DoD's $197M contract for scientific research awarded to Scientific Research Corp. for feasibility studies

Contract Overview

Contract Amount: $10,494,570 ($10.5M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 1998-07-06

End Date: 1999-02-28

Contract Duration: 237 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 199810!5700!0235!GM04 !AAC/PKZA BLDG 350 !F0863597D0017 !A!*!0017 !19980706!19990228!197138274!197138274!197138274!N!0D5A6!SCIENTIFIC RESEARCH CORP !2300 WINDY RIDGE PKWY SE !ATLANTA !GA!30339!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000300000!N!N!000000000000!B513!FEASIBILITY STUDIES (NON-CONSTRUCTION) !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !8731!5!B!M!*!B!A!*!A !N!U!2!013!F!* !Z!Y!Z!* !* !N!B!*!Z!*!B!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: ALABAMA

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.5 million to SCIENTIFIC RESEARCH CORPORATION for work described as: 199810!5700!0235!GM04 !AAC/PKZA BLDG 350 !F0863597D0017 !A!*!0017 !19980706!19990228!197138274!197138274!197138274!N!0D5A6!SCIENTIFIC RESEARCH CORP !2300 WINDY RIDGE PKWY SE !ATLANTA !GA!30339!37000!089!01!HUNTSVILLE !MADISO… Key points: 1. Contract awarded for scientific research, specifically feasibility studies, indicating a focus on early-stage project exploration. 2. The contract value of $197M over approximately 8 months suggests a high per-diem cost for research activities. 3. Awarded by the Department of the Air Force, this contract likely supports advanced technological development or scientific inquiry. 4. The 'full and open competition after exclusion of sources' clause warrants further investigation into the competitive landscape. 5. The contractor, Scientific Research Corp., has a track record that should be examined for performance on similar research contracts. 6. The contract type 'Cost Plus Fixed Fee' can sometimes lead to cost overruns if not managed carefully. 7. The geographic location of the contractor in Atlanta, GA, may have implications for local economic impact and workforce development.

Value Assessment

Rating: questionable

The contract value of $197,138,274 for a duration of approximately 8 months (237 days) results in a very high daily burn rate. This suggests a potentially high cost for the feasibility studies being conducted. Benchmarking against similar scientific research contracts, especially those for feasibility studies, is crucial to determine if this represents good value for money. The 'Cost Plus Fixed Fee' contract type, while common in R&D, can present risks if the fixed fee is not adequately aligned with the scope and complexity of the work, potentially leading to contractor profit margins that are disproportionate to the effort expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be open, certain sources may have been excluded for reasons not immediately apparent from the data. Understanding the rationale behind this exclusion is key to assessing the true level of competition. With only 3 bids received, the competition level appears limited, which could potentially impact price discovery and lead to less competitive pricing compared to a broader, more inclusive competition.

Taxpayer Impact: The limited competition and the specific exclusion of sources may have resulted in a higher price for taxpayers than could have been achieved through a more open and inclusive bidding process.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other branches of the Department of Defense, gaining insights from the feasibility studies. The services delivered are scientific research and feasibility studies, aimed at exploring the viability of new technologies, concepts, or approaches. The geographic impact is concentrated in Huntsville, Madison, Alabama, where the contractor's work may be performed, and Atlanta, Georgia, where the contractor is based. Workforce implications include employment opportunities for scientists, researchers, and support staff within Scientific Research Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a relatively short period raises questions about cost efficiency.
The 'Cost Plus Fixed Fee' structure can incentivize cost escalation if not tightly managed.
Limited competition ('full and open competition after exclusion of sources') may have led to a suboptimal price.
The specific nature of 'feasibility studies' can be broad, potentially leading to scope creep if not well-defined.

Positive Signals

Award to a specific contractor suggests they possess specialized expertise required for the research.
The contract was competed, indicating an attempt to solicit offers.
The existence of multiple bids (3) shows some level of market interest.
The contract is for scientific research, which can drive innovation and technological advancement.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on scientific research and feasibility studies. The R&D sector is critical for innovation across various industries, including defense, technology, and aerospace. The market for scientific research services is competitive, with numerous firms offering specialized expertise. This contract's value of approximately $197 million positions it as a significant award within its niche. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD or other federal agencies for similar types of studies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, but it is unlikely to have a significant positive impact unless the prime contractor actively engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the performance metrics outlined in the contract and the contractor's adherence to the 'Cost Plus Fixed Fee' structure. Transparency is assessed through the availability of contract data, such as this record. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Scientific Research Initiatives
Feasibility Study Contracts
Cost-Plus-Fixed-Fee Contracts
Scientific Research and Development Services

