DoD's $24.2M Engineering Services Contract with Scientific Research Corporation Shows Mixed Value and Limited Competition

Contract Overview

Contract Amount: $24,227,367 ($24.2M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2016-06-03

End Date: 2022-09-30

Contract Duration: 2,310 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COST PLUS FIXED FEE (CPFF) ORDERS IGF::OT::IGF

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SCIENTIFIC RESEARCH CORPORATION for work described as: COST PLUS FIXED FEE (CPFF) ORDERS IGF::OT::IGF Key points: 1. The contract's cost-plus-fixed-fee structure, while flexible, can lead to cost overruns if not managed tightly. 2. Limited competition suggests potential for higher pricing and reduced innovation compared to a more open market. 3. The contract's duration and value indicate a significant, long-term commitment by the Department of the Navy. 4. Performance context is crucial for understanding if the engineering services delivered met the Navy's strategic objectives. 5. The IT sector (NAICS 541330) is broad, and the specific engineering services provided need further clarification for precise benchmarking. 6. The contract's value is substantial, requiring robust oversight to ensure taxpayer funds are used efficiently.

Value Assessment

Rating: fair

Benchmarking the value of this $24.2 million contract is challenging without specific details on the engineering services rendered. The cost-plus-fixed-fee (CPFF) pricing model, while common for complex R&D or services, carries inherent risks of cost escalation. Comparing it to similar contracts for engineering services within the Department of Defense would require access to a broader dataset of comparable procurements. The fixed fee component provides some cost certainty, but the overall value is highly dependent on the efficiency and necessity of the work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the data does not specify the number of bids received. A higher number of bids generally leads to better price discovery and potentially lower costs for the government. The fact that it was competed openly is a positive sign for market fairness, but the ultimate benefit to taxpayers depends on the intensity of the competition.

Taxpayer Impact: Full and open competition is the preferred method as it maximizes the pool of potential offerors, fostering a competitive environment that should, in theory, lead to better pricing and value for taxpayer dollars.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and technological advancements. The contract likely supports critical defense infrastructure and systems, contributing to national security. The geographic impact is primarily centered in South Carolina, where Scientific Research Corporation is located, potentially creating or sustaining local jobs. Workforce implications include employment for engineers, technicians, and support staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
Limited insight into the number of bidders despite 'full and open' competition raises questions about the intensity of market engagement.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
The contractor, Scientific Research Corporation, has secured a significant contract, indicating a level of established capability.
The contract duration suggests a stable, long-term need for the services provided.

Sector Analysis

Engineering services, categorized under NAICS code 541330, represent a significant segment of the professional services market supporting government and commercial clients. This sector is characterized by specialized expertise and often involves complex problem-solving. Spending in this area within the Department of Defense is substantial, covering a wide range of needs from design and development to testing and analysis. Comparable spending benchmarks would typically involve analyzing other large engineering service contracts awarded by DoD agencies for similar types of support.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (SB is false) and there is no indication of small business subcontracting goals being a primary driver. Therefore, the direct impact on the small business ecosystem is likely minimal, unless Scientific Research Corporation voluntarily engages small businesses as subcontractors. The focus appears to be on securing specialized engineering expertise, potentially from larger, established firms.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Navy's contracting and program management offices. Accountability measures would typically include performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency is generally facilitated through contract award databases, but detailed performance reports and cost breakdowns are often not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command Contracts
Scientific and Technical Services
Professional Services Contracts

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) contract type carries inherent cost overrun risks.
Limited competition may impact price competitiveness and innovation.
Lack of specific performance details hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SCIENTIFIC RESEARCH CORPORATION. COST PLUS FIXED FEE (CPFF) ORDERS 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 $24.2 million.

What is the period of performance?

Start: 2016-06-03. End: 2022-09-30.

What specific engineering services were provided under this contract, and how do they align with the Department of the Navy's strategic objectives?

The provided data identifies the contract as being for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. These could range from systems engineering, design and development of naval platforms, research and development support, to technical consulting. To assess alignment with strategic objectives, one would need to consult the contract's Statement of Work (SOW) and compare the delivered services against the Navy's stated modernization goals, fleet readiness requirements, or specific program needs. Without this granular detail, it's impossible to definitively state how the services contributed to broader strategic aims beyond the general support of naval operations.

How does the $24.2 million cost compare to similar engineering service contracts awarded by the Department of the Navy in recent years?

Comparing the $24.2 million cost requires access to a database of comparable contracts. Generally, engineering service contracts for major defense programs can range from a few million to hundreds of millions of dollars, depending on complexity, duration, and scope. A contract of this size for a single delivery order suggests a significant undertaking. To provide a precise comparison, we would need to identify contracts with similar NAICS codes (541330), similar agencies (DoD, specifically Navy), and similar contract types (CPFF). Factors like contract duration (2310 days here) and the specific technical domain are also critical for a meaningful benchmark. Without such a comparative dataset, it's difficult to definitively label $24.2 million as high, low, or average.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract is the potential for cost overruns. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of all allowable costs exceeding the estimated cost. If the contractor's cost estimation is inaccurate or if unforeseen technical challenges arise, the total cost to the government can escalate significantly beyond initial projections. For a contract valued at $24.2 million over approximately 6.3 years, effective cost monitoring, robust oversight, and clear definition of allowable costs are paramount. Scope creep, where the project's requirements expand without corresponding adjustments to the fee or schedule, also poses a risk. Additionally, ensuring the contractor maintains efficiency incentives under a CPFF structure requires diligent performance management.

What is the track record of Scientific Research Corporation in delivering engineering services for the Department of Defense?

Scientific Research Corporation (SRC) has a history of securing contracts with the Department of Defense, indicating a recognized capability in providing relevant services. To assess their track record specifically for engineering services under contracts similar to this one, a deeper dive into their past performance evaluations, contract completion history, and any documented issues (e.g., disputes, performance deficiencies) would be necessary. Publicly available data often includes contract awards but not always detailed performance outcomes. SRC's longevity and ability to win contracts suggest a baseline level of competence, but a comprehensive assessment would require reviewing specific past performance reports and client feedback where available.

How has federal spending on engineering services (NAICS 541330) trended over the past five years, and where does this contract fit within that trend?

Federal spending on engineering services (NAICS 541330) has generally remained robust, driven by ongoing defense modernization, infrastructure projects, and research and development initiatives across various agencies. While specific year-over-year trends fluctuate based on budget allocations and national priorities, the overall demand for specialized engineering expertise remains high. This $24.2 million contract represents a significant, but not extraordinary, single award within this broad category. It fits within the typical spending patterns for large-scale, long-term engineering support required by agencies like the Department of the Navy. Analyzing the broader trend would involve aggregating spending data across multiple agencies and fiscal years to identify growth or contraction patterns in this sector.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003914R0002

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: $24,227,374

Exercised Options: $24,227,374

Current Obligation: $24,227,367

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $21,789,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003914D0016

IDV Type: IDC

Timeline