DoD's $14.1M R&D contract with SCITECH SERVICES INC awarded under full and open competition

Contract Overview

Contract Amount: $14,135,382 ($14.1M)

Contractor: Scitech Services Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2012-03-15

Contract Duration: 1,266 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TASK ORDER EFFORTS

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to SCITECH SERVICES INC for work described as: TASK ORDER EFFORTS Key points: 1. Contract awarded for R&D services, aligning with a key federal objective. 2. The contract was competed openly, suggesting a competitive pricing environment. 3. A Cost Plus Fixed Fee (CPFF) structure was used, which can incentivize cost control. 4. The duration of the contract (1266 days) indicates a significant, long-term project. 5. The North American Industry Classification System (NAICS) code 541710 points to specialized R&D. 6. The award was made by the Department of the Army, a major DoD component.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can sometimes lead to higher costs if not managed rigorously, as the contractor is reimbursed for all allowable costs plus a fixed fee. Comparing this to similar R&D contracts within the Department of Defense would require access to more granular data on the scope of work and the specific research outcomes achieved. The fixed fee component, however, provides some predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of interest and competition for this R&D requirement. A competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The multiple bids received indicate that the government had a range of options to choose from, fostering a market-driven outcome.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, advancing scientific and technological capabilities. Services delivered include research and development in physical, engineering, and life sciences, contributing to national security. The geographic impact is centered around the contract performance location, which is not specified but likely within the US. Workforce implications include employment for scientists, engineers, and support staff at SCITECH SERVICES INC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by performance.
The long contract duration necessitates sustained monitoring to ensure objectives are met and the scope remains aligned with evolving needs.
Without specific performance metrics, it's difficult to fully assess the return on investment for this R&D effort.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract involved multiple bidders (9), suggesting a competitive market for these R&D services.
The fixed fee component in the CPFF structure provides some cost certainty for the government.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710) is a critical area for government investment, particularly within the Department of Defense. This sector encompasses a wide range of scientific inquiry and technological innovation. Spending in this area is often characterized by long-term projects, high intellectual capital requirements, and significant potential for groundbreaking discoveries. Comparable spending benchmarks would typically be assessed against other large-scale R&D contracts awarded by federal agencies for similar scientific disciplines.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to SCITECH SERVICES INC, a single entity, does not preclude subcontracting opportunities for small businesses. However, without explicit set-aside goals or reporting on subcontracting plans, the direct impact on the small business ecosystem is not immediately clear. Further investigation into subcontracting reports would be needed to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are typically embedded within the contract terms, including reporting requirements, milestones, and performance evaluations. Transparency is facilitated through contract award databases, though detailed project performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Federal Science and Technology Funding
Cost Plus Fixed Fee Contracts
Research and Development Services

Risk Flags

Cost Plus Fixed Fee contract requires diligent cost monitoring.
Long contract duration necessitates sustained oversight.
R&D projects carry inherent uncertainty in outcomes and cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to SCITECH SERVICES INC. TASK ORDER EFFORTS

Who is the contractor on this award?

The obligated recipient is SCITECH SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2008-09-26. End: 2012-03-15.

What is the track record of SCITECH SERVICES INC in performing similar R&D contracts for the federal government?

Assessing SCITECH SERVICES INC's track record requires a review of their past performance on federal contracts, particularly those involving research and development in physical, engineering, and life sciences. Information on contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or terminations would be crucial. A history of successful project completion, adherence to timelines and budgets, and positive client feedback would indicate a strong track record. Conversely, a pattern of underperformance, cost overruns, or quality issues would raise concerns about their capability to execute this current $14.1 million task order effectively.

How does the awarded amount of $14.1 million compare to the typical cost of similar R&D efforts within the Department of Defense?

Comparing the $14.1 million award to similar R&D efforts requires benchmarking against contracts with comparable scope, complexity, and duration within the Department of Defense (DoD) or other federal agencies. Factors such as the specific scientific domain, the level of innovation required, and the project's lifecycle stage (e.g., basic research vs. applied research vs. development) significantly influence costs. Without detailed information on the specific R&D objectives and deliverables of this SCITECH SERVICES INC contract, a precise comparison is difficult. However, R&D contracts can range widely in cost; this figure suggests a substantial, multi-year undertaking rather than a small, exploratory study.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for this specific R&D project?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for R&D projects is the potential for cost growth beyond initial estimates, even with a fixed fee. While the fee is fixed, the contractor is reimbursed for all allowable costs. If the R&D effort proves more complex or requires more resources than anticipated, the total contract cost can escalate significantly. This necessitates robust government oversight to scrutinize incurred costs and ensure they are reasonable and allocable to the contract. Another risk is that the contractor might have less incentive to control costs aggressively compared to fixed-price contracts, as their profit margin (the fixed fee) is guaranteed regardless of cost efficiency, provided they meet performance standards.

How effective is the 'full and open competition' process in ensuring value for money for this type of specialized R&D contract?

The 'full and open competition' process is generally considered highly effective in ensuring value for money for specialized R&D contracts. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. The presence of 9 bidders in this case suggests a robust market response. This competitive pressure incentivizes contractors to propose efficient approaches and fair pricing to win the award. While R&D inherently involves uncertainty, a well-defined scope and clear evaluation criteria within a full and open competition framework provide a strong foundation for achieving good value.

What are the potential implications of the contract's duration (1266 days) on project management and oversight?

The contract's duration of 1266 days (approximately 3.5 years) implies a long-term, potentially complex R&D effort. This extended timeline necessitates sustained and adaptive project management and oversight. Key implications include the need for consistent monitoring of progress against milestones, managing potential scope creep, and ensuring the continued relevance of the research objectives as technology and requirements evolve. The government must maintain dedicated resources for oversight throughout the contract's life. Furthermore, the long duration increases the risk of personnel turnover on both the government and contractor sides, potentially impacting institutional knowledge and project continuity. Regular reviews and potential contract modifications may be required to adapt to unforeseen challenges or opportunities.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911SR02R0016

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1319 WOODBRIDGE STATION WA, EDGEWOOD, MD, 01

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $14,238,490

Exercised Options: $14,238,490

Current Obligation: $14,135,382

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAD1303D0014

IDV Type: IDC

Timeline