DoD's $18.9M contract for engineering services awarded to Morgan Research Corp. shows a significant price difference from a similar CGI Federal Inc. contract

Contract Overview

Contract Amount: $32,875,509 ($32.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-24

End Date: 2010-04-30

Contract Duration: 1,710 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200511!005012!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0011 ! !20050824!20060131!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000405000!Y!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!001! ! !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 $32.9 million to CGI FEDERAL INC. for work described as: 200511!005012!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0011 ! !20050824!20060131!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADI… Key points: 1. The contract value of $18.9 million for engineering technical services represents a substantial investment by the Department of the Army. 2. The awarded price per year for this contract is approximately $3.78 million, based on the duration and total value. 3. A comparable contract with CGI Federal Inc. for similar services was awarded at a significantly lower annual rate, raising value-for-money questions. 4. The contract was awarded under full and open competition, suggesting a competitive bidding process. 5. The primary service category is Research and Development in the Physical, Engineering, and Life Sciences, indicating a focus on technical expertise. 6. The contract duration of 1710 days (approximately 4.68 years) suggests a long-term need for these engineering services.

Value Assessment

Rating: questionable

The total contract value of $18,907,136.80 for engineering technical services appears high when compared to a similar contract awarded to CGI Federal Inc. for $32,875,508.89. While the durations and specific scopes may differ, the significant difference in total award value warrants further scrutiny. The annual cost for Morgan Research Corporation's contract is approximately $3.78 million ($18.9M / 4.68 years), whereas the CGI Federal Inc. contract, though larger in total value, might have a different annual rate depending on its specific duration. Benchmarking against other similar R&D engineering services contracts within the Department of Defense could provide a clearer picture of fair pricing.

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 a bid. The presence of multiple bidders, suggested by the 'no' field indicating 3 bids received, typically fosters price competition. However, the significant price disparity between this award and the CGI Federal Inc. contract, even under full competition, raises questions about the effectiveness of the competition in driving the lowest possible price for the government.

Taxpayer Impact: Taxpayers may not have received the best value if the competitive process did not adequately incentivize the lowest bid, especially given the observed price differences with comparable contracts.

Public Impact

The primary beneficiary of this contract is the U.S. Army Aviation and Missile Command, which receives essential engineering technical services. The services delivered are categorized under Research and Development in the Physical, Engineering, and Life Sciences, supporting advanced technological capabilities. The contract is geographically centered in Huntsville, Alabama, a known hub for aerospace and defense activities. The contract supports specialized engineering and technical roles, potentially impacting the workforce in the Huntsville area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential overpayment due to significant price difference compared to a similar CGI Federal Inc. contract.
Lack of transparency on specific performance metrics and how they justify the awarded price.
The duration of the contract (over 4.5 years) might lock the government into a potentially suboptimal pricing structure if market rates decrease.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract supports critical R&D functions for the Army Aviation and Missile Command.
The contractor, Morgan Research Corporation, is based in Huntsville, AL, potentially supporting local technical expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The U.S. Department of Defense is a major investor in R&D, with significant spending allocated to advanced technologies and engineering solutions. The market for such services is competitive, with numerous firms specializing in technical support and research. Comparable spending benchmarks for engineering technical services within the DoD can vary widely based on scope, duration, and required expertise, but the price difference noted here suggests a need for careful evaluation.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on securing the best technical solution and price from the broader market, rather than specifically targeting small business participation.

Oversight & Accountability

The contract is managed by the Department of the Army, which has established oversight mechanisms for its procurements. Specific details on accountability measures, transparency, and inspector general jurisdiction for this particular contract are not provided in the data. However, standard DoD procurement regulations and oversight processes would typically apply.

Related Government Programs

Department of Defense Research and Development Contracts
Army Aviation and Missile Command Procurement
Engineering Services Contracts
Federal R&D Spending

Risk Flags

Potential Value Concern: Significant price difference compared to a similar contract.
Long-Term Commitment: Contract duration of over 4.5 years.
Scope Ambiguity: Specific 'Engineering Technical Services' scope not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to CGI FEDERAL INC.. 200511!005012!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0011 ! !20050824!20060131!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000405000!Y!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 $32.9 million.

What is the period of performance?

Start: 2005-08-24. End: 2010-04-30.

What is the specific scope of 'Engineering Technical Services' for Morgan Research Corporation under this contract?

The provided data categorizes the service under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific tasks are not detailed, this generally encompasses a broad range of activities including scientific research, experimental development, and engineering analysis. For the Army Aviation and Missile Command, this could involve support for missile systems, aviation technologies, or related advanced engineering projects. The exact deliverables and technical requirements would be outlined in the contract's statement of work, which is not included in this dataset.

How does the pricing of Morgan Research Corporation's contract compare to other similar R&D engineering services contracts awarded by the Department of Defense?

The data highlights a significant price difference when comparing Morgan Research Corporation's contract ($18.9M) to a contract awarded to CGI Federal Inc. ($32.8M). While the CGI contract is larger in total value, a direct annual comparison is difficult without knowing the exact durations of both. However, if Morgan Research Corporation's contract duration is approximately 4.68 years (1710 days), its annual cost is around $3.78M. If the CGI contract had a similar duration, its annual cost would be approximately $7.02M. This suggests Morgan Research Corporation's contract may be priced more competitively on an annual basis, or the scope/duration differs significantly. Further benchmarking against multiple similar contracts is needed for a definitive value assessment.

What are the potential risks associated with a contract of this duration and value for engineering technical services?

Contracts of this duration (over 4.5 years) and value ($18.9M) carry several potential risks. Firstly, there's the risk of cost escalation if market rates for engineering talent or resources increase significantly over the contract period. Secondly, technological advancements could render the services or solutions developed under the contract obsolete before its completion, leading to diminished value. Thirdly, there's a risk of contractor performance degradation over a long period, or a misalignment of evolving requirements with the initial contract scope. Finally, if the initial pricing was not sufficiently competitive, the government risks overpaying for services throughout the contract's life.

What is the track record of Morgan Research Corporation in performing similar government contracts?

The provided data does not include specific details on Morgan Research Corporation's past performance, past contract values, or client agencies beyond this specific award. To assess their track record, one would need to consult government contract databases (like FPDS or SAM.gov) for historical awards, performance reviews (e.g., CPARS reports), and any past issues or commendations. Without this additional information, it's difficult to gauge their reliability and success in fulfilling similar engineering technical services contracts for the government.

What does the 'full and open competition' designation imply for the effectiveness of price discovery in this contract?

The 'full and open competition' designation implies that the solicitation was broadly advertised, allowing any interested and qualified vendor to submit a proposal. This is generally considered the most effective method for price discovery, as it maximizes the number of potential bidders and encourages competitive pricing. However, the effectiveness is contingent on the clarity of the solicitation, the realism of the requirements, and the number and quality of the bids received. In this case, while competition was open, the significant price difference noted with another contract suggests that either the requirements were not perfectly comparable, or the competitive process did not yield the absolute lowest price achievable across the entire market.

How does the geographic location of the contractor (Huntsville, AL) potentially impact the contract's execution and cost?

Huntsville, Alabama, is a well-established hub for aerospace, defense, and technology industries, often referred to as 'Rocket City.' Having a contractor based in this location can offer advantages such as access to a specialized and experienced technical workforce, proximity to related government facilities (like the Army Aviation and Missile Command itself), and potentially lower overhead costs compared to more expensive tech hubs. However, it could also mean higher local labor costs depending on the specific skill sets required. The presence of a local contractor can facilitate collaboration and communication, potentially leading to more efficient project execution.

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