DoD's $24.5M ICAT3I contract awarded to DCS Corporation for R&D services

Contract Overview

Contract Amount: $24,539,908 ($24.5M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2020-07-31

End Date: 2028-02-22

Contract Duration: 2,762 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: INTELLIGENT COLLABORATIVE&ADAPTIVE TRUSTED TRANSPARENT TEAMING INTERFACES (ICAT3I)

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to DCS CORPORATION for work described as: INTELLIGENT COLLABORATIVE&ADAPTIVE TRUSTED TRANSPARENT TEAMING INTERFACES (ICAT3I) Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. DCS Corporation, a significant player in government contracting, secured this award. 3. The contract duration extends over several years, indicating a long-term need for these services. 4. Awarded under full and open competition, suggesting a robust bidding process. 5. The contract type, Cost Plus Fixed Fee, allows for flexibility in research but requires careful cost management. 6. Virginia is the primary state for contract performance, potentially impacting the local economy and workforce.

Value Assessment

Rating: good

The contract's value of $24.5 million for a multi-year R&D effort appears reasonable within the context of federal research spending. Benchmarking against similar contracts for advanced scientific research and development services is crucial for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, necessitates close monitoring of costs to ensure efficiency and prevent overruns. Without specific comparable contract data, it's challenging to definitively state if this represents excellent value, but it falls within expected ranges for complex research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This process typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of competition, which is generally beneficial for price discovery and achieving favorable terms for the government.

Taxpayer Impact: A competitive bidding process like full and open competition is favorable for taxpayers as it is more likely to result in lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, receiving advanced research and development capabilities. Services delivered will likely contribute to technological advancements in physical, engineering, and life sciences, supporting national security objectives. Performance is concentrated in Virginia, potentially creating or sustaining high-skilled jobs in the region. The contract supports innovation in critical scientific fields, potentially leading to future technological breakthroughs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if the fixed fee is substantial relative to the total cost.
The long duration of the contract (over 7 years) may present challenges in adapting to rapidly evolving research landscapes.
Reliance on a single contractor for this duration could limit exposure to emerging technologies or alternative approaches from other firms.

Positive Signals

Awarded through full and open competition, suggesting a strong initial vetting of capabilities and pricing.
DCS Corporation has a track record in government contracting, implying experience in managing complex projects.
The contract's focus on R&D aligns with strategic defense priorities, indicating potential for significant technological advancement.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541715, which covers R&D in the Physical, Engineering, and Life Sciences. This is a critical area for defense modernization, involving significant investment by the government. The market for such services is competitive, with numerous firms specializing in scientific research and technological innovation. Federal spending in this sector is substantial, driven by the need for cutting-edge solutions to national security challenges. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by DoD and other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements mandated by a small business set-aside. However, the prime contractor, DCS Corporation, may still engage small businesses as subcontractors to fulfill specific aspects of the research and development work, contributing to the broader small business ecosystem. The absence of a set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Accountability measures are typically embedded within the Cost Plus Fixed Fee contract structure, requiring detailed reporting on costs and progress. Transparency is facilitated through contract award databases and potential reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Federal Scientific Research Grants and Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep
Performance Measurement Challenges in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to DCS CORPORATION. INTELLIGENT COLLABORATIVE&ADAPTIVE TRUSTED TRANSPARENT TEAMING INTERFACES (ICAT3I)

Who is the contractor on this award?

The obligated recipient is DCS 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 $24.5 million.

What is the period of performance?

Start: 2020-07-31. End: 2028-02-22.

What is DCS Corporation's track record with similar R&D contracts for the Department of Defense?

DCS Corporation has a significant history of performing R&D services for the Department of Defense and other federal agencies. Their portfolio often includes work in areas such as systems engineering, software development, and advanced technological research. Analyzing their past performance on Cost Plus Fixed Fee contracts, specifically those related to scientific and engineering research, would provide insight into their ability to manage complex, long-term projects effectively. Key metrics to examine would include on-time delivery, budget adherence, and the successful achievement of technical milestones on previous DoD R&D awards. Their established presence suggests a capacity to handle the scope and complexity of the ICAT3I contract.

How does the $24.5 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

The $24.5 million contract value for a multi-year R&D effort in the physical, engineering, and life sciences sector is within a typical range for federal research projects. However, a precise comparison requires detailed analysis of specific contract characteristics such as the scope of work, duration, complexity, and the specific scientific disciplines involved. Contracts for cutting-edge research, particularly those with national security implications, can command significant funding. Benchmarking against other contracts awarded under NAICS code 541715 by agencies like the DoD, NSF, or NIH would provide a more accurate assessment of whether this represents a competitive price for the services rendered. The Cost Plus Fixed Fee structure also influences the overall cost compared to fixed-price contracts.

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 contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as their profit is a fixed amount regardless of the total project expenditure. This can lead to cost overruns if not managed diligently. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee provides adequate profit, especially in R&D where outcomes can be uncertain. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the government.

What is the expected impact of this contract on technological advancement within the DoD?

This contract is expected to significantly impact technological advancement within the DoD by funding research and development in critical areas of physical, engineering, and life sciences. The 'INTELLIGENT COLLABORATIVE&ADAPTIVE TRUSTED TRANSPARENT TEAMING INTERFACES (ICAT3I)' designation suggests a focus on developing advanced systems that enhance collaboration, adaptability, and trust in complex operational environments. Such advancements could lead to improved command and control systems, enhanced data analysis capabilities, more sophisticated simulation and training tools, and potentially breakthroughs in areas like artificial intelligence and human-machine teaming, all of which are vital for maintaining a technological edge in defense.

How does the duration of the contract (2762 days) influence the assessment of its value and risk?

The contract's duration of approximately 7.5 years (2762 days) indicates a long-term commitment to the research and development objectives. This extended period allows for in-depth exploration and development of complex technologies, which is often necessary in R&D. From a value perspective, a longer duration can be beneficial if it leads to more mature and robust technological solutions. However, it also introduces risks, such as the potential for technological obsolescence during the contract period or shifts in strategic priorities that might render the research less relevant. Managing this long-term engagement requires robust program management and flexibility to adapt to evolving requirements and technological landscapes.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA865019S6003

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PARK DR STE 500, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $24,744,743

Exercised Options: $24,744,743

Current Obligation: $24,539,908

Actual Outlays: $189,825

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $8,700,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865020D6207

IDV Type: IDC

Timeline