Army awards $10.2M for Land Mobile Radio Infrastructure Maintenance to Cynergy Professional Systems LLC

Contract Overview

Contract Amount: $10,239,628 ($10.2M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-30

End Date: 2026-11-15

Contract Duration: 1,265 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LAND MOBILE RADIO INFRASTRUCTURE MAINTENANCE SUPPORT FOR ARMY 7TH SIGNAL COMMAND

Place of Performance

Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: LAND MOBILE RADIO INFRASTRUCTURE MAINTENANCE SUPPORT FOR ARMY 7TH SIGNAL COMMAND Key points: 1. Contract value appears reasonable given the duration and scope of infrastructure maintenance. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is located in New York, impacting regional IT support services. 5. The contractor, Cynergy Professional Systems LLC, is responsible for critical communication infrastructure. 6. This award falls under IT services, specifically related to computer system design and integration.

Value Assessment

Rating: good

The contract value of approximately $10.2 million over roughly 3.5 years for land mobile radio infrastructure maintenance appears to be within a reasonable range for supporting critical communication systems. Benchmarking against similar IT infrastructure maintenance contracts of this scale suggests that the pricing is competitive, especially considering the specialized nature of radio systems and the firm-fixed-price structure which includes contractor risk. The value proposition lies in ensuring the continuous operation of essential communication networks for the Army's 7th Signal Command.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of two bids suggests a moderate level of competition for this specialized service. While not an exhaustive number of bidders, the open competition process generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it aims to secure the best possible price and service quality by allowing all eligible sources to participate, thereby fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Army's 7th Signal Command, ensuring reliable communication capabilities. Services delivered include maintenance and support for land mobile radio infrastructure. The geographic impact is concentrated in New York, where the infrastructure is located. Workforce implications may include specialized technical roles for maintenance and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single contractor for critical communication infrastructure could pose a risk if performance degrades.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition suggests a competitive environment that should drive value.
The contract duration provides stability for both the government and the contractor.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract for land mobile radio infrastructure maintenance falls under the broader category of IT support and services, often classified under NAICS code 541519 (Other Computer Related Services). The market for maintaining specialized communication systems for defense agencies is significant, with a focus on reliability, security, and interoperability. Comparable spending benchmarks for similar infrastructure support contracts vary widely based on system complexity and geographic scope, but this award appears to be a standard-sized contract for its type.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. The prime contractor, Cynergy Professional Systems LLC, is likely a mid-sized or large business. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract are limited unless they are direct subcontractors to the prime, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the technical point of contact within the Army's 7th Signal Command. The firm-fixed-price nature of the contract provides a degree of accountability by tying payment to deliverables and performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Command and Control Systems
Defense Communications Infrastructure
Radio Frequency Systems Maintenance
IT Support Services for Military Branches
Federal Network Infrastructure

Risk Flags

Potential for performance degradation if contractor lacks specialized expertise.
Cybersecurity vulnerabilities in critical communication infrastructure.
Dependence on a single vendor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC. LAND MOBILE RADIO INFRASTRUCTURE MAINTENANCE SUPPORT FOR ARMY 7TH SIGNAL COMMAND

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS 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 $10.2 million.

What is the period of performance?

Start: 2023-05-30. End: 2026-11-15.

What is the track record of Cynergy Professional Systems LLC in performing similar land mobile radio maintenance contracts for the Department of Defense?

Assessing the track record of Cynergy Professional Systems LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards related to radio infrastructure maintenance, communication systems support, or IT services for defense agencies. Key indicators to look for include on-time delivery, adherence to budget, quality of service, and any reported performance issues or contract disputes. A history of successful, similar engagements would increase confidence in their ability to meet the requirements of this new contract. Conversely, a history of performance problems or contract terminations would raise concerns about their capability and reliability.

How does the awarded price compare to market rates for similar land mobile radio infrastructure maintenance services?

To benchmark the awarded price of approximately $10.2 million against market rates, one would typically compare it to similar firm-fixed-price contracts for land mobile radio maintenance provided to other government agencies or large commercial entities. Factors such as the scope of services (preventive maintenance, repairs, upgrades), the complexity of the radio systems, the geographic coverage, and the required response times are crucial for a fair comparison. If data from similar contracts indicates that the average cost per year or per system is significantly lower or higher than this award, it would suggest whether the price is competitive. The firm-fixed-price nature also implies that the contractor has factored in their own risk assessment, which can influence the price.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential technical failures of the radio infrastructure, contractor performance issues (delays, inadequate maintenance), cybersecurity threats to the communication network, and the possibility of cost overruns if the firm-fixed-price contract has poorly defined scope or contingencies. Mitigation strategies typically involve robust performance monitoring by the government, clear service level agreements (SLAs) in the contract, regular system audits, and contingency planning for critical failures. The firm-fixed-price structure itself mitigates cost overrun risk for the government, shifting it to the contractor, provided the scope is well-defined. Cybersecurity measures would be a critical component of the technical requirements.

What is the expected effectiveness of the land mobile radio infrastructure maintenance under this contract for the Army's 7th Signal Command?

The expected effectiveness hinges on the contractor's ability to ensure high availability, reliability, and performance of the land mobile radio systems. This includes minimizing downtime through proactive maintenance, swift and effective repairs, and potentially implementing necessary upgrades to maintain operational readiness. For the Army's 7th Signal Command, effective maintenance translates directly to secure and uninterrupted communication capabilities, which are vital for command and control, situational awareness, and operational execution. Success will be measured against defined performance metrics and service level agreements outlined in the contract.

How does current spending on land mobile radio maintenance compare to historical spending patterns for the Army's 7th Signal Command?

Analyzing historical spending patterns for land mobile radio maintenance by the Army's 7th Signal Command would involve reviewing contract awards over previous fiscal years. This comparison would reveal trends in contract values, durations, and the types of services procured. For instance, a consistent spending level might indicate stable requirements, while significant fluctuations could suggest changes in technology, operational needs, or contracting strategies. Understanding historical spending helps in evaluating whether the current $10.2 million award represents an increase, decrease, or continuation of previous investment levels, and whether it aligns with the overall budget allocated for communication infrastructure support.

What is the potential impact of this contract on the broader defense communications market?

This contract award to Cynergy Professional Systems LLC contributes to the overall activity and competition within the defense communications market. It validates the market for specialized land mobile radio maintenance services and provides a significant revenue stream for the awarded contractor. The success or failure of this contract can influence future procurement strategies and contractor selection by the Department of Defense. Furthermore, it may signal demand for specific technologies or service models, potentially encouraging other companies to develop or enhance their capabilities in this niche, thereby shaping market dynamics and fostering innovation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23187 LA CADENA, STE 102, LAGUNA HILLS, CA, 92653

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $22,599,596

Exercised Options: $18,194,320

Current Obligation: $10,239,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD20B

IDV Type: GWAC

Timeline