DoD's $11.8M R&D contract with Science, Engineering and Technology Associates Corp. awarded in 2007

Contract Overview

Contract Amount: $11,861,869 ($11.9M)

Contractor: Science, Engineering and Technology Associates Corporation

Awarding Agency: Department of Defense

Start Date: 2007-06-01

End Date: 2010-07-01

Contract Duration: 1,126 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SBIR III NEW START

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to SCIENCE, ENGINEERING AND TECHNOLOGY ASSOCIATES CORPORATION for work described as: SBIR III NEW START Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract was competed under full and open competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The contract duration was 1126 days. 5. The contractor is Science, Engineering and Technology Associates Corporation. 6. The awarding agency was the Department of the Air Force. 7. The contract was awarded in 2007 and expired in 2010.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its age and the specific nature of R&D services. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation if not managed tightly. Without detailed performance metrics or comparison to similar R&D efforts from the same period, a definitive value assessment is difficult. The fixed fee component provides some cost certainty for the contractor's profit, but the overall cost is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specific R&D requirement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of solutions and potentially driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially the broader scientific and engineering community through advancements in physical, engineering, and life sciences. The services delivered involved research and development activities, contributing to technological innovation. The geographic impact is primarily within the United States, supporting domestic R&D capabilities. Workforce implications include employment for scientists, engineers, and technical staff at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to higher final costs if not closely monitored.
Limited competition (2 bidders) may not have resulted in the lowest possible price.
Contract expired in 2010, making current performance and value assessment difficult without historical data.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
Contractor is Science, Engineering and Technology Associates Corporation, suggesting a focus on specialized technical services.
Contract supported research and development, a critical area for technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by innovation, long development cycles, and often high costs. Government spending in R&D is crucial for national security, technological advancement, and economic competitiveness. Comparable spending benchmarks would involve looking at other R&D contracts awarded by the Department of Defense or other federal agencies for similar scientific disciplines during the mid-2000s.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, Science, Engineering and Technology Associates Corporation, may itself be a small business, which would have implications for its capacity and growth.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Air Force contracting and program management offices. Accountability measures would typically involve performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency would depend on the agency's policies regarding contract data disclosure. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

SBIR III NEW START
Department of Defense Research and Development Programs
Air Force Science and Technology Investments

Risk Flags

Contract type (CPFF) carries inherent cost risk.
Limited competition may impact price.
Contract expired over a decade ago, limiting current relevance and performance assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to SCIENCE, ENGINEERING AND TECHNOLOGY ASSOCIATES CORPORATION. SBIR III NEW START

Who is the contractor on this award?

The obligated recipient is SCIENCE, ENGINEERING AND TECHNOLOGY ASSOCIATES CORPORATION.

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 $11.9 million.

What is the period of performance?

Start: 2007-06-01. End: 2010-07-01.

What was the specific research and development objective of this contract?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' under the 'SBIR III NEW START' program. However, the specific objective is not detailed. The Small Business Innovation Research (SBIR) program, which 'SBIR III NEW START' likely relates to, aims to stimulate technological innovation by funding small businesses to conduct R&D with the potential for commercialization. Therefore, the objective was likely to advance a specific technology or scientific understanding within the physical, engineering, or life sciences domains, with an expectation of future commercial application or military utility.

How does the Cost Plus Fixed Fee (CPFF) contract type typically perform in R&D settings?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development because the scope of work can be uncertain and evolve. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to higher overall costs for the government compared to fixed-price contracts if cost overruns occur, as the government bears the risk of increased expenses. Effective oversight and clear definition of milestones are crucial for managing CPFF R&D contracts.

What is the significance of the 'SBIR III NEW START' designation?

The 'SBIR III NEW START' designation likely refers to a specific phase or initiative within the Small Business Innovation Research (SBIR) program. The SBIR program is a government-wide initiative designed to encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. 'Phase III' of SBIR typically involves the commercialization of R&D results, often through non-SBIR government contracts or grants. 'NEW START' might indicate a new funding opportunity or a specific call for proposals within the SBIR framework during that period. This contract, awarded under this designation, suggests it was part of an effort to foster innovation and technology transfer from small businesses.

What was the historical spending trend for similar R&D contracts by the Department of the Air Force around 2007?

Historical spending trends for R&D contracts by the Department of the Air Force around 2007 would have been influenced by ongoing military operations, technological modernization efforts, and budget allocations. The mid-2000s saw significant defense spending. R&D spending typically fluctuates based on strategic priorities, such as advancements in aerospace technology, C4ISR systems, and materials science. To provide a precise trend, one would need access to historical DoD budget data and contract databases, analyzing the volume and value of R&D awards across various scientific and engineering disciplines. Generally, the Air Force consistently invests heavily in R&D to maintain technological superiority.

What is the typical success rate or commercialization outcome for SBIR Phase III projects?

The success rate and commercialization outcomes for SBIR Phase III projects can vary significantly depending on the technology, market conditions, and the specific agency's follow-on support. The SBIR program's ultimate goal is commercialization. While many Phase I and II projects demonstrate technical feasibility, transitioning to Phase III and achieving market success is a more challenging hurdle. Data from the Small Business Administration (SBA) and individual agencies often highlight success stories where SBIR-funded technologies have led to new products, services, or significant advancements adopted by government or industry. However, a substantial portion may not reach widespread commercialization due to market risks, funding gaps, or technical challenges.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 3811 FAIRFAX DR STE 350, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,899,345

Exercised Options: $11,899,345

Current Obligation: $11,861,869

Contract Characteristics

Cost or Pricing Data: YES

Timeline