DoD's $20M Missile Defense Staff Support Contract Awarded to Solutions Through Innovative Technologies Inc

Contract Overview

Contract Amount: $20,062,344 ($20.1M)

Contractor: Solutions Through Innovative Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-20

End Date: 2025-08-30

Contract Duration: 1,836 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JOINT FUNCTIONAL COMPONENT COMMAND FOR INTEGRATED MISSILE DEFENSE STAFF SUPPORT WITH THE PURPOSE OF PROVIDING ADVISORY AND ASSISTANCE SERVICES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC for work described as: JOINT FUNCTIONAL COMPONENT COMMAND FOR INTEGRATED MISSILE DEFENSE STAFF SUPPORT WITH THE PURPOSE OF PROVIDING ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract provides advisory and assistance services for integrated missile defense. 2. Awarded via full and open competition after exclusion of sources, indicating a competitive process. 3. The contract duration of 1836 days suggests a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may present cost control challenges. 5. The specific services are critical to national security in missile defense. 6. The contractor, Solutions Through Innovative Technologies Inc., has secured a significant award in this specialized sector.

Value Assessment

Rating: fair

The contract value of $20,062,344.19 over approximately five years needs careful benchmarking against similar advisory and assistance contracts within the Department of Defense. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed rigorously. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award suggests an attempt to secure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, specific sources may have been excluded for defined reasons, potentially limiting the breadth of competition. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery, but the exclusion of other potential bidders warrants scrutiny.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely benefited from a reasonably competitive bidding process, preventing excessive pricing. However, the exclusion of sources means taxpayers may not have received the absolute lowest possible price achievable in a truly unrestricted open competition.

Public Impact

The primary beneficiaries are the Department of Defense components relying on integrated missile defense capabilities. Services delivered include crucial advisory and assistance functions supporting strategic missile defense operations. The geographic impact is likely national, given the nature of missile defense, with potential implications for personnel in Colorado where the contractor is based. Workforce implications include the potential for skilled technical and advisory roles to be filled by the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur costs to increase the fixed fee, requiring robust oversight.
The 'exclusion of sources' clause in the competition type needs further investigation to ensure it was justified and did not unduly limit competition.
The long contract duration (over 4.5 years) necessitates continuous monitoring for performance and cost efficiency.

Positive Signals

Awarded through a competitive process, indicating multiple firms vied for the contract.
The contract addresses a critical national security need in missile defense.
The contractor is based in Colorado, potentially supporting local technical expertise.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the Department of Defense's advanced missile defense programs. The market for defense engineering and advisory services is highly specialized, with significant government spending allocated to maintaining and advancing technological superiority in areas like missile defense. Comparable spending benchmarks would typically involve analyzing other large, long-term advisory contracts within the defense sector, particularly those focused on complex systems integration and strategic planning.

Small Business Impact

There is no indication of a small business set-aside for this contract, as the 'sb' field is false. Furthermore, the 'ss' field is also false, meaning it is not a small business prime contractor. This suggests that the prime contract was awarded to a larger entity, and subcontracting opportunities for small businesses would depend on the prime contractor's strategy and any flow-down requirements, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force, acting on behalf of the Department of Defense. Accountability measures would be embedded within the contract's terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases, but detailed operational oversight and Inspector General jurisdiction would focus on ensuring compliance with contract terms and preventing fraud, waste, and abuse.

Related Government Programs

Missile Defense Agency (MDA) Programs
Department of Defense Advisory and Assistance Services
Integrated Air and Missile Defense (IAMD) Systems
National Security Space Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Limited competition due to 'exclusion of sources' warrants scrutiny.
Long contract duration necessitates ongoing performance monitoring.
Dependence on a single contractor for critical advisory services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC. JOINT FUNCTIONAL COMPONENT COMMAND FOR INTEGRATED MISSILE DEFENSE STAFF SUPPORT WITH THE PURPOSE OF PROVIDING ADVISORY AND ASSISTANCE SERVICES

Who is the contractor on this award?

The obligated recipient is SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC.

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 $20.1 million.

What is the period of performance?

Start: 2020-08-20. End: 2025-08-30.

What is the track record of Solutions Through Innovative Technologies Inc. in securing and performing on similar Department of Defense contracts?

Solutions Through Innovative Technologies Inc. (SITI) has a history of securing various federal contracts, including those with the Department of Defense. Analyzing their past performance on contracts of similar size, scope, and complexity, particularly those involving advisory and assistance services for defense systems, is crucial. A review of their contract history would reveal their experience in managing Cost Plus Fixed Fee (CPFF) arrangements, their on-time delivery rates, and their ability to meet performance metrics. Positive past performance would indicate a lower risk for this current contract, while a history of issues could raise concerns about SITI's capacity to deliver effectively on this significant missile defense support role.

How does the awarded value of approximately $20 million compare to similar missile defense advisory contracts?

Benchmarking the $20 million value requires comparing it against contracts for advisory and assistance services specifically supporting integrated missile defense or similar complex defense systems. Factors such as contract duration (1836 days), scope of services (advisory and assistance), and the specific agency (Department of Defense) are key comparison points. If similar five-year contracts for comparable expertise and support levels have been awarded in the range of $15-25 million, then this award appears within a reasonable market range. However, if comparable contracts were significantly lower, it might suggest this award is on the higher side, necessitating a closer look at the specific requirements and the value delivered.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for missile defense support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as the fixed fee remains constant regardless of the total cost incurred. For the government, this means less control over the total contract price compared to fixed-price contracts. Effective management requires rigorous oversight of allowable costs, detailed performance monitoring, and clear definition of the fixed fee's relationship to successful performance to mitigate the risk of cost overruns and ensure value for taxpayer money.

How effective are the 'exclusion of sources' clauses in promoting competition and ensuring best value for taxpayers?

Exclusion of sources clauses, while sometimes necessary for specific technical or security reasons, can inherently limit the breadth of competition. If justified and properly documented, they can ensure that only qualified or appropriate sources participate, potentially leading to a more focused and effective competition among relevant parties. However, if the exclusion is overly broad or not well-justified, it can stifle competition, potentially leading to higher prices and reduced innovation. For taxpayers, the effectiveness hinges on whether the exclusion genuinely served a necessary purpose without unduly sacrificing the potential for broader, more competitive bidding that could drive down costs.

What is the historical spending trend for integrated missile defense staff support within the Department of Defense?

Analyzing historical spending trends for integrated missile defense staff support within the Department of Defense is crucial for context. This involves examining aggregate spending on similar advisory and assistance contracts over the past 5-10 years. Trends might reveal increasing or decreasing investment in this area, shifts in contracting strategies (e.g., from sole-source to competitive), or changes in average contract values. Understanding these patterns helps assess whether the current $20 million award is consistent with historical investment levels, indicative of a growing need, or an outlier that warrants further investigation into its justification and potential cost-effectiveness.

What are the potential implications of awarding this contract to a single entity for long-term missile defense strategy?

Awarding a significant, long-term contract like this to a single entity, even if competitively won, can have implications for long-term missile defense strategy. It concentrates critical advisory functions within one organization, potentially leading to a deep but narrow expertise. This could foster strong working relationships and institutional knowledge but might also reduce the diversity of strategic thought and create a dependency. Over time, it could also make it harder for new or smaller firms to enter the market and challenge established players, potentially impacting future innovation and competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3152 PRESIDENTIAL DR, FAIRBORN, OH, 45324

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,848,836

Exercised Options: $37,989,366

Current Obligation: $20,062,344

Actual Outlays: $214,968

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $8,552,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD19D3005

IDV Type: IDC

Timeline