DoD's $12.2M R&D contract with ENSER CORPORATION shows long duration and sole-source award

Contract Overview

Contract Amount: $12,199,574 ($12.2M)

Contractor: Enser Corporation

Awarding Agency: Department of Defense

Start Date: 2004-07-28

End Date: 2012-08-30

Contract Duration: 2,955 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: PINELLAS PARK, PINELLAS County, FLORIDA, 33781

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to ENSER CORPORATION for work described as: Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. Long contract duration of nearly 8 years suggests a sustained need for the services. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a focus on advanced scientific endeavors. 4. Awarded as a Cost Plus Fixed Fee (CPFF) type, which can incentivize cost overruns if not closely monitored. 5. The contract was awarded by the Defense Contract Management Agency, indicating a focus on defense-related research. 6. The contractor, ENSER CORPORATION, has a history with this specific contract, suggesting established expertise or a long-standing relationship.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific deliverables or comparable sole-source R&D contracts. The Cost Plus Fixed Fee structure, while common for R&D, carries inherent risks of cost escalation. The total award amount of $12.2 million over nearly 8 years averages to approximately $1.56 million per year, which could be reasonable or excessive depending on the complexity and novelty of the research. Further analysis of the fixed fee component and the contractor's cost accounting practices would be necessary for a more definitive 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 typically occurs when a specific contractor possesses unique capabilities, intellectual property, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions from a wider pool of contractors.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing for taxpayers. This can result in higher costs compared to a competitively awarded contract.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, advancing scientific and technological capabilities. The contract supports research and development activities within the physical, engineering, and life sciences sectors. The geographic impact is primarily within Florida, where the contract was administered. Workforce implications include specialized scientific and engineering roles required for advanced R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs effectively.
Long contract duration may indicate a lack of readily available alternatives or a deeply embedded relationship.

Positive Signals

Contractor has a long-standing relationship with the agency, suggesting reliability and established expertise.
Focus on R&D in critical scientific fields aligns with national security objectives.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, intellectual property, and often long development cycles. Government spending in R&D is crucial for technological advancement and maintaining a competitive edge. Comparable spending benchmarks would depend heavily on the specific sub-discipline of R&D, but contracts in this area can range from millions to billions of dollars.

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 actively sought through a competitive process. The impact on the small business ecosystem is therefore minimal for this specific contract, as it bypassed the typical mechanisms for engaging small businesses in federal contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates robust financial oversight to scrutinize costs and ensure the fixed fee remains appropriate. Transparency regarding the specific research objectives and outcomes would be subject to standard government reporting and classification protocols.

Related Government Programs

Department of Defense Research and Development Programs
Physical Sciences Research Contracts
Engineering R&D Services
Life Sciences Research Grants

Risk Flags

Sole-source award limits price competition.
CPFF contract type requires diligent cost oversight.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to ENSER CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ENSER CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2004-07-28. End: 2012-08-30.

What specific research objectives were pursued under this contract, and what were the key outcomes?

The provided data does not detail the specific research objectives or outcomes of this contract. However, the NAICS code '541710 - Research and Development in the Physical, Engineering, and Life Sciences' suggests a broad scope. To understand the outcomes, one would need to access contract performance reports, final technical reports, or agency documentation related to ENSER CORPORATION's work under this award. These documents would typically outline the research questions addressed, methodologies employed, and the scientific or technological advancements achieved. Without this granular information, assessing the direct impact and success of the R&D investment is not possible from the summary data alone.

How does the average annual cost of this contract compare to similar sole-source R&D contracts awarded by the DoD?

The average annual cost of this contract is approximately $1.56 million ($12.2 million / ~7.8 years). Comparing this to similar sole-source R&D contracts requires access to a broader dataset of federal procurements. Sole-source R&D contracts can vary significantly in cost based on the complexity, duration, and criticality of the research. Without specific benchmarks for R&D in the physical, engineering, and life sciences, it's difficult to definitively state if $1.56 million annually is high or low. However, for long-term, specialized R&D, this figure might fall within a reasonable range, provided the scope of work justifies it. A comprehensive analysis would involve identifying comparable contracts based on NAICS code, contract type (CPFF), and agency.

What factors led to this contract being awarded on a sole-source basis rather than through full and open competition?

The data indicates this contract was awarded as 'NOT COMPETED,' signifying a sole-source procurement. Common justifications for sole-source awards include the unique capability or specialized knowledge of a particular contractor, the existence of proprietary data or technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. For R&D contracts, sole-source awards are often justified when a contractor has developed specific expertise, intellectual property, or has a proven track record with a particular technology or research area that is critical to the agency's mission. The specific justification would be documented in the contract file.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for R&D, and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government agrees to reimburse all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if not managed diligently. For R&D, this structure is often used because the scope and costs can be uncertain. Mitigation strategies include robust government oversight of contractor expenditures, detailed audits of cost proposals and incurred costs, clear definition of allowable costs, and careful negotiation of the fixed fee based on realistic cost estimates and the level of risk. The agency's contract management team plays a critical role in monitoring performance and costs throughout the contract lifecycle.

What is ENSER CORPORATION's track record with the Department of Defense, particularly concerning R&D contracts?

The provided data shows ENSER CORPORATION was awarded this specific $12.2 million R&D contract by the Department of Defense (DoD) through the Defense Contract Management Agency. The contract's duration from July 2004 to August 2012 indicates a long-term engagement. While this data point suggests a history of working with the DoD, it does not provide a comprehensive view of their overall track record. A full assessment would require examining other contracts awarded to ENSER CORPORATION by the DoD, their performance ratings on those contracts, and any history of disputes or contract modifications.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5430 70TH AVE NORTH, PINELLAS PARK, FL, 33781

Business Categories: Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline