DoD's $13.9M Contract for Autonomous Control Systems Tech Faces Scrutiny Amidst R&D Spending

Contract Overview

Contract Amount: $13,947,427 ($13.9M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2021-11-16

End Date: 2027-03-01

Contract Duration: 1,931 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTROL AUTOMATION RESEARCH, AUTONOMOUS CONTROL SYSTEMS TECH

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to DCS CORPORATION for work described as: CONTROL AUTOMATION RESEARCH, AUTONOMOUS CONTROL SYSTEMS TECH Key points: 1. The contract focuses on advanced R&D in physical and engineering sciences, a critical but often complex sector. 2. DCS Corporation, a significant player, is awarded this contract, highlighting potential concentration in specialized areas. 3. The 'Cost Plus Fixed Fee' structure warrants close monitoring for potential cost overruns. 4. While specific competition details are limited, the R&D nature suggests a need for specialized expertise.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) pricing structure can lead to higher costs compared to fixed-price contracts, especially in R&D where scope can evolve. Benchmarking CPFF contracts in similar R&D categories is essential for fair value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. However, the specific impact on price discovery for this specialized R&D is difficult to ascertain without more data on bidding.

Taxpayer Impact: The use of full and open competition is generally positive for taxpayers, aiming to secure the best value. However, the CPFF structure requires diligent oversight to ensure costs remain reasonable.

Public Impact

Advancements in autonomous control systems could have significant implications for defense capabilities. The R&D focus means tangible outputs may not be immediate, impacting short-term public perception of value. Transparency in how the fixed fee is determined and managed is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Long contract duration (1931 days)
R&D focus with potentially evolving scope

Positive Signals

Full and open competition utilized
Contract supports critical defense technology development

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is vital for technological advancement but often involves higher risk and less predictable outcomes compared to procurement of established goods.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no specific mention of small business participation. Further investigation would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The 'Cost Plus Fixed Fee' structure necessitates robust oversight to manage costs and ensure the contractor meets performance objectives. Regular audits and performance reviews are critical for accountability.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
Long contract duration increases exposure to changing requirements and market conditions.
R&D projects inherently carry a risk of not achieving desired outcomes.
Lack of specific small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to DCS CORPORATION. CONTROL AUTOMATION RESEARCH, AUTONOMOUS CONTROL SYSTEMS TECH

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 $13.9 million.

What is the period of performance?

Start: 2021-11-16. End: 2027-03-01.

How does the fixed fee component of this CPFF contract compare to industry standards for similar R&D projects, and what mechanisms are in place to ensure it remains fair throughout the contract's life

Assessing the fairness of the fixed fee requires detailed analysis of the contractor's proposed costs, profit margins, and the complexity of the R&D. Benchmarking against similar contracts awarded through full and open competition is crucial. Mechanisms like regular reviews of the contractor's performance and cost accounting practices, along with clear criteria for fee adjustments, are vital for maintaining fairness and preventing potential overpayment.

What are the specific performance metrics and milestones for this autonomous control systems research, and how will the Air Force ensure that the R&D efforts translate into effective and secure operat

Effective oversight requires clearly defined technical milestones, deliverables, and Key Performance Indicators (KPIs) tied to the R&D objectives. The Air Force must implement a rigorous testing and evaluation process to validate the research outcomes. Regular technical reviews with the contractor, independent assessments of progress, and a clear transition plan for integrating successful technologies into operational systems are essential for ensuring effectiveness and security.

Given the 'full and open competition' award, what was the competitive landscape for this specialized R&D, and how did the selection process ensure the most innovative and cost-effective solution was c

While 'full and open competition' indicates a broad solicitation, the specialized nature of autonomous control systems R&D might limit the number of truly capable bidders. The selection process should have prioritized technical merit and innovative approaches alongside cost considerations. The agency needs to demonstrate that the chosen contractor offered the best value, balancing technical expertise with the inherent cost uncertainties of a CPFF contract to justify the award.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

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: $19,000,000

Exercised Options: $19,000,000

Current Obligation: $13,947,427

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,960,282

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865021D2602

IDV Type: IDC

Timeline