DoD's $313M R&D contract to Odyssey Systems Consulting Group awarded under full and open competition

Contract Overview

Contract Amount: $313,008,552 ($313.0M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2015-06-01

End Date: 2020-11-30

Contract Duration: 2,009 days

Daily Burn Rate: $155.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF EPASS RFP # 09, EB EGLIN

Place of Performance

Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $313.0 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: IGF::OT::IGF EPASS RFP # 09, EB EGLIN Key points: 1. Contract value represents a significant investment in specialized R&D services. 2. Full and open competition suggests a robust bidding process. 3. The contract's duration and value indicate a long-term, high-stakes engagement. 4. Performance period spans over five years, requiring sustained delivery. 5. The R&D focus aligns with critical national security objectives. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight.

Value Assessment

Rating: good

The contract's total value of $313 million over five years suggests a substantial investment. Benchmarking against similar large-scale R&D contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee (CPFF) structure implies that costs are reimbursed plus a fixed fee, which can be efficient for R&D where scope may evolve, but necessitates diligent oversight to ensure costs remain reasonable and the fixed fee is appropriate for the effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had exclusions, the final award was made through a competitive process open to all eligible offerors. The presence of six bidders (no) suggests a healthy level of competition for this significant R&D requirement.

Taxpayer Impact: A competitive award process generally leads to better price discovery and potentially more favorable terms for taxpayers, as multiple firms vie to win the contract.

Public Impact

Benefits the Department of Defense by advancing research and development capabilities. Services delivered likely include advanced technological research, prototyping, and analysis. Geographic impact is primarily within the defense sector, potentially supporting national security initiatives. Workforce implications include specialized scientific, engineering, and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
The broad R&D scope may present challenges in defining and measuring specific deliverables.
Long-term contracts require continuous monitoring to ensure ongoing relevance and value.

Positive Signals

Full and open competition indicates a fair and transparent procurement process.
The award to a single entity suggests a strong capability match for the complex R&D needs.
The contract's duration allows for in-depth research and development, potentially leading to significant breakthroughs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high technical barriers to entry, significant government investment, and a focus on innovation for national security. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD and other federal agencies for similar scientific and engineering services.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While Odyssey Systems Consulting Group, Ltd. may engage small businesses as subcontractors, the primary award was not designated for small business set-aside. This means the direct impact on the small business ecosystem is likely through subcontracting opportunities rather than direct prime contracting.

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. Accountability measures are embedded in the Cost Plus Fixed Fee contract structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering and Technical Services Contracts
Air Force Science and Technology Investments

Risk Flags

Cost Overrun Risk
Scope Creep Potential
Long-Term Project Management Complexity
Defining Measurable R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $313.0 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. IGF::OT::IGF EPASS RFP # 09, EB EGLIN

Who is the contractor on this award?

The obligated recipient is ODYSSEY SYSTEMS CONSULTING GROUP, LTD..

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 $313.0 million.

What is the period of performance?

Start: 2015-06-01. End: 2020-11-30.

What is the track record of Odyssey Systems Consulting Group, Ltd. with federal contracts, particularly in R&D?

Odyssey Systems Consulting Group, Ltd. has a history of performing federal contracts, primarily within the defense sector. Their portfolio often includes a range of services from engineering and technical support to research and development. Analyzing their past performance on similar R&D contracts, including their ability to meet cost, schedule, and performance requirements, is crucial. Past performance evaluations and any reported issues or successes on previous contracts provide insight into their reliability and capability to execute complex R&D projects. Specific data on their success rate, contract modifications, and any disputes would offer a more comprehensive view of their track record.

How does the $313 million value compare to similar R&D contracts awarded by the Department of Defense?

A total contract value of $313 million over approximately five years places this award among significant R&D investments by the Department of Defense. To benchmark effectively, one would compare this to other large-scale R&D contracts awarded to prime contractors for similar scientific and engineering disciplines (NAICS 541712). Factors such as contract duration, specific research areas, and the number of bidders influence comparability. For instance, contracts for advanced materials research, aerospace engineering, or cybersecurity R&D within the DoD could serve as benchmarks. A higher value relative to comparable contracts might warrant further scrutiny into the scope or pricing, while a value within the typical range suggests standard market rates for such services.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and scope definition. For the government, the risk is that the contractor may not have sufficient incentive to control costs, as all allowable costs are reimbursed. The 'fixed fee' component provides some incentive, but it is applied to the estimated cost, not the actual cost. If costs escalate significantly beyond initial estimates, the fee as a percentage of actual costs can decrease, potentially impacting contractor motivation. For the contractor, risks include underestimating the effort required, leading to the fixed fee becoming insufficient compensation for the work performed, or facing challenges in defining and achieving the R&D objectives within the allocated budget and timeline. Robust oversight, clear milestones, and detailed cost reporting are essential to mitigate these risks.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply for this contract?

The designation 'Full and Open Competition After Exclusion of Sources' indicates a nuanced procurement approach. Initially, certain sources or types of sources might have been excluded from consideration, perhaps due to specific technological requirements, existing partnerships, or unique capabilities. However, after this initial exclusion, the remaining pool of potential offerors was subjected to a full and open competitive process. This means that all responsible sources that were not excluded were permitted to submit proposals. The fact that six bids were received suggests that even after exclusions, there was sufficient competition to ensure a robust selection process and potentially achieve favorable pricing and technical solutions for the government.

How might this R&D contract impact future technological advancements within the Department of Defense?

This R&D contract, valued at $313 million and focused on physical, engineering, and life sciences, has the potential to significantly impact future technological advancements within the Department of Defense. The specific research areas funded under this contract will determine the direct impact, but such large-scale investments are typically aimed at developing next-generation capabilities, enhancing existing systems, or exploring novel scientific frontiers relevant to national security. Successful outcomes could lead to breakthroughs in areas like advanced materials, autonomous systems, cyber capabilities, or improved sensor technologies. These advancements can provide a critical technological edge, improve operational effectiveness, and shape future defense strategies and acquisitions.

What is the significance of the contract being awarded to Odyssey Systems Consulting Group, Ltd. for the Air Force?

The award to Odyssey Systems Consulting Group, Ltd. signifies the Department of the Air Force's confidence in the contractor's ability to deliver specialized research and development services critical to its mission. For the Air Force, securing advanced R&D capabilities is essential for maintaining technological superiority and addressing evolving threats. This contract likely supports specific strategic objectives or addresses identified capability gaps within the Air Force's portfolio. The selection process, involving full and open competition, suggests that Odyssey Systems Consulting Group, Ltd. offered the best value proposition, balancing technical merit, cost, and other evaluation factors deemed important by the Air Force for this particular R&D requirement.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 EDGEWATER DR STE 270, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $400,276,279

Exercised Options: $400,276,279

Current Obligation: $313,008,552

Actual Outlays: $15,110,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS611

IDV Type: IDC

Timeline