DoD's DARPA Awards $77.5M for SETA Support Services to Strategic Analysis, Inc

Contract Overview

Contract Amount: $77,551,382 ($77.6M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-12-19

End Date: 2025-12-17

Contract Duration: 1,824 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADAPTIVE CAPABILITIES OFFICE (ACO) SETA SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $77.6 million to STRATEGIC ANALYSIS, INC. for work described as: ADAPTIVE CAPABILITIES OFFICE (ACO) SETA SUPPORT SERVICES Key points: 1. Contract awarded to Strategic Analysis, Inc. for SETA support. 2. Significant contract value of $77.5 million over 5 years. 3. Competition method was full and open, indicating broad market engagement. 4. Sector is Defense, specifically supporting DARPA's advanced research. 5. Potential risks include contractor performance and evolving research needs.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility in research and development environments. Benchmarking CPFF contracts for similar technical services is challenging due to unique project scopes, but the fixed fee component provides a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple qualified contractors to bid, driving competitive pricing and potentially better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense research support.

Public Impact

Supports advanced research and development critical to national security. Ensures specialized technical expertise is available to DARPA. Long-term contract (5 years) provides stability for research initiatives. Funding allocated through the Department of Defense budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in R&D projects.
  • Reliance on a single contractor for critical support.
  • Ensuring continued alignment with evolving DARPA priorities.

Positive Signals

  • Awarded through full and open competition.
  • Long-term contract duration provides stability.
  • Supports a high-priority agency (DARPA).

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically supporting advanced research and development for the Department of Defense. Spending in this sector is often characterized by high specialization and significant government investment in innovation.

Small Business Impact

The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. The prime contractor, Strategic Analysis, Inc., is not identified as a small business in the provided data.

Oversight & Accountability

The contract's duration and nature of support suggest ongoing oversight by DARPA program managers to ensure performance and alignment with research objectives. The CPFF structure requires careful monitoring of costs and the fixed fee.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Defense Advanced Research Projects Agency Programs

Risk Flags

  • Contract awarded to a single entity.
  • Potential for cost overruns inherent in CPFF contracts.
  • Long-term duration may not adapt to rapid technological shifts.
  • Reliance on contractor's personnel expertise.

Tags

all-other-professional-scientific-and-te, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.6 million to STRATEGIC ANALYSIS, INC.. ADAPTIVE CAPABILITIES OFFICE (ACO) SETA SUPPORT 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 (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $77.6 million.

What is the period of performance?

Start: 2020-12-19. End: 2025-12-17.

How does the fixed fee component compare to industry benchmarks for similar SETA support services?

Determining a precise benchmark for the fixed fee in a Cost Plus Fixed Fee (CPFF) contract for SETA support is complex due to the highly specialized and often unique nature of DARPA's research requirements. However, the government typically aims for a fixed fee that reflects a reasonable profit margin while incentivizing efficient performance. Analysis would involve comparing the fee percentage against historical data for similar complex R&D support contracts and considering the level of risk and complexity involved.

What are the primary risks associated with relying on Strategic Analysis, Inc. for critical DARPA support over a five-year period?

Key risks include potential contractor performance issues, such as failure to deliver required expertise or meet deadlines. There's also a risk of key personnel turnover within Strategic Analysis, Inc., impacting institutional knowledge. Furthermore, the evolving nature of DARPA's advanced research could lead to misalignment between the contractor's capabilities and the agency's future needs, potentially requiring contract modifications or re-competition.

How effectively does the full and open competition method ensure value for money in specialized R&D support contracts like this?

Full and open competition generally enhances value for money by fostering a competitive environment that drives down prices and encourages innovation. For specialized R&D support, it allows a wider pool of potential contractors to demonstrate their unique capabilities and propose cost-effective solutions. This broadens the government's options and increases the likelihood of selecting a contractor that offers the best combination of technical expertise, performance, and price.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HR001118R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $86,325,468

Exercised Options: $86,325,468

Current Obligation: $77,551,382

Actual Outlays: $409,290

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $47,933,857

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HR001118D0007

IDV Type: IDC

Timeline

Start Date: 2020-12-19

Current End Date: 2025-12-17

Potential End Date: 2025-12-17 00:00:00

Last Modified: 2025-11-19

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