DoD's $13.7M contract for weather reporting services awarded to 3D Research Corporation shows potential value concerns

Contract Overview

Contract Amount: $13,715,215 ($13.7M)

Contractor: 3D Research Corporation

Awarding Agency: Department of Defense

Start Date: 2003-05-19

End Date: 2008-12-31

Contract Duration: 2,053 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Other

Official Description: 200308!000205!5700!AC42 !ACC CONS/CC !F4465003C0002 !A!N! !Y! !20030519!20040630!019922855!019922855!019922855!N!3D RESEARCH CORPORATION !4910 CORPORATE DRIVE SUITE!HUNTSVILLE !AL!35805!35000!650!51!HAMPTON !HAMPTON (CITY) !VIRGINIA !+000002406031!N!N!000000000000!R427!WEATHER REPORTING/OBSERVATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!007!K! !C!N!Z! ! !Y!A!Y!N!F! ! ! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HAMPTON, HAMPTON (CITY) County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to 3D RESEARCH CORPORATION for work described as: 200308!000205!5700!AC42 !ACC CONS/CC !F4465003C0002 !A!N! !Y! !20030519!20040630!019922855!019922855!019922855!N!3D RESEARCH CORPORATION !4910 CORPORATE DRIVE SUITE!HUNTSVILLE !AL!35805!35000!650!51!HAMPTON !HAMPT… Key points: 1. The contract's duration of over 5 years and total value of $13.7M warrants scrutiny for cost-effectiveness. 2. While competed, the specific nature of the competition (full and open after exclusion of sources) requires deeper analysis. 3. The contractor, 3D Research Corporation, has a significant contract history, necessitating a review of past performance. 4. The service type, 'Weather Reporting/Observation Services,' is critical for military operations, impacting readiness. 5. The contract's geographic focus on Hampton, Virginia, suggests localized operational support. 6. The contract's classification under 'All Other Professional, Scientific, and Technical Services' indicates a broad scope.

Value Assessment

Rating: fair

The total contract value of $13.7 million over approximately 5.5 years averages to roughly $2.5 million annually. Benchmarking this against similar weather reporting and observation services contracts is crucial. Without direct comparisons, it's difficult to definitively assess if this represents excellent value. The contract's duration and scope suggest a need for detailed cost-benefit analysis to ensure taxpayer funds are used efficiently.

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 indicates that while the competition was open, certain sources may have been excluded prior to the solicitation, which could limit the pool of potential bidders. The number of bidders (7) suggests a moderate level of competition. Further details on the exclusion criteria would be needed to fully assess the impact on price discovery.

Taxpayer Impact: A moderately competitive process, even with source exclusions, generally aims to secure fair market prices. However, understanding the rationale behind any exclusions is key to ensuring taxpayers received the best possible value.

Public Impact

The Department of Defense benefits from specialized weather reporting and observation services essential for operational planning and safety. This contract supports the Air Force's mission by providing critical environmental data. The services are geographically focused on Hampton, Virginia, likely supporting local military installations. The contract supports a workforce involved in scientific and technical services related to meteorology and data analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion criteria.
Need to verify if the $13.7M value represents a competitive price over the contract's extended duration.
Performance metrics and quality assurance details are not readily available for assessment.

Positive Signals

Awarded through a full and open competition process, indicating an effort to solicit broad interest.
The contractor has a history of federal contracts, suggesting experience in government service delivery.
The contract duration implies a stable, long-term need for these specialized services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide range of specialized services. The market for weather reporting and observation services is driven by government needs, particularly in defense and aviation, where accurate environmental data is critical for safety and operational effectiveness. Comparable spending benchmarks would require detailed analysis of similar meteorological support contracts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting plans specifically targeting small businesses. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this Department of Defense contract would typically fall under the purview of the contracting agency (Department of the Air Force) and potentially the Department of Defense Inspector General. Accountability measures would be defined in the contract's performance work statement and terms. Transparency is facilitated by contract databases, but detailed performance reports and audits are not always publicly accessible.

Related Government Programs

DoD Weather Support Contracts
Meteorological Services Contracts
Professional and Technical Services
Air Force Operational Support

Risk Flags

Potential for limited competition due to source exclusion.
Value for money requires further benchmarking.
Performance metrics not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to 3D RESEARCH CORPORATION. 200308!000205!5700!AC42 !ACC CONS/CC !F4465003C0002 !A!N! !Y! !20030519!20040630!019922855!019922855!019922855!N!3D RESEARCH CORPORATION !4910 CORPORATE DRIVE SUITE!HUNTSVILLE !AL!35805!35000!650!51!HAMPTON !HAMPTON (CITY) !VIRGINIA !+000002406031!N!N!000000000000!R427!WEATHER REPORTING/OBSERVATION SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is 3D RESEARCH CORPORATION.

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 $13.7 million.

What is the period of performance?

Start: 2003-05-19. End: 2008-12-31.

What is the track record of 3D Research Corporation with federal contracts, particularly in weather services?

3D Research Corporation has a history of receiving federal contracts, primarily with the Department of Defense. While specific details on their performance for weather reporting services require deeper investigation into past contract performance reports (CPARs), their sustained engagement with the government suggests a level of capability. Analyzing their portfolio of past awards can indicate their specialization and success in delivering similar technical and scientific services. It's important to review if they have faced any significant performance issues or disputes on previous contracts, especially those of similar scope and value, to gauge their reliability for this current award.

How does the $13.7 million value compare to similar weather reporting service contracts?

Benchmarking the $13.7 million value against similar weather reporting and observation services contracts is essential for assessing value for money. Contracts for meteorological support can vary significantly based on the scope of services, duration, geographic coverage, and technological requirements. Without access to a comprehensive database of comparable contracts, it's challenging to provide a precise comparison. However, an annual average of approximately $2.5 million for specialized weather services suggests a substantial investment. A detailed analysis would involve identifying contracts with similar service descriptions, agency needs (e.g., military vs. civilian), and contract lengths to determine if this award is within the expected market range or if it indicates potential overpricing or exceptional value.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The specific Key Performance Indicators (KPIs) and performance measurement methodologies for this contract are not detailed in the provided summary data. Typically, for weather reporting and observation services, KPIs might include data accuracy, timeliness of reports, system uptime, and responsiveness to specific operational needs. The contract's Performance Work Statement (PWS) would outline these requirements and the methods for assessing the contractor's adherence. Without this information, it's difficult to objectively evaluate the contractor's performance and the overall effectiveness of the service delivery. Oversight agencies would rely on CPARs and periodic reviews to track these metrics.

What is the strategic importance of these weather services to the Department of the Air Force?

Weather reporting and observation services are strategically vital for the Department of the Air Force, impacting a wide range of operations. Accurate and timely meteorological data is crucial for flight planning, ensuring aviation safety, optimizing mission execution, and protecting personnel and assets from adverse weather conditions. For military operations, understanding weather patterns can influence strategic decisions, deployment readiness, and the effectiveness of air and space capabilities. This contract ensures the Air Force has the necessary environmental intelligence to maintain operational superiority and safety in diverse and potentially challenging conditions.

Were there any specific technological requirements or innovations associated with this contract?

The provided data does not specify any unique technological requirements or innovations associated with this contract for weather reporting and observation services. Contracts in this domain can range from maintaining existing observation systems to implementing advanced forecasting technologies or integrating new data sources. The nature of the services (NAICS 541990) suggests a need for technical expertise. Further details within the contract solicitation and award documents would be necessary to ascertain if cutting-edge technology or specific system upgrades were a key component of this procurement.

What is the historical spending trend for weather reporting services within the Department of the Air Force?

Analyzing historical spending trends for weather reporting services within the Department of the Air Force is crucial for context. While this specific contract represents a $13.7 million investment over its period, understanding the broader spending patterns can reveal whether this is a typical expenditure or an outlier. Factors influencing historical spending include evolving technological capabilities, changes in operational requirements, and shifts in budgeting priorities. A trend analysis would involve examining annual outlays for similar services over several fiscal years to identify patterns, potential increases or decreases in investment, and the overall significance of such services within the Air Force's budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 7

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Parent Company: Citigroup Inc. (UEI: 197329691)

Address: 7057 OLD MADISON PIKE, HUNTSVILLE, AL, 05

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline