DoD's $1.45B R&D contract for DRA "PLUS" SBIR III shows long-term investment in specialized research

Contract Overview

Contract Amount: $14,460,761 ($14.5M)

Contractor: Defense Research Associates Inc

Awarding Agency: Department of Defense

Start Date: 2009-07-01

End Date: 2016-07-01

Contract Duration: 2,557 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DRA "PLUS" SBIR III

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45431, UNITED STATES OF AMERICA

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $14.5 million to DEFENSE RESEARCH ASSOCIATES INC for work described as: DRA "PLUS" SBIR III Key points: 1. Contract value suggests significant, sustained investment in research and development capabilities. 2. The 'PLUS' designation may indicate an expansion or enhancement of previous SBIR programs. 3. Long duration points to a need for continuity in specialized research services. 4. Cost Plus Fixed Fee structure incentivizes contractor efficiency while managing risk. 5. The contract's focus on R&D in Social Sciences and Humanities is a niche area within defense spending. 6. Sole source nature warrants scrutiny regarding justification and potential alternatives. 7. Geographic concentration in Ohio may indicate regional economic impact and specialized workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of work and deliverables. However, a $1.45 billion award over seven years for R&D services, particularly in a specialized field like social sciences and humanities research for defense, suggests a substantial investment. The Cost Plus Fixed Fee (CPFF) pricing structure means the government reimburses the contractor for allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing this to similar large-scale R&D contracts within the Department of Defense or other agencies would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source contract after exclusion of sources. This implies that only one source was deemed capable of fulfilling the requirement, or that a competitive process was attempted and failed to yield sufficient proposals. The justification for excluding other sources is critical to understanding if full and open competition was truly not feasible. Without a detailed justification, it raises questions about whether alternative solutions or contractors were overlooked, potentially limiting price discovery and innovation.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding. It also limits opportunities for new or smaller businesses to enter the market and demonstrate their capabilities.

Public Impact

The primary beneficiaries are likely research institutions and specialized personnel within the social sciences and humanities fields. The contract supports the delivery of advanced research and analysis to inform defense strategies and policies. Geographic impact is concentrated in Ohio, where Defense Research Associates Inc. is located, potentially boosting the local economy and research ecosystem. Workforce implications include the creation and sustainment of highly skilled research positions in specialized academic and analytical domains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration increases the risk of scope creep or evolving requirements not being optimally addressed.
CPFF structure requires robust oversight to prevent cost overruns.
Lack of transparency in the 'exclusion of sources' justification.
Potential for vendor lock-in due to specialized nature of research.

Positive Signals

Sustained investment in critical R&D areas demonstrates long-term strategic commitment.
Focus on social sciences and humanities research addresses unique defense needs.
Long-term contract provides stability for research continuity and knowledge building.
Potential for significant advancements in defense-related social science research.

Sector Analysis

The Research and Development in the Social Sciences and Humanities sector is a specialized segment within the broader R&D market. This contract falls under NAICS code 541720. While defense spending often focuses on engineering and physical sciences, investment in social sciences and humanities is crucial for understanding geopolitical landscapes, human behavior, cultural nuances, and strategic communication. The total federal spending in R&D is substantial, but contracts specifically for social sciences and humanities within defense are less common and highly targeted. This contract represents a significant allocation within this niche.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). Given the large dollar value and specialized nature of the R&D, it is unlikely that small businesses would be the primary awardees for the prime contract. However, the prime contractor, Defense Research Associates Inc., may engage small businesses as subcontractors, particularly for specialized research tasks or support services. The absence of explicit small business subcontracting goals warrants further investigation into the contractor's subcontracting plan and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure that costs are allowable and reasonable, and that the fixed fee is earned. Accountability measures would include regular performance reviews, milestone tracking, and audits. Transparency may be limited due to the sole-source nature and the classified or sensitive aspects of defense R&D. The Inspector General of the Department of Defense would have jurisdiction for investigating fraud, waste, and abuse.

Related Government Programs

SBIR Program
Department of Defense Research Contracts
Social Sciences Research Funding
Humanities Research Funding
Defense Advanced Research Projects Agency (DARPA) Contracts
Federal R&D Spending

Risk Flags

Sole Source Justification
Cost Plus Fixed Fee Oversight
Long-Term Contract Risk
Specialized R&D Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.5 million to DEFENSE RESEARCH ASSOCIATES INC. DRA "PLUS" SBIR III

Who is the contractor on this award?

The obligated recipient is DEFENSE RESEARCH ASSOCIATES INC.

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 $14.5 million.

What is the period of performance?

Start: 2009-07-01. End: 2016-07-01.

What specific research areas within social sciences and humanities are covered under this "DRA "PLUS" SBIR III" contract?

The provided data indicates the contract falls under NAICS code 541720 (Research and Development in the Social Sciences and Humanities) and is awarded to Defense Research Associates Inc. However, the specific research topics or sub-disciplines are not detailed. Typically, such contracts could encompass areas like behavioral science, cultural studies, economic analysis, political science, international relations, and historical research, all tailored to defense applications. These could include understanding adversary motivations, analyzing societal impacts of military actions, developing effective communication strategies, or informing policy decisions based on socio-cultural contexts. Further details would likely be found in the contract's statement of work or associated documentation.

What is the justification for awarding this contract as a sole-source 'after exclusion of sources'?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that a competitive solicitation was issued, but only one responsible source was determined to be capable of meeting the government's needs, or that after solicitation, only one offer was received. Alternatively, it could mean that the agency determined that only one source was uniquely qualified or that a specific urgency necessitated limiting the field. Without the official justification document (e.g., a Justification and Approval - J&A), it is difficult to ascertain the precise reasons. This exclusion limits the potential for broader competition and may impact cost savings for taxpayers.

How does the Cost Plus Fixed Fee (CPFF) structure influence contractor behavior and cost management on this contract?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development where the scope of work is not precisely defined at the outset, or when there is significant uncertainty. For the contractor, the fixed fee provides a stable profit margin regardless of the final cost, incentivizing them to complete the work efficiently to maximize their return on investment. However, it places a greater burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable. Robust government oversight is crucial to prevent potential cost overruns and ensure value for money.

What is the historical spending pattern for DRA "PLUS" SBIR III or similar contracts awarded to Defense Research Associates Inc. by the Department of Defense?

The provided data shows a single award for 'DRA "PLUS" SBIR III' to Defense Research Associates Inc. (DRA) by the Department of Defense (DoD) totaling $1.45 billion, spanning from July 1, 2009, to July 1, 2016. This indicates a significant, long-term investment in a specific program or set of research activities. Without access to a broader contract database or DRA's complete federal contracting history, it's difficult to establish a comprehensive historical spending pattern. However, the substantial value and duration of this single award suggest DRA is a key contractor for the DoD in its specialized R&D domain.

What are the potential risks associated with a sole-source R&D contract of this magnitude and duration?

A sole-source R&D contract of $1.45 billion over seven years carries several risks. Firstly, the lack of competition means the government may not be achieving the best possible price or value, as competitive pressures are absent. Secondly, there's a risk of contractor complacency or reduced innovation incentives over the long term. Thirdly, the government might become overly reliant on a single contractor, creating vendor lock-in and making it difficult to switch providers or adopt alternative solutions if needs evolve. Finally, the justification for the sole-source award itself needs to be robust to ensure public funds are being used appropriately and that no viable alternatives were overlooked.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3915 GERMANY LANE STE 102, DAYTON, OH, 45431

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

Financial Breakdown

Contract Ceiling: $14,461,179

Exercised Options: $14,460,761

Current Obligation: $14,460,761

Contract Characteristics

Cost or Pricing Data: YES

Timeline