DoD Awards $37.6M for R&D Services to Kay and Associates, Inc

Contract Overview

Contract Amount: $37,572,410 ($37.6M)

Contractor: KAY and Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-05-10

End Date: 2010-08-31

Contract Duration: 3,035 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200208!000254!5700!GJ20 !WR-ALC/PKO !F0965002C0025 !A!N! !Y! !20020510!20080531!067448076!067448076!067448076!N!KAY AND ASSOCIATES, INC !3820 NORTH VENTURA DRIVE !ARLINGTON HEIG !IL!60004!02154!031!17!ARLINGTON HEIGHTS !COOK !ILLINOIS !+000003600000!N!N!000000000000!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!005!B! !C!N!Z! ! !Y!C!N! ! ! !A!D!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $37.6 million to KAY AND ASSOCIATES, INC. for work described as: 200208!000254!5700!GJ20 !WR-ALC/PKO !F0965002C0025 !A!N! !Y! !20020510!20080531!067448076!067448076!067448076!N!KAY AND ASSOCIATES, INC !3820 NORTH VENTURA DRIVE !ARLINGTON HEIG !IL!60004!02154!031!17!ARLINGTON HEIGHTS !COOK … Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition used, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs. 4. Long duration of 8 years may indicate complex or ongoing research needs.

Value Assessment

Rating: questionable

The contract value of $37.6 million over 8 years is substantial. Without specific benchmarks for similar R&D contracts, it's difficult to definitively assess pricing. The fixed-price nature suggests an attempt to manage costs, but the long duration could allow for cost escalation if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of this method suggests multiple vendors were considered.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

Significant investment in R&D, potentially leading to technological advancements. Long-term commitment to a single contractor could limit flexibility for future R&D directions. The specific nature of the R&D is not detailed, making it hard to gauge direct public benefit. Potential for job creation within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) may not be optimal for rapidly evolving R&D fields.
Lack of specific R&D details makes it hard to assess true value and impact.
Potential for contractor lock-in over the long term.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type.
Contractor has a history of performance (implied by award).

Sector Analysis

This contract falls under Research and Development, a sector characterized by innovation and often long-term investment. Benchmarks for R&D contracts vary widely based on the specific field, but a multi-million dollar award over several years is common for significant research initiatives.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense, which has established oversight mechanisms. However, the long duration and R&D focus necessitate continuous monitoring to ensure progress and value for taxpayer money.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration.
Lack of specific R&D details.
Potential for cost overruns if not managed effectively.
Risk of technological obsolescence.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 million to KAY AND ASSOCIATES, INC.. 200208!000254!5700!GJ20 !WR-ALC/PKO !F0965002C0025 !A!N! !Y! !20020510!20080531!067448076!067448076!067448076!N!KAY AND ASSOCIATES, INC !3820 NORTH VENTURA DRIVE !ARLINGTON HEIG !IL!60004!02154!031!17!ARLINGTON HEIGHTS !COOK !ILLINOIS !+000003600000!N!N!000000000000!J066!MAINT & REPAIR OF EQ/INSTRUMENTS & LAB EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is KAY AND ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $37.6 million.

What is the period of performance?

Start: 2002-05-10. End: 2010-08-31.

What specific R&D objectives does this contract aim to achieve, and how will success be measured?

The provided data lacks specifics on the R&D objectives. To assess value, it's crucial to understand the intended outcomes, such as developing new technologies, improving existing systems, or conducting fundamental research. Success metrics should be clearly defined in the contract to ensure accountability and track progress towards these objectives.

Given the 8-year duration, what are the risks associated with technological obsolescence or shifts in research priorities?

A long contract duration in R&D carries inherent risks. Technologies can become obsolete quickly, or research priorities may shift due to evolving threats or opportunities. The government needs robust contract management to allow for adjustments, incorporate new findings, or potentially terminate if the research becomes irrelevant or unpromising.

How does the $37.6 million award compare to the typical cost of similar R&D projects within the Department of Defense?

Without specific details on the R&D scope, a direct cost comparison is challenging. However, $37.6 million over 8 years represents a significant investment. Benchmarking against similar-sized R&D efforts in comparable scientific or engineering fields within the DoD would be necessary to determine if this represents a fair and reasonable price.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3820 NORTH VENTURA DRIVE, ARLINGTON HEIG, IL

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline