DoD's $110M R&D Contract for Electronics & Communication with Veridian Systems Division Raises Oversight Questions

Contract Overview

Contract Amount: $11,037,423 ($11.0M)

Contractor: Pacific Sierra Research Corpor

Awarding Agency: Department of Defense

Start Date: 2002-12-18

End Date: 2007-12-17

Contract Duration: 1,825 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200303!000046!5700!GQ05 !AFRL/IFKRF !F3060203C0001 !A!N! !N! !20021218!20071217!056447204!001381284!001381284!N!VERIDIAN SYSTEMS DIVISION, INC!1400 KEY BLVD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000288000!N!N!000027384578!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!1!001!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to PACIFIC SIERRA RESEARCH CORPOR for work described as: 200303!000046!5700!GQ05 !AFRL/IFKRF !F3060203C0001 !A!N! !N! !20021218!20071217!056447204!001381284!001381284!N!VERIDIAN SYSTEMS DIVISION, INC!1400 KEY BLVD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract awarded to Veridian Systems Division for electronics and communication R&D represents a significant investment. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The contract's duration of 5 years and cost-plus-fixed-fee structure warrant scrutiny for cost control. 4. The sector is Defense R&D, a critical area for technological advancement. 5. Oversight and accountability mechanisms need to be clearly defined for this substantial award.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the CPFF structure means the government bears cost risk, potentially impacting the final price.

Taxpayer Impact: The government is paying for research and development, aiming for technological advancement. The effectiveness of this spending in achieving its R&D goals will determine the ultimate taxpayer impact.

Public Impact

Taxpayers fund advanced defense technologies through this contract. The contract supports innovation in electronics and communication for national security. Potential for technological breakthroughs that could have civilian applications in the future. The long duration may indicate a complex or evolving research project.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Cost Plus Fixed Fee structure
Long contract duration
Lack of specific cost breakdown for analysis

Positive Signals

Full and open competition
Focus on critical R&D area

Sector Analysis

This contract falls within the Defense Research and Development sector, specifically focusing on electronics and communication. Spending in this area is crucial for maintaining technological superiority but requires careful management due to inherent uncertainties in R&D.

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 assess small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The CPFF structure necessitates robust oversight to ensure costs are reasonable and allocable.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Long contract duration may indicate scope creep or unforeseen challenges
Lack of detailed performance metrics in provided data
Limited insight into specific R&D deliverables and their impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to PACIFIC SIERRA RESEARCH CORPOR. 200303!000046!5700!GQ05 !AFRL/IFKRF !F3060203C0001 !A!N! !N! !20021218!20071217!056447204!001381284!001381284!N!VERIDIAN SYSTEMS DIVISION, INC!1400 KEY BLVD !ARLINGTON !VA!22209!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000288000!N!N!000027384578!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2002-12-18. End: 2007-12-17.

What specific technological advancements are expected from this R&D contract, and how will their success be measured?

The contract focuses on 'Electronics and Communication' R&D. Specific advancements are not detailed in the provided data. Success measurement would typically involve milestones, prototypes, or successful testing of developed technologies, aligned with the project's defined objectives and the agency's strategic goals for defense capabilities.

Given the CPFF structure, what mechanisms are in place to control costs and prevent potential overruns?

Cost Plus Fixed Fee contracts require stringent oversight. Mechanisms likely include regular audits, detailed cost reporting, negotiation of the fixed fee based on estimated costs, and clear criteria for allowable costs. The contracting officer and administrative contracting officer play crucial roles in monitoring expenditures and ensuring compliance with contract terms.

How does the $110M investment in this specific R&D area align with broader Department of Defense modernization priorities?

The contract's focus on electronics and communication R&D likely aligns with DoD priorities for advanced C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities, electronic warfare, and secure communication networks. The specific alignment would depend on current strategic defense assessments and future operational needs.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1400 KEY BLVD, ARLINGTON, VA, 08

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline