DoD's $23.2M IGF Event Support Contract Awarded to Scientific Research Corporation with No Competition

Contract Overview

Contract Amount: $23,203,349 ($23.2M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2017-12-18

End Date: 2019-12-18

Contract Duration: 730 days

Daily Burn Rate: $31.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF EVENT SUPPORT LABOR AND MATERIAL

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to SCIENTIFIC RESEARCH CORPORATION for work described as: IGF::OT::IGF EVENT SUPPORT LABOR AND MATERIAL Key points: 1. The contract's value of over $23 million for event support raises questions about cost-effectiveness given the lack of competitive bidding. 2. The sole-source nature of this award limits price discovery and potentially increases the financial risk for the government. 3. A 'Cost Plus Fixed Fee' contract type can incentivize cost overruns if not meticulously managed. 4. The contract duration of two years suggests a significant, ongoing need for these event support services. 5. Awarding to Scientific Research Corporation without competition warrants scrutiny of their qualifications and pricing. 6. The absence of small business set-asides or subcontracting goals may limit opportunities for smaller firms in this contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific 'event support labor and material' description, which lacks clear comparable metrics. The 'Cost Plus Fixed Fee' structure, while common, requires robust oversight to ensure value for money. Without competitive bids, it's difficult to ascertain if the fixed fee adequately reflects the effort and if the cost-plus component is managed efficiently to prevent unnecessary expenses. The total award of $23.2 million over two years suggests a substantial investment that should ideally be validated through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service, or in cases of urgent need. The lack of competition means that the Department of the Army did not solicit bids from other qualified companies, potentially missing out on more competitive pricing or innovative solutions that a bidding process might have yielded.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to lower prices. The government's ability to negotiate the best possible terms is diminished without alternative offers.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel who require support for events, ensuring smooth operations and execution. Services delivered include labor and materials essential for event logistics, setup, and execution. The contract is geographically focused on Georgia (ST: GA, SN: GEORGIA), indicating a specific regional operational need. Workforce implications are tied to the personnel employed by Scientific Research Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Cost-plus contract type carries inherent risk of cost escalation if not tightly managed.
Lack of competition may result in suboptimal pricing for taxpayers.
Specific details on 'event support labor and material' are vague, hindering performance assessment.
No indication of small business participation or subcontracting goals.

Positive Signals

Contract awarded to a specific entity (Scientific Research Corporation) suggesting they meet a perceived need.
The contract has a defined duration (2 years), providing a clear timeframe for service delivery.
The award is for a specific function (IGF Event Support), indicating focused service provision.

Sector Analysis

The Information Technology and Support Services sector encompasses a wide range of services, including event management and logistical support for government operations. While specific data for 'event support labor and material' is not readily available, the broader IT services market is substantial. Contracts like this, even if not purely IT-focused, often involve technological components for event coordination and execution. Benchmarking against similar government contracts for event logistics or specialized support services would be necessary to fully assess value, but the sole-source nature complicates direct comparisons.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there any explicit mention of subcontracting goals for small businesses. The sole-source award to Scientific Research Corporation suggests that opportunities for small businesses to participate in this specific contract, either as prime contractors or subcontractors, may be limited. This could represent a missed opportunity to leverage the capabilities of the small business ecosystem and promote economic growth within that sector.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification for this procurement method should be well-documented and readily available. The 'Cost Plus Fixed Fee' structure necessitates rigorous financial oversight to monitor costs and ensure the fixed fee remains appropriate. Transparency regarding performance metrics and expenditures would be crucial for accountability, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

Department of Defense Event Support Contracts
Army Logistics and Support Services
Sole-Source IT and Service Contracts
Cost-Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competition
Limited performance data available
Vague service description

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to SCIENTIFIC RESEARCH CORPORATION. IGF::OT::IGF EVENT SUPPORT LABOR AND MATERIAL

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2017-12-18. End: 2019-12-18.

