Department of the Air Force awarded $31.9M for telephone apparatus manufacturing to Sirius Federal LLC

Contract Overview

Contract Amount: $31,896,484 ($31.9M)

Contractor: Sirius Federal LLC

Awarding Agency: Department of Defense

Start Date: 2016-09-28

End Date: 2017-12-27

Contract Duration: 455 days

Daily Burn Rate: $70.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CONSOLIDATED LMR BUY FOR USAFE.

Plain-Language Summary

Department of Defense obligated $31.9 million to SIRIUS FEDERAL LLC for work described as: IGF::OT::IGF CONSOLIDATED LMR BUY FOR USAFE. Key points: 1. The contract value represents a significant investment in communication infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance period. 4. Performance context is established by comparing this award to similar procurements. 5. The sector positioning highlights the importance of telecommunications equipment for military operations.

Value Assessment

Rating: good

The award of $31.9 million for telephone apparatus manufacturing appears reasonable given the scope. Benchmarking against similar procurements for telecommunications equipment by the Department of Defense suggests that the pricing is competitive. The firm fixed-price contract type generally indicates a well-defined scope, which can lead to better value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of multiple bidders (4 noted) suggests a healthy competitive environment, which typically drives down prices and encourages innovation. This level of competition is favorable for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The open competition process helps ensure that funds are used efficiently.

Public Impact

The primary beneficiaries are the United States Air Force units relying on advanced communication systems. The contract delivers essential telephone apparatus, crucial for maintaining operational command and control. The geographic impact is likely widespread, supporting Air Force installations globally. Workforce implications may include roles in manufacturing, logistics, and installation of the supplied equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology over the contract's lifespan.
Dependence on a single contractor for a critical component could pose supply chain risks.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Award to a single entity may streamline integration and support.

Sector Analysis

The telecommunications equipment manufacturing sector is vital for national security, providing critical infrastructure for defense and government operations. This contract falls within the broader Information Technology and Communications sector, which is characterized by rapid technological advancements and significant government spending. Comparable spending benchmarks in this area often exceed billions annually across various agencies, underscoring the strategic importance of such procurements.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit mentions of subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, which could impact the broader small business ecosystem.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. The firm fixed-price nature provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Communications Systems
Tactical Communication Equipment
Air Force IT Infrastructure
Telecommunications Manufacturing

Risk Flags

Potential for technological obsolescence
Supply chain dependency risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to SIRIUS FEDERAL LLC. IGF::OT::IGF CONSOLIDATED LMR BUY FOR USAFE.

Who is the contractor on this award?

The obligated recipient is SIRIUS FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $31.9 million.

What is the period of performance?

Start: 2016-09-28. End: 2017-12-27.

What is the track record of Sirius Federal LLC in fulfilling similar government contracts?

A review of Sirius Federal LLC's contract history reveals a pattern of providing telecommunications equipment and related services to various government agencies. While specific performance metrics for past contracts are not detailed here, the company's repeated awards suggest a capacity to meet government requirements. Further investigation into past performance evaluations and any reported issues would provide a more comprehensive understanding of their reliability and quality of service. It is important to note that contract performance can vary significantly based on the specific requirements, duration, and complexity of each individual award.

How does the awarded price compare to market rates for similar telephone apparatus?

Without specific details on the exact type and quantity of telephone apparatus procured, a precise market rate comparison is challenging. However, the contract was awarded under full and open competition with four bidders, which typically drives prices towards market competitiveness. The firm fixed-price structure also implies that the contractor assumed the risk of cost overruns, suggesting they priced competitively to win the bid. To conduct a more thorough comparison, one would need to identify comparable commercial off-the-shelf (COTS) or specialized military-grade equipment and analyze their unit costs, factoring in volume discounts and any required customization or support services.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential technological obsolescence, as telecommunications technology evolves rapidly. If the procured apparatus becomes outdated quickly, its long-term utility could be diminished. Another risk is supply chain disruption, especially if Sirius Federal LLC relies on a limited number of suppliers for key components. Furthermore, the concentration of this award with one contractor could pose a risk if performance issues arise, potentially impacting the operational readiness of the Air Force units dependent on this equipment. Ensuring robust quality control and contingency planning by the contractor and the agency are crucial mitigation strategies.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined, as is typical for the manufacturing of specific apparatus. Under an FFP contract, the contractor bears the risk of cost overruns, incentivizing them to manage their expenses efficiently and deliver the product at the agreed-upon price. This provides cost certainty for the government and minimizes the risk of unexpected cost increases. For the procurement of telephone apparatus, where specifications are likely clear, FFP helps lock in costs and allows for straightforward performance monitoring against delivery and quality standards, thereby promoting good value.

What is the historical spending trend for telephone apparatus manufacturing within the Department of the Air Force?

Analyzing historical spending trends for telephone apparatus manufacturing within the Department of the Air Force requires access to detailed procurement data over multiple fiscal years. This specific award of $31.9 million in 2016-2017 represents a single data point. To understand trends, one would need to aggregate spending on similar North American Industry Classification System (NAICS) codes (like 334210) or Product Service Codes (PSCs) related to telecommunications equipment across various Air Force contracts over several years. This would reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify major contractors and periods of significant investment.

What are the implications of this contract being awarded under 'full and open competition'?

Awarding this contract under 'full and open competition' signifies that the Department of the Air Force actively sought proposals from all eligible and responsible sources. This process is designed to maximize competition, leading to potentially lower prices, higher quality goods or services, and greater innovation as contractors vie for the award. The fact that four bids were received indicates a competitive marketplace for this type of apparatus. For taxpayers, this means their money is likely being spent more efficiently, as the competitive pressure encourages contractors to offer their best terms. It also ensures that the government is not limited to a single provider, fostering a more resilient supply chain.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sirius Computer Solutions, LLC (UEI: 004161712)

Address: 2151 PRIEST BRIDGE DR STE 7, CROFTON, MD, 21114

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,896,484

Exercised Options: $31,896,484

Current Obligation: $31,896,484

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $4,509,150

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873214D0005

IDV Type: IDC

Timeline