Navy Awards $11.1M Engineering Services Task Order to SMARTRONIX, LLC Under Full and Open Competition
Contract Overview
Contract Amount: $11,058,823 ($11.1M)
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: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TARCES FEDERAL/NON-DOD TASK ORDER
Place of Performance
Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to SMARTRONIX, LLC for work described as: TARCES FEDERAL/NON-DOD TASK ORDER Key points: 1. The task order is for engineering services, a critical area for defense operations. 2. SMARTRONIX, LLC, the awardee, is a known entity in the federal contracting space. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost overrun risks. 4. The sector is Defense, a significant area of federal spending with ongoing demand.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed tightly. Benchmarking against similar engineering services contracts is necessary to assess if the fixed fee and overall pricing are competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
This award contributes to the Department of the Navy's engineering capabilities, supporting critical missions. The duration of the task order (nearly 4 years) indicates a long-term need for these services. The use of a Cost Plus Fixed Fee contract warrants close monitoring to ensure cost control and value for taxpayer money.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for scope creep in engineering services
Positive Signals
- Awarded under full and open competition
- Experienced contractor awarded task order
Sector Analysis
This task order falls within the Engineering Services sector, which is a vital component of the Department of Defense's operational readiness. Spending in this sector is often driven by complex project requirements and the need for specialized expertise.
Small Business Impact
The data indicates that this task order was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this task order. Robust oversight is crucial, especially with Cost Plus Fixed Fee contracts, to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Potential for scope creep in engineering services.
- Lack of small business awardee.
- Contract duration is substantial, requiring sustained oversight.
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 $11.1 million to SMARTRONIX, LLC. TARCES FEDERAL/NON-DOD 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 $11.1 million.
What is the period of performance?
Start: 2022-07-01. End: 2026-06-30.
What is the benchmark for Cost Plus Fixed Fee contracts in engineering services for the Department of the Navy?
Determining a precise benchmark for Cost Plus Fixed Fee (CPFF) contracts in engineering services for the Navy requires access to historical contract data and market research. Factors like contract complexity, duration, required expertise, and the specific fixed fee percentage are critical. Generally, CPFF contracts are used when project scope is not well-defined, and the government aims to incentivize contractor efficiency while managing risk. Benchmarking would involve comparing the fixed fee percentage and total estimated cost against similar, competitively awarded contracts.
What are the primary risks associated with a Cost Plus Fixed Fee contract for engineering services?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the contractor's actual costs exceed estimates, as the government reimburses these costs. The fixed fee, while intended to provide incentive, might not adequately reflect the effort if the scope expands significantly. There's also a risk of the contractor having less incentive to control costs compared to fixed-price contracts, as their profit is fixed regardless of cost efficiency. Close monitoring and strong contract management are essential to mitigate these risks.
How does the 'full and open competition' method impact the value received for these engineering services?
Awarding this task order under 'full and open competition' is intended to maximize value by allowing all responsible sources to submit bids. This competitive pressure typically drives down prices and encourages offerors to propose innovative solutions and efficient approaches to meet the government's requirements. The government benefits from a wider range of technical solutions and potentially lower overall costs compared to sole-source or limited competition scenarios, ensuring taxpayer money is used more effectively.
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: $14,311,897
Exercised Options: $14,179,774
Current Obligation: $11,058,823
Actual Outlays: $1,376,011
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,819,646
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: 2026-01-09
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