Defense Threat Reduction Agency Awards $78.7M Contract for Applied Research to Applied Marine Technology Inc
Contract Overview
Contract Amount: $14,142,499 ($14.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-09-16
End Date: 2007-11-30
Contract Duration: 1,170 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: 200412!000865!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA104C0026 !A!N! !N! ! !20040916!20050727!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE STREET !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000003250000!N!N!000006500000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!2A!Z!N!Z! ! !N!B!N!N! !A!A! !A!A!00 !A!B!N! ! !Y! ! ! !0001! !
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.1 million to LEIDOS, INC. for work described as: 200412!000865!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA104C0026 !A!N! !N! ! !20040916!20050727!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE STREET !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRG… Key points: 1. The contract focuses on RDTE/Electronics & Communication Equipment - Applied Research, indicating a need for specialized technological development. 2. Competition was limited, with the contract being 'NOT COMPETED', raising questions about potential price discovery and value. 3. The primary contractor, Applied Marine Technology Inc., is based in Virginia Beach, VA. 4. The contract duration is 1170 days, spanning from September 16, 2004, to November 30, 2007.
Value Assessment
Rating: questionable
The contract value of $78.7M for applied research over approximately three years is substantial. Without specific benchmarks for similar applied research contracts in electronics and communication equipment, it's difficult to definitively assess its value. The lack of competition further complicates a direct pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED', suggesting a sole-source or limited competition scenario. This method of procurement can lead to higher prices as there is less pressure from market forces to achieve the most cost-effective solution. Price discovery is likely less robust than in a full and open competition.
Taxpayer Impact: The lack of robust competition in this $78.7M contract may have resulted in taxpayers paying more than necessary for the applied research services.
Public Impact
This contract supports research and development in critical defense technologies, potentially enhancing national security capabilities. The award to a specific company, Applied Marine Technology Inc., highlights the specialized nature of the services required. The duration of the contract suggests a long-term investment in a particular area of technological advancement. The lack of competition raises concerns about transparency and potential inefficiencies in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited competition
- Limited transparency in the procurement process
Positive Signals
- Supports critical defense research and development
- Long-term investment in technological advancement
Sector Analysis
The sector is Research, Development, Testing, and Evaluation (RDTE) with a focus on electronics and communication equipment. Spending in this area is crucial for maintaining a technological edge but can be prone to cost overruns due to the inherent uncertainties in R&D and the specialized nature of the work.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a single entity, Applied Marine Technology Inc., and further analysis would be needed to determine any small business participation.
Oversight & Accountability
The 'NOT COMPETED' status of this contract warrants further oversight to ensure that the procurement process was justified and that the pricing is reasonable. Accountability for the expenditure of $78.7M is crucial, especially given the lack of competitive bidding.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Uncertainty in R&D outcomes
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to LEIDOS, INC.. 200412!000865!9700!HDTRA1!DEFENSE THREAT REDUCTION AGENCY !HDTRA104C0026 !A!N! !N! ! !20040916!20050727!786832824!786832824!786832824!N!APPLIED MARINE TECHNOLOGY INC !2900 SABRE STREET !VIRGINIA BEACH !VA!23452!82000!810!51!VIRGINIA BEACH !VIRGINIA BEACH (CITY) !VIRGINIA !+000003250000!N!N!000006500000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.1 million.
What is the period of performance?
Start: 2004-09-16. End: 2007-11-30.
What was the specific justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not detailed in the provided data. Typically, non-competitive awards are made when only one source can provide the required goods or services, or in cases of urgent need. Further investigation into the Defense Threat Reduction Agency's procurement records would be necessary to understand the specific rationale and whether alternative solutions were explored before awarding the contract to Applied Marine Technology Inc.
How does the per-unit cost or overall value of this contract compare to similar applied research projects in electronics and communication equipment?
Without access to a comprehensive database of similar applied research contracts, a direct per-unit cost comparison is not feasible. The total contract value of $78.7 million for approximately three years of R&D in specialized electronics and communication equipment is significant. However, the lack of competition makes it challenging to benchmark against market rates, raising concerns about whether this represents a fair and reasonable price for the services rendered.
What are the measurable outcomes or deliverables expected from this $78.7M applied research contract, and how will their effectiveness be evaluated?
The provided data does not specify the measurable outcomes or deliverables for this applied research contract. Effective evaluation would require clearly defined objectives, milestones, and performance metrics within the contract itself. The Defense Threat Reduction Agency would need to have a robust system in place to track progress, assess the technical advancements achieved, and determine the overall effectiveness of the research funded by this $78.7 million award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 2900 SABRE STREET, VIRGINIA BEACH, VA, 23452
Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Veteran Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-16
Current End Date: 2007-11-30
Potential End Date: 2007-11-30 00:00:00
Last Modified: 2024-11-22
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