DoD's $24.36M contract for Saudi naval engineering support awarded to Scientific Research Corporation

Contract Overview

Contract Amount: $24,362,485 ($24.4M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2016-02-24

End Date: 2019-12-17

Contract Duration: 1,392 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ROYAL SAUDI NAVAL FORCES (RSNF) SBQ ENGINEERING SUPPORT IGF::OT::IGF

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to SCIENTIFIC RESEARCH CORPORATION for work described as: ROYAL SAUDI NAVAL FORCES (RSNF) SBQ ENGINEERING SUPPORT IGF::OT::IGF Key points: 1. Contract value represents a significant investment in foreign military support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of nearly four years indicates a substantial, ongoing need. 4. The nature of engineering support for foreign naval forces presents unique operational risks. 5. This contract positions Scientific Research Corporation as a key provider in international defense services. 6. The cost-plus-fixed-fee structure requires careful monitoring to ensure value.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific foreign military application and the cost-plus-fixed-fee pricing structure. While the total award amount is substantial, the fixed fee component needs to be assessed against the direct costs incurred. Without detailed cost breakdowns and comparisons to similar international support contracts, a definitive value-for-money assessment is difficult. The contract's duration and scope suggest a negotiated price that reflects the complexity and specialized nature of the engineering services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. With three bids received, the competition level appears moderate. This suggests that while there was some market interest, it may not have been as robust as for more common domestic services. The presence of multiple bidders generally supports price discovery, but the specialized nature of the services could limit the pool of qualified competitors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing. However, the specialized nature of supporting a foreign navy may limit the number of truly competitive bids, potentially impacting the ultimate cost savings.

Public Impact

The Royal Saudi Naval Forces (RSNF) are the primary beneficiaries, receiving critical engineering support. Services delivered include specialized engineering expertise to maintain and enhance naval capabilities. The geographic impact is primarily focused on Saudi Arabia, supporting RSNF operations. Workforce implications include the deployment of skilled engineers and technical personnel by Scientific Research Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts.
Ensuring effective knowledge transfer and sustainment of capabilities post-contract.
Geopolitical risks associated with providing defense support to foreign nations.
Monitoring contractor performance to ensure adherence to scope and quality standards.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration indicates a sustained need and potential for long-term partnership.
Scientific Research Corporation's role suggests established expertise in defense engineering.
The contract supports a key U.S. ally's military readiness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications for a foreign military. The market for specialized defense engineering support is often characterized by high barriers to entry due to technical expertise, security clearances, and established relationships. Comparable spending benchmarks are difficult to ascertain without more specific details on the services rendered, but contracts of this nature typically involve significant investment due to the critical and sensitive nature of military equipment and operations.

Small Business Impact

Information regarding small business participation or subcontracting is not explicitly provided in the data. Given the specialized nature of engineering support for a foreign naval force, it is possible that the prime contractor relies on its own specialized capabilities or a limited number of large, specialized subcontractors. Further investigation would be needed to determine if small businesses were involved or had opportunities to participate in this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, with specific program managers responsible for monitoring performance, costs, and adherence to contract terms. Accountability measures would be embedded within the contract's reporting requirements and payment schedules. Transparency may be limited due to the foreign military sales context and the proprietary nature of engineering services, but internal DoD oversight mechanisms would be in place.

Related Government Programs

Foreign Military Sales (FMS) Program
Naval Engineering Support Services
Defense Contractor Support
International Security Assistance

Risk Flags

Potential for cost overruns due to CPFF structure.
Geopolitical risks associated with foreign military support.
Ensuring adequate technical expertise transfer and sustainment.
Compliance with international regulations and export controls.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to SCIENTIFIC RESEARCH CORPORATION. ROYAL SAUDI NAVAL FORCES (RSNF) SBQ ENGINEERING SUPPORT IGF::OT::IGF

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 Navy).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2016-02-24. End: 2019-12-17.

What is the track record of Scientific Research Corporation in providing similar engineering support to foreign naval forces?

Scientific Research Corporation (SRC) has a documented history of providing advanced engineering and technical services to various defense organizations, including international partners. While specific details on their involvement with the Royal Saudi Naval Forces prior to this contract are not detailed in the provided data, SRC's broader portfolio includes work on complex defense systems, electronic warfare, and command and control systems. Their experience in these areas suggests a capability to undertake sophisticated engineering tasks. A deeper dive into their contract history with the Department of Defense and other allied nations would provide a more comprehensive understanding of their specific expertise and performance in supporting foreign naval operations.

How does the cost-plus-fixed-fee (CPFF) structure compare to other pricing models for similar international defense support contracts?

The Cost-Plus-Fixed-Fee (CPFF) pricing model is common in complex, research-intensive, or service-oriented defense contracts where the scope of work can be difficult to define precisely upfront. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, or cost-plus-incentive-fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For international defense support, CPFF can be advantageous when dealing with evolving requirements or novel technical challenges, as it allows flexibility. However, it carries a higher risk of cost overruns for the government compared to fixed-price arrangements, necessitating robust oversight to manage expenditures effectively.

What are the key performance indicators (KPIs) used to assess the success of this engineering support contract?

Key Performance Indicators (KPIs) for this type of engineering support contract would likely focus on technical performance, schedule adherence, and cost control. Specific KPIs might include the successful completion of engineering studies, the timely delivery of technical documentation, the resolution of engineering issues within defined parameters, and the achievement of specified performance standards for the systems being supported. For a CPFF contract, monitoring the actual costs against the estimated costs and ensuring the fixed fee is earned through satisfactory performance are also critical. The contract itself would stipulate the specific metrics and reporting requirements used to evaluate SRC's performance against the agreed-upon objectives for the Royal Saudi Naval Forces.

What is the historical spending pattern for engineering support services provided to the Royal Saudi Naval Forces by the U.S. Department of Defense?

Historical spending data specifically for engineering support services provided by the U.S. Department of Defense to the Royal Saudi Naval Forces (RSNF) is not directly available in the provided contract details. This contract represents a specific award of approximately $24.36 million. To understand historical patterns, one would need to analyze broader Foreign Military Sales (FMS) data and contract databases for previous awards to SRC or other contractors supporting the RSNF. Such an analysis would reveal trends in the volume, type, and value of engineering support over time, helping to contextualize the current contract within a larger spending framework and identify any significant shifts in U.S. support.

What are the potential risks associated with providing engineering support to a foreign military, and how are they mitigated in this contract?

Providing engineering support to a foreign military introduces several risks, including geopolitical instability, differing operational requirements, potential technology transfer concerns, and varying levels of technical proficiency among the recipient's personnel. Mitigation strategies within this contract likely involve clear contractual language defining the scope of services, strict adherence to U.S. export control regulations, robust security protocols, and potentially on-site technical advisors from Scientific Research Corporation. The contract's duration and the CPFF structure suggest a managed approach to risk, allowing for adjustments as challenges arise. Furthermore, the U.S. Department of Defense and the Department of State would be involved in overseeing the broader relationship and ensuring alignment with U.S. foreign policy objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RGE PWY STE 400S, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $24,362,485

Exercised Options: $24,362,485

Current Obligation: $24,362,485

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,916,270

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523613D4869

IDV Type: IDC

Timeline