DoD's $44.7M R&D Contract with Schafer Government Services: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $44,751,758 ($44.8M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2005-04-01

End Date: 2010-01-11

Contract Duration: 1,746 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.8 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: Key points: 1. Significant investment in R&D, focusing on physical, engineering, and life sciences. 2. Full and open competition after exclusion of sources suggests a deliberate procurement process. 3. Potential for high-value outcomes given the R&D focus, but long-term impact is key. 4. Contract awarded to Schafer Government Services, LLC, a key player in the sector.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. The fixed fee component provides some incentive for efficiency, but the overall value depends heavily on the successful completion of R&D objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process was initiated, but specific sources were excluded. This method aims for a balance between competition and specialized needs, potentially impacting price discovery if the exclusion narrowed the field significantly.

Taxpayer Impact: Taxpayer funds are allocated to advanced research, with the potential for significant technological advancements. However, the CPFF structure necessitates careful oversight to ensure efficient use of funds.

Public Impact

Advancement of critical R&D in physical, engineering, and life sciences. Potential for new technologies and scientific breakthroughs benefiting national security. Long-term economic impact through innovation and potential commercialization of research. Job creation within the R&D sector and supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure risks budget overruns.
  • Exclusion of sources may limit competitive pricing.
  • Long-term effectiveness of R&D outcomes uncertain.

Positive Signals

  • Significant investment in critical R&D.
  • Competitive bidding process initiated.
  • Potential for groundbreaking scientific advancements.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710). Spending in this area is crucial for technological advancement and national security, often characterized by high upfront investment and uncertain but potentially high returns.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). This suggests the scope or nature of the work may have favored larger, established contractors with specialized capabilities.

Oversight & Accountability

The contract's duration and CPFF structure necessitate robust oversight from the Department of the Air Force to ensure adherence to research objectives and cost controls. Regular performance reviews and audits are critical for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost overrun potential due to CPFF structure.
  • Limited competition due to source exclusion.
  • Uncertainty of R&D success.
  • Lack of small business participation.
  • Long contract duration requires sustained oversight.

Tags

research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.8 million to SCHAFER GOVERNMENT SERVICES, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, 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 $44.8 million.

What is the period of performance?

Start: 2005-04-01. End: 2010-01-11.

What specific R&D projects were undertaken, and what were their measurable outcomes?

The contract focused on Research and Development in the Physical, Engineering, and Life Sciences. Specific project details are not provided, but the Cost Plus Fixed Fee structure implies a focus on achieving defined research goals. Measurable outcomes would typically include scientific publications, prototype development, or technological advancements relevant to the Department of Defense's mission.

How did the exclusion of sources impact the final contract price and overall value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method suggests that while competition was sought, certain entities were pre-selected or others were disqualified. This could potentially limit the breadth of competitive offers, possibly leading to a higher price than if all potential sources were considered. The value is thus contingent on the quality and innovation brought by the selected contractor.

What mechanisms were in place to ensure the effectiveness and efficiency of the R&D spending?

As a Cost Plus Fixed Fee contract, effectiveness and efficiency rely on the Department of the Air Force's oversight. This includes monitoring research progress against milestones, ensuring adherence to the fixed fee agreement, and potentially conducting technical reviews. The long duration (1746 days) implies a need for sustained oversight to manage the R&D lifecycle effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Citigroup Inc.

Address: 101 BILLERICA AVENUE, BUILDING 5, SUITE 201, NORTH BILLERICA, MA, 01862

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA945104D0399

IDV Type: IDC

Timeline

Start Date: 2005-04-01

Current End Date: 2010-01-11

Potential End Date: 2010-01-11 00:00:00

Last Modified: 2023-05-25

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