial estimates. There's also a risk of scope creep if the HSI requirements are not well-defined or managed. Contractor performance is another risk; if Sonalysts Inc. fails to deliver the required engineering expertise effectively, the program's objectives could be jeopardized. Finally, the fixed fee, while intended to incentivize efficiency, needs to be appropriately set to reflect the risk and effort involved.

How does this contract's value compare to other engineering services contracts awarded by the Department of the Navy?

The total potential value of $35.9 million for this HSI Support Services contract places it as a moderately sized award within the Department of the Navy's engineering services portfolio. The Navy procures numerous engineering and technical support contracts annually, ranging from smaller, specialized task orders to multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. To provide a precise comparison, one would need to analyze the specific services rendered, the duration, and the competitive landscape of similar contracts. However, awards in the tens of millions are common for multi-year, specialized support efforts.

What are the historical spending patterns for engineering services within the Department of Defense, and how does this contract fit?

The Department of Defense consistently allocates significant funding towards engineering services, essential for maintaining and modernizing its vast array of systems and infrastructure. Historical spending data shows billions of dollars annually dedicated to engineering, research, development, and technical support across all branches. This $35.9 million contract for HSI Support Services fits within this pattern as a specific allocation for specialized technical expertise. It represents a focused investment in optimizing human-system interactions, a critical component of overall defense capability, rather than broad infrastructure or platform engineering.

What is the significance of the 'Delivery Order' aspect of this contract?

The designation 'Delivery Order' indicates that this contract is a task order issued under a pre-existing, larger contract vehicle, likely an IDIQ (Indefinite Delivery/Indefinite Quantity) contract or a similar master agreement. This means the competition for the underlying contract vehicle may have occurred previously. Issuing delivery orders allows agencies to procure services or supplies incrementally as needed, providing flexibility and potentially faster acquisition. For taxpayers, it can mean more efficient procurement if the underlying vehicle was competitively awarded, but it also means the full scope and cost might not be known upfront.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017823R3010

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 215 WATERFORD PKWY N, WATERFORD, CT, 06385

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,114,344

Exercised Options: $44,477,092

Current Obligation: $35,893,692

Actual Outlays: $245,911

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,577,114

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8540

IDV Type: IDC

Timeline