DoD's $20.17M particle analysis contract with Schafer Government Services, awarded in 2008, concluded in 2014

Contract Overview

Contract Amount: $20,171,568 ($20.2M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2014-03-31

Contract Duration: 2,007 days

Daily Burn Rate: $10.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PARTICLE SAMPLE ANALYSIS

Place of Performance

Location: NORTH BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01862

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: PARTICLE SAMPLE ANALYSIS Key points: 1. The contract's value of over $20 million for particle analysis suggests a significant need for specialized testing services within the Department of Defense. 2. Awarded as a sole-source contract, it bypasses competitive bidding, potentially impacting price discovery and value for money. 3. The contract duration of approximately six years indicates a long-term requirement for these services. 4. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost overruns if not closely monitored. 5. The absence of small business set-aside flags raises questions about opportunities for smaller firms in this specialized sector. 6. The NAICS code 541380 (Testing Laboratories and Services) places this contract within a specific industry segment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source particle analysis contracts from the same period. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for R&D or uncertain scope work, carries inherent risks of cost escalation. Without detailed cost breakdowns or comparisons to market rates for similar specialized testing, it's difficult to definitively assess if the $20.17 million represented excellent value. The lack of competition further complicates a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgency precludes a full and open competition. The lack of multiple bidders means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Sole-source awards require strong justification to ensure public funds are used efficiently.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical particle analysis services. These services likely support defense readiness, material science research, or quality assurance for defense systems. The geographic impact is primarily within the defense sector, potentially supporting operations or research facilities nationwide. The contract supported specialized scientific and technical workforce roles within Schafer Government Services, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for money.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed stringently.
Lack of transparency in the sole-source justification process.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Contract fulfilled a specific, likely critical, need for the Department of Defense.
Long contract duration suggests a stable and reliable service provider.
Specialized nature of particle analysis indicates high technical expertise.

Sector Analysis

The contract falls under the 'Testing Laboratories and Services' sector (NAICS 541380), a niche within professional, scientific, and technical services. This sector is crucial for various industries, including defense, aerospace, and manufacturing, providing essential quality control, research, and development support. Comparable spending in this sector can vary widely based on the specificity of the testing required. Defense spending on specialized testing services often represents a significant portion of the overall R&D and procurement budgets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were mandated or actively sought. This suggests that the primary contractor, Schafer Government Services, LLC, likely performed the majority of the work internally, potentially limiting the direct economic benefit to the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The 'Cost Plus Fixed Fee' structure necessitates rigorous financial oversight to control costs and prevent overruns. Transparency regarding the sole-source justification and performance metrics would be key accountability measures. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development Contracts
Scientific and Technical Services Contracts
Department of Defense Testing and Evaluation
Cost-Plus Contracts
Sole-Source Procurements

Risk Flags

Sole-source award may indicate limited market availability or justification issues.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to SCHAFER GOVERNMENT SERVICES, LLC. PARTICLE SAMPLE ANALYSIS

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2008-10-01. End: 2014-03-31.

What specific types of particles were analyzed under this contract, and what was the primary purpose of this analysis for the Department of Defense?

The provided data does not specify the exact types of particles analyzed or the primary purpose. However, 'Particle Sample Analysis' within the Department of Defense context could range from analyzing contaminants in fuel or hydraulic systems, examining wear particles in machinery to predict failures, material science research involving micro or nanoparticles, or forensic analysis of debris. The scale of the contract ($20.17M) suggests a significant and ongoing requirement, likely tied to operational readiness, maintenance, or advanced technological development critical for national security.

Can the 'Cost Plus Fixed Fee' (CPFF) structure be considered a risk for this contract, and how might it have impacted the final cost?

Yes, the CPFF structure inherently carries risks. While it provides the contractor with a guaranteed profit (the fixed fee), it shifts the primary cost risk to the government. If the contractor's actual costs exceed the estimated costs, the government still pays the actual costs plus the pre-determined fee. This structure can incentivize contractors to incur higher costs than necessary, as their fee remains constant. Effective oversight by the DCMA would be crucial to mitigate this risk by scrutinizing costs, ensuring efficiency, and preventing unnecessary expenditures to keep the final cost as close to the target as possible.

What are the implications of this contract being awarded as 'NOT COMPETED' (sole-source) for taxpayer value?

A sole-source award means the contract was not subjected to a competitive bidding process. This typically results in a lack of price transparency and potentially higher costs for taxpayers, as there is no market pressure to drive down prices. While sole-source awards are sometimes justified by unique capabilities or urgent needs, they bypass the standard mechanism for ensuring the government receives the best possible value. Without competition, it's harder to benchmark the price against market rates or alternative providers, raising concerns about whether taxpayer funds were used most efficiently.

How does the duration of this contract (2008-2014) compare to typical contracts for specialized testing services in the defense sector?

A contract duration of approximately six years (from award date Oct 2008 to end date Mar 2014, totaling 2007 days or ~5.5 years of performance) is relatively long for many service contracts, but not uncommon for specialized, long-term research, development, or sustainment support within the defense sector. Such durations often indicate a stable, ongoing requirement for the specific services provided. Shorter durations might be more typical for routine testing, while longer periods suggest a strategic need for consistent expertise and support, potentially involving complex projects or evolving technological requirements.

What is the significance of the NAICS code 541380 (Testing Laboratories and Services) in understanding this contract's context?

The NAICS code 541380, 'Testing Laboratories and Services,' categorizes Schafer Government Services, LLC's work under this contract. This code encompasses establishments primarily engaged in providing physical testing services, such as materials testing, environmental testing, and product testing. For the Department of Defense, this classification highlights the contract's role in ensuring the quality, reliability, and performance of materials, components, or systems critical to military operations. It places the contract within a specific segment of the professional and technical services market.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA252108R8001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gryphon Technologies, Inc. (UEI: 081041651)

Address: 3811 N FAIRFAX DR STE 400, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $20,460,679

Exercised Options: $20,460,679

Current Obligation: $20,171,568

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline