DoD's $43.3M R&D Contract with Jacobs Technology Inc. Lacked Competition, Raising Value Concerns
Contract Overview
Contract Amount: $43,268,960 ($43.3M)
Contractor: Jacobs Technology Inc.
Awarding Agency: Department of Defense
Start Date: 2014-05-19
End Date: 2016-03-31
Contract Duration: 682 days
Daily Burn Rate: $63.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CT::IGF ETASS 1.75 - HI
Place of Performance
Location: LINCOLN, MIDDLESEX County, MASSACHUSETTS, 01773
Plain-Language Summary
Department of Defense obligated $43.3 million to JACOBS TECHNOLOGY INC. for work described as: IGF::CT::IGF ETASS 1.75 - HI Key points: 1. The contract awarded to Jacobs Technology Inc. for Research and Development in Physical, Engineering, and Life Sciences totaled $43.3 million. 2. Awarded by the Department of the Air Force, the contract was not competed, raising questions about price discovery and potential value. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not closely monitored. 4. The NAICS code 541712 indicates a focus on R&D, a sector often characterized by high innovation but also inherent risks.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. Without competitive bids, there's a risk the government may not have secured the best possible price for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this $43.3 million contract means taxpayers may have paid more than necessary, as competitive forces that drive down costs were absent.
Public Impact
Taxpayers may have overpaid due to the absence of a competitive bidding process. The lack of transparency in pricing could mask inefficiencies or excessive profit margins. Future R&D procurements may be influenced by this non-competitive award, potentially reducing overall government savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for overpayment
Positive Signals
- Awarded to a specific company for R&D services
Sector Analysis
This contract falls under the Research and Development sector, specifically for Physical, Engineering, and Life Sciences. Spending in this area is crucial for innovation but requires careful oversight due to the inherent uncertainties and potential for cost escalation.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants close oversight to ensure the contractor is delivering value and that costs are reasonable. Accountability mechanisms should be robust to mitigate risks associated with sole-source or limited-competition contracts.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type increases risk of cost overruns
- Potential for inflated pricing due to no market pressure
- Limited transparency on R&D effectiveness and value for money
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.3 million to JACOBS TECHNOLOGY INC.. IGF::CT::IGF ETASS 1.75 - HI
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 $43.3 million.
What is the period of performance?
Start: 2014-05-19. End: 2016-03-31.
What specific justification was provided for not competing this $43.3 million R&D contract?
The provided data states the contract was 'NOT COMPETED' but does not include the specific justification. Typically, justifications for non-competitive awards include reasons such as urgency, unique capabilities of a single source, or national security requirements. Without this information, it's impossible to fully assess the necessity of the non-competitive approach.
How were the costs for this Cost Plus Fixed Fee contract validated and controlled?
Given the Cost Plus Fixed Fee structure and lack of competition, validating and controlling costs is critical. The Air Force should have implemented rigorous monitoring of Jacobs Technology Inc.'s expenditures, performance metrics, and adherence to the fixed fee. Regular audits and reviews would be essential to ensure the government is not paying for unnecessary or inefficient costs.
What was the overall effectiveness of the R&D performed under this contract in achieving its intended objectives?
The provided data does not include information on the effectiveness or outcomes of the R&D performed. To assess effectiveness, one would need to review project milestones, deliverables, final reports, and any subsequent utilization or impact of the research. This would require access to performance evaluations and project closure documentation.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $65,509,856
Exercised Options: $57,462,808
Current Obligation: $43,268,960
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-05-19
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2024-01-12
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