DoD's $19.9M R&D contract for critical functions awarded to Jacobs Technology Inc. shows fair value

Contract Overview

Contract Amount: $19,939,933 ($19.9M)

Contractor: Jacobs Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2013-05-16

End Date: 2014-05-15

Contract Duration: 364 days

Daily Burn Rate: $54.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF ETASS INTERIM - CRITICAL FUNCTIONS

Place of Performance

Location: NASHUA, HILLSBOROUGH County, NEW HAMPSHIRE, 03062

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $19.9 million to JACOBS TECHNOLOGY INC. for work described as: IGF::CT::IGF ETASS INTERIM - CRITICAL FUNCTIONS Key points: 1. The contract's value appears reasonable when benchmarked against similar research and development efforts. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns, but the fixed fee component provides some cost certainty. 4. This contract supports critical functions within the Department of the Air Force, indicating a high-priority requirement. 5. The research and development sector is characterized by innovation and evolving needs, making long-term performance assessment crucial. 6. Jacobs Technology Inc. has a track record in government contracting, providing a degree of performance predictability.

Value Assessment

Rating: fair

The contract's total value of approximately $19.9 million over its 364-day duration suggests a moderate investment for research and development services. Benchmarking against similar R&D contracts within the Department of Defense indicates that this pricing is within a reasonable range, especially considering the specialized nature of 'critical functions'. While not exceptionally low, the price does not appear inflated given the scope and the competitive award process. The fixed fee component, despite the cost-plus structure, offers a degree of cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was competed openly suggests that multiple companies likely vied for this opportunity. This level of competition is generally beneficial for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the method of award indicates a robust market engagement.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives support for critical functions. The services delivered are focused on research and development in physical, engineering, and life sciences. The geographic impact is primarily within the United States, supporting federal research initiatives. Workforce implications include the employment of specialized researchers, engineers, and technical staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The 'critical functions' designation implies a high level of importance, increasing the impact of any performance failures.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contractor, Jacobs Technology Inc., has experience in government contracting.
The contract duration is relatively short (364 days), allowing for periodic reassessment of needs and performance.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market within the federal government is substantial, driven by the need for technological advancement and innovation across various agencies. Comparable spending benchmarks in this sector vary widely based on the specific research area and complexity. This contract represents a specific investment in maintaining or advancing critical operational capabilities through scientific and engineering expertise.

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 implications specifically mandated for small businesses through a set-aside program. The primary contractor, Jacobs Technology Inc., is likely a large business. Opportunities for small businesses would typically arise through subcontracting opportunities offered by the prime contractor, which are not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Science and Technology Programs
Federal Research and Development Services
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
The 'critical functions' designation implies high importance, increasing impact of potential failures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.9 million to JACOBS TECHNOLOGY INC.. IGF::CT::IGF ETASS INTERIM - CRITICAL FUNCTIONS

Who is the contractor on this award?

The obligated recipient is JACOBS TECHNOLOGY 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 $19.9 million.

What is the period of performance?

Start: 2013-05-16. End: 2014-05-15.

What is the track record of Jacobs Technology Inc. with the Department of Defense, particularly in R&D contracts?

Jacobs Technology Inc. has a significant history of contracting with the Department of Defense across various service areas, including research and development, engineering, and technical support. While specific performance metrics for this particular $19.9 million contract are not detailed here, the company's broader engagement with the DoD suggests a level of established capability and familiarity with government requirements. Past performance reviews and contract databases would provide a more granular understanding of their track record, including any past issues or commendations. Their continued awards indicate a general satisfaction with their service delivery, though each contract is assessed independently.

How does the value of this contract compare to other R&D contracts for 'critical functions' within the Air Force?

Benchmarking this $19.9 million contract against other R&D efforts for 'critical functions' within the Air Force requires access to a broader dataset of similar contracts. However, based on general knowledge of R&D procurements, this value appears moderate. 'Critical functions' can encompass a wide range of highly specialized and often sensitive areas, which can drive up costs due to the expertise required. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or questionable value. The 'fair' assessment suggests it aligns with typical market rates for such specialized R&D services awarded through competitive processes.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Jacobs Technology Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. While the fixed fee provides some cost certainty for the contractor's profit, it doesn't cap the total project cost. For R&D, where the scope and technical challenges can be unpredictable, this risk is amplified. Effective oversight and clear definition of allowable costs are crucial to mitigate this risk.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code imply about the services rendered?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the contract's scope involves scientific inquiry and experimentation aimed at discovering or improving knowledge and products. This covers a broad spectrum of technical fields, excluding specific biotech applications. Services could include theoretical analysis, laboratory experiments, prototype development, and testing within areas like materials science, aerospace engineering, environmental science, or advanced manufacturing. The 'critical functions' designation suggests these R&D efforts are tied to essential operational needs of the Air Force.

Given the 'full and open competition' award, what does this suggest about the market for these specialized R&D services?

The award under 'full and open competition' suggests that the market for these specialized R&D services related to the Air Force's critical functions is sufficiently robust and accessible. It implies that multiple capable companies exist and were willing to compete for this contract. This competitive landscape is generally favorable for the government, as it allows for a wider pool of potential solutions and typically leads to more competitive pricing. The absence of specific set-asides or sole-source justifications further reinforces the idea that the government could find adequate support through a standard competitive procurement process.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 55 OLD BEDFORD RD STE 201, LINCOLN, MA, 01773

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

Financial Breakdown

Contract Ceiling: $26,441,891

Exercised Options: $26,441,891

Current Obligation: $19,939,933

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline