DoD's Missile Defense Agency Spends $29.8M on R&D Support, Lacking Competition
Contract Overview
Contract Amount: $29,767,395 ($29.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of Defense
Start Date: 2011-08-31
End Date: 2017-09-11
Contract Duration: 2,203 days
Daily Burn Rate: $13.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ANALYTICAL SUPPORT FOR THE MDA'S QUICK REACTION TEAM
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ANALYTICAL SUPPORT FOR THE MDA'S QUICK REACTION TEAM Key points: 1. Significant investment in specialized R&D support for a critical defense agency. 2. Sole-source award raises concerns about price discovery and potential overspending. 3. Lack of competition limits opportunities for small businesses in this high-tech sector. 4. Contract duration of over 6 years suggests a long-term need for these services.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $29.8 million represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a nearly $30 million contract potentially results in taxpayer funds being used less efficiently than if a competitive process had been employed.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. Missile defense capabilities could be impacted if R&D support is not cost-effective. Limited opportunities for other firms, including small businesses, to contribute to this important national security area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Limited small business participation
Positive Signals
- Supports critical defense mission
- Long-term contract provides stability
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires rigorous oversight to ensure value, especially when awarded non-competitively.
Small Business Impact
The contract was not competed and the awardee is a large business. This indicates a missed opportunity to engage small businesses in providing specialized analytical support for the Missile Defense Agency.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the contractor is delivering value and that costs are reasonable. Transparency in reporting and performance metrics would be crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of price discovery.
- Missed opportunities for small business participation.
- Contract duration is lengthy.
- Cost-plus contract type can incentivize higher spending.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ANALYTICAL SUPPORT FOR THE MDA'S QUICK REACTION TEAM
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2011-08-31. End: 2017-09-11.
What specific factors justified the sole-source award for this critical R&D support, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. For this contract, the specific rationale needs to be documented by the Missile Defense Agency. Without this documentation, it's difficult to assess if the government adequately explored alternatives or if the chosen contractor truly possessed indispensable qualifications that precluded competition.
How was the 'fixed fee' component determined in this Cost Plus Fixed Fee (CPFF) contract to ensure fairness without competition?
In a CPFF contract awarded sole-source, the fixed fee is often negotiated based on historical data, industry standards, and the contractor's proposed effort. However, the absence of competitive bids means there's no market benchmark to validate the fee's reasonableness. The government likely relied on internal cost analysis and negotiation expertise, but the lack of comparison makes it harder to confirm optimal taxpayer value.
What performance metrics were established to ensure the effectiveness of the analytical support provided by Science Applications International Corporation?
Effectiveness is typically measured through key performance indicators (KPIs) tied to the contract's objectives. For analytical support, these might include timeliness of reports, accuracy of analysis, impact on decision-making, and client satisfaction. The Missile Defense Agency should have established specific, measurable, achievable, relevant, and time-bound (SMART) goals to track the contractor's performance and ensure the $29.8 million investment yielded tangible results.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ000611R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,465,087
Exercised Options: $32,465,087
Current Obligation: $29,767,395
Actual Outlays: $-14,406
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-08-31
Current End Date: 2017-09-11
Potential End Date: 2017-09-11 00:00:00
Last Modified: 2023-04-11
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