DoD's $103M contract for tactical radio engineering services awarded to SEV1TECH, LLC
Contract Overview
Contract Amount: $102,879,674 ($102.9M)
Contractor: Sev1tech, LLC
Awarding Agency: Department of Defense
Start Date: 2018-10-15
End Date: 2024-03-15
Contract Duration: 1,978 days
Daily Burn Rate: $52.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEM ENGINEERING TECHNICAL ASSISTANCE SERVICES FOR PM TACTICAL RADIOS AND ASSOCIATED CUSTOMERS.
Place of Performance
Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $102.9 million to SEV1TECH, LLC for work described as: SYSTEM ENGINEERING TECHNICAL ASSISTANCE SERVICES FOR PM TACTICAL RADIOS AND ASSOCIATED CUSTOMERS. Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract spans nearly two years, indicating a significant, ongoing need. 3. SEV1TECH, LLC, a relatively new entity, is tasked with critical defense systems. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. The North American Industry Classification System (NAICS) code points to R&D in physical and engineering sciences. 6. The contract's value places it in the mid-to-large tier for defense-related services.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns. However, the total award of over $100 million for engineering technical assistance over approximately 1.5 years suggests a substantial investment. Comparing it to similar system engineering support contracts within the Department of Defense would be necessary for a more precise value-for-money assessment. The CPFF structure implies that costs are reimbursed, plus a fixed fee for profit, which can sometimes lead to higher overall costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of five bidders suggests a competitive environment for these specialized technical services. A competitive process generally helps in price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would offer further insight into the intensity of the competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially driving down costs through market forces.
Public Impact
The primary beneficiaries are the Department of the Army's Program Management (PM) Tactical Radios and its associated customers, who receive critical technical support. Services delivered include system engineering and technical assistance, crucial for the development, maintenance, and enhancement of tactical radio systems. The geographic impact is likely concentrated within the Department of Defense's operational areas and supporting infrastructure. Workforce implications may include the employment of specialized engineers and technical personnel by SEV1TECH, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
- The relatively new status of SEV1TECH, LLC as a contractor may present unknown performance risks.
- Dependence on a single contractor for critical system engineering could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a potentially strong pool of qualified bidders.
- The contract duration suggests a stable, long-term need for these services, providing continuity.
- The specific focus on tactical radios addresses a core operational requirement for the military.
Sector Analysis
This contract falls within the broader defense technology and services sector, specifically focusing on communication systems engineering. The market for defense-related R&D and technical support services is substantial, driven by continuous modernization efforts and the need for advanced capabilities. Comparable spending benchmarks would involve analyzing other contracts for similar system engineering and technical assistance within the Department of Defense and other military branches, particularly those related to radio and communication technologies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, SEV1TECH, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure that costs are reasonable and allocable. Transparency would be facilitated through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Tactical Radio Systems Modernization
- Defense Communications Infrastructure
- System Engineering Support Services
- Department of Defense Research and Development
- Army Aviation and Missile Command Contracts
Risk Flags
- Cost Overrun Potential (CPFF Contract Type)
- Contractor Performance Risk (Newer Entity)
- Technical Complexity of Tactical Radios
Tags
defense, department-of-defense, department-of-the-army, system-engineering, technical-assistance, tactical-radios, cost-plus-fixed-fee, full-and-open-competition, research-and-development, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.9 million to SEV1TECH, LLC. SYSTEM ENGINEERING TECHNICAL ASSISTANCE SERVICES FOR PM TACTICAL RADIOS AND ASSOCIATED CUSTOMERS.
Who is the contractor on this award?
The obligated recipient is SEV1TECH, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $102.9 million.
What is the period of performance?
Start: 2018-10-15. End: 2024-03-15.
What is the track record of SEV1TECH, LLC in performing similar large-scale defense engineering contracts?
Information regarding the specific track record of SEV1TECH, LLC for large-scale defense engineering contracts is limited in the provided data. As a contractor, their performance history on previous government contracts, particularly those involving system engineering and technical assistance for complex communication systems, would be a key indicator of future success. A review of past performance evaluations, contract awards, and any documented issues or successes would be necessary to fully assess their capabilities and reliability. Given the contract's value and duration, a thorough vetting of their experience with similar projects is warranted.
How does the pricing structure (Cost Plus Fixed Fee) compare to other similar system engineering contracts within the DoD?
Cost Plus Fixed Fee (CPFF) contracts are common within the DoD for research and development or services where the scope of work is not precisely defined at the outset. This structure reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but may carry a higher risk of cost growth if not managed diligently. Benchmarking against similar system engineering contracts would involve analyzing the fixed fee percentages and the overall cost growth trends of comparable CPFF awards within the DoD to determine if SEV1TECH's fee is competitive and reasonable.
What are the primary performance risks associated with this contract, and how are they being mitigated?
Primary performance risks could include potential cost overruns inherent in CPFF contracts, technical challenges in developing or maintaining complex tactical radio systems, and contractor performance issues. Mitigation strategies typically involve robust government oversight, including regular progress reviews, audits of contractor costs, and clear performance metrics defined in the contract. The Department of the Army likely has established procedures for monitoring contractor performance, managing scope changes, and addressing any deficiencies to ensure mission success and responsible use of funds.
What is the historical spending trend for tactical radio system engineering and technical assistance within the Department of the Army?
Analyzing historical spending trends for tactical radio system engineering and technical assistance within the Department of the Army would provide context for the current $103 million award. This would involve examining past contract awards for similar services over several fiscal years to identify patterns in spending levels, types of contracts used, and key contractors. Such an analysis could reveal whether this award represents an increase, decrease, or stable level of investment in this capability, helping to assess its significance within the broader budget and strategic priorities of the Army's communication systems.
How does the competition level (5 bidders) for this contract compare to the average for similar DoD system engineering services?
Having five bidders for this contract suggests a healthy level of competition, which is generally positive for the government. To assess if this is typical, one would need to compare it to the average number of bids received for similar system engineering and technical assistance contracts within the Department of Defense. If the average is significantly lower, it indicates strong interest in this specific opportunity. Conversely, if the average is higher, it might suggest that this particular service area is highly sought after by a larger number of firms, or that the solicitation had specific requirements that narrowed the field.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $123,844,444
Exercised Options: $123,844,444
Current Obligation: $102,879,674
Actual Outlays: $913,489
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $39,305,678
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0147
IDV Type: IDC
Timeline
Start Date: 2018-10-15
Current End Date: 2024-03-15
Potential End Date: 2024-03-15 00:00:00
Last Modified: 2025-09-03
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