DoD's $450M R&D support contract awarded to Odyssey Systems Consulting Group, Ltd. for engineering and administrative services

Contract Overview

Contract Amount: $450,672,897 ($450.7M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2024-07-18

End Date: 2028-07-18

Contract Duration: 1,461 days

Daily Burn Rate: $308.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR HB DIRECTORATE.

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $450.7 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR HB DIRECTORATE. Key points: 1. Contract provides essential engineering, professional, and administrative support to the HB Directorate, crucial for ongoing research and development initiatives. 2. The contract's duration of approximately four years suggests a long-term need for these specialized services within the Department of Defense. 3. Awarded under full and open competition after exclusion of sources, indicating a structured procurement process aimed at achieving best value. 4. The significant contract value points to the complexity and scale of the support required, likely involving high-level technical expertise. 5. Focus on R&D in physical, engineering, and life sciences highlights the contract's role in advancing scientific and technological capabilities. 6. The use of a Cost Plus Fixed Fee (CPFF) pricing structure suggests that while costs are reimbursed, a fixed fee provides incentive for efficient performance.

Value Assessment

Rating: good

The contract value of over $450 million for approximately four years of support is substantial, reflecting the critical nature of R&D services for the HB Directorate. Benchmarking against similar large-scale engineering and professional support contracts within the Department of Defense is challenging due to the specific nature of the services. However, the competitive award process suggests an effort to secure fair market value. The CPFF pricing structure, while common for R&D, requires careful oversight to manage costs effectively and ensure value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' a method that allows for broad participation while potentially excluding specific sources based on pre-defined criteria. The presence of three bidders indicates a moderate level of competition for this significant R&D support requirement. While three bidders suggest some market interest, a higher number could potentially drive prices lower and offer a wider range of innovative solutions.

Taxpayer Impact: The competitive nature of this award, even with three bidders, is intended to ensure that taxpayer funds are used efficiently by selecting the offer that provides the best overall value, balancing cost and technical merit.

Public Impact

The HB Directorate within the Department of Defense is the primary beneficiary, receiving critical support for its research and development missions. Services delivered include engineering, professional, and administrative support, enabling the advancement of physical, engineering, and life sciences research. The contract's impact is primarily national, supporting defense-related technological advancements and scientific innovation. Workforce implications include the potential for highly skilled engineers, scientists, and administrative professionals to be engaged through Odyssey Systems Consulting Group, Ltd.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, potentially increasing the final cost to taxpayers.
The 'after exclusion of sources' clause in the competition type warrants scrutiny to understand the rationale behind any exclusions and ensure fairness.
A limited number of bidders (3) might indicate potential barriers to entry or a concentrated market for these specialized services.

Positive Signals

Awarded through full and open competition, suggesting a robust process to identify qualified contractors.
The contract's significant value indicates a recognized and sustained need for these critical R&D support services.
The long duration (approx. 4 years) provides stability for the contractor and ensures continuity of essential support functions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This is a critical area for national security and technological advancement. Spending in this sector is often characterized by long-term investments, specialized expertise, and significant government oversight. Comparable spending benchmarks would typically involve other large R&D support contracts awarded by agencies like the DoD, NASA, or other federal research institutions, often running into hundreds of millions of dollars over several years.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Odyssey Systems Consulting Group, Ltd. is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity to engage the small business ecosystem in supporting critical R&D efforts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force and the Department of Defense's contracting and program management offices. The CPFF structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting mechanisms and potential reviews by Inspectors General. Accountability measures would be tied to performance metrics and deliverables outlined in the contract.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Professional Services Contracts
Scientific Research Support Services
Aerospace Directorate Support Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition (3 bidders) may impact price discovery
Need for clear justification of 'exclusion of sources'

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $450.7 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. PROCUREMENT OF ENGINEERING, PROFESSIONAL, AND ADMINISTRATIVE SUPPORT SERVICES FOR HB DIRECTORATE.

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 $450.7 million.

What is the period of performance?

Start: 2024-07-18. End: 2028-07-18.

What is the track record of Odyssey Systems Consulting Group, Ltd. in performing similar large-scale R&D support contracts for the Department of Defense?

Odyssey Systems Consulting Group, Ltd. has a history of securing and performing on significant federal contracts, particularly within the defense sector. While specific details on past R&D support contracts of this exact magnitude are not provided in the summary data, their presence as a prime contractor on a $450M+ award suggests a proven capability to manage complex projects and meet stringent government requirements. Further analysis would involve reviewing their past performance evaluations, contract history with the DoD, and any reported issues or successes on similar engagements to fully assess their track record for this specific type of R&D support.

How does the estimated annual cost of this contract compare to similar R&D support services procured by the DoD?

The total contract value is approximately $450.7 million over roughly four years (1461 days), averaging around $112.7 million per year. Benchmarking this against similar R&D support contracts requires access to a broader dataset of federal procurements. However, for large-scale, specialized engineering, professional, and administrative support within defense R&D directorates, annual costs in the range of $100-$150 million are not uncommon, especially for critical, long-term initiatives. The specific nature of the HB Directorate's work would influence the precise cost-effectiveness, but the competitive award process aims to align costs with market rates for such specialized services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D services, and how are they mitigated?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the burden. Mitigation strategies include robust government oversight of incurred costs, detailed audits, clear definitions of allowable expenses, and strong performance management to ensure the contractor remains efficient. The fixed fee provides some incentive for the contractor to control costs, as their profit is capped, but vigilant monitoring by the procuring agency is essential to ensure value and prevent unnecessary expenditures.

What is the significance of the 'after exclusion of sources' clause in the contract's competition type?

The 'full and open competition after exclusion of sources' clause indicates that while the procurement was initially intended to be open, certain potential sources were excluded based on specific, documented criteria. This exclusion must be justified and typically relates to factors like capability, past performance, or specific requirements that only a subset of potential offerors could meet. It suggests a deliberate narrowing of the field before the final competition phase. Understanding the rationale behind the exclusion is key to assessing whether it limited competition unnecessarily or appropriately focused the procurement on highly qualified entities.

How does the geographic location of the contract performance (Massachusetts) influence the cost and availability of specialized R&D support personnel?

Massachusetts, particularly the Boston area, is a hub for technology, research, and higher education, which can positively influence the availability of highly skilled R&D support personnel, including engineers and scientists. This concentration of talent may lead to competitive labor rates within the region compared to areas with fewer specialized resources. However, the high cost of living in Massachusetts can also drive up salary expectations. The presence of a strong talent pool is generally beneficial for securing qualified personnel, but the agency must ensure that compensation remains competitive yet cost-effective.

What are the potential implications of this contract on future R&D spending trends within the Department of Defense?

This contract, valued at over $450 million and spanning approximately four years, signals a sustained commitment by the Department of Defense to investing in critical R&D capabilities supported by external expertise. Its successful execution could reinforce the model of utilizing large, competitively awarded contracts for specialized support services. It may also indicate a strategic focus on the specific areas of physical, engineering, and life sciences research that the HB Directorate oversees. Future spending trends could see continued reliance on similar large-scale contracts if this engagement proves effective and cost-efficient, potentially influencing how other directorates procure similar support.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $1,504,299,815

Exercised Options: $650,662,237

Current Obligation: $450,672,897

Actual Outlays: $273,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS723

IDV Type: IDC

Timeline