DoD's $197M contract for R&D management support awarded to Scientific Research Corporation shows fair value

Contract Overview

Contract Amount: $28,158,993 ($28.2M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2005-03-11

End Date: 2010-04-03

Contract Duration: 1,849 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200506!000241!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0177 !A!N! !Y! ! !20050311!20100403!197138274!197138274!197138274!N!SCIENTIFIC RESEARCH CORPORATIO!2300 WINDY RIDGE PARKWAY, !ATLANTA !GA!30339!04000!121!13!ATLANTA !FULTON !GEORGIA !+000002000000!N!N!000022421975!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!R!2!006!K! !Z!N!Z! ! !N!B!N!N! ! !Z! !B!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to SCIENTIFIC RESEARCH CORPORATION for work described as: 200506!000241!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0177 !A!N! !Y! ! !20050311!20100403!197138274!197138274!197138274!N!SCIENTIFIC RESEARCH CORPORATIO!2300 WINDY RIDGE PARKWAY, !ATLANTA !GA!30339!04000!121!13!ATLANTA !FULT… Key points: 1. Contract value of $197.1M over 5 years suggests a significant investment in specialized R&D support. 2. The contract was competed, indicating potential for price discovery and value for taxpayer dollars. 3. A moderate number of bidders (6) suggests a reasonably competitive landscape for this niche service. 4. The 'Cost Plus Award Fee' (CPAF) structure incentivizes performance but requires careful oversight to manage costs. 5. Scientific Research Corporation's track record and the contract's duration point to a long-term relationship for critical support. 6. The contract falls under 'Research and Development-Management Support,' a crucial but often complex area of defense spending.

Value Assessment

Rating: good

The contract's total value of $197.1M over approximately five years averages to about $39.4M annually. While a direct per-contract comparison is difficult without more data on similar R&D management support contracts, the pricing appears within a reasonable range for specialized, long-term government support services. The 'Cost Plus Award Fee' (CPAF) structure, while common for R&D, necessitates robust oversight to ensure costs remain aligned with performance and value delivered. Benchmarking against industry standards for R&D program management would provide further insight into the cost-effectiveness.

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,' which suggests a competitive process was initiated, but specific sources may have been excluded based on certain criteria. With six bidders participating, there was a moderate level of competition. This number indicates that multiple firms were interested and capable of performing the required services, which generally aids in achieving a fair market price. However, the 'exclusion of sources' clause warrants further investigation to understand its impact on the breadth of competition.

Taxpayer Impact: A competitive bidding process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions. The presence of six bidders suggests that the government had options, potentially leading to a more favorable outcome than a sole-source award.

Public Impact

The primary beneficiaries are the Department of Defense and its research arms, such as the Air Force Research Laboratory (AFRL), receiving critical management support for scientific and technical programs. Services delivered include essential management and administrative support for research and development initiatives, ensuring projects stay on track and within scope. The geographic impact is primarily centered around the contracting agency (DET 8 AFRL/PKV8) and the contractor's location, but the R&D supported likely has national security implications. Workforce implications include the employment of skilled professionals in program management, scientific support, and administrative roles by both the contractor and potentially government oversight personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Award Fee' structure requires diligent oversight to prevent cost overruns and ensure award fees are tied to demonstrable performance metrics.
The 'Full and Open Competition After Exclusion of Sources' could potentially limit the pool of qualified bidders, impacting overall price competition.
Long-term contracts, while providing stability, can sometimes lead to complacency or reduced incentive for innovation if not managed proactively.

Positive Signals

The contract was awarded through a competitive process, indicating that multiple vendors were considered, which is a positive sign for value.
The contractor, Scientific Research Corporation, has secured a significant, long-term contract, suggesting a level of trust and proven capability within the DoD.
The contract duration of nearly five years provides stability and allows for deep integration of support services, potentially leading to efficiencies.

Sector Analysis

This contract falls within the broader 'Research and Development' sector, specifically focusing on management support for physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' encompasses a wide range of scientific endeavors. Spending in this area is critical for maintaining technological superiority. Comparable spending benchmarks would involve analyzing other large R&D support contracts within the DoD and other federal agencies, looking at contract values, durations, and the specific services provided.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss=false, sb=false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting requirements mandated for small businesses, although the prime contractor may voluntarily engage small businesses. The absence of a set-aside suggests that the primary focus was on securing the best capabilities from the market, potentially favoring larger, established firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the awarding agency, the Department of Defense (specifically the Air Force Research Laboratory, as indicated by the contract details). The 'Cost Plus Award Fee' (CPAF) structure necessitates rigorous performance monitoring and financial oversight to ensure the contractor meets defined objectives and that costs are reasonable. Transparency is typically managed through contract reporting mechanisms and potentially through Inspector General investigations if performance or cost issues arise. The contract's duration and value suggest a dedicated contract management team would be responsible.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Research Laboratory Contracts
Scientific and Technical Support Services
Management and Administrative Support Services
Cost Plus Award Fee Contracts

Risk Flags

Cost Overruns Potential (CPAF structure)
Performance Assessment Subjectivity (Award Fee criteria)
Limited Competition Scope (Exclusion of Sources)
Long-Term Contract Management Burden

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to SCIENTIFIC RESEARCH CORPORATION. 200506!000241!5700!FA9453!DET 8 AFRL/PKV8 !FA945305C0177 !A!N! !Y! ! !20050311!20100403!197138274!197138274!197138274!N!SCIENTIFIC RESEARCH CORPORATIO!2300 WINDY RIDGE PARKWAY, !ATLANTA !GA!30339!04000!121!13!ATLANTA !FULTON !GEORGIA !+000002000000!N!N!000022421975!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !000 !* !541710!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2005-03-11. End: 2010-04-03.

What is the historical spending trend for Scientific Research Corporation with the Department of Defense?

Analyzing the historical spending for Scientific Research Corporation (SRC) with the Department of Defense requires access to comprehensive federal procurement databases. Based on the provided data, this specific contract represents a significant award of $197.1M. To understand SRC's broader engagement, one would need to query databases like USASpending.gov or FPDS-NG for all contracts awarded to 'SCIENTIFIC RESEARCH CORPORATIO' (DUNS 000022421975) by the DoD across all years. This would reveal the total value of contracts, the types of services rendered, and the specific agencies within the DoD that have contracted with SRC. A trend analysis would then show if this $197M contract is an outlier, a continuation of a pattern, or indicative of a growing relationship.

How does the average annual value of this contract compare to similar R&D management support contracts?

The average annual value of this contract is approximately $39.4M ($197.1M / 5 years). To benchmark this against similar contracts, one would need to identify other DoD or federal contracts awarded for 'Research and Development-Management Support' (NAICS 541710 or related codes) within a similar timeframe (e.g., 2005-2010). Key comparison points would include the contract duration, the specific services outlined, the awarding agency, and the number of bidders. Without a curated database of comparable contracts, a precise benchmark is challenging. However, $39.4M annually for specialized R&D management support suggests a substantial contract, likely involving complex programs requiring significant contractor resources and expertise.

What are the specific performance metrics tied to the 'Award Fee' in this contract?

The provided data indicates the contract type is 'Cost Plus Award Fee' (CPAF), but it does not detail the specific performance metrics used to determine the award fee. Typically, for CPAF contracts, the government establishes a Performance Work Statement (PWS) or Statement of Objectives (SOO) that outlines measurable performance standards. These metrics could include factors such as on-time project completion, adherence to budget, quality of deliverables, responsiveness to government requests, innovation contributions, and overall program management effectiveness. The contractor earns a base fee plus an award fee based on how well they meet or exceed these predefined criteria. A thorough review of the contract's PWS or related documentation would be necessary to identify the exact metrics.

What was the rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the procurement was intended to be competitive, specific potential offerors were excluded from participating. The rationale for such exclusions typically stems from specific government requirements outlined in the solicitation. This could include mandatory pre-qualification criteria, specific security clearances, demonstrated experience with particular technologies or programs, or geographic location requirements. In some cases, it might relate to prior performance issues or conflicts of interest. The specific justification for excluding sources in this particular contract (FA945305C0177) would be documented within the contract award file or related procurement justification documents maintained by the Department of Defense.

What is the typical risk profile associated with 'Cost Plus Award Fee' contracts for R&D services?

Cost Plus Award Fee (CPAF) contracts, particularly for Research and Development (R&D) services, carry a moderate to high-risk profile, primarily concerning cost control and oversight. The 'cost-plus' element means the government reimburses the contractor for allowable costs, which can lead to cost growth if not managed tightly. The 'award fee' component introduces performance risk; the government must clearly define metrics and objectively assess performance to ensure award fees are justified. For R&D, where outcomes can be uncertain, defining success metrics can be challenging. Risks include potential for cost overruns, contractor focus shifting towards maximizing award fees rather than overall program success, and the administrative burden on the government to monitor performance and justify fee decisions. However, CPAF can also mitigate risk by incentivizing contractor performance and flexibility in uncertain R&D environments.

How does the contract's duration (1849 days) impact the overall value proposition for the government?

A contract duration of 1849 days, approximately five years, offers several potential benefits to the government, enhancing its value proposition. Firstly, it provides stability and continuity for critical R&D management support functions, reducing the disruption and cost associated with frequent re-procurement. Secondly, it allows the contractor, Scientific Research Corporation, to develop deep institutional knowledge and expertise specific to the programs they support, potentially leading to greater efficiency and effectiveness over time. Thirdly, a longer-term commitment can foster a stronger partnership between the government and the contractor, encouraging proactive problem-solving and innovation. However, it also necessitates robust government oversight throughout the period to ensure performance remains high and costs are controlled, mitigating the risk of complacency or declining value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PARKWAY,, ATLANTA, GA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline