Navy Awards $28.6M Engineering Services Task Order to SMARTRONIX, LLC under Full and Open Competition
Contract Overview
Contract Amount: $28,590,563 ($28.6M)
Contractor: Smartronix, LLC
Awarding Agency: Department of Defense
Start Date: 2022-07-01
End Date: 2026-06-30
Contract Duration: 1,460 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TARCES NAVY TASK ORDER
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $28.6 million to SMARTRONIX, LLC for work described as: TARCES NAVY TASK ORDER Key points: 1. Significant contract value of $28.6 million for engineering services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. SMARTRONIX, LLC is the prime contractor for this delivery order. 4. The contract spans nearly four years, from July 2022 to June 2026.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar engineering services contracts is recommended to ensure pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a fair market price for the engineering services.
Public Impact
Supports critical Navy engineering and technical requirements. Potential for follow-on work or expansion based on performance. Impacts the engineering services sector within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract requires diligent cost monitoring.
- Long duration of the contract necessitates ongoing performance evaluation.
Positive Signals
- Awarded through full and open competition.
- Clear task order structure with defined start and end dates.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense agencies. Spending benchmarks for similar services can vary widely based on complexity and duration, but the $28.6M value is substantial.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates strong government oversight to ensure costs are reasonable and fixed fees are justified. Regular performance reviews and audits are essential for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- Long contract duration requires sustained oversight.
- Lack of small business participation data.
- Need for detailed performance metrics to ensure value.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to SMARTRONIX, LLC. TARCES NAVY TASK ORDER
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 $28.6 million.
What is the period of performance?
Start: 2022-07-01. End: 2026-06-30.
What specific engineering services are being provided under this task order, and how do they align with the Navy's strategic objectives?
The provided data does not detail the specific engineering services. However, given the 'Engineering Services' NAICS code (541330) and the Department of the Navy as the agency, it likely encompasses a range of technical support, design, analysis, or systems engineering critical to naval operations and platforms. Alignment with strategic objectives would require reviewing the task order's statement of work.
What is the benchmark for Cost Plus Fixed Fee contracts in the engineering services sector for the Department of the Navy?
Benchmarking Cost Plus Fixed Fee (CPFF) contracts in engineering services is complex due to the variable nature of project scope, risk, and required expertise. While a precise benchmark is unavailable without specific service details, agencies typically compare fee percentages and total contract costs against historical data for similar complexity and duration contracts to ensure reasonableness.
How will the government ensure effective cost control and prevent potential cost overruns with this CPFF contract over its four-year duration?
Effective cost control for this CPFF contract will rely on robust government oversight. This includes detailed review and approval of all incurred costs, regular audits, monitoring of labor hours and rates, and strict adherence to the fixed fee limitations. Proactive communication with the contractor and performance metrics tracking are also key to managing potential overruns.
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 - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042121R0116
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 44150 SMARTRONIX WAY STE 200, HOLLYWOOD, MD, 20636
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,421,531
Exercised Options: $36,421,244
Current Obligation: $28,590,563
Actual Outlays: $1,499,519
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $32,593,772
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042122D0005
IDV Type: IDC
Timeline
Start Date: 2022-07-01
Current End Date: 2026-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2026-01-15
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