Risk Flags

High contract value for feasibility studies
Limited competition indicated by procurement method
Cost Plus Fixed Fee contract type risk
Potential for scope creep in feasibility studies

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.5 million to SCIENTIFIC RESEARCH CORPORATION. 199810!5700!0235!GM04 !AAC/PKZA BLDG 350 !F0863597D0017 !A!*!0017 !19980706!19990228!197138274!197138274!197138274!N!0D5A6!SCIENTIFIC RESEARCH CORP !2300 WINDY RIDGE PKWY SE !ATLANTA !GA!30339!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000000300000!N!N!000000000000!B513!FEASIBILITY STUDIES (NON-CONSTRUCTION) !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !8731!5!B!M!*!B!A!*!A !N!U!2!0

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 Air Force).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 1998-07-06. End: 1999-02-28.

What is the specific nature of the 'feasibility studies' being conducted under this contract, and what are the expected outcomes?

The contract data specifies the Product Service Code (PSC) as 'B513 - FEASIBILITY STUDIES (NON-CONSTRUCTION)', indicating the core purpose is to assess the viability and potential of specific projects, technologies, or approaches. However, the exact nature of these studies is not detailed in the provided data. Expected outcomes would typically include comprehensive reports, analyses, and recommendations regarding the technical, economic, and operational feasibility of the subject matter. These outcomes are crucial for informing future investment decisions by the Department of the Air Force, potentially guiding the initiation of larger development or procurement programs if the feasibility studies yield positive results.

How does the $197M contract value compare to typical spending on similar feasibility studies by the Department of the Air Force?

The contract value of $197,138,274 for approximately 8 months of work is exceptionally high for feasibility studies, which are typically early-stage assessments. Standard feasibility studies often range from thousands to a few million dollars, depending on complexity and scope. A contract of this magnitude suggests either an extraordinarily complex or broad set of studies, or potentially that the 'feasibility study' designation might encompass more extensive preliminary research and development activities than the term usually implies. Without more specific details on the scope, it is difficult to provide a precise benchmark, but this value appears significantly above typical spending for standalone feasibility studies.

What are the potential risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this scientific research project?

The CPFF contract type carries inherent risks for both the government and the contractor. For the government, the primary risk is that the final cost could exceed the initial estimate, even though the fee is fixed. If the contractor's costs escalate significantly due to unforeseen technical challenges, scope creep, or inefficient management, the total expenditure could be higher than anticipated. The fixed fee, while providing a ceiling on profit, might not adequately incentivize cost control if the contractor believes they can justify higher costs to achieve the fixed fee. For the contractor, the risk lies in underestimating the costs required to achieve the fixed fee, potentially leading to reduced profit margins or even a loss if costs significantly outpace the fee.

What does the procurement method 'full and open competition after exclusion of sources' imply about the competition for this contract?

This procurement method, 'full and open competition after exclusion of sources,' is somewhat contradictory. 'Full and open competition' implies that all responsible sources are permitted to compete. However, the 'after exclusion of sources' clause indicates that certain potential offerors were deliberately excluded from the competition. The reasons for exclusion are not provided but could stem from specific technical requirements, past performance issues, or other criteria defined by the agency. This suggests that while the competition was open to a broad range of eligible firms, it was not universally open, potentially limiting the number of bidders and the diversity of approaches considered. It raises questions about whether the exclusion was justified and if it impacted the overall competitiveness and final price.

What is the track record of Scientific Research Corporation on similar government contracts, particularly in R&D and feasibility studies?

Assessing the track record of Scientific Research Corporation (SRC) is crucial given the substantial value of this contract. Information on SRC's past performance, including successful completion of similar R&D projects, adherence to budget and schedule, and quality of deliverables, would provide insight into their capability to execute this complex feasibility study. Data on previous contracts, including their value, duration, and agency, would be necessary to determine if they have a history of managing large-scale scientific research efforts effectively. A review of past performance evaluations and any documented issues or successes would inform the assessment of risk associated with this specific award.

How does the geographic location of the contractor (Atlanta, GA) and the potential work location (Huntsville, AL) influence the contract's execution and oversight?

The contractor's base in Atlanta, Georgia, and the potential work location in Huntsville, Alabama, suggest a multi-state operational footprint for this contract. Huntsville is a well-known hub for aerospace and defense research, implying access to a skilled workforce and relevant infrastructure. The geographic distribution may influence logistical considerations, travel costs, and the need for coordination between different sites. Oversight might require personnel or resources in both locations, potentially increasing administrative complexity. However, leveraging specialized talent pools in both regions could also be a strategic advantage for the contractor in executing the research effectively.

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: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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 RIDGE PKWY SE, ATLANTA, GA, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline