DoD's $47.5M contract for strategic planning and research support awarded to Schafer Government Services, LLC

Contract Overview

Contract Amount: $47,525,271 ($47.5M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-30

End Date: 2013-12-31

Contract Duration: 1,706 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: STRATEGIC PLANNING & RESEARCH SUPPORT FOR IPTO/DARPA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.5 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: STRATEGIC PLANNING & RESEARCH SUPPORT FOR IPTO/DARPA Key points: 1. The contract value represents a significant investment in specialized research and planning capabilities. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and optimal service selection. 3. Performance risk indicators will be monitored to ensure timely and effective delivery of strategic support. 4. The duration of the contract suggests a long-term need for these specialized services. 5. This contract positions Schafer Government Services within the defense sector's strategic planning and R&D support niche.

Value Assessment

Rating: good

The contract's value of approximately $47.5 million over its period of performance suggests a substantial investment. Benchmarking this against similar strategic planning and research support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the Cost Plus Fixed Fee (CPFF) pricing structure indicates that while the contractor's fee is fixed, the allowable costs can vary, which requires careful oversight to manage overall expenditure effectively. Without specific cost breakdowns or comparisons to industry standards for similar services, a definitive value assessment is challenging, but the scale implies a recognized need for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of full and open competition generally fosters a more competitive environment, potentially leading to better pricing and a wider selection of qualified contractors. The number of bidders and the specific evaluation criteria used would provide further insight into the intensity of the competition and its impact on the final award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures that the government receives the best value for its investment by selecting from a broad pool of capable providers.

Public Impact

The primary beneficiaries are the Information Technology Planning and Operations (IPTO) and Defense Advanced Research Projects Agency (DARPA) within the Department of Defense, receiving critical strategic planning and research support. The services delivered are essential for informing high-level decision-making, research direction, and strategic initiatives within these defense agencies. The geographic impact is primarily within the operational areas of the Department of Defense, with potential implications for national security strategy. Workforce implications may include the engagement of specialized researchers, analysts, and strategic planners, both within the contractor's organization and potentially within the government agencies receiving the support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not rigorously managed.
Ensuring the strategic recommendations are actionable and align with evolving defense priorities.
Maintaining continuity of knowledge and expertise throughout the contract duration.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor's engagement in strategic planning and research indicates specialized expertise.
Long contract duration implies a sustained need and potential for building deep institutional knowledge.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting strategic planning and research for defense agencies. The market for such specialized services is driven by government needs for advanced technological development and strategic foresight. Comparable spending benchmarks would involve analyzing other contracts for similar research, development, and strategic consulting services within the broader defense and technology sectors, which often represent significant portions of federal R&D and acquisition budgets.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Schafer Government Services, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the scope of work was deemed to require capabilities best met through open competition, potentially limiting direct opportunities for small businesses unless they are part of a larger subcontracting team.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) within the Department of Defense. Accountability measures would be tied to the performance standards outlined in the contract, particularly given the Cost Plus Fixed Fee structure which requires diligent monitoring of costs and progress. Transparency is facilitated through contract award databases and reporting requirements, though specific details of ongoing performance and cost management are often internal to the agency.

Related Government Programs

Defense Research and Development Programs
Strategic Planning Support Services
Engineering and Technical Services
DARPA Research Initiatives
Department of Defense IT Strategy

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Relevance of Deliverables Over Time
Personnel Turnover Impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.5 million to SCHAFER GOVERNMENT SERVICES, LLC. STRATEGIC PLANNING & RESEARCH SUPPORT FOR IPTO/DARPA

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.5 million.

What is the period of performance?

Start: 2009-04-30. End: 2013-12-31.

What is Schafer Government Services, LLC's track record with the Department of Defense and similar contracts?

Schafer Government Services, LLC has a history of performing contracts with the Department of Defense, often in areas related to engineering, technical support, and program management. Analyzing their past performance on similar Cost Plus Fixed Fee contracts, particularly those involving strategic planning and research, would reveal their ability to manage costs effectively and deliver high-quality results. Their experience with agencies like DARPA suggests a capability to handle complex and sensitive research requirements. A review of past performance evaluations and any contract disputes or awards would provide a comprehensive understanding of their reliability and expertise in fulfilling government requirements.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar strategic planning services?

The Cost Plus Fixed Fee (CPFF) structure used for this contract is common for research and development or services where the scope of work is not precisely defined at the outset, allowing for flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the cost of allowable expenses. Other contract types like Firm-Fixed-Price (FFP) offer more cost certainty but are less suitable for R&D where requirements may evolve. Cost-Plus-Incentive-Fee (CPIF) could offer incentives for cost savings. The choice of CPFF suggests that flexibility and contractor expertise were prioritized over strict cost certainty, but it necessitates robust government oversight to control expenditures.

What are the key performance indicators (KPIs) used to assess the success of this strategic planning and research support contract?

Key performance indicators for a contract of this nature would likely focus on the quality and impact of the strategic recommendations, the timeliness of research deliverables, and adherence to budget. Specific KPIs might include the successful development of strategic plans that are adopted and implemented, the generation of insightful research reports that inform policy or technological development, and the contractor's ability to meet milestones within the agreed-upon cost parameters. Measuring the 'value' of strategic advice is inherently challenging, but success can be gauged by the tangible outcomes and the perceived contribution to the agency's mission objectives and long-term goals.

What is the historical spending trend for strategic planning and research support within the IPTO/DARPA, and how does this contract fit?

Historical spending on strategic planning and research support within agencies like IPTO and DARPA is typically substantial, reflecting the critical nature of innovation and foresight in national defense. DARPA, in particular, is known for funding high-risk, high-reward research projects. This $47.5 million contract represents a significant, but not necessarily anomalous, investment within this context. Analyzing multi-year spending patterns for similar services would reveal whether this award is consistent with historical levels, indicates an increase in demand, or represents a shift in strategic priorities. Such analysis helps contextualize the contract's size and importance within the agency's overall budget and R&D portfolio.

What are the potential risks associated with the long duration (1706 days) of this contract?

The long duration of this contract, approximately 4.7 years, presents several potential risks. Firstly, the strategic landscape, particularly in defense and technology, can change rapidly, potentially rendering initial research findings or strategic plans outdated before the contract concludes. Secondly, maintaining contractor focus and performance over such an extended period can be challenging, requiring consistent oversight. Thirdly, there's a risk of 'scope creep' if the contract's objectives are not clearly defined and managed, leading to increased costs. Finally, personnel turnover within the contractor's team could disrupt institutional knowledge and project continuity. Mitigating these risks requires proactive contract management, regular reviews, and clear communication channels.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3076

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Schafer Government Services LLC

Address: 101 BILLERICA AVENUE, BUILDING 5, SUITE 201, NORTH BILLERICA, MA, 01862

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

Financial Breakdown

Contract Ceiling: $49,783,424

Exercised Options: $49,783,424

Current Obligation: $47,525,271

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017808D5571

IDV Type: IDC

Timeline