DoD's $31.9M CSDB contract with SARA Inc. for R&D faces scrutiny over competition and value

Contract Overview

Contract Amount: $31,931,311 ($31.9M)

Contractor: Scientific Applications & Research Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-03-18

End Date: 2023-10-16

Contract Duration: 1,673 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GOLDEN HORDE - SARA COLLABORATIVE SMALL DIAMETER BOMB (CSDB)-1

Place of Performance

Location: CYPRESS, ORANGE County, CALIFORNIA, 90630

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to SCIENTIFIC APPLICATIONS & RESEARCH ASSOCIATES, INC. for work described as: GOLDEN HORDE - SARA COLLABORATIVE SMALL DIAMETER BOMB (CSDB)-1 Key points: 1. The contract awarded to Scientific Applications & Research Associates, Inc. (SARA) for the CSDB program totals $31.9 million. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a complex procurement process. 3. The contract type is 'COST PLUS FIXED FEE', which can lead to cost overruns if not managed tightly. 4. The NAICS code 541715 indicates the contract is for Research and Development in Physical, Engineering, and Life Sciences. 5. The contract duration is substantial at 1673 days, spanning from March 2019 to October 2023.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. Without detailed performance metrics and cost breakdowns, assessing the value for money is difficult. Benchmarking against similar R&D contracts for specialized ordnance development would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, certain sources were excluded, potentially limiting the pool of bidders. This method can impact price discovery by reducing the number of competitive offers, possibly leading to higher prices than a truly open competition.

Taxpayer Impact: The impact on taxpayers is uncertain without a clear understanding of the competitive landscape and the final negotiated price relative to potential alternatives. The CPFF structure also means taxpayer funds cover actual costs plus a fixed fee.

Public Impact

Development of a Collaborative Small Diameter Bomb (CSDB) could enhance military capabilities. The R&D focus suggests innovation in defense technology. The significant contract value indicates a substantial investment in this specific technology. The extended duration points to a complex and potentially lengthy development cycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type risks overruns.
Limited competition after source exclusion may impact price.
Lack of detailed performance metrics hinders value assessment.

Positive Signals

Awarded to a specialized R&D firm.
Addresses a specific defense capability need.
Significant investment in technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Defense R&D spending is a significant portion of the federal budget, with contracts often involving specialized firms and complex technologies. Benchmarks for similar R&D projects can vary widely based on scope and innovation.

Small Business Impact

The contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct analysis of small business participation or impact from this specific award.

Oversight & Accountability

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured procurement process, but the specifics of the exclusion and the subsequent competition need further review. Oversight would focus on ensuring the CPFF structure is managed effectively to control costs and that the final product meets requirements.

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

Potential for cost overruns due to CPFF structure.
Limited competition may have inflated the price.
Lack of transparency on source exclusion justification.
Difficulty in benchmarking R&D value without detailed metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.9 million to SCIENTIFIC APPLICATIONS & RESEARCH ASSOCIATES, INC.. GOLDEN HORDE - SARA COLLABORATIVE SMALL DIAMETER BOMB (CSDB)-1

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC APPLICATIONS & 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 $31.9 million.

What is the period of performance?

Start: 2019-03-18. End: 2023-10-16.

What was the justification for excluding specific sources in the competition?

The justification for excluding specific sources would typically relate to unique capabilities, proprietary technology, or prior development work that makes certain contractors uniquely qualified. Without access to the specific procurement documentation, it's impossible to determine the exact reasons. However, such exclusions can limit competition and potentially increase costs if fewer bidders are involved.

How does the cost performance of this CPFF contract compare to similar R&D projects?

Assessing the cost performance requires access to detailed financial reports and performance metrics for this specific contract, as well as comparable R&D projects. CPFF contracts are known for their potential to exceed initial estimates if scope creep or unforeseen technical challenges arise. A comparative analysis would involve looking at the final cost versus the initial target cost and the value delivered.

What are the key performance indicators (KPIs) used to measure the success of the CSDB development?

Key performance indicators for the CSDB development would likely include technical performance metrics such as accuracy, range, reliability, and payload effectiveness. Operational metrics might involve ease of deployment, integration with existing platforms, and target engagement success rates. The effectiveness of the R&D effort is ultimately measured by whether the developed technology meets these predefined requirements and provides a tangible capability enhancement.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6300 GATEWAY DR, CYPRESS, CA, 90630

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

Financial Breakdown

Contract Ceiling: $31,931,311

Exercised Options: $31,931,311

Current Obligation: $31,931,311

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865119D0072

IDV Type: IDC

Timeline