DoD's $15.1M R&D Contract with SCRA: Full and Open Competition Yields Mixed Results
Contract Overview
Contract Amount: $15,130,028 ($15.1M)
Contractor: South Carolina Research Authority
Awarding Agency: Department of Defense
Start Date: 2006-10-18
End Date: 2011-10-31
Contract Duration: 1,839 days
Daily Burn Rate: $8.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: R&D-MANUFACTURING TECH-COMERCLIZ
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29418
Plain-Language Summary
Department of Defense obligated $15.1 million to SOUTH CAROLINA RESEARCH AUTHORITY for work described as: R&D-MANUFACTURING TECH-COMERCLIZ Key points: 1. The contract value of $15.1M is moderate for R&D, but the specific award type (Cost Plus Award Fee) warrants scrutiny. 2. Competition was initially full and open, but exclusion of sources raises questions about the process. 3. Risk is moderate, influenced by the contract type and the need for clear performance metrics. 4. The sector is R&D, specifically physical, engineering, and life sciences, a critical area for defense innovation.
Value Assessment
Rating: fair
The Cost Plus Award Fee structure can incentivize performance but may lead to higher costs if not tightly managed. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting an initial broad competition followed by a specific exclusion. This method can be legitimate but requires strong justification to ensure fair pricing and prevent undue advantage.
Taxpayer Impact: While competition was initially broad, the exclusion of sources could potentially limit price discovery and increase taxpayer cost if not properly managed and justified.
Public Impact
Advancement in physical, engineering, and life sciences R&D could lead to new defense capabilities. The contract supports a specific state entity (SCRA), potentially fostering regional economic development. Transparency in the 'exclusion of sources' process is crucial for public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Exclusion of sources in competition
Positive Signals
- Initial full and open competition
- Focus on critical R&D area
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is vital for technological advancement but often carries higher risk due to the inherent uncertainties of innovation.
Small Business Impact
The contract was awarded to SOUTH CAROLINA RESEARCH AUTHORITY, which is not explicitly identified as a small business. Further analysis would be needed to determine if small businesses were subcontracting opportunities.
Oversight & Accountability
The 'exclusion of sources' clause requires careful oversight to ensure it was justified and did not unduly restrict competition. Performance monitoring under the Cost Plus Award Fee structure is also critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of transparency regarding the exclusion of sources.
- Difficulty in benchmarking R&D contract value and performance.
- Potential for limited innovation if award fee structure is not optimal.
Tags
research-and-development-in-the-physical, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to SOUTH CAROLINA RESEARCH AUTHORITY. R&D-MANUFACTURING TECH-COMERCLIZ
Who is the contractor on this award?
The obligated recipient is SOUTH CAROLINA RESEARCH AUTHORITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.1 million.
What is the period of performance?
Start: 2006-10-18. End: 2011-10-31.
What was the specific justification for excluding sources after the initial full and open competition, and how did this impact the final award price?
The justification for excluding sources is critical for understanding the procurement's integrity. If the exclusion was based on unique capabilities or national security concerns, it might be warranted. However, if it limited competition without strong rationale, it could have inflated costs. A thorough review of the justification documentation is needed to assess the impact on taxpayer value.
How effectively were the award fees structured to incentivize desired R&D outcomes without encouraging excessive spending under the Cost Plus Award Fee model?
The effectiveness of award fees hinges on clearly defined, measurable performance metrics directly tied to R&D objectives. If metrics were vague or easily manipulated, the contractor might achieve award fees without delivering substantial innovation or efficiency. Conversely, well-defined metrics can drive significant progress. Monitoring the alignment between awarded fees and actual R&D achievements is key.
What tangible technological advancements or operational improvements resulted from this $15.1M investment in R&D, and were they cost-effective compared to alternative development paths?
Assessing the tangible outcomes is paramount to determining the contract's effectiveness. This requires evaluating the delivered technologies or research findings against the initial objectives and the investment made. Comparing the cost-effectiveness against potential alternative R&D approaches or commercial off-the-shelf solutions would provide a clearer picture of the value generated for the Department of Defense and taxpayers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5300 INTERNATIONAL BLVD, NORTH CHARLEST, SC, 29418
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,355,426
Exercised Options: $18,355,426
Current Obligation: $15,130,028
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001406D0045
IDV Type: IDC
Timeline
Start Date: 2006-10-18
Current End Date: 2011-10-31
Potential End Date: 2011-10-31 00:00:00
Last Modified: 2022-04-27
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