DoD's $118.6M contract for missile and space systems R&D awarded to Microcosm Inc. in 1999

Contract Overview

Contract Amount: $16,553,798 ($16.6M)

Contractor: Microcosm, Inc

Awarding Agency: Department of Defense

Start Date: 1999-01-22

End Date: 2011-02-03

Contract Duration: 4,395 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199904!5700!0087!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !F2960198C0058 !A!*!* !19990122!20000429!118563519!118563519!118563519!N!1Z344!MICROCOSM INC !2377 CRENSHAW BLVD !TORRANCE !CA!90501!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!0001!+000003145536!N!N!000000000000!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!001!K!* !Z!Y!Z!* !* !N!B!*!A!*!B!A!A!*!* !*!Y!D!B!N!*!*!*!*!*!

Place of Performance

Location: HAWTHORNE, LOS ANGELES County, CALIFORNIA, 90250

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to MICROCOSM, INC for work described as: 199904!5700!0087!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !F2960198C0058 !A!*!* !19990122!20000429!118563519!118563519!118563519!N!1Z344!MICROCOSM INC !2377 CRENSHAW BLVD !TORRANCE !CA!90501!80000!037!06!TORRANCE !LOS AN… Key points: 1. Contract awarded in 1999 for applied research in missile and space systems. 2. The contract's duration extended significantly beyond its initial award date. 3. Microcosm Inc. was the sole contractor for this specific award. 4. The contract type was Cost Plus Fixed Fee, indicating potential for cost overruns. 5. The primary sector is Research and Development, specifically in physical, engineering, and life sciences. 6. The contract was awarded under full and open competition after exclusion of sources.

Value Assessment

Rating: questionable

The contract's total value reached $118.6 million over its extended period. Without specific performance metrics or deliverables, it's difficult to benchmark the value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed tightly. Comparing this to similar R&D contracts in missile and space systems would require detailed analysis of the scope of work and deliverables, which are not fully discernible from the provided data.

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.' This suggests that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed here. The data indicates only one award was made to Microcosm, Inc. for this specific contract number, implying that while competition might have occurred initially, the final award was to a single entity. The implications for price discovery are mixed; open competition generally drives better pricing, but the exclusion of sources could limit this effect.

Taxpayer Impact: The 'full and open competition after exclusion of sources' designation suggests a potentially complex procurement process. While aiming for broad competition, the exclusion of certain sources could mean taxpayers did not benefit from the widest possible range of bids, potentially impacting the final price.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force Research Laboratory (AFRL). The contract supports applied research in missile and space systems, contributing to national defense capabilities. The geographic impact is centered in California, where the contractor is located. Workforce implications include employment for scientists, engineers, and support staff at Microcosm Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration beyond initial award date raises questions about project scope creep or unforeseen challenges.
Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously overseen.
The 'exclusion of sources' in the competition type warrants further investigation into the rationale and impact on pricing.
Lack of detailed performance metrics makes it difficult to assess the true value delivered for the funds expended.

Positive Signals

Awarded to a single contractor, Microcosm Inc., suggesting a focused relationship for specific R&D needs.
The contract falls within the critical R&D sector for missile and space systems, vital for defense.
The contract was subject to 'full and open competition,' indicating an attempt to leverage market forces.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on applied research in missile and space systems. This is a highly specialized area within the broader aerospace and defense industry. The market for such R&D is often characterized by a limited number of highly specialized firms capable of undertaking complex projects. Comparable spending benchmarks would typically be found within other government contracts for similar advanced research initiatives, often involving significant investment due to the cutting-edge nature of the work.

Small Business Impact

The data indicates this contract was not awarded as a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this contract. The focus was on a larger prime contractor for specialized R&D, rather than distributing work through small business set-asides.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and justification of costs. Transparency is assessed based on the availability of detailed contract information, which can be limited for classified or sensitive R&D projects. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems R&D
Space Systems Development
Applied Research Contracts
Department of Defense Research and Development
Air Force Research Laboratory Contracts

Risk Flags

Extended contract duration
Cost Plus Fixed Fee contract type
Exclusion of sources in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to MICROCOSM, INC. 199904!5700!0087!GS05 !DET 8 AFRL/PK (SUPPORTS VS) !F2960198C0058 !A!*!* !19990122!20000429!118563519!118563519!118563519!N!1Z344!MICROCOSM INC !2377 CRENSHAW BLVD !TORRANCE !CA!90501!80000!037!06!TORRANCE !LOS ANGELES !CALIFORNIA!0001!+000003145536!N!N!000000000000!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !8731!3!*!*!*!B!A!*!A !N!U!2!0

Who is the contractor on this award?

The obligated recipient is MICROCOSM, 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 $16.6 million.

What is the period of performance?

Start: 1999-01-22. End: 2011-02-03.

What was the specific scope of work for Microcosm Inc. under contract F2960198C0058?

The provided data indicates the contract supported 'VS' (likely Vertical Launching System or similar) and was for 'RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH'. The specific technical details, research objectives, and deliverables are not fully discernible from the abbreviated data. However, the classification 'MISSILE AND SPACE SYSTEMS' suggests work related to the development, testing, or enhancement of technologies for offensive or defensive missile systems, as well as systems operating in or related to space. The 'APPLIED RESEARCH' designation implies a focus on practical applications and solutions rather than purely theoretical investigations.

How did the final cost of $118.6 million compare to the initial estimated value or ceiling of the contract?

The provided data shows a total award amount of $118,563,519. The initial data fields do not explicitly state an initial estimated value or ceiling that can be directly compared. However, the contract duration was 4395 days (approximately 12 years), starting in January 1999 and ending in February 2011. The significant duration suggests that the contract likely evolved, and the final amount reflects cumulative spending over this extended period. Without knowing the initial ceiling or estimated cost at the time of award, a direct comparison is not possible, but the final amount represents the total expenditure over the contract's lifecycle.

What were the key performance indicators (KPIs) or milestones used to measure Microcosm Inc.'s success on this contract?

The provided data does not contain specific details regarding Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) contracts, especially in R&D, performance is often measured against the achievement of defined research objectives, technical milestones, and the successful completion of specific tasks or phases outlined in the Statement of Work (SOW). The absence of explicit KPIs in this data summary suggests that either they were not detailed in the publicly accessible record or were managed through less standardized reporting mechanisms inherent to applied research projects.

What is the significance of the contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'?

This contract type indicates that the procurement process aimed for broad competition among all eligible sources. However, 'after exclusion of sources' implies that certain potential bidders were deliberately excluded from the competition, likely based on specific criteria related to capability, security, or other pre-defined requirements. While it starts with an open approach, the exclusion narrows the field. This can be a legitimate practice if justified by technical needs or national security concerns, but it also means that the government did not consider offers from all possible entities, which could potentially impact the level of price competition achieved.

What is the typical market size and competitive landscape for applied research in missile and space systems?

The market for applied research in missile and space systems is highly specialized and typically dominated by a relatively small number of large defense contractors and specialized R&D firms. These companies possess the advanced technical expertise, facilities, and security clearances required. The market size is substantial, driven by government defense spending, but it is also characterized by high barriers to entry. Competition can be intense among the qualified bidders for specific contracts, but the overall number of players capable of undertaking such complex R&D is limited, often leading to sole-source or limited-competition awards for follow-on work or highly specialized research.

Were there any reported issues or concerns regarding Microcosm Inc.'s performance or contract management on this award?

The provided data summary does not include specific details about reported issues, concerns, or performance problems related to Microcosm Inc. for this contract. Contract performance data, including any disputes, overruns, or quality issues, is typically found in more detailed contract databases or agency oversight reports. Without access to such specific records, it is not possible to assess whether there were any significant performance issues during the contract's lifecycle.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2377 CRENSHAW BLVD, TORRANCE, CA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline