DoD's $411.8M R&D contract with Jacobs Technology Inc. awarded in 2002 shows long-term engagement

Contract Overview

Contract Amount: $411,838,854 ($411.8M)

Contractor: Jacobs Technology Inc

Awarding Agency: Department of Defense

Start Date: 2002-11-04

End Date: 2014-03-31

Contract Duration: 4,165 days

Daily Burn Rate: $98.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32547

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $411.8 million to JACOBS TECHNOLOGY INC for work described as: Key points: 1. The contract's duration of over 11 years suggests a sustained need for the R&D services provided. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The 'Cost Plus Award Fee' structure incentivizes contractor performance while managing costs. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 5. The contract's significant value indicates a substantial investment in advancing scientific and technical capabilities. 6. The geographic location in Florida may point to specific research facilities or operational needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and specific R&D focus. The 'Cost Plus Award Fee' (CPAF) structure aims to balance cost control with performance incentives. Without detailed performance metrics and award fee payouts, a precise value-for-money assessment is difficult. However, the long duration suggests the services were deemed valuable enough to warrant continued investment over more than a decade.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating that multiple bidders were initially considered, but specific sources were later excluded. This suggests a competitive process was initiated, but the final selection might have involved specific criteria or limitations. The number of bidders is not specified, but the initial open competition is a positive sign for price discovery.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by encouraging multiple firms to offer their best terms.

Public Impact

The Department of Defense benefits from advancements in physical, engineering, and life sciences research. This contract supports the development of new technologies and scientific understanding crucial for national security. The contract's impact on the workforce is likely related to specialized R&D personnel in Florida. The ultimate beneficiaries are the defense forces who will utilize the innovations stemming from this research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 11 years) could indicate potential for cost overruns if not managed tightly.
The CPAF structure requires careful monitoring of performance metrics to ensure award fees are justified.
Specific details on the R&D outcomes are not readily available, making it hard to gauge the full impact.
The exclusion of sources after initial open competition warrants further investigation into the rationale.

Positive Signals

Awarded under full and open competition, suggesting a robust initial bidding process.
The 'Cost Plus Award Fee' structure incentivizes contractor performance.
The sustained investment over many years implies the R&D was considered valuable and successful.
The contract supports critical research and development for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment, particularly in defense. The North American Industry Classification System (NAICS) code 541710 covers R&D in these fields. Comparable spending benchmarks would involve other large-scale, long-term R&D contracts awarded by federal agencies, especially within the defense domain.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The prime contractor, Jacobs Technology Inc., is a large entity, and any subcontracting would likely be driven by specific project needs rather than a small business mandate.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA). The 'Cost Plus Award Fee' structure necessitates rigorous oversight to ensure performance targets are met and award fees are appropriately justified. Transparency is generally maintained through contract reporting mechanisms, though specific R&D outcomes may be classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Life Sciences Research Contracts

Risk Flags

Long contract duration may indicate potential for scope creep or cost escalation if not managed.
Complexity of R&D projects can introduce inherent risks to successful completion and timely delivery.
The 'Exclusion of Sources' aspect warrants scrutiny to ensure fairness and optimal value.
Performance metrics for CPAF contracts need diligent monitoring to validate award fee payouts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $411.8 million to JACOBS TECHNOLOGY INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is JACOBS TECHNOLOGY 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 $411.8 million.

What is the period of performance?

Start: 2002-11-04. End: 2014-03-31.

What specific research and development projects were undertaken under this contract?

The provided data does not specify the exact nature of the research and development projects. However, the NAICS code 541710 indicates activities related to 'Research and Development in the Physical, Engineering, and Life Sciences.' This could encompass a wide range of activities, from materials science and aerospace engineering to biotechnology and advanced computing, all aimed at enhancing defense capabilities. Further investigation into contract line item numbers (CLINs) or associated documentation would be required to detail the specific R&D focus areas.

How did the 'Cost Plus Award Fee' structure influence Jacobs Technology Inc.'s performance and the final cost?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by allowing the contractor to recover allowable costs plus a fee that is composed of a fixed base amount and a variable award amount. The award amount is determined by the government's evaluation of the contractor's performance against pre-defined criteria. For Jacobs Technology Inc., this meant that exceeding performance expectations could lead to a higher total fee. Conversely, underperformance would limit or eliminate the award fee. This structure requires robust government oversight to ensure that award fees are earned based on merit and that costs remain controlled, aiming for a balance between achieving high-quality R&D outcomes and managing taxpayer expenditure.

What is the significance of the contract being awarded under 'Full and Open Competition after Exclusion of Sources'?

This award type indicates that the initial solicitation was open to all responsible sources. However, at some point, specific sources were excluded from the competition. This could occur for various reasons, such as the need for specialized capabilities possessed by only a few entities, national security concerns, or specific requirements that narrowed the field. While it started with broad competition, the exclusion suggests that the final competition was more limited. The implications for taxpayers are that while initial competition aimed for broad market engagement, the exclusion might have reduced the ultimate competitive pressure on pricing and innovation compared to a purely full and open competition.

What does the contract duration of over 11 years imply about the nature of the R&D and the contractor's relationship with the DoD?

A contract duration exceeding 11 years (from November 2002 to March 2014) strongly suggests that the research and development activities were long-term, complex, and required sustained expertise. It implies a high degree of trust and successful collaboration between the Department of Defense (DoD) and Jacobs Technology Inc. Such extended periods are common in R&D where breakthroughs and technology maturation take significant time. It also indicates that the DoD likely viewed Jacobs Technology Inc. as a critical partner in achieving its strategic R&D objectives, potentially leading to follow-on work or continued reliance on their specialized knowledge.

How does this contract compare to other R&D spending by the Department of Defense in the physical, engineering, and life sciences sectors?

The $411.8 million total award amount for this contract is substantial, placing it among significant investments in R&D. The Department of Defense is one of the largest federal funders of R&D, with billions allocated annually across various scientific and engineering disciplines. Contracts of this magnitude are typical for major research initiatives aimed at developing next-generation defense technologies. Benchmarking requires comparing it to other large, multi-year R&D contracts within the same NAICS code (541710) or similar defense-focused R&D categories. Its duration and value suggest it was a key component of the DoD's R&D portfolio during its period of performance.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1030 TITAN COURT, FORT WALTON BEACH, FL, 32547

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline