DoD's Missile Defense Agency awards $32.2M contract to Decibel Research for custom computer programming

Contract Overview

Contract Amount: $32,228,754 ($32.2M)

Contractor: Decibel Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2024-07-31

Contract Duration: 1,034 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: COST - ODC & MATERIALS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to DECIBEL RESEARCH, INC. for work described as: COST - ODC & MATERIALS Key points: 1. Contract value of $32.2 million over 3 years indicates significant investment in specialized IT services. 2. Full and open competition suggests a robust market for these services, potentially driving competitive pricing. 3. The Cost Plus Award Fee (CPA) structure incentivizes performance but requires careful oversight to manage costs. 4. This contract supports critical missile defense capabilities, aligning with national security priorities. 5. The geographic concentration in Alabama may indicate a regional hub for specialized defense IT work. 6. A duration of over 1000 days suggests a long-term need for these programming services.

Value Assessment

Rating: good

The contract's total value of $32.2 million over approximately 3 years suggests a substantial investment. Benchmarking this against similar custom computer programming contracts for defense agencies is crucial. The Cost Plus Award Fee (CPA) structure, while common for complex projects, can lead to cost overruns if not managed diligently. Without specific per-unit cost data, a direct value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were initially considered, but specific circumstances led to the exclusion of some before the final award. This suggests a competitive process, though the 'exclusion of sources' element warrants further investigation to understand its impact on the final bidder pool and pricing. The number of bidders is not specified, but the 'full and open' designation generally implies a healthy level of competition.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving advanced custom computer programming services. The services delivered are critical for the development and maintenance of missile defense systems. The contract's performance is geographically located in Alabama, potentially impacting the local tech workforce and economy. Specialized IT professionals in Alabama are likely to be involved in fulfilling this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPA) contracts can incentivize higher costs if performance metrics are not tightly controlled.
The 'exclusion of sources' in the competition process could limit the ultimate level of price discovery.
Lack of specific per-unit cost data makes a precise value-for-money assessment difficult.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contract duration of over 1000 days indicates a stable, long-term need for the services.
The Missile Defense Agency is a critical national security entity, ensuring the contract supports vital functions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The market for such services within the defense industry is substantial, driven by the need for specialized software development to support complex systems like missile defense. Comparable spending benchmarks would involve analyzing other IT service contracts awarded by DoD agencies for similar custom development work, often measured by contract value relative to project scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Decibel Research, Inc., may engage small businesses as subcontractors, depending on their own procurement practices and the specific needs of the project. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically be managed by the Missile Defense Agency's contracting and program management offices. Accountability measures are built into the CPA structure, linking contractor payment to performance against defined award-fee criteria. Transparency is generally maintained through contract reporting requirements, though specific details of performance evaluations are often proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Custom Software Development Services
Department of Defense IT Procurement
Cost Plus Award Fee Contracts

Risk Flags

Cost Plus Award Fee (CPA) contract type requires careful monitoring to prevent cost overruns.
Potential for limited price competition due to 'exclusion of sources' clause.
Lack of specific per-unit cost data hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to DECIBEL RESEARCH, INC.. COST - ODC & MATERIALS

Who is the contractor on this award?

The obligated recipient is DECIBEL RESEARCH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-07-31.

What is Decibel Research, Inc.'s track record with the federal government, particularly the Department of Defense?

Decibel Research, Inc. has a history of contracting with the federal government, primarily within the defense sector. While this specific contract is for $32.2 million with the Missile Defense Agency, a comprehensive review would involve examining their past performance on similar contracts, including their success in meeting cost, schedule, and performance requirements. Past awards and terminations, as well as any reported performance issues or accolades, would provide a clearer picture of their reliability and capability. Understanding their experience with Cost Plus Award Fee (CPA) contracts specifically would also be valuable, as this contract type requires robust performance management and incentivization.

How does the $32.2 million contract value compare to similar custom computer programming services for missile defense?

The $32.2 million contract value for custom computer programming services over approximately three years is substantial, reflecting the specialized nature of missile defense systems. To benchmark this value, one would compare it to other IT service contracts awarded by the Missile Defense Agency or similar defense organizations for comparable tasks, such as software development, system integration, or cybersecurity for advanced weapon systems. Factors like the complexity of the software, the level of security clearance required, and the specific technical expertise needed would influence pricing. Without access to a database of comparable contract values with detailed scope information, it's difficult to definitively state if this represents excellent or fair value, but the competitive award process is a positive indicator.

What are the primary risks associated with this Cost Plus Award Fee (CPA) contract?

The primary risks associated with this CPA contract revolve around cost control and performance management. CPA contracts incentivize contractors to exceed minimum performance standards by offering award fees, but this can also lead to scope creep and increased costs if not carefully managed. The government bears the risk of paying higher-than-expected costs if the contractor performs exceptionally well. Another risk is the potential for the 'exclusion of sources' in the competition phase to have limited the bidder pool, potentially impacting price discovery. Ensuring clear, measurable performance metrics and robust oversight are critical to mitigating these risks and achieving value for taxpayer money.

How effective are CPA contracts in ensuring program effectiveness for critical defense systems like missile defense?

CPA contracts can be effective for critical defense systems when well-structured, as they align contractor incentives with program goals. The award fee component encourages high performance, which is crucial for complex and sensitive projects like missile defense where mission success is paramount. However, effectiveness hinges on the clarity and measurability of the performance criteria. If criteria are subjective or poorly defined, it can lead to disputes or unintended cost increases. The Missile Defense Agency's ability to define and monitor these criteria rigorously will determine the contract's success in driving program effectiveness and ensuring the development of robust missile defense capabilities.

What are the historical spending patterns for custom computer programming services by the Missile Defense Agency?

Historical spending patterns for custom computer programming services by the Missile Defense Agency (MDA) would likely show a consistent demand due to the inherently complex and evolving nature of missile defense technology. The MDA relies heavily on advanced software for tracking, guidance, and system integration. Analyzing past MDA contracts for similar IT services would reveal trends in contract values, types (e.g., fixed-price, cost-plus), and durations. This analysis could indicate whether spending has been increasing or decreasing, and whether the agency favors specific contract types or contractors for these specialized services. Such patterns provide context for the current $32.2 million award.

What is the significance of the contract being for 'Custom Computer Programming Services' (NAICS 541511)?

The NAICS code 541511, 'Custom Computer Programming Services,' signifies that this contract is for developing and maintaining software tailored to the specific needs of the Missile Defense Agency, rather than purchasing off-the-shelf solutions. This implies a high degree of technical complexity and specialized expertise required from Decibel Research, Inc. Such services often involve designing, writing, testing, and debugging code for unique applications, potentially including algorithms for threat detection, system integration for various defense platforms, or data analysis tools. The custom nature suggests a long-term development or enhancement effort critical to the agency's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014718R0022

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 325 BOB HEATH DR, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $39,184,776

Exercised Options: $39,184,776

Current Obligation: $32,228,754

Actual Outlays: $17,611,407

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $16,697,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014719D0003

IDV Type: IDC

Timeline