DoD's $28M BIG SAFARI contract to TATE, INCORPORATED for R&D services awarded via sole-source

Contract Overview

Contract Amount: $28,000,287 ($28.0M)

Contractor: Tate, Incorporated

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2025-03-31

Contract Duration: 730 days

Daily Burn Rate: $38.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIG SAFARI

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to TATE, INCORPORATED for work described as: BIG SAFARI Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's value of $28 million over two years suggests a significant investment in research and development. 3. Performance is located in Virginia, potentially impacting the local economy and workforce. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. The NAICS code 541715 indicates a focus on physical, engineering, and life sciences R&D. 6. The absence of small business set-aside raises questions about opportunities for smaller innovative firms.

Value Assessment

Rating: fair

Benchmarking the value of this $28 million R&D contract is challenging without specific deliverables. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. The fixed fee component provides some cost certainty for the contractor's effort, but the government bears the risk of actual costs incurred. Comparing this to similar sole-source R&D contracts would be necessary for a more precise 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 competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or technology required for the project. While it ensures access to specialized expertise, it eliminates the price discovery benefits that come from a competitive bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may face higher costs due to the lack of competitive pressure to drive down prices. The absence of competition also means less opportunity to leverage market forces for innovation and efficiency.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving specialized R&D services. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved defense capabilities. Services are being performed in Virginia, contributing to the state's technology and research sector. The contract may indirectly impact the scientific and engineering workforce through employment opportunities at TATE, INCORPORATED and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Cost Plus Fixed Fee contract type introduces risk of cost overruns.
Lack of small business participation may limit opportunities for smaller innovative firms.

Positive Signals

Award to a single, potentially specialized contractor ensures access to specific expertise.
The contract duration of two years allows for sustained research and development efforts.
The specific NAICS code suggests a focus on critical R&D areas.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological advancement. The market for specialized R&D services is often characterized by high barriers to entry due to intellectual property, specialized talent, and proprietary knowledge. Comparable spending benchmarks would depend heavily on the specific sub-field of R&D and the nature of the services provided.

Small Business Impact

This contract does not appear to include a small business set-aside. The sole-source nature of the award further suggests that opportunities for small businesses, either as prime contractors or subcontractors, may be limited unless specifically included in TATE, INCORPORATED's subcontracting plan. This could represent a missed opportunity to foster innovation within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. The Cost Plus Fixed Fee structure necessitates rigorous oversight of incurred costs to ensure compliance with contract terms and prevent unnecessary expenditures. Transparency regarding the specific R&D objectives and progress would be crucial for effective accountability.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to TATE, INCORPORATED. BIG SAFARI

Who is the contractor on this award?

The obligated recipient is TATE, INCORPORATED.

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 $28.0 million.

What is the period of performance?

Start: 2023-04-01. End: 2025-03-31.

What specific research and development objectives does this contract aim to achieve?

The provided data does not specify the exact research and development objectives for the BIG SAFARI contract awarded to TATE, INCORPORATED. However, the NAICS code 541715 indicates that the work is related to 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This broad category could encompass a wide range of activities, from fundamental scientific inquiry to applied engineering solutions aimed at enhancing defense capabilities. Further details would likely be found in the contract's statement of work or associated documentation, which are not publicly available in this dataset. Understanding the specific goals is crucial for assessing the contract's alignment with strategic priorities and its potential impact.

How does the $28 million contract value compare to similar sole-source R&D contracts in the physical, engineering, and life sciences sectors?

Directly comparing the $28 million value of this sole-source R&D contract to similar ones is challenging without access to a comprehensive database of sole-source R&D awards with detailed scope information. However, $28 million over two years for specialized R&D is a substantial investment. Sole-source awards in R&D often reflect unique technological capabilities or proprietary research, which can command higher price points than competed contracts. The Cost Plus Fixed Fee (CPFF) structure also means the final cost can fluctuate based on actual expenses. To provide a robust comparison, one would need to analyze contracts with similar NAICS codes, contract types, and durations, while accounting for the specific technological domain and the unique qualifications of the contractor.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type, while suitable for R&D where scope can be uncertain, carries inherent risks. The primary risk for the government is cost overrun, as the contractor is reimbursed for all allowable costs incurred, plus a fixed fee. If costs escalate beyond initial projections, the total expenditure will increase. Effective oversight is critical to ensure that all costs claimed are reasonable, allocable, and allowable. The fixed fee provides an incentive for the contractor to control costs to some extent, as their profit is capped, but the government bears the majority of the cost risk. This necessitates robust monitoring of contractor performance and expenditures throughout the contract lifecycle.

What is TATE, INCORPORATED's track record with government R&D contracts, particularly sole-source awards?

Information regarding TATE, INCORPORATED's specific track record with government R&D contracts, especially sole-source awards, is not provided in the given dataset. A thorough assessment would require examining their past performance history, including contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of cost overruns or disputes. Understanding their experience in the physical, engineering, and life sciences R&D domain, and their ability to manage CPFF contracts effectively, would be crucial for evaluating the risk associated with this particular award. Without this historical data, it's difficult to gauge their reliability and past success.

Given the sole-source nature, what mechanisms are in place to ensure fair pricing and prevent contractor overcharging?

In sole-source procurements, ensuring fair pricing relies heavily on pre-award price analysis conducted by the government. This typically involves reviewing the contractor's proposed costs, including labor, materials, and overhead, against independent government estimates, historical pricing data for similar services, and market research. For CPFF contracts, the government scrutinizes allowable costs rigorously. Mechanisms include detailed audits of contractor expenditures, negotiation of fair and reasonable rates, and potentially requiring certified cost and pricing data from the contractor. The contracting officer is responsible for determining that the proposed price is fair and reasonable before award. Post-award, ongoing oversight and audits help maintain cost control.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

Address: 1800 DIAGONAL RD STE 520, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $28,000,287

Exercised Options: $28,000,287

Current Obligation: $28,000,287

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862021G4022

IDV Type: BOA

Timeline