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

Positive Signals

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

Risk Flags

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 ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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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