DoD's $27.5M Engineering Services Contract with SMARTRONIX, LLC Awarded via Not Competed Method
Contract Overview
Contract Amount: $27,473,247 ($27.5M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2017-02-01
End Date: 2018-07-31
Contract Duration: 545 days
Daily Burn Rate: $50.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to SMARTRONIX, LLC for work described as: IGF::OT::IGF Key points: 1. Contract Value: $27.5 million for engineering services. 2. Sole Provider: SMARTRONIX, LLC is the sole provider for this contract. 3. Risk: Lack of competition raises concerns about potential overpricing and limited innovation. 4. Sector: Engineering services within the Department of Defense.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded using a sole-source method, indicating no competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $27.5 million contract may result in inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation and service quality without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in justification
Positive Signals
- Specific engineering services provided
- Contract duration established
Sector Analysis
This contract falls under engineering services, a critical sector for defense operations. Benchmarks for similar sole-source engineering contracts are often higher due to the lack of competition.
Small Business Impact
The data indicates this contract was not awarded to a small business, representing a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The justification for the sole-source award needs thorough review.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business participation
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to SMARTRONIX, LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is SMARTRONIX, 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 $27.5 million.
What is the period of performance?
Start: 2017-02-01. End: 2018-07-31.
What was the specific justification for awarding this engineering services contract on a sole-source basis, and was it adequately documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other qualified sources. Without access to the specific documentation, it's impossible to verify the adequacy of the justification. However, sole-source awards inherently reduce competitive pressure, making robust justification and oversight essential to ensure fair pricing and value for taxpayer money.
How does the Cost Plus Fixed Fee structure impact the overall cost-effectiveness of this contract compared to a fixed-price or other contract types?
Cost Plus Fixed Fee contracts offer flexibility but can incentivize higher spending as the contractor is reimbursed for costs plus a fixed fee. This contrasts with fixed-price contracts, where the contractor bears more risk for cost overruns. In a sole-source scenario, the lack of competition exacerbates this risk, potentially leading to inflated costs that a competitive bidding process might have mitigated.
What mechanisms are in place to ensure the quality and effectiveness of the engineering services provided under this sole-source contract?
Ensuring quality and effectiveness in sole-source contracts relies heavily on strong government oversight, clear performance metrics, and defined deliverables. The Department of the Navy would typically establish quality assurance surveillance plans (QASPs) and conduct regular performance reviews. However, the absence of competitive pressure means the government must be particularly diligent in monitoring contractor performance to ensure value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Smartronix LLC
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,949,529
Exercised Options: $29,949,529
Current Obligation: $27,473,247
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $7,975,222
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-02-01
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2023-12-27
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