EPA's $140.6M R&D contract with Dyncorp Corporation for technical support shows fair value despite limited competition

Contract Overview

Contract Amount: $14,060,227 ($14.1M)

Contractor: Dynamac Corporation

Awarding Agency: Environmental Protection Agency

Start Date: 2006-07-01

End Date: 2011-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $7.7K/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: TECHNICAL SUPPORT

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45220

State: Ohio Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $14.1 million to DYNAMAC CORPORATION for work described as: TECHNICAL SUPPORT Key points: 1. The contract's value for money appears fair, given the duration and the nature of R&D technical support. 2. Competition was limited, raising questions about optimal price discovery and potential for higher costs. 3. Risk indicators are moderate, with the primary concern being the cost-plus-fixed-fee structure in a limited competition. 4. Performance context is within the R&D sector, where long-term technical support is often crucial for project continuity. 5. This contract positions Dyncorp as a key technical support provider for EPA's research initiatives. 6. The contract's duration of five years suggests a stable, long-term need for specialized technical expertise.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific performance metrics or detailed cost breakdowns. However, a $140.6 million contract over five years for specialized R&D technical support averages approximately $28.1 million annually. This figure seems within a reasonable range for complex scientific and engineering support services, especially considering the fixed fee component aims to control contractor profit. Comparisons to similar EPA contracts for R&D technical support would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. The presence of 3 bidders suggests some level of competition, but the exclusion of sources prevents a definitive assessment of the market's full competitive potential. This limited competition might have influenced the final pricing, potentially leading to less aggressive bids than in a truly open market.

Taxpayer Impact: Limited competition can mean taxpayers may not have benefited from the lowest possible prices achievable through a broader bidding process. The government may have paid a premium due to the restricted number of qualified and eligible bidders.

Public Impact

Environmental scientists and researchers benefit from consistent, expert technical support, enabling the advancement of EPA's research objectives. The services delivered are critical for the execution of various physical, engineering, and life sciences research projects. The contract's geographic impact is primarily centered in Ohio, where the contractor is located, but the research supported likely has national environmental implications. Workforce implications include the employment of specialized technical personnel by Dyncorp Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price discovery, potentially leading to higher costs for taxpayers.
The cost-plus-fixed-fee structure, while providing incentives, can lead to cost overruns if not closely managed.
The exclusion of sources, even if justified, reduces the overall competitive landscape for government contracts.

Positive Signals

The contract duration of five years provides stability and continuity for critical R&D support services.
The fixed-fee component offers a degree of cost control and predictability for the government.
The presence of multiple bidders, even if limited, indicates some level of market interest and capability.

Sector Analysis

The Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541710) is characterized by specialized expertise and long-term project cycles. Contracts in this area often involve significant intellectual capital and require sustained technical support. The total federal spending in this sector can be substantial, supporting innovation across various agencies. This contract fits within the broader landscape of federal R&D procurement, where agencies like the EPA rely on external expertise to advance scientific understanding and technological solutions.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, its direct impact on small businesses is minimal in terms of direct award. However, Dyncorp Corporation, as the prime contractor, may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. The extent of subcontracting to small businesses would need further investigation to assess the full impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency's contracting officers and program managers. The Inspector General's office at the EPA is responsible for auditing and investigating potential fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS, which provide basic award information. However, detailed performance reports and cost audits are typically internal unless specific oversight reviews are triggered.

Related Government Programs

EPA Research and Development Contracts
Technical Support Services Contracts
Cost-Plus-Fixed-Fee Contracts
Federal Research and Development Spending

Risk Flags

Limited competition
Cost-plus contract type
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $14.1 million to DYNAMAC CORPORATION. TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is DYNAMAC CORPORATION.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2006-07-01. End: 2011-06-30.

What is Dyncorp Corporation's track record with the EPA and other federal agencies for similar technical support contracts?

Dyncorp Corporation has a history of holding various federal contracts, including those involving technical support and R&D services across multiple agencies. For the EPA specifically, their past performance on similar contracts would be a key indicator of their capability and reliability. Analyzing their performance history, including any past performance evaluations, contract modifications, or disputes, would provide insight into their suitability for this role. A review of their broader federal contracting portfolio can reveal patterns in contract types, values, and agency relationships, helping to contextualize their experience with the EPA's specific needs.

How does the average annual cost of this contract compare to similar EPA R&D technical support contracts awarded over the same period?

The average annual cost of this contract is approximately $28.1 million ($140.6M / 5 years). To benchmark this value, one would need to identify comparable EPA contracts for R&D technical support awarded between 2006 and 2011. Key comparison points would include the scope of services, the specific scientific disciplines involved, the contract duration, and the contract type (e.g., cost-plus, fixed-price). If similar contracts had significantly lower or higher annual costs for comparable services, it would indicate whether this contract represents a particularly good or poor value. Without access to a detailed database of comparable contracts and their specific terms, a precise comparison is difficult.

What specific risks were identified during the procurement process, and what mitigation strategies were put in place?

The provided data does not detail specific risks identified during the procurement process or the mitigation strategies employed. However, common risks associated with R&D technical support contracts include scope creep, cost overruns (especially with cost-plus contracts), contractor performance issues, and reliance on specialized personnel. Given the 'Full and Open Competition After Exclusion of Sources' award type, a potential risk is that the exclusion of certain sources might have limited the competitive field, potentially impacting price and innovation. The cost-plus-fixed-fee structure itself carries a risk of cost escalation if not managed diligently through robust oversight and reporting requirements.

What is the estimated impact of this contract on the EPA's ability to achieve its research and development objectives?

This contract is likely to have a significant positive impact on the EPA's R&D objectives by providing essential technical support. R&D projects often require specialized expertise, laboratory services, data analysis, and project management that may not be available in-house. By outsourcing these functions to Dyncorp Corporation, the EPA can leverage external capabilities, potentially accelerating research timelines and enhancing the quality of scientific output. The continuity provided by a five-year contract ensures that research programs receive sustained support, which is crucial for complex, long-term scientific endeavors. The effectiveness hinges on Dyncorp's performance and the alignment of their support with EPA's strategic research priorities.

How has federal spending in the R&D sector (NAICS 541710) trended in the years leading up to and following this contract's award?

Federal spending in the R&D sector, particularly under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences), has historically shown fluctuations influenced by budget priorities, economic conditions, and national strategic goals. In the years leading up to 2006, federal R&D spending generally saw increases, driven by investments in areas like defense, health, and energy. Following 2006, spending trends can vary by agency and specific research areas. For instance, economic stimulus measures in later years might have boosted R&D funding in certain sectors. A detailed analysis would require examining specific agency budgets and overall federal R&D outlays reported by agencies like the NSF or OMB to identify broader trends impacting contracts like this one.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type for this contract?

The 'Full and Open Competition After Exclusion of Sources' award type signifies that the solicitation was intended for full and open competition, but specific sources were excluded from consideration. This exclusion must be justified by law or regulation. It implies that while the government aimed for a broad competitive process, certain entities were deemed ineligible to bid. This can occur for various reasons, such as national security concerns, specific statutory requirements, or prior contractual relationships that limit participation. For taxpayers, this means the competition, while present, was not as broad as it could have been, potentially impacting the range of bids received and the ultimate price paid.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRNC0510657

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dynamac International, Inc

Address: 2275 RES BLVD STE 300, ROCKVILLE, MD, 20850

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,630,459

Exercised Options: $16,732,975

Current Obligation: $14,060,227

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline