DoD awards $10.77M R&D contract to Systems Planning and Analysis, Inc. for 5-year research services

Contract Overview

Contract Amount: $10,768,623 ($10.8M)

Contractor: Systems Planning and Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-04-25

End Date: 2029-04-24

Contract Duration: 1,825 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DETER OPEN ARA PERSIST

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to SYSTEMS PLANNING AND ANALYSIS, INC. for work described as: DETER OPEN ARA PERSIST Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for technological advancement. 4. The contract duration of 1825 days (5 years) indicates a long-term commitment to the research objectives. 5. The awardee, Systems Planning and Analysis, Inc., has secured this contract, highlighting their capabilities in the R&D space. 6. The contract is for services in Alabama, potentially impacting the local economy and workforce.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement nature of the contract requires robust oversight to ensure funds are used efficiently. Comparing this to similar R&D contracts in the physical, engineering, and life sciences sector would provide better context on pricing and value for money. The award amount of $10.77 million over five years suggests a moderate investment in specialized research services.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this specialized R&D work.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best value for its investment. This approach maximizes the pool of potential contractors, increasing the likelihood of finding a highly capable and cost-effective solution.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the nation's technological advancement through research and development. Services delivered will focus on Research and Development in Physical, Engineering, and Life Sciences. The geographic impact is concentrated in Alabama, where the contract services will be performed. Workforce implications may include the creation or sustainment of specialized R&D jobs in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns if not meticulously managed and monitored.
The long duration of the contract necessitates sustained oversight to ensure continued alignment with evolving research needs and objectives.
The specific nature of R&D can be unpredictable, making it difficult to guarantee specific outcomes or definitive breakthroughs within the contract period.

Positive Signals

Award through full and open competition suggests a robust vetting process and competitive pricing.
The contract is for a critical R&D area, indicating investment in future capabilities.
The fixed fee component provides a degree of cost predictability for the agency.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad and critical area for national security and technological advancement. The market for such specialized R&D services is competitive, with numerous firms offering expertise. Comparable spending benchmarks would depend on the specific sub-discipline of R&D, but government investment in this sector is substantial and ongoing to maintain a technological edge.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. While there is no explicit small business set-aside, the prime contractor, Systems Planning and Analysis, Inc., may engage small businesses as subcontractors. The impact on the small business ecosystem would depend on the subcontracting opportunities created, if any, and the specific capabilities required for the R&D tasks.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will be crucial, particularly concerning the management of costs and the achievement of research milestones. The Department of the Air Force, as the awarding agency, will be responsible for monitoring performance and expenditures. Transparency will be maintained through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical Sciences Research Contracts
Engineering Research Services
Life Sciences Research Initiatives

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
R&D inherently involves uncertainty in outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to SYSTEMS PLANNING AND ANALYSIS, INC.. DETER OPEN ARA PERSIST

Who is the contractor on this award?

The obligated recipient is SYSTEMS PLANNING AND ANALYSIS, 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 $10.8 million.

What is the period of performance?

Start: 2024-04-25. End: 2029-04-24.

What is the track record of Systems Planning and Analysis, Inc. with Cost Plus Fixed Fee contracts, particularly within the Department of Defense?

A detailed analysis of Systems Planning and Analysis, Inc.'s track record with Cost Plus Fixed Fee (CPFF) contracts, especially within the Department of Defense (DoD), would require access to historical contract databases and performance reviews. CPFF contracts are common for R&D where the scope may evolve, but they necessitate rigorous oversight to manage costs effectively. Examining past CPFF awards to SPA, Inc. would reveal their ability to manage project budgets, meet deadlines, and deliver on technical objectives. Key indicators would include the frequency of cost overruns, the timeliness of deliverables, and any documented performance issues or commendations. Without specific historical data, it's difficult to definitively assess their proficiency, but the DoD's decision to award them another CPFF contract suggests a level of confidence based on prior performance or a thorough evaluation of their capabilities for this specific R&D effort.

How does the $10.77 million award compare to similar R&D contracts in the physical, engineering, and life sciences sector awarded by the DoD?

The $10.77 million award for a 5-year R&D contract in physical, engineering, and life sciences is a moderate-sized award within the DoD's extensive R&D portfolio. The DoD invests billions annually in R&D across various scientific disciplines. To benchmark this specific contract, one would compare it to other definitive contracts of similar duration and scope within the same NAICS code (541715) or closely related ones. Factors such as the specific research area (e.g., advanced materials, aerospace engineering, biomedical research), the level of innovation required, and the number of bidders would influence pricing. Contracts for highly specialized or cutting-edge research may command higher prices. Without knowing the precise R&D focus and the competitive landscape for this particular requirement, it's challenging to state definitively if $10.77 million represents a high, low, or average value. However, given the 5-year duration, it suggests a sustained effort rather than a short-term project.

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

The primary risk with Cost Plus Fixed Fee (CPFF) contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial projections, the government bears the burden, although the fixed fee provides some predictability. For R&D, the inherent uncertainty of research outcomes adds another layer of risk. Mitigation strategies typically involve robust government oversight, including detailed cost monitoring, regular progress reviews, and stringent auditing of expenses. The agency must ensure that all costs claimed are allowable, allocable, and reasonable. Clear definition of research objectives and performance metrics, even in an evolving R&D environment, is crucial. The fixed fee itself incentivizes the contractor to manage costs efficiently to maximize their profit margin. The long-term nature of this 5-year contract necessitates continuous vigilance and adaptive management by the contracting officer and technical team.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' classification imply for the scope of this contract?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' (NAICS code 541715) indicates a broad scope of potential research activities. 'Physical Sciences' could encompass areas like physics, chemistry, materials science, and earth sciences. 'Engineering Sciences' might include aerospace, mechanical, electrical, or civil engineering research. 'Life Sciences' covers biology, medicine, agriculture, and environmental science. The exclusion of nanotechnology and biotechnology suggests the research focus lies in more established or distinct areas within these broader fields. This classification implies the contract could support fundamental research, applied research, or experimental development aimed at advancing scientific knowledge or developing new technologies and processes within these domains, excluding the specified specialized areas.

How might the location of contract performance in Alabama impact the execution and oversight of this R&D contract?

The performance location in Alabama (ST: AL, SN: ALABAMA) means that the contractor's facilities or personnel will be based there. This geographical concentration can facilitate on-site oversight by government representatives if there are DoD or Air Force facilities nearby. It may also allow for easier collaboration with local research institutions or universities if applicable. However, it could also mean that the government needs to establish or utilize existing oversight mechanisms in that specific region. The impact on execution is likely minimal unless specific logistical challenges arise, but it does tie the economic benefits of the contract to the Alabama region. Oversight effectiveness will depend on the presence of qualified government personnel or contracting officer representatives (CORs) in the vicinity or the establishment of robust remote monitoring protocols.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2001 N BEAUREGARD ST, ALEXANDRIA, VA, 22311

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

Financial Breakdown

Contract Ceiling: $24,476,289

Exercised Options: $24,476,289

Current Obligation: $10,768,623

Actual Outlays: $246,963

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,953,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline