Office of Naval Research contract awarded to Digital System Resources, Inc. for $15.3M for electronics and communication equipment research

Contract Overview

Contract Amount: $12,183,319 ($12.2M)

Contractor: Digital System Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-19

End Date: 2007-10-31

Contract Duration: 895 days

Daily Burn Rate: $13.6K/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

Official Description: 200509!003986!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001401D0225 !A!N! !N!0011 ! !20050519!20060518!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000006423319!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !S1 !SERVICES !000 !* !541710!E! !5!B!S! ! !D!20060322!B! ! !A! !A!N!U!2!001!K! !Z!Y!Z! ! !N!B!N!N! ! !A! !B!A!000!D!B!N! ! ! ! !1714!N00014!0001! !

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to DIGITAL SYSTEM RESOURCES, INC. for work described as: 200509!003986!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001401D0225 !A!N! !N!0011 ! !20050519!20060518!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIR… Key points: 1. Contract value of $15.3M for applied research in electronics and communication equipment. 2. Awarded to Digital System Resources, Inc., a company with a track record in this sector. 3. Contract duration of approximately 2.5 years, indicating a focused research effort. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The procurement was conducted under full and open competition after exclusion of sources, suggesting a deliberate selection process. 6. The North American Industry Classification System (NAICS) code 541710 points to research and development in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract value of $15.3 million for applied research in electronics and communication equipment appears reasonable for the scope of work. However, without specific benchmarks for similar R&D projects in this niche, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not managed tightly. Comparing this to other ONR contracts for similar research areas would provide better context.

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.' This indicates that while the competition was open, certain sources were intentionally excluded, possibly due to specific technical requirements or prior relationships. The number of bidders is not explicitly stated, but the 'full and open' nature suggests multiple potential offerors were considered, which generally promotes competitive pricing.

Taxpayer Impact: The competitive process, even with exclusions, aims to ensure that taxpayer funds are used efficiently by seeking the best value among qualified offerors. This approach helps prevent sole-source awards and encourages fair market pricing.

Public Impact

The primary beneficiary is the Office of Naval Research, which will receive advancements in electronics and communication equipment for naval applications. The services delivered involve applied research and development, potentially leading to new technologies and improved capabilities for the Navy. The geographic impact is primarily within Virginia, where the contractor Digital System Resources, Inc. is located. Workforce implications include employment opportunities for researchers, engineers, and support staff at Digital System Resources, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher final costs than fixed-price contracts if not meticulously managed.
The exclusion of sources, even if justified, warrants scrutiny to ensure it did not unduly limit competition.
The specific nature of 'applied research' can make performance metrics and success criteria difficult to define and measure objectively.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contractor, Digital System Resources, Inc., is likely experienced in the relevant technical domain.
The contract supports critical research and development for national defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on electronics and communication equipment. The market for defense-related R&D is highly specialized, with a mix of large prime contractors and smaller, niche research firms. Spending in this area is driven by the need for technological superiority in defense. Comparable spending benchmarks would typically be found within the Department of Defense's R&D budget allocations for similar technological advancements.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses within the provided data. The focus is on a direct award to Digital System Resources, Inc., suggesting the primary contractor is likely a larger entity or that subcontracting opportunities were not a primary consideration for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection processes, likely through the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific research details may be sensitive.

Related Government Programs

Naval Research Programs
Electronics and Communication Systems R&D
Department of Defense Applied Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Exclusion of sources in competition warrants review to ensure justification.
Applied research outcomes can be inherently uncertain, impacting performance measurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to DIGITAL SYSTEM RESOURCES, INC.. 200509!003986!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001401D0225 !A!N! !N!0011 ! !20050519!20060518!153245857!116187758!001381284!N!DIGITAL SYSTEM RESOURCES, INC !12450 FAIR LAKES CIRCLE, S!FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000006423319!N!N!000000000000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !S1 !SERVICES !000 !* !541710!E! !5!B!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is DIGITAL SYSTEM RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2005-05-19. End: 2007-10-31.

What is the track record of Digital System Resources, Inc. with the Department of Defense, particularly in electronics and communication R&D?

Digital System Resources, Inc. has a history of contracts with the Department of Defense, including this specific award from the Office of Naval Research. While the provided data doesn't detail their entire contract history, the fact that they were awarded this applied research contract suggests they possess relevant expertise and capabilities in electronics and communication technologies. Further investigation into their past performance on similar contracts, including any performance reviews or awards, would provide a more comprehensive understanding of their track record. It's important to note that contract awards do not always equate to flawless performance, and a review of any past issues or disputes would be beneficial.

How does the $15.3 million contract value compare to similar applied research contracts for electronics and communication equipment within the Navy?

Benchmarking the $15.3 million contract value against similar applied research contracts for electronics and communication equipment within the Navy requires access to a broader dataset of defense contracts. Without specific comparative data on the scope, duration, and complexity of other related projects, it's difficult to definitively state whether this value is high, low, or average. However, R&D contracts, especially those involving cutting-edge technology, can vary significantly in cost. The Cost Plus Fixed Fee (CPFF) nature of this contract also means the final cost could fluctuate. A detailed comparison would involve analyzing contracts with similar NAICS codes (541710) and research objectives awarded by the Office of Naval Research or other naval commands over a comparable period.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how will their achievement be measured?

The provided data does not explicitly detail the key performance indicators (KPIs) or specific deliverables for this contract. For applied research contracts, KPIs often revolve around the successful development of prototypes, the demonstration of new functionalities, the completion of technical reports, and the achievement of specific research milestones. Measurement of success would typically involve technical reviews, peer assessments, and demonstrations of the developed technology. The Cost Plus Fixed Fee (CPFF) structure implies that the contractor is reimbursed for allowable costs plus a fixed fee, contingent upon meeting the contract's technical objectives. Detailed performance metrics would be outlined in the contract's Statement of Work (SOW).

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this applied research project?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks, particularly for applied research. While it allows for flexibility in R&D where exact costs may be uncertain, it can incentivize the contractor to incur higher costs to maximize their fee base, although the fee itself is fixed. The primary risk for the government is potential cost overruns if the contractor's cost estimating or management is not robust. Conversely, the contractor bears the risk of not being able to complete the work within the estimated cost structure while still earning their fixed fee. Effective oversight, detailed cost tracking, and clear performance milestones are crucial to mitigate these risks and ensure value for taxpayer money.

How does the 'full and open competition after exclusion of sources' procurement method impact the overall cost-effectiveness and innovation potential?

The 'full and open competition after exclusion of sources' procurement method aims to balance broad competition with specific technical needs. By excluding certain sources, the government signals that only those capable of meeting particular, often highly specialized, requirements are invited to bid. This can lead to more targeted and potentially innovative solutions from a qualified pool of offerors. However, if the exclusions are too broad or not well-justified, it could limit the competitive landscape, potentially leading to higher prices than under a truly unrestricted full and open competition. The cost-effectiveness hinges on whether the excluded sources were genuinely incapable or if their exclusion was overly restrictive. The innovation potential is likely enhanced if the exclusions were based on unique capabilities required for the specific R&D.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 12450 FAIR LAKES CIRCLE, SUITE 800, FAIRFAX, VA, 22033

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0001401D0225

IDV Type: IDC

Timeline