DoD's $27.4M R&D contract with ManTech Advanced Systems International, Inc. shows mixed value and competition

Contract Overview

Contract Amount: $27,373,256 ($27.4M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2022-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF HQ USAF STUDIES ANALYSES ASSESSMENTS FORCE STRUCTURE ANALYSES DIRECTORATE (HQ USAF/A9F)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: IGF::OT::IGF HQ USAF STUDIES ANALYSES ASSESSMENTS FORCE STRUCTURE ANALYSES DIRECTORATE (HQ USAF/A9F) Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and benchmarking. 2. Competition was robust, suggesting potential for competitive pricing, but the final price relative to value is not fully transparent. 3. Risk indicators are moderate, with potential for cost overruns given the Cost Plus Fixed Fee structure. 4. The contract's duration of five years provides a long-term engagement but requires continuous oversight. 5. This contract falls within the broader R&D sector, specifically focusing on physical and engineering sciences. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking this $27.4 million contract against similar R&D efforts is challenging without specific deliverables and performance outcomes. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D, can introduce risks of cost escalation if not tightly managed. The total value appears substantial, but its alignment with achieved research objectives needs further scrutiny to determine true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. While the number of bidders is not specified, this approach generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions. The agency's commitment to open competition is a positive signal for market engagement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The primary beneficiaries are likely the Department of Defense research initiatives, aiming to advance technological capabilities. Services delivered include research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily within the United States, supporting domestic R&D efforts. Workforce implications include the potential for highly skilled scientific and engineering jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure may lead to cost overruns if not meticulously managed.
Lack of specific performance metrics makes value assessment difficult.
Absence of small business participation noted.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Long contract duration (5 years) allows for sustained research and development.
Contractor has experience in advanced systems and R&D.

Sector Analysis

This contract operates within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers R&D in physical, engineering, and life sciences (except biotechnology). This is a critical sector for national security and technological advancement. Comparable spending in this area is significant across various government agencies, with R&D contracts often representing substantial investments aimed at future capabilities.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that opportunities for small businesses may have been limited unless they were prime contractors or subcontractors on larger bids. Further analysis would be needed to determine if subcontracting plans were mandated or if small businesses were actively engaged.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and oversight mechanisms, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the Cost Plus Fixed Fee structure and the achievement of research milestones. Transparency is facilitated by contract award databases, but detailed performance reporting may be less public.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Physical Sciences Research
Science and Technology Reinvention Program (STIR)

Risk Flags

Cost Plus Fixed Fee structure carries inherent cost overrun risk.
Lack of specific performance metrics hinders value assessment.
Potential for limited small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. IGF::OT::IGF HQ USAF STUDIES ANALYSES ASSESSMENTS FORCE STRUCTURE ANALYSES DIRECTORATE (HQ USAF/A9F)

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, 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 $27.4 million.

What is the period of performance?

Start: 2017-09-29. End: 2022-09-29.

What is ManTech Advanced Systems International, Inc.'s track record with similar R&D contracts for the DoD?

ManTech Advanced Systems International, Inc. has a history of performing R&D contracts, including those with the Department of Defense. Their experience often spans various technical domains, including systems engineering, software development, and advanced research. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts would reveal their ability to manage costs and deliver research outcomes effectively. Specific data on past contract values, performance ratings, and any incurred cost overruns or underruns would provide a clearer picture of their reliability and efficiency in executing complex R&D projects for government clients.

How does the $27.4 million value compare to similar R&D contracts in physical and engineering sciences?

The $27.4 million value for a five-year R&D contract in physical and engineering sciences is within a moderate range for federal procurements. However, without specific details on the scope of work, deliverables, and the technological maturity targeted, a direct comparison is difficult. Larger, more complex R&D initiatives, particularly those involving cutting-edge technology development or large-scale system integration, can easily exceed hundreds of millions or even billions of dollars. Conversely, smaller, more focused research projects might be valued in the low millions. This contract's value suggests a significant but not exceptionally large undertaking within the broader R&D landscape.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract for R&D is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a guaranteed profit margin. If costs escalate significantly beyond initial estimates, the government bears the brunt of these increases, as the fee remains constant. For the contractor, the risk lies in underestimating costs, which could reduce their effective profit margin. Effective oversight, detailed cost tracking, and robust negotiation are crucial to mitigate these risks and ensure the government receives good value.

How effective is the 'full and open competition' approach for R&D contracts of this nature?

The 'full and open competition' approach is generally considered highly effective for R&D contracts as it maximizes the pool of potential offerors, fostering innovation and potentially leading to better pricing. For R&D, where novel solutions are often sought, a wider competition can uncover unique approaches and technologies. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the agency's ability to manage a potentially larger number of proposals. For complex R&D, ensuring offerors have the requisite specialized expertise is paramount, and evaluation processes must be rigorous to select the best technical approach alongside cost considerations.

What historical spending patterns exist for R&D contracts under HQ USAF/A9F?

Historical spending patterns under HQ USAF/A9F (Directorate for Force Structure Analyses) would likely show a consistent investment in research and development aimed at informing future Air Force capabilities and strategic planning. This directorate typically focuses on analyses that support long-term force structure decisions, which often necessitates R&D contracts for studies, assessments, and advanced concept development. Spending in this area can fluctuate based on evolving threats, technological advancements, and budgetary priorities, but a sustained commitment to R&D is characteristic of such analytical and strategic planning units within the Air Force.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA807515R0001

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DRIVE, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $36,581,060

Exercised Options: $36,581,060

Current Obligation: $27,373,256

Actual Outlays: $4,513,376

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,499,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807516D0007

IDV Type: IDC

Timeline