Army awards $189M for engineering services, with a significant portion for R&D

Contract Overview

Contract Amount: $26,613,646 ($26.6M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-18

End Date: 2010-09-16

Contract Duration: 1,886 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200510!004254!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0007 ! !20050718!20100717!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001669091!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!002! ! !Z!N!Z! ! !Y!A!Y!N!Z! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to CGI FEDERAL INC. for work described as: 200510!004254!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0007 ! !20050718!20100717!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded for engineering and technical services, with a strong R&D component. 2. The contract value is substantial, indicating a significant investment in specialized services. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration is over 4 years, allowing for sustained support. 5. The primary service category is R&D in physical, engineering, and life sciences. 6. The award was made by the Department of the Army, a major defense spender.

Value Assessment

Rating: good

The total award amount of $189,071,368 over approximately 4 years suggests a significant investment. While specific performance metrics are not detailed here, the duration and scope indicate a need for consistent, high-quality engineering and technical support. Benchmarking against similar large-scale R&D and engineering services contracts within the Department of Defense would provide further context on value for money. The firm fixed-price nature of the contract helps manage cost certainty 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 bids. The presence of 3 bidders suggests a reasonable level of competition for these specialized engineering and R&D services. A competitive process generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to offer their best value.

Public Impact

The primary beneficiary is the U.S. Army, which receives critical engineering and technical support for its programs. Services delivered include research and development in physical, engineering, and life sciences, likely supporting advanced weapon systems or technological advancements. The geographic impact is centered around Huntsville, Alabama, a known hub for aerospace and defense activities. The contract supports specialized technical expertise, potentially impacting the workforce in engineering and R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs, though mitigated by firm-fixed-price.
Dependence on a single contractor for critical R&D services could pose a risk if performance falters.
Long contract duration may lead to less flexibility in adapting to rapidly changing technological landscapes.

Positive Signals

Full and open competition suggests a robust selection process and potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
The contract is for essential engineering and R&D services, aligning with defense modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541710). This sector is characterized by innovation, long development cycles, and significant government investment, particularly within defense. The market size for R&D services is substantial, with the Department of Defense being a primary customer. Comparable spending benchmarks would involve analyzing other large R&D service contracts awarded by agencies like DARPA, NASA, and other military branches.

Small Business Impact

There is no indication of a small business set-aside for this contract. As a large contract awarded through full and open competition, the primary contractor, MORGAN RESEARCH CORPORATION, is likely a large business. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which the prime contractor engages small businesses for specialized support.

Oversight & Accountability

The contract is managed by the Department of the Army, which has established oversight mechanisms for its procurements. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Army Research Laboratory Contracts
Missile Defense Agency R&D
Engineering Services for DoD
Advanced Technology Development Contracts
Department of Defense Research and Development

Risk Flags

Long-term contract duration may limit adaptability to evolving technologies.
Dependence on a single contractor for critical R&D could pose performance risks.
Potential for scope creep, although mitigated by contract type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to CGI FEDERAL INC.. 200510!004254!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !Y!0007 ! !20050718!20100717!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000001669091!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $26.6 million.

What is the period of performance?

Start: 2005-07-18. End: 2010-09-16.

What is the track record of MORGAN RESEARCH CORPORATION in performing similar engineering and R&D services for the U.S. military?

MORGAN RESEARCH CORPORATION has a history of providing services to the U.S. military, including engineering and technical support. This specific contract, W31P4Q05A0030, awarded in 2005, was for Engineering Technical Services. While the provided data doesn't detail specific past performance ratings or prior contract values for MORGAN RESEARCH CORPORATION, their ability to secure a multi-year, multi-million dollar contract from the U.S. Army suggests they have met the necessary qualifications and demonstrated capability in previous engagements. Further investigation into their contract history and performance reviews would be needed for a comprehensive assessment.

How does the per-unit cost or overall value of this contract compare to similar engineering and R&D services procured by the Department of Defense?

Direct per-unit cost comparison is challenging without knowing the specific labor categories, hours, or deliverables associated with this contract. However, the total award of approximately $189 million over roughly four years (from July 2005 to July 2010) indicates a significant investment. To benchmark value, one would compare this contract's total value and duration against other large-scale engineering and R&D service contracts awarded by the Army or other DoD components for similar types of work. Factors like the complexity of the R&D, the criticality of the services, and the prevailing market rates for specialized engineering talent would influence this comparison. The firm fixed-price structure aims to control overall cost, but the efficiency and effectiveness of the services rendered are key to true value.

What are the primary risks associated with a long-term contract for specialized R&D services, and how are they mitigated?

Long-term contracts for specialized R&D services carry risks such as technological obsolescence, where the developed technologies may become outdated before deployment. There's also the risk of contractor performance decline over time or the contractor facing financial instability. Scope creep, where the project's requirements expand beyond the original agreement, can lead to cost overruns, although this is mitigated by the firm fixed-price nature of this contract. Mitigation strategies include robust contract management, regular performance reviews, clear definition of deliverables, and incorporating clauses for flexibility or termination if necessary. The competitive nature of the initial award also helps select a capable contractor.

How effective has the Army been in leveraging competition for engineering and technical services contracts of this magnitude?

The award of this contract under 'full and open competition' with three bidders suggests a generally effective approach to leveraging competition for engineering and technical services. This level of competition indicates that the Army successfully reached a broad market and encouraged multiple capable firms to bid. A competitive environment typically drives better pricing, fosters innovation, and ensures that the government selects the best value solution. The success of this approach is further evidenced by the contract's duration and value, implying sustained need and satisfaction with the competitive process that led to its award.

What is the historical spending pattern for engineering and technical services within the Department of the Army, and how does this contract fit within that trend?

The Department of the Army consistently spends billions of dollars annually on engineering and technical services, reflecting its vast operational needs and complex weapon systems. Contracts like this one, valued at approximately $189 million, represent a significant but not unusual investment within the broader DoD R&D and engineering services portfolio. Historical spending trends show a continuous demand for such services to support research, development, testing, and sustainment of military capabilities. This contract fits within the trend of the Army outsourcing specialized technical expertise to support its strategic objectives, particularly in areas like missile systems and aviation, given the contractor's location and the agency involved.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0030

IDV Type: IDC

Timeline