DoD's $26.7M R&D contract for systems integration awarded to SEV1TECH, LLC

Contract Overview

Contract Amount: $26,737,338 ($26.7M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-29

End Date: 2027-01-27

Contract Duration: 1,094 days

Daily Burn Rate: $24.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTRACTOR SUPPORT SERVICES INCLUDE PREPARING SYSTEMS, PROVIDING TRAINING AND FIELDING SUPPORT, INTEGRATING HARDWARE AND SOFTWARE.

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to SEV1TECH, LLC for work described as: CONTRACTOR SUPPORT SERVICES INCLUDE PREPARING SYSTEMS, PROVIDING TRAINING AND FIELDING SUPPORT, INTEGRATING HARDWARE AND SOFTWARE. Key points: 1. Contract focuses on critical R&D for systems preparation, training, and fielding. 2. SEV1TECH, LLC, a new entrant in this specific contract category, will provide support. 3. The contract duration of 1094 days suggests a significant, long-term project. 4. Awarded under full and open competition, indicating a broad search for qualified vendors. 5. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement with a fixed fee. 6. Virginia is the primary state for contract performance, suggesting a localized impact.

Value Assessment

Rating: good

The contract value of $26.7 million for R&D support services appears reasonable given the scope of systems integration, training, and fielding. Benchmarking against similar large-scale R&D contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee structure suggests a negotiated fee that should align with industry standards for similar complex projects. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple companies were solicited and had the opportunity to bid. The presence of 5 bidders indicates a healthy level of interest and competition for this R&D requirement. This competitive process is expected to drive better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The Department of the Army benefits from advanced systems integration and support services. Services include system preparation, training, and fielding, enhancing operational readiness. The contract's performance is primarily located in Virginia, potentially impacting the local workforce. This contract supports research and development in physical, engineering, and life sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The specific R&D focus requires ongoing evaluation to ensure alignment with evolving defense needs.
Reliance on a single contractor for critical systems integration may pose long-term dependency risks.

Positive Signals

Awarded through full and open competition, ensuring a competitive marketplace.
The contract duration suggests a commitment to sustained support and development.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense modernization, involving the integration of complex hardware and software systems. The market for such services is competitive, with numerous firms specializing in systems engineering, integration, and R&D support for government clients. The contract value of $26.7 million is substantial, indicating a significant project requiring specialized expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless SEV1TECH, LLC voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable. Transparency is expected through regular reporting requirements and potential site visits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development
Systems Integration Services
Defense Contractor Support
Army Logistics Modernization
Technology Fielding and Training

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost escalations.
R&D contracts inherently carry risk due to the uncertainty of research outcomes.
Contract performance duration of over 1000 days necessitates long-term project management and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to SEV1TECH, LLC. CONTRACTOR SUPPORT SERVICES INCLUDE PREPARING SYSTEMS, PROVIDING TRAINING AND FIELDING SUPPORT, INTEGRATING HARDWARE AND SOFTWARE.

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 $26.7 million.

What is the period of performance?

Start: 2024-01-29. End: 2027-01-27.

What is SEV1TECH, LLC's track record with similar large-scale R&D and systems integration contracts?

Information regarding SEV1TECH, LLC's specific track record with large-scale R&D and systems integration contracts of this magnitude is not detailed in the provided data. As a relatively new entity in this specific contract category, their past performance on projects of comparable complexity and value would need to be thoroughly reviewed through sources like the Contractor Performance Assessment Reporting System (CPARS) or other government databases. Understanding their experience with Cost Plus Fixed Fee contracts and their ability to manage complex technical requirements is crucial for assessing their capability to successfully execute this award.

How does the $26.7 million contract value compare to similar R&D systems integration contracts awarded by the Department of the Army?

The $26.7 million value for this R&D contract for systems integration is a significant investment. To benchmark this value, one would typically compare it against historical awards for similar services (NAICS code 541712) by the Department of the Army or other defense agencies. Factors such as contract duration (1094 days), scope of work (systems preparation, training, fielding, integration), and the specific technologies involved would influence comparability. Without access to a broader database of comparable contracts, it's difficult to definitively state if this represents a high, low, or average value. However, for complex R&D requiring extensive integration and support, this figure appears within a plausible range for a multi-year effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services revolve around cost control and contractor incentives. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to reimburse allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's initial cost estimates are inaccurate or if unforeseen technical challenges arise. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable, especially in R&D where outcomes can be uncertain. Effective government oversight is critical to mitigate these risks by scrutinizing allowable costs and ensuring the contractor exercises due diligence in managing expenses.

How will the success of this contract be measured in terms of program effectiveness?

The success of this R&D contract will likely be measured through a combination of technical performance metrics, adherence to schedule, and achievement of defined R&D objectives. Key performance indicators (KPIs) would be established in the contract's Statement of Work (SOW) and could include successful system integration milestones, effectiveness of training programs developed, successful fielding of integrated systems, and the achievement of specific research outcomes or technological advancements. Regular progress reviews, system testing, user feedback, and final acceptance of deliverables will all contribute to assessing program effectiveness and ensuring the contract meets its intended goals for enhancing defense capabilities.

What are the historical spending patterns for R&D services under NAICS code 541712 by the Department of the Army?

Historical spending patterns for R&D services under NAICS code 541712 by the Department of the Army typically show significant investment in areas supporting technological advancement and modernization. This code encompasses a broad range of research, including physical sciences, engineering, and life sciences. The Army consistently awards numerous contracts in this category to support its various branches and operational needs, ranging from foundational research to applied development. Spending can fluctuate based on strategic priorities, budget allocations, and emerging threats. Analyzing historical data would reveal trends in contract values, types of research funded, and key contractors frequently engaged in this domain.

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: $89,596,367

Exercised Options: $33,389,510

Current Obligation: $26,737,338

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $9,977,966

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