DoD's $11.25M Contract with Pacific Sierra Research Corp for Defense Systems Development Raises Oversight Questions

Contract Overview

Contract Amount: $11,254,721 ($11.3M)

Contractor: Pacific Sierra Research Corpor

Awarding Agency: Department of Defense

Start Date: 1999-01-08

End Date: 2020-03-18

Contract Duration: 7,740 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199906!9700!0227!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0031 !A!*!* !19990108!19990930!056447204!056447204!837980291!N!1M681!PACIFIC SIERRA RESEARCH CORPOR!1400 KEY BLVD STE 700 !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !0001!+000001350000!N!N!000000000000!AD97!RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !7379!1!*!*!*!B!N!A!D !N!U!1!001!N!2A!Z!N!Z!* !* !N!C!*!B!B!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to PACIFIC SIERRA RESEARCH CORPOR for work described as: 199906!9700!0227!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0031 !A!*!* !19990108!19990930!056447204!056447204!837980291!N!1M681!PACIFIC SIERRA RESEARCH CORPOR!1400 KEY BLVD STE 700 !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLING… Key points: 1. Contract awarded for 'RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT' by DTRA. 2. Significant contract value of $11.25M awarded to Pacific Sierra Research Corporation. 3. Contract type is 'COST PLUS FIXED FEE', potentially leading to cost overruns. 4. Awarded as 'NOT COMPETED', raising concerns about fair market price discovery.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess value for money. The final cost of $11.25M needs further scrutiny against benchmarks for similar R&D services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

Awarded as 'NOT COMPETED', indicating a sole-source or limited competition scenario. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The lack of competition and cost-plus structure could lead to inefficient use of taxpayer funds if not rigorously overseen.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The specific defense systems developed are not publicly detailed, limiting transparency. The long duration and cost-plus nature of the contract warrant close monitoring for efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Potential for cost overruns
Limited transparency on deliverables

Positive Signals

Contract awarded to a specific company for specialized defense development
Contract duration indicates a significant project

Sector Analysis

This contract falls under Defense R&D, a sector often characterized by complex, long-term projects and specialized requirements. Spending benchmarks are highly variable based on the specific technology and development phase.

Small Business Impact

No information is available regarding small business participation in this contract. The focus appears to be on a prime contractor for specialized services.

Oversight & Accountability

The 'NOT COMPETED' award and cost-plus structure necessitate robust oversight from the Department of Defense and DTRA to ensure funds are used efficiently and effectively, and that deliverables meet requirements.

Related Government Programs

Department of Defense Contracting
Defense Threat Reduction Agency Programs

Risk Flags

Lack of competition may have led to inflated costs.
Cost-plus contracts can incentivize spending rather than cost savings.
Limited transparency regarding the specific services and outcomes.
Potential for cost overruns due to the contract type.
Long contract duration without clear performance metrics provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to PACIFIC SIERRA RESEARCH CORPOR. 199906!9700!0227!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0199C0031 !A!*!* !19990108!19990930!056447204!056447204!837980291!N!1M681!PACIFIC SIERRA RESEARCH CORPOR!1400 KEY BLVD STE 700 !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !0001!+000001350000!N!N!000000000000!AD97!RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !7379!1!*!*!*!B!N!A!D !N!U!1!0

Who is the contractor on this award?

The obligated recipient is PACIFIC SIERRA RESEARCH CORPOR.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 1999-01-08. End: 2020-03-18.

What specific defense systems or technologies were developed under this contract, and how do they align with current defense needs?

The contract details are classified or not publicly discernable, making it impossible to specify the exact defense systems or technologies developed. The 'RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT' classification suggests research, development, testing, and evaluation for operational defense systems. Without further information, alignment with current defense needs cannot be assessed.

What was the justification for awarding this contract on a non-competitive basis, and were alternative solutions considered?

The provided data states the contract was 'NOT COMPETED'. A formal justification for this sole-source award is not included. Typically, non-competitive awards are made when only one source can provide the required goods or services, or in cases of urgent and compelling need. Without the official justification, it's unknown if alternatives were considered.

How was the 'fixed fee' determined in this Cost Plus Fixed Fee contract, and what mechanisms were in place to control costs and ensure efficiency?

The determination of the 'fixed fee' in a Cost Plus Fixed Fee (CPFF) contract is usually based on negotiation, considering the estimated cost of the effort and the contractor's profit margin. Mechanisms for cost control and efficiency often include performance metrics, audits, and regular progress reviews. The effectiveness of these mechanisms for this specific contract is not detailed in the provided data.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1400 KEY BLVD STE 700, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $4,746

Exercised Options: $4,746

Current Obligation: $11,254,721

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline