DoD's $8.86M contract for LBIR facility awarded to Jung Research and Development Corp

Contract Overview

Contract Amount: $8,863,154 ($8.9M)

Contractor: Jung Research and Development Corp

Awarding Agency: Department of Defense

Start Date: 2022-02-01

End Date: 2026-01-31

Contract Duration: 1,460 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LOW BACKGROUND INFRARED(LBIR) FACILITY

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20816

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $8.9 million to JUNG RESEARCH AND DEVELOPMENT CORP for work described as: LOW BACKGROUND INFRARED(LBIR) FACILITY Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 4 years indicates a significant, long-term need. 4. The contract is for testing laboratories and services, a critical support function. 5. Awarded by the Department of the Air Force, a major DoD component. 6. The contractor, Jung Research and Development Corp, is the sole awardee. 7. The contract is not a small business set-aside, potentially impacting small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical requirements for a Low Background Infrared (LBIR) facility. Without competitive bids, it's difficult to ascertain if the $8.86 million represents a fair market price. The firm-fixed-price structure provides cost certainty, but the lack of competition raises concerns about potential overpricing. Further analysis would require understanding the specific technical specifications and market rates for similar specialized testing facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Jung Research and Development Corp, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, which can limit the government's ability to secure the lowest possible price.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive services for a critical LBIR facility. The contract supports advanced testing and research capabilities essential for defense applications. The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the services will likely be performed. The contract supports specialized technical and scientific workforce needs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the justification for sole-source award.
Contract performance risks are not fully detailed due to limited public information.
Potential for contractor lock-in given the specialized nature of the facility.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Award to a specific R&D corporation suggests specialized expertise.
Long-term contract (4 years) indicates a sustained need and potential for stable support.

Sector Analysis

The contract falls within the 'Testing Laboratories and Services' sector (NAICS 541380), a niche but critical area supporting research and development across various industries, particularly defense. The market for specialized facilities like LBIR is often limited to a few highly qualified contractors. Spending in this sector is driven by the need for precise measurement, validation, and quality assurance of advanced materials and systems. Comparable spending benchmarks are difficult to establish without more specific details on the facility's capabilities and the scope of testing.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary focus was on securing the specialized services required, potentially from a larger or more specialized entity. The impact on the small business ecosystem is likely minimal unless Jung Research and Development Corp voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited by the sole-source nature of the award and the proprietary aspects of LBIR facilities. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Scientific and Technical Support Services
Specialized Testing and Measurement Services
Federal Facilities Construction and Maintenance

Risk Flags

Sole-source award raises concerns about price competition and value for money.
Limited public information on the specific technical requirements and justification for sole-source.
Potential for cost overruns if not adequately managed, despite fixed-price structure.
Dependence on a single contractor for critical testing capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.9 million to JUNG RESEARCH AND DEVELOPMENT CORP. LOW BACKGROUND INFRARED(LBIR) FACILITY

Who is the contractor on this award?

The obligated recipient is JUNG RESEARCH AND DEVELOPMENT CORP.

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 $8.9 million.

What is the period of performance?

Start: 2022-02-01. End: 2026-01-31.

What is the specific justification for awarding this contract on a sole-source basis to Jung Research and Development Corp?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE SOURCE'. While the specific justification is not detailed, common reasons for sole-source awards include the existence of unique capabilities, proprietary technology, urgent and compelling needs where competition is impractical, or when only one responsible source is available. For a specialized facility like Low Background Infrared (LBIR), it's plausible that Jung Research and Development Corp possesses unique expertise, proprietary equipment, or has developed a specific infrastructure essential for the Air Force's requirements that cannot be met by other contractors. A formal Justification for Other than Full and Open Competition (JOFOC) would typically be required and documented internally by the agency.

How does the $8.86 million contract value compare to similar LBIR facility contracts or services?

Direct comparison of the $8.86 million contract value for this LBIR facility is challenging without more specific details on the scope of work, duration, and technical requirements. Specialized scientific facilities and testing services can vary significantly in cost based on complexity, equipment, and location. Given the 4-year duration (1460 days), the average annual value is approximately $2.215 million. This figure needs to be assessed against the specific capabilities provided. Without access to a database of comparable sole-source or competitively bid LBIR facility contracts, a precise benchmark is not feasible. However, the amount suggests a significant investment in specialized infrastructure and services.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, for a contract involving a specialized facility like LBIR, typical performance metrics would likely include: adherence to testing schedules, accuracy and reliability of test results, compliance with safety and operational protocols, equipment uptime and maintenance, and timely delivery of reports or data. The firm-fixed-price nature of the contract implies that meeting the defined scope of work and quality standards within the agreed price is a primary measure of success. The Air Force's program office would be responsible for monitoring these aspects throughout the contract's performance period.

What is Jung Research and Development Corp's track record with government contracts, particularly with the Department of Defense?

Information on Jung Research and Development Corp's specific track record with government contracts, especially with the Department of Defense, is not detailed in the provided data. To assess their performance, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, or previous sole-source awards. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to understand their history, including contract values, agencies served, and performance ratings. Without this historical data, it's difficult to gauge their reliability and past performance on similar projects.

What are the potential risks associated with a sole-source contract for specialized facilities like LBIR?

Sole-source contracts for specialized facilities like LBIR carry several potential risks. Firstly, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, representing a potential loss of value for taxpayer money. Secondly, there's a risk of contractor complacency or reduced incentive to innovate once a long-term, sole-source relationship is established. Thirdly, if the contractor faces financial difficulties or operational issues, the government may have limited alternative options for fulfilling its needs, potentially leading to program disruptions. Finally, the justification for sole-source awards needs rigorous scrutiny to ensure it is genuinely warranted and not a result of poor planning or an unwillingness to explore competitive options.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA226321R0004

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5508 CROMWELL DR, BETHESDA, MD, 20816

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

Financial Breakdown

Contract Ceiling: $9,985,099

Exercised Options: $9,985,099

Current Obligation: $8,863,154

Actual Outlays: $1,521,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline