DoD's $12.8M Engineering Services Contract Awarded to SMARTRONIX, LLC for O&M Support
Contract Overview
Contract Amount: $12,834,188 ($12.8M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2022-05-27
End Date: 2026-11-15
Contract Duration: 1,633 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LABOR - O&M - IAP BRANCH
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to SMARTRONIX, LLC for work described as: LABOR - O&M - IAP BRANCH Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over 4 years, indicating a long-term need for these services. 4. The contract is for Operations & Maintenance (O&M) support, crucial for ongoing government functions. 5. The specific NAICS code (541330) points to engineering services, a specialized field. 6. The award was a Delivery Order, implying it's part of a larger contract vehicle.
Value Assessment
Rating: fair
Benchmarking the value of this $12.8 million contract is challenging without more detailed cost breakdowns or comparisons to similar O&M engineering services contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost is subject to actual expenses plus a predetermined fee, which can sometimes lead to less price certainty compared to fixed-price contracts. However, CPFF contracts are often used when the scope of work is not fully defined or is expected to change, allowing for flexibility. Further analysis would require understanding the labor rates, overhead, and the fixed fee percentage relative to industry standards for engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition,' indicating that all eligible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the Department of the Navy sought the best value from the widest possible range of qualified contractors.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages contractors to offer their best value propositions to secure the award.
Public Impact
The Department of Defense, specifically the Department of the Navy, benefits from this contract by securing essential engineering services for Operations & Maintenance. This contract supports the ongoing functionality and maintenance of critical infrastructure or systems managed by the Navy. The primary geographic impact is likely within Maryland (ST: MD), where the contractor is located or where the services are performed. The contract supports specialized engineering roles, potentially impacting the workforce in the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not meticulously managed and monitored.
- Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the competitive intensity.
- The long performance period (over 4 years) necessitates robust oversight to ensure continued value and performance.
Positive Signals
- Awarded through full and open competition, indicating a commitment to leveraging market competition.
- The contract addresses essential Operations & Maintenance needs, crucial for government continuity.
- The contractor, SMARTRONIX, LLC, is likely experienced in providing engineering services to the federal government.
Sector Analysis
Engineering services, categorized under NAICS code 541330, represent a significant sector within federal contracting. This contract for Operations & Maintenance (O&M) support fits within the broader defense sector's need for specialized technical expertise. Comparable spending benchmarks for similar O&M engineering services contracts would typically vary based on the complexity of the systems supported, the duration of the contract, and the specific engineering disciplines required. The federal government consistently spends billions annually on engineering and technical services across various agencies.
Small Business Impact
There is no indication from the provided data that this contract included a small business set-aside. SMARTRONIX, LLC is likely a mid-to-large-sized business. The contract does not explicitly mention subcontracting goals for small businesses. Further investigation into the contract's subcontracting plan would be necessary to determine the potential impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Operations & Maintenance Contracts
- Engineering Services Contracts
- Navy IT and Technical Support Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Long performance period requires sustained oversight.
- Limited information on the number of bidders in the competition.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, operations-and-maintenance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, maryland, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to SMARTRONIX, LLC. LABOR - O&M - IAP BRANCH
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 $12.8 million.
What is the period of performance?
Start: 2022-05-27. End: 2026-11-15.
What is SMARTRONIX, LLC's track record with the Department of Defense and specifically the Department of the Navy?
SMARTRONIX, LLC has a history of receiving federal contracts, particularly with the Department of Defense. Analyzing their past performance with the Department of the Navy would involve reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Their experience with similar O&M and engineering services contracts would be a key indicator of their capability to fulfill the requirements of this $12.8 million award. A review of their contract portfolio would reveal the types of services they have provided, the value of those contracts, and their performance history, offering insights into their reliability and expertise in supporting naval operations and infrastructure.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar engineering services?
Cost Plus Fixed Fee (CPFF) contracts are often utilized when the scope of work is not precisely defined or is expected to evolve, providing flexibility for both the government and the contractor. In such cases, the government pays the contractor's actual allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government, as the final price is not capped upfront. However, FFP contracts are generally preferred when requirements are well-defined to incentivize contractor efficiency. For engineering services, especially those involving research, development, or complex maintenance where unforeseen issues are common, CPFF can be appropriate. The key for the government is rigorous oversight to control costs and ensure the fixed fee remains reasonable relative to the effort expended and the risks assumed by the contractor.
What are the potential risks associated with a 4-year performance period for O&M engineering services?
A 4-year performance period for Operations & Maintenance (O&M) engineering services presents several potential risks. Firstly, there's the risk of scope creep, where the requirements may expand beyond the original intent, potentially increasing costs if not managed through contract modifications. Secondly, contractor performance could degrade over time if incentives are not maintained or if the contractor becomes complacent. Thirdly, technological advancements or changes in operational needs could render the contracted services less effective or efficient by the end of the period, requiring significant adaptation or renegotiation. Finally, long-term contracts can sometimes reduce competitive pressure if not structured with clear performance metrics and opportunities for re-competition or review. Robust contract management, regular performance reviews, and clear communication channels are essential to mitigate these risks.
What is the typical market size and spending for engineering services within the Department of Defense?
The Department of Defense (DoD) is a major consumer of engineering services, with annual spending often reaching tens of billions of dollars across various categories, including research and development, acquisition support, facilities engineering, and operations and maintenance. The market encompasses a wide range of specialized disciplines, from civil and mechanical engineering to aerospace and systems engineering. Spending levels can fluctuate based on geopolitical factors, modernization priorities, and budget allocations. Contracts like this one, valued at $12.8 million over four years for O&M support, represent a segment of this larger market. Benchmarking this specific contract's value would require comparing it against similar O&M engineering service contracts awarded by the Navy or other DoD components, considering factors like contract duration, scope complexity, and labor categories.
How does the 'Delivery Order' award type impact the overall contract structure and competition?
A 'Delivery Order' award indicates that this contract is likely a task order or delivery order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle or a similar master agreement. These IDIQ vehicles are often established through a prior competitive process (like full and open competition) to procure a broad range of services or supplies over a period. The specific delivery order then defines the scope, quantity, delivery schedule, and price for a particular requirement. This approach allows for streamlined procurement of recurring needs. While the initial IDIQ award was competitive, the competition for individual delivery orders can vary; some IDIQs allow for further competition among awardees, while others might be awarded on a sole-source basis or based on pre-negotiated terms. The data provided does not specify if this delivery order was competed among multiple IDIQ holders.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042120R0002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 44150 SMARTRONIX WAY, HOLLYWOOD, MD, 20636
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $44,564,706
Exercised Options: $44,564,706
Current Obligation: $12,834,188
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $2,928,311
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042121D0007
IDV Type: IDC
Timeline
Start Date: 2022-05-27
Current End Date: 2026-11-15
Potential End Date: 2026-11-15 00:00:00
Last Modified: 2026-01-14
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