DoD's $28M R&D contract to Odyssey Systems Consulting Group awarded without competition

Contract Overview

Contract Amount: $28,242,584 ($28.2M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2013-04-18

End Date: 2016-01-17

Contract Duration: 1,004 days

Daily Burn Rate: $28.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF PASS INTERIM CONTRACT

Place of Performance

Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: IGF::CT::IGF PASS INTERIM CONTRACT Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract was not competed, raising questions about price discovery and value for money. 3. Research and Development in Physical, Engineering, and Life Sciences is a broad category, making direct comparisons difficult. 4. The contract duration of 1004 days suggests a significant project scope. 5. The award to a single entity without competition may limit opportunities for innovative solutions from other firms. 6. The contract's value of over $28 million warrants scrutiny regarding its necessity and effectiveness.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a definitive value assessment challenging. Without benchmark data from competing bids, it's difficult to ascertain if the $28.2 million represents a fair market price for the R&D services rendered. The absence of a competitive process means there's no external validation of Odyssey Systems Consulting Group's pricing or efficiency. Further analysis would require understanding the specific deliverables and comparing them to similar R&D efforts within the Department of Defense or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential bidders. The Department of the Air Force did not provide details on why full and open competition was not utilized. This lack of competition limits the government's ability to explore a wider range of solutions and potentially secure more favorable pricing through a bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also bypasses opportunities to foster a broader base of government contractors.

Public Impact

The primary beneficiary is Odyssey Systems Consulting Group, Ltd., which received a significant contract award. The contract supports Research and Development in the Physical, Engineering, and Life Sciences, potentially leading to advancements in defense technologies. The geographic impact is primarily within Massachusetts, where the contractor is located. The contract likely involves a specialized workforce with expertise in R&D, contributing to the knowledge economy in its field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and lack of innovation.
Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
The broad R&D category makes it difficult to assess the specific value and impact of the services.

Positive Signals

Contract supports critical R&D efforts for the Department of Defense.
Odyssey Systems Consulting Group, Ltd. is the awarded contractor, suggesting they possess specialized capabilities.
The contract duration indicates a substantial and potentially impactful project.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, aiming to develop new technologies and capabilities. The market for R&D services within the defense sector is highly specialized, with a mix of large corporations and niche firms. Benchmarking this contract's value is challenging without specific details on the R&D scope, but significant government investment is typical in this domain to maintain technological superiority.

Small Business Impact

The data indicates this contract was not awarded to a small business, nor does it appear to have a small business set-aside component (ss: false, sb: false). Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting opportunities for small businesses mandated by this award. The focus is on a larger, established entity for specialized R&D services.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Air Force's contracting officers and potentially program managers. Given the R&D nature and cost-plus-fixed-fee structure, rigorous oversight of expenditures and progress reports would be crucial. Transparency is limited by the sole-source award; however, contract performance reviews and financial audits would be standard accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Engineering and Technical Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee structure may incentivize higher spending.
Broad R&D category makes value assessment difficult without specific deliverables.
Limited transparency due to non-competitive nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. IGF::CT::IGF PASS INTERIM CONTRACT

Who is the contractor on this award?

The obligated recipient is ODYSSEY SYSTEMS CONSULTING GROUP, LTD..

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 $28.2 million.

What is the period of performance?

Start: 2013-04-18. End: 2016-01-17.

What specific R&D advancements were expected or achieved under this contract?

The provided data does not specify the exact R&D advancements expected or achieved under this contract. The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is broad. Without access to the contract's statement of work or performance reports, it's impossible to detail the specific scientific or technological outcomes. Typically, such contracts aim to explore new materials, improve existing systems, develop novel processes, or conduct feasibility studies for future defense applications. The $28.2 million investment suggests a project of considerable scope, potentially involving complex experimentation, simulation, and analysis.

How does the $28.2 million contract value compare to similar R&D contracts within the Department of Defense?

Comparing the $28.2 million contract value to similar R&D contracts within the Department of Defense (DoD) is challenging without more specific information on the contract's scope and objectives. The DoD awards numerous R&D contracts annually across various scientific and engineering disciplines, with values ranging from small grants to multi-billion dollar programs. However, a $28.2 million contract for a definitive contract awarded over approximately three years (April 2013 - January 2016) suggests a significant, but not exceptionally large, investment for a specific R&D initiative. To provide a meaningful comparison, one would need to identify contracts with similar NAICS codes, contract types (Cost Plus Fixed Fee), and project durations within the DoD during the same period.

What were the justifications for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' signifying a sole-source or limited competition award. However, the specific justifications for this determination are not included in the data. Generally, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Other justifications might include follow-on work to a previous contract where only the original contractor possesses the necessary knowledge or proprietary data. Without the official justification documentation (e.g., a Justification and Approval document), it's impossible to ascertain the precise reasons the Department of the Air Force did not compete this R&D contract.

What is the track record of Odyssey Systems Consulting Group, Ltd. with federal contracts, particularly R&D?

Odyssey Systems Consulting Group, Ltd. has a history of receiving federal contracts, as indicated by this award. To assess their track record specifically in R&D, one would need to analyze their contract history beyond this single award. This would involve examining past performance on similar R&D projects, their success in meeting milestones and deliverables, and any performance evaluations or past performance questionnaires. Information on their financial stability, technical expertise, and any history of contract disputes or terminations would also be relevant. A comprehensive review would require accessing databases like the Federal Procurement Data System (FPDS) or SAM.gov to trace their contract portfolio and performance history.

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

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Odyssey Systems Consulting Group, carry inherent risks, particularly for R&D projects. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If costs escalate beyond initial estimates, the government bears the financial burden. For R&D, where outcomes can be uncertain and scope creep is common, this structure can incentivize contractors to incur higher costs, as their fee remains fixed regardless of efficiency. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. The lack of competition exacerbates this risk, as there's no market pressure to control costs.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 EDGEWATER DR STE 270, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $37,751,713

Exercised Options: $35,258,777

Current Obligation: $28,242,584

Actual Outlays: $8,321

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline