DoD's $54M R&D contract awarded to Strategic Analysis, Inc. for specialized research services

Contract Overview

Contract Amount: $54,160,682 ($54.2M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-17

End Date: 2026-03-13

Contract Duration: 1,061 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $54.2 million to STRATEGIC ANALYSIS, INC. for work described as: PROFESSIONAL SERVICES Key points: 1. Contract value represents a significant investment in specialized research and development. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period extends over two years, indicating a need for sustained support. 4. The contract falls within the R&D sector, aligning with federal innovation priorities. 5. Strategic Analysis, Inc. is positioned as a key provider for this specific research niche.

Value Assessment

Rating: good

The contract's value of approximately $54 million over its period of performance appears reasonable for specialized R&D services. Benchmarking against similar contracts in the physical, engineering, and life sciences R&D sector would provide a more precise value-for-money assessment. However, the fixed-price contract type suggests that the government has a clear understanding of the scope and cost, which can lead to better cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded. The number of bidders is not specified, but this award type suggests a deliberate selection process. The level of competition, even with exclusions, likely influenced pricing and ensured some degree of market responsiveness.

Taxpayer Impact: The limited competition, even after exclusions, means taxpayers may not have benefited from the absolute lowest price achievable through unrestricted open competition. However, it could also indicate a focus on specialized capabilities essential for the research objectives.

Public Impact

The Department of Defense benefits from advanced research and analysis to support its technological and strategic objectives. Specialized research services are delivered, contributing to advancements in physical, engineering, and life sciences. The primary geographic impact is within the District of Columbia, where the contractor is located. The contract supports a workforce skilled in scientific research and strategic analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation if excluded sources possessed unique or superior capabilities.
Risk of cost overruns if the scope of 'specialized research' proves more complex than anticipated.
Dependence on a single contractor for critical R&D insights could pose a continuity risk.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Award to a single entity streamlines management and oversight.
Contract duration allows for in-depth research and development.

Sector Analysis

This contract operates within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for federal investment, driving innovation and technological advancement across various government missions. The market for specialized R&D services is often characterized by a mix of large corporations and niche firms with highly specific expertise. Federal spending in this area is substantial, with agencies like the Department of Defense consistently investing in cutting-edge research to maintain a technological edge.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Strategic Analysis, Inc., may engage small businesses as subcontractors, depending on the nature of the research and their own supply chain strategies. Further analysis of subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Defense. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified research outcomes. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Scientific and Technical Services
Engineering and Research Services

Risk Flags

Limited competition may impact price discovery.
Exclusion of sources could limit access to potentially superior capabilities.
R&D outcomes are inherently uncertain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.2 million to STRATEGIC ANALYSIS, INC.. PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $54.2 million.

What is the period of performance?

Start: 2023-04-17. End: 2026-03-13.

What is the track record of Strategic Analysis, Inc. in performing similar R&D contracts for the federal government?

Strategic Analysis, Inc. has a history of performing research and analysis services for various government agencies. Their expertise often lies in areas requiring strategic insights and technical understanding. While specific details on past R&D contract performance would require a deeper dive into contract databases, their presence in this sector suggests experience. Key performance indicators from previous contracts, such as on-time delivery, adherence to budget, and quality of research output, would be crucial for a comprehensive assessment. Examining past performance reviews and any documented issues or commendations would provide further context on their reliability and capability in executing complex R&D projects.

How does the awarded amount compare to the typical cost of similar R&D services in the physical, engineering, and life sciences sector?

The $54 million contract value for R&D services needs to be benchmarked against comparable contracts within the physical, engineering, and life sciences domain. Factors influencing cost include the specific scientific disciplines involved, the complexity of the research questions, the required level of expertise, and the duration of the project. Contracts for highly specialized or cutting-edge research often command higher prices due to the scarcity of qualified personnel and the inherent risks. A comparative analysis with contracts of similar scope, duration, and agency (e.g., other DoD R&D efforts) would reveal whether this award represents a fair market price or deviates significantly, potentially indicating either exceptional value or an overpayment.

What are the primary risks associated with this specific R&D contract, and how are they being mitigated?

Key risks for this R&D contract include the inherent uncertainty in research outcomes, the potential for scope creep if research objectives are not clearly defined, and the possibility of contractor underperformance or failure to deliver innovative solutions. Mitigation strategies likely involve robust project management by the government, clear definition of research milestones and deliverables, regular performance reviews, and potentially incorporating incentives or penalties tied to research success. The fixed-price contract type itself helps mitigate cost overrun risks, provided the scope is well-defined. Furthermore, the 'limited competition after exclusion of sources' might introduce a risk if the excluded entities possessed critical, unique capabilities.

What is the expected impact of this contract on the Department of Defense's technological advancement and strategic capabilities?

This contract is expected to contribute directly to the Department of Defense's technological advancement by funding specialized research in physical, engineering, and life sciences. The outcomes of this research could lead to the development of new technologies, improved existing systems, or enhanced understanding of complex scientific challenges relevant to national security. Strategic capabilities may be bolstered through insights derived from the research, informing policy, operational planning, and future defense investments. The specific impact will depend on the nature of the research conducted and its successful translation into practical applications or strategic advantages for the DoD.

How has federal spending in the R&D sector, particularly for services like those provided by Strategic Analysis, Inc., trended over the past five years?

Federal spending in the R&D sector has generally seen consistent investment, driven by national security imperatives and the pursuit of technological superiority. Within the physical, engineering, and life sciences, spending often fluctuates based on emerging threats, technological opportunities, and budgetary priorities. Contracts for specialized research and analysis services, like those provided by Strategic Analysis, Inc., are a significant component of this spending. Over the past five years, there has been a notable emphasis on areas such as artificial intelligence, cybersecurity, advanced materials, and biotechnology, which likely influence the types of R&D contracts awarded. Analyzing historical spending patterns for similar NAICS codes (like 541712) and contract types would reveal trends in demand and pricing for these specialized services.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003423R0013

Offers Received: 3

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 4075 WILSON BLVD STE 200, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $91,832,745

Exercised Options: $71,777,265

Current Obligation: $54,160,682

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,516,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS434

IDV Type: IDC

Timeline