What is the specific nature of the 'IGF Event Support Labor and Material' services provided under this contract?

The provided data offers limited detail on the specific services encompassed by 'IGF Event Support Labor and Material.' 'IGF' likely refers to a specific program or initiative within the Department of Defense or the Department of the Army. 'Event Support Labor and Material' suggests services related to the planning, execution, and dismantling of events, which could include personnel for setup, operation, technical assistance, and the provision of necessary materials like equipment, supplies, or consumables. Without further documentation or clarification from the awarding agency, the precise scope remains broad, encompassing a range of logistical and operational support functions critical for successful event management within a military context.

What is the justification for awarding this contract on a sole-source basis to Scientific Research Corporation?

The justification for a sole-source award typically stems from a determination that only one responsible source is capable of providing the required services or supplies. This could be due to unique technical capabilities, proprietary technology, urgent and compelling circumstances, or specific government requirements that only one contractor can meet. For this contract, Scientific Research Corporation may possess specialized expertise or resources essential for the 'IGF Event Support' that other potential contractors lack. A formal Justification for Other Than Full and Open Competition (JOFOC) would normally be required and publicly available, detailing the specific reasons why competition was not feasible or advantageous for this particular procurement.

How does the 'Cost Plus Fixed Fee' (CPFF) contract type compare to other contract types for similar event support services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is uncertainty about the costs involved. In a CPFF contract, the contractor is reimbursed for all allowable costs plus a fixed fee, representing profit. For event support services, other contract types like Firm-Fixed-Price (FFP) might be preferred if the scope is well-defined, as FFP offers greater cost certainty for the government. Time and Materials (T&M) contracts could also be used for smaller, less predictable tasks. The CPFF structure here suggests a degree of uncertainty in the event support requirements or costs, placing a significant emphasis on the government's oversight to manage the 'cost' portion effectively and ensure the 'fixed fee' remains reasonable for the effort.

What are the potential risks associated with a sole-source, CPFF contract for event support?

Sole-source, Cost Plus Fixed Fee (CPFF) contracts carry several inherent risks. For the government, the primary risk is paying a higher price than might be achieved through competition, as there is no competitive pressure to drive down costs. The CPFF structure itself introduces the risk of cost escalation if the contractor's costs exceed initial estimates, although the fixed fee is intended to provide some predictability. Without robust oversight, there's also a risk that the contractor may not be sufficiently incentivized to control costs, potentially leading to inefficiencies. Furthermore, the lack of competition can limit the government's access to innovative solutions or alternative service providers that might offer better value or performance.

What is Scientific Research Corporation's track record with government contracts, particularly in event support?

Information regarding Scientific Research Corporation's specific track record with government contracts, especially in the domain of 'event support labor and material,' is not detailed in the provided data snippet. To assess their performance, one would typically need to examine contract databases (like SAM.gov or FPDS) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract modifications. Without this background information, it is difficult to gauge their experience, reliability, and past success in delivering similar services to the government, which is a crucial factor in evaluating the risk and value of this sole-source award.

Are there any comparable contracts or spending benchmarks for event support services within the Department of Defense?

Directly comparable spending benchmarks for 'IGF Event Support Labor and Material' are difficult to establish without more specific details on the nature of the events and the services provided. However, the Department of Defense (DoD) does engage in numerous contracts for event management, logistical support, conference services, and facility support across various agencies. These can range from small, localized events to large-scale conferences and ceremonies. Analyzing the average cost per event, cost per attendee, or cost per service hour for similar DoD contracts, particularly those awarded competitively, would provide a basis for comparison. The absence of competition for this $23.2 million contract makes direct benchmarking challenging, but broader market research into event services procurement by the government could offer some context.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK17R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY STE 400S, ATLANTA, GA, 30339

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,815,310

Exercised Options: $23,815,310

Current Obligation: $23,203,349

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $7,592,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK17D0010

IDV Type: IDC

Timeline