DoD's $32.9M OIS Program Management Contract Awarded to Sev1Tech, LLC
Contract Overview
Contract Amount: $32,891,410 ($32.9M)
Contractor: Sev1tech, LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-01
End Date: 2025-09-21
Contract Duration: 1,481 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS IS A NON-COMMERCIAL PROCUREMENT IN SUPPORT OF THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) ORDNANCE INFORMATION SYSTEM (OIS) OBTAIN PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES.
Place of Performance
Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17050
Plain-Language Summary
Department of Defense obligated $32.9 million to SEV1TECH, LLC for work described as: THIS IS A NON-COMMERCIAL PROCUREMENT IN SUPPORT OF THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) ORDNANCE INFORMATION SYSTEM (OIS) OBTAIN PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES. Key points: 1. Contract supports critical Naval Supply Systems Command (NAVSUP) Ordnance Information System (OIS). 2. Sev1Tech, LLC, a non-small business, secured the award. 3. The contract utilizes a Cost Plus Fixed Fee pricing structure. 4. Full and open competition was employed for this procurement.
Value Assessment
Rating: good
The Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring to ensure cost control. The total award amount of $32.9M over approximately 4 years suggests a reasonable investment for program management and technical support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing the value of taxpayer funds allocated to this essential naval support system.
Public Impact
Ensures continued operational readiness of naval ordnance information systems. Supports critical supply chain management for the U.S. Navy. Provides essential technical expertise for program management. Impacts personnel involved in naval logistics and ordnance management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Supports a critical defense function.
Sector Analysis
This contract falls within Engineering Services (NAICS 541330), a sector crucial for defense operations. Spending benchmarks for similar program management and technical support services in the defense sector vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the awardee is not listed as a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The use of full and open competition and a fixed fee structure suggests a degree of accountability, but ongoing performance monitoring is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Awardee is not a small business.
- Contract duration is substantial (approx. 4 years).
- Procurement is for program management and technical support services.
Tags
engineering-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.9 million to SEV1TECH, LLC. THIS IS A NON-COMMERCIAL PROCUREMENT IN SUPPORT OF THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) ORDNANCE INFORMATION SYSTEM (OIS) OBTAIN PROGRAM MANAGEMENT AND TECHNICAL SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is SEV1TECH, 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 $32.9 million.
What is the period of performance?
Start: 2021-09-01. End: 2025-09-21.
What is the projected cost efficiency of the Cost Plus Fixed Fee structure for this specific program?
The Cost Plus Fixed Fee (CPFF) structure can be efficient when the scope of work is not fully defined or is expected to evolve. However, it carries a risk of cost overruns if the contractor does not manage expenses diligently. For this $32.9M contract, ongoing monitoring of actual costs against the fixed fee and performance metrics will be crucial to assess its cost efficiency and ensure value for the DoD.
What are the primary risks associated with Sev1Tech, LLC's performance on this contract?
Key risks include potential cost overruns inherent in the CPFF structure, which could exceed the anticipated $32.9M if not managed effectively. There's also a risk related to the contractor's ability to deliver the specialized technical support and program management required for the OIS, potentially impacting naval readiness. Ensuring Sev1Tech maintains adequate staffing and expertise throughout the contract duration is critical.
How effectively does this contract support the long-term strategic goals of the Naval Supply Systems Command?
This contract directly supports NAVSUP's strategic goal of maintaining efficient and effective ordnance information systems, crucial for supply chain management and operational readiness. By securing program management and technical support, the Navy ensures the OIS remains functional and adaptable to evolving needs. The long-term effectiveness hinges on the contractor's ability to provide sustained, high-quality support over the contract's lifespan.
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: N0018921R3001
Offers Received: 14
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,198,350
Exercised Options: $37,198,350
Current Obligation: $32,891,410
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $18,906,897
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7698
IDV Type: IDC
Timeline
Start Date: 2021-09-01
Current End Date: 2025-09-21
Potential End Date: 2025-09-21 00:00:00
Last Modified: 2025-10-29
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