DoD's $25.3M Test & Evaluation Contract with Corvid Technologies Faces Scrutiny for Lack of Competition

Contract Overview

Contract Amount: $25,272,067 ($25.3M)

Contractor: Corvid Technologies, LLC

Awarding Agency: Department of Defense

Start Date: 2015-08-11

End Date: 2022-06-30

Contract Duration: 2,515 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CL::IGF (NO INHERENTLY GOVERNMENT FUNCTIONS ASSOCIATED WITH THIS SCOPE OF WORK) TEST&EVALUATION TECHNICAL SERVICES

Place of Performance

Location: MOORESVILLE, IREDELL County, NORTH CAROLINA, 28117

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to CORVID TECHNOLOGIES, LLC for work described as: IGF::CL::IGF (NO INHERENTLY GOVERNMENT FUNCTIONS ASSOCIATED WITH THIS SCOPE OF WORK) TEST&EVALUATION TECHNICAL SERVICES Key points: 1. The contract awarded to Corvid Technologies, LLC for $25.3 million focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded as a 'NOT COMPETED' definitive contract, the procurement method raises questions about price discovery and potential taxpayer impact. 3. The lack of competition and cost-plus-fixed-fee structure present potential risks for cost overruns and reduced value for money. 4. The Missile Defense Agency's reliance on a single source for these critical R&D services warrants further investigation into market research and justification.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking against similar R&D contracts for test and evaluation services would be necessary to determine fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method ('NOT COMPETED'). This significantly limits price discovery and may prevent the government from obtaining the best possible value.

Taxpayer Impact: The absence of competitive bidding on a $25.3 million contract could result in higher costs for taxpayers than if multiple vendors had competed.

Public Impact

Taxpayers may be overpaying for R&D services due to the lack of competitive bidding. Missile Defense Agency's reliance on a single contractor for critical test and evaluation capabilities could pose a strategic risk. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector is broad, and a sole-source award here might stifle innovation from other potential providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of documented justification for sole-source
Potential for inflated costs

Positive Signals

Contract supports critical R&D for Missile Defense Agency
Long-term contract indicates sustained need for services

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541712). Spending in this sector is often characterized by high innovation, long development cycles, and significant upfront investment, making competitive sourcing crucial for value.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). The sole-source nature of the award further limits opportunities for small businesses to participate in providing these specialized R&D services.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for sole-source awards. A thorough review of the procurement file is needed to ensure proper procedures were followed and that competition was explored.

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

Lack of competition
Potential for inflated costs
Limited opportunities for small businesses
Dependency on a single contractor
Insufficient transparency on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to CORVID TECHNOLOGIES, LLC. IGF::CL::IGF (NO INHERENTLY GOVERNMENT FUNCTIONS ASSOCIATED WITH THIS SCOPE OF WORK) TEST&EVALUATION TECHNICAL SERVICES

Who is the contractor on this award?

The obligated recipient is CORVID TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2015-08-11. End: 2022-06-30.

What specific justification was provided for awarding this $25.3 million R&D contract on a sole-source basis, and was a full and open competition truly not feasible?

The justification for a sole-source award, especially for a contract of this magnitude in the R&D sector, must be robust. It typically requires demonstrating that only one responsible source can provide the required services or that exceptional circumstances prevent competition. Without this documentation, it's difficult to ascertain if taxpayer funds were used efficiently or if alternative solutions were overlooked.

Given the cost-plus-fixed-fee structure and lack of competition, what mechanisms were in place to control costs and ensure the government received fair value for the $25.3 million spent?

Cost-plus-fixed-fee contracts inherently carry a risk of cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. When combined with a sole-source award, the absence of competitive pressure can exacerbate this risk. Robust oversight, detailed performance metrics, and stringent review of incurred costs are essential to mitigate these risks and ensure value.

How does the Missile Defense Agency ensure that critical R&D capabilities, like those provided by Corvid Technologies, are not overly concentrated with a single vendor, and what is the strategy for fo

Concentrating critical R&D capabilities with a single vendor can create dependency and limit the infusion of new ideas. The agency should have a strategy that includes periodic market research, exploring opportunities for smaller, specialized contracts, and potentially fostering collaborative environments to encourage innovation from a wider range of entities, including small businesses.

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: HQ027614R0005

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Corvid Technologies LLC

Address: 153 LANGTREE CAMPUS DR, MOORESVILLE, NC, 28117

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,562,950

Exercised Options: $30,056,700

Current Obligation: $25,272,067

Actual Outlays: $3,779,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline