DoD's $185M R&D contract with JMAR RESEARCH INC shows concerning value and limited competition

Contract Overview

Contract Amount: $23,763,106 ($23.8M)

Contractor: Jmar Research Inc

Awarding Agency: Department of Defense

Start Date: 2001-10-31

End Date: 2011-08-10

Contract Duration: 3,570 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200207!000173!2100!AD17 !USA MATERIEL COMMAND ACQUISITION!DAAD1702C0016 !A!N! !N! !20011031!20041029!036398501!036398501!185494788!N!JMAR RESEARCH, INC !3956 SORRENTO VALLEY BLVD !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002171210!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!999!E! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! !W71B7J!0001!

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to JMAR RESEARCH INC for work described as: 200207!000173!2100!AD17 !USA MATERIEL COMMAND ACQUISITION!DAAD1702C0016 !A!N! !N! !20011031!20041029!036398501!036398501!185494788!N!JMAR RESEARCH, INC !3956 SORRENTO VALLEY BLVD !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN D… Key points: 1. The contract's value appears high relative to its duration and the limited competition. 2. The cost-plus-fixed-fee structure may incentivize cost overruns. 3. The exclusion of sources in the competition raises questions about fairness and potential price inflation. 4. The contract's performance period was significantly extended, suggesting potential scope creep or initial underestimation. 5. JMAR RESEARCH INC's track record and the specific R&D outcomes warrant closer scrutiny. 6. The lack of small business participation is noted, despite the contract's size.

Value Assessment

Rating: concerning

The total obligated amount of $185.49 million over a period that extended to over 10 years (original end date 2004, final end date 2011) suggests a high cost per year. Benchmarking against similar R&D contracts is difficult without more specific details on the deliverables, but the extended duration and significant funding raise concerns about efficiency and value for money. The cost-plus-fixed-fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while a competition was held, certain sources were intentionally excluded. The specific reasons for exclusion are not detailed in the provided data. This type of competition limits the pool of potential bidders, which can reduce competitive pressure and potentially lead to higher prices than a truly full and open competition with no exclusions.

Taxpayer Impact: Excluding sources limits the number of companies vying for the contract, potentially meaning taxpayers did not benefit from the lowest possible price achievable through maximum competition.

Public Impact

The primary beneficiary is JMAR RESEARCH INC, a contractor specializing in research and development. The contract supports research and development activities within the Department of Defense, likely contributing to advancements in defense technologies. The geographic impact is concentrated in San Diego, California, where the contractor is located. The contract likely supported a workforce of scientists, engineers, and technical personnel at JMAR RESEARCH INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises concerns about whether the most innovative and cost-effective solutions were considered.
The extended performance period (original end date 2004, final end date 2011) suggests potential issues with initial planning, scope management, or contractor performance.
The Cost Plus Fixed Fee (CPFF) contract type, while necessary for some R&D, carries inherent risks of cost escalation if not rigorously overseen.
The lack of readily available information on specific R&D outcomes makes it difficult to assess the true value and impact of the $185 million investment.
No small business subcontracting goals were apparent, potentially limiting opportunities for smaller firms in the defense R&D ecosystem.

Positive Signals

The contract was awarded to a specific company, JMAR RESEARCH INC, indicating a focused effort in a particular R&D area.
The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences NAICS code (541710), suggesting a focus on advanced scientific endeavors.
The Department of Defense is a major investor in R&D, and such contracts are crucial for maintaining technological superiority.
The contract was awarded by the USA Materiel Command Acquisition, a significant entity within the DoD's procurement structure.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences as indicated by the NAICS code 541710. The defense sector heavily relies on R&D to maintain technological advantages. Spending in this area is characterized by long project timelines, high uncertainty, and significant investment. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but defense R&D contracts can range from tens of millions to billions of dollars, depending on the scope and strategic importance.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). Given the substantial value of over $185 million, there might have been an opportunity or expectation for significant subcontracting to small businesses. However, the provided data does not specify any subcontracting plans or achievements. The lack of explicit small business involvement could mean missed opportunities for innovation and economic contribution from the small business sector within this defense R&D initiative.

Oversight & Accountability

Oversight for this contract would have been primarily handled by the Defense Contract Management Agency (DCMA), as indicated by 'sa'. The Department of Defense's Inspector General would also have jurisdiction for audits and investigations. Transparency is limited by the nature of defense R&D contracts, especially concerning the specifics of 'EXCLUSION OF SOURCES'. Accountability relies on contract performance reviews, milestone achievements, and financial audits, the details of which are not publicly available.

Related Government Programs

Department of Defense Research and Development
Defense Engineering and Manufacturing Development
Advanced Technology Development Contracts
JMAR RESEARCH INC Contracts
Cost-Plus-Fixed-Fee Contracts
Research and Development in Physical Sciences

Risk Flags

Extended performance period beyond initial estimates
Competition method limits bidder pool
Cost-plus contract type carries inherent cost escalation risk
Lack of specific deliverable and outcome details hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to JMAR RESEARCH INC. 200207!000173!2100!AD17 !USA MATERIEL COMMAND ACQUISITION!DAAD1702C0016 !A!N! !N! !20011031!20041029!036398501!036398501!185494788!N!JMAR RESEARCH, INC !3956 SORRENTO VALLEY BLVD !SAN DIEGO !CA!92121!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000002171210!N!N!000000000000!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is JMAR RESEARCH 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 $23.8 million.

What is the period of performance?

Start: 2001-10-31. End: 2011-08-10.

What were the specific R&D objectives and deliverables for this contract, and how were they measured?

The provided data identifies the contract under NAICS code 541710 ('Research and Development in the Physical, Engineering, and Life Sciences') and a Product Service Code (PSC) of 'AD17' (Research and Development Contracts). However, the specific objectives, deliverables, and performance metrics are not detailed. This lack of specificity makes it challenging to independently assess whether the $185.49 million investment yielded the intended technological advancements or met the Department of Defense's requirements. Typically, R&D contracts outline specific research areas, milestones, prototypes, or reports. Without this context, evaluating the contract's success is speculative.

What were the reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (ct: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES). This procurement method implies that a competitive process was initiated, but specific potential bidders were deliberately disqualified or not solicited. Common reasons for excluding sources can include national security concerns, proprietary technology limitations, specific security clearances required, or unique capabilities possessed by only a few entities. However, the exact justification for excluding sources in this particular $185.49 million Department of Defense contract is not provided in the data. This lack of transparency raises questions about whether the exclusion limited the potential for innovation or resulted in a less competitive price for the government.

How did the final obligated amount of $185.49 million compare to the initial contract value and subsequent modifications?

The provided data shows a final obligated amount of $185,494,788. The initial award details are not explicitly stated as a separate line item, but the contract duration (original end date 2004-10-29, final end date 2011-08-10) and the total obligated amount suggest significant funding growth over its lifespan. The contract type is Cost Plus Fixed Fee (CPFF), which allows for reimbursement of costs plus a predetermined profit. Such contracts often involve modifications to adjust scope, extend timelines, or incorporate new requirements, leading to increases in the total obligated amount. Without the initial award value and details of all modifications, it's difficult to assess the extent of growth and the reasons behind it.

What is JMAR RESEARCH INC's overall track record with federal contracts, particularly with the Department of Defense?

JMAR RESEARCH INC (co: JMAR RESEARCH INC) has been awarded federal contracts, including this significant $185.49 million R&D contract with the Department of Defense (ag: Department of Defense). The provided data snippet focuses on this single contract. To assess their overall track record, one would need to examine their complete federal contracting history, including past performance ratings, history of contract awards and terminations, and any documented issues or disputes. A comprehensive review would reveal patterns in their ability to meet deadlines, stay within budget, and deliver quality products or services, particularly within the demanding defense sector.

What was the rationale for the extended performance period, from an initial end date of 2004 to a final end date of 2011?

The contract initially had an end date of October 29, 2004, but its performance period was extended significantly, with the final end date listed as August 10, 2011. This represents an extension of nearly seven years. Such extensions in R&D contracts can occur for various reasons, including the complex and often unpredictable nature of research, the need to explore new avenues discovered during the research, changes in government requirements, or potential delays in funding or contractor execution. Without specific details on contract modifications or official justifications, it's difficult to pinpoint the exact cause, but it suggests the project evolved considerably beyond its initial scope or timeline.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Jmar Technologies, Inc. (UEI: 185494788)

Address: 3956 SORRENTO VALLEY BLVD, SAN DIEGO, CA, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline