Air Force's $32.7M R&D contract for digital electronics and agile coding awarded to Northeast Information Discovery Inc

Contract Overview

Contract Amount: $32,752,577 ($32.8M)

Contractor: Northeast Information Discovery Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2020-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DIGITAL ELECTRONICS AND AGILE CODING FOR OPERATIONAL NEEDS (DEACON)

Place of Performance

Location: CANASTOTA, MADISON County, NEW YORK, 13032

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to NORTHEAST INFORMATION DISCOVERY INC. for work described as: IGF::OT::IGF DIGITAL ELECTRONICS AND AGILE CODING FOR OPERATIONAL NEEDS (DEACON) Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Focus on digital electronics and agile coding for operational needs. 3. Contract duration of 1095 days (3 years). 4. Awarded under full and open competition. 5. Contract type is Cost Plus Fixed Fee. 6. Small business set-aside was not utilized. 7. Geographic location of contractor is New York.

Value Assessment

Rating: fair

The contract's value of $32.7 million for a 3-year R&D effort in digital electronics and agile coding appears within a reasonable range for specialized research. However, without specific benchmarks for similar DEACON projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost control, but also carries inherent risks of cost overruns if not managed diligently. Further analysis of the contractor's performance and final costs against initial estimates would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specialized R&D requirement. While competition is generally positive for price discovery, the specific nature of advanced R&D can sometimes limit the number of qualified bidders, potentially impacting the intensity of price competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to better value. The fact that there were two bidders suggests that the government had options, which can help ensure a fair price.

Public Impact

The Department of the Air Force benefits from advancements in digital electronics and agile coding. This contract supports the development of technologies crucial for modern military operations. The research is expected to enhance operational capabilities and potentially lead to new defense systems. The primary beneficiaries are the end-users within the Air Force who will utilize the developed technologies. The contract supports specialized R&D roles, potentially impacting the workforce in the technology sector in New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
Limited number of bidders in specialized R&D can reduce competitive pressure.
Performance metrics and deliverables need rigorous oversight to ensure value.
The specific impact of 'agile coding for operational needs' requires clear definition and measurement.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Contract duration allows for in-depth research and development.
Focus on critical areas like digital electronics and agile coding aligns with modernization efforts.
Contractor is based in New York, potentially supporting regional technological expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This category encompasses a wide range of scientific and technical services. The market for defense-related R&D is substantial, driven by the need for technological superiority. Comparable spending benchmarks for similar advanced digital electronics and agile coding projects within the Department of Defense would provide further context for assessing value.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means the primary contract was open to all responsible sources, regardless of size. The absence of a small business set-aside suggests that the nature of the R&D required may have favored larger or more specialized firms, or that the competition was deemed most effective when open to the entire market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Performance monitoring, review of cost reports, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Research and Development Contracts
Information Technology Research and Development
Agile Software Development Contracts
Digital Electronics Research
Air Force Science and Technology Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited competition (2 bidders) may impact price discovery.
Effectiveness of 'agile coding for operational needs' requires clear metrics.
Need for detailed performance data to fully assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to NORTHEAST INFORMATION DISCOVERY INC.. IGF::OT::IGF DIGITAL ELECTRONICS AND AGILE CODING FOR OPERATIONAL NEEDS (DEACON)

Who is the contractor on this award?

The obligated recipient is NORTHEAST INFORMATION DISCOVERY 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 $32.8 million.

What is the period of performance?

Start: 2017-09-29. End: 2020-09-28.

What is the track record of Northeast Information Discovery Inc. with government contracts, particularly in R&D?

Northeast Information Discovery Inc. has been awarded this definitive contract by the Department of the Air Force for R&D in digital electronics and agile coding. As a definitive contract, it implies a commitment to purchase specific services over a period. To fully assess their track record, one would need to examine their past performance on similar contracts, including adherence to schedule, budget, and technical requirements. Information on previous awards, contract values, and client feedback (if publicly available) would provide a more comprehensive view of their capabilities and reliability in executing complex R&D projects for the government.

How does the $32.7 million contract value compare to similar R&D efforts in digital electronics and agile coding within the DoD?

Assessing the $32.7 million value requires context from similar contracts. The DoD invests heavily in R&D, and contracts for specialized areas like digital electronics and agile coding can vary significantly based on scope, duration, and technological complexity. Without access to a database of comparable DEACON-like projects, it's difficult to benchmark precisely. However, for a 3-year R&D effort, this figure appears within a plausible range for advanced technological development. Factors such as the number of bidders and the specific deliverables would influence whether this represents a competitive price point or potentially an area for cost savings.

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

The primary risk with CPFF contracts, especially in R&D, is the potential for cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections, the government bears the burden. Mitigation strategies include rigorous cost monitoring, detailed progress reports, clearly defined scope and deliverables, and strong program management oversight. The fixed fee provides an incentive for the contractor to control costs to maximize their profit margin, but effective oversight is crucial to ensure the government receives value and does not overpay for the research conducted.

How effective is the 'full and open competition' approach for specialized R&D contracts like this one?

Full and open competition is generally the preferred method for government contracting as it maximizes the pool of potential offerors and fosters competition, theoretically leading to better prices and innovation. For specialized R&D, however, the number of qualified bidders might be limited due to the niche expertise required. In this case, with two bidders, there was some competition, but it might not have been as robust as for more common services. The effectiveness hinges on whether the competition truly drove down price and improved technical solutions, which can be assessed by comparing the final awarded price and technical proposals against the initial solicitation requirements.

What are the historical spending patterns for R&D in digital electronics and agile coding by the Department of the Air Force?

Historical spending data for the Air Force in digital electronics and agile coding R&D would reveal trends in investment in these areas. Analyzing past contracts, their values, durations, and outcomes would indicate the Air Force's strategic priorities and commitment to technological advancement. Significant increases or decreases in spending could signal shifts in focus or budget allocations. Understanding these patterns helps contextualize the current $32.7 million award, showing whether it represents a typical investment, an expansion, or a reduction in this specific R&D domain.

What are the potential performance challenges or risks associated with the 'agile coding for operational needs' aspect of this contract?

Agile coding, while beneficial for iterative development, can present challenges when applied to 'operational needs' within a defense context. Risks include ensuring the developed code meets stringent security, reliability, and interoperability standards required for operational systems. There's also a risk of scope creep if 'operational needs' are not precisely defined. Furthermore, integrating agile methodologies into traditional defense acquisition processes can be complex. Successful execution requires clear communication, robust testing, and a strong understanding of both agile principles and the specific operational environment the code is intended for.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875017S0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 136 HUNT VALLEY RD, ONEIDA, NY, 13421

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

Financial Breakdown

Contract Ceiling: $44,996,616

Exercised Options: $44,996,616

Current Obligation: $32,752,577

Actual Outlays: $2,057,353

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $259,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline