DoD's $19.3M Missile R&D Contract with Marine Acoustics Inc. Raises Questions on Value and Competition
Contract Overview
Contract Amount: $10,753,840 ($10.8M)
Contractor: Marine Acoustics Inc
Awarding Agency: Department of Defense
Start Date: 2001-11-21
End Date: 2010-12-31
Contract Duration: 3,327 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200206!000400!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0102CR082 !A!N! !N! !20011121!20030403!193499043!193499043!193499043!N!MARINE ACOUSTICS INC !809 AQUIDNECK AV !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPORT !RHODE ISLD!+000000950000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B! ! !N!Z!A!N!U!2!002!K! !Z!Y!Z! ! !N!B!N!N! ! !A! !B!A!000!D!B!N! ! ! ! ! ! !0001!
Place of Performance
Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.8 million to MARINE ACOUSTICS INC for work described as: 200206!000400!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0102CR082 !A!N! !N! !20011121!20030403!193499043!193499043!193499043!N!MARINE ACOUSTICS INC !809 AQUIDNECK AV !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPO… Key points: 1. The contract awarded to Marine Acoustics Inc. for missile and space systems R&D appears to be a sole-source award, potentially limiting competitive pricing. 2. With a total value of $19.3 million over a 10-year period, the contract's effectiveness and value for money warrant scrutiny. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector is broad, and the specific deliverables for this contract are not clearly defined. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored.
Value Assessment
Rating: questionable
The contract's total value of $19.3 million over 10 years is substantial. Without clear performance metrics or benchmarks for similar R&D contracts, assessing its value for money is difficult. The Cost Plus Fixed Fee structure also introduces risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not have resulted in the most competitive pricing, as potential bidders were excluded.
Taxpayer Impact: The limited competition and Cost Plus Fixed Fee structure could lead to higher costs for taxpayers compared to a fully open and competitive process with a firm-fixed-price contract.
Public Impact
Taxpayers may be paying a premium due to limited competition in this significant defense R&D contract. The long duration of the contract raises questions about the government's ability to adapt to evolving technological needs. Lack of transparency regarding specific deliverables and performance metrics makes it hard for the public to gauge the contract's success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises price concerns.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of clear deliverables and performance metrics.
- Long contract duration may not align with rapid technological advancements.
Positive Signals
- Contract supports critical missile and space systems R&D.
- Awarded to a specialized firm, potentially bringing unique expertise.
Sector Analysis
This contract falls within the Defense sector, specifically R&D for missile and space systems. Spending in this area is critical for national security but often involves high costs and complex technological challenges, making oversight crucial.
Small Business Impact
The contract was awarded to Marine Acoustics Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, missing an opportunity for small business participation.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure cost control and adherence to contract requirements. The 'exclusion of sources' aspect also warrants scrutiny.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may have inflated costs.
- Cost Plus Fixed Fee structure increases risk of cost overruns.
- Lack of clearly defined deliverables hinders performance assessment.
- Long contract duration poses risks in a rapidly evolving technological landscape.
- Potential for insufficient oversight given the contract's complexity and duration.
Tags
research-and-development-in-the-physical, department-of-defense, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to MARINE ACOUSTICS INC. 200206!000400!2100!AH01 !USA AVIATION AND MISSILE COMMAND!DAAH0102CR082 !A!N! !N! !20011121!20030403!193499043!193499043!193499043!N!MARINE ACOUSTICS INC !809 AQUIDNECK AV !MIDDLETOWN !RI!02842!45640!005!44!MIDDLETOWN !NEWPORT !RHODE ISLD!+000000950000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !1! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is MARINE ACOUSTICS 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 $10.8 million.
What is the period of performance?
Start: 2001-11-21. End: 2010-12-31.
What specific technological advancements or capabilities were achieved through this $19.3 million contract, and how do they compare to the initial objectives?
Assessing the specific advancements requires access to detailed contract performance reports and technical evaluations. Without these, it's difficult to quantify the return on investment. The contract's broad description and long duration suggest a focus on foundational research, but the lack of defined milestones makes it challenging to track progress and measure success against initial objectives.
Given the 'exclusion of sources' in the competition, what justification was provided, and were alternative approaches considered to ensure maximum competition?
The justification for excluding sources typically involves demonstrating that only one source can meet the requirement due to unique capabilities, proprietary data, or urgent needs. The government must provide a compelling rationale. Without this documentation, it's impossible to determine if competitive alternatives were adequately explored or if this limited competition unnecessarily increased costs for taxpayers.
How effectively has the Cost Plus Fixed Fee structure been managed to prevent cost overruns and ensure the government receives good value for its investment?
Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively. The contracting officer and DCMA must closely monitor expenditures, ensure efficiency, and verify that the fixed fee remains appropriate. The long duration of this contract amplifies the need for continuous monitoring to prevent potential cost creep and ensure that the final cost aligns with the value delivered.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: TWO CORPORATE PLACE SUITE 105, MIDDLETOWN, RI, 02842
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2001-11-21
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2015-08-10
More Contracts from Marine Acoustics Inc
- Ocean Battlespace Sensing Department Code 32 Support — $14.6M (Department of Defense)
- THE Purpose of This Requirement IS to Provide Programmatic, Technical, Financial and Administrative Support Services to ONR Code 32 — $7.9M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)