Marine Corps Combat Development contract awarded to Economic Research Services for $171.1M, primarily for R&D services

Contract Overview

Contract Amount: $17,113,670 ($17.1M)

Contractor: Economic Research Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-03-12

End Date: 2008-07-27

Contract Duration: 1,964 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: 200310!000164!1700!F0264 !MARINE CORPS COMBAT DEVELOPMENT !M0026403C0003 !A!N! !N! !20030312!20040127!031651953!031651953!031651953!N!ECONOMIC RESEARCH SERVICES, IN!4901 TOWER COURT !TALLAHASSEE !FL!32303!01052!095!13!ALBANY !DOUGHERTY !GEORGIA !+000000150000!N!N!000005515917!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541720!E! !1! ! ! ! ! !99990909!B! ! !N!Z!D!U!Y!1!001!N!3A!A!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to ECONOMIC RESEARCH SERVICES, INC. for work described as: 200310!000164!1700!F0264 !MARINE CORPS COMBAT DEVELOPMENT !M0026403C0003 !A!N! !N! !20030312!20040127!031651953!031651953!031651953!N!ECONOMIC RESEARCH SERVICES, IN!4901 TOWER COURT !TALLAHASSEE !FL!32303!01052!095!13!ALBANY !DOUGH… Key points: 1. Contract value of $171.1 million indicates a significant investment in specialized research and development. 2. The 'NOT COMPETED' status raises questions about potential cost efficiencies and market-driven pricing. 3. A long contract duration of 1964 days suggests a need for sustained support or a phased approach to research. 4. The primary service category, 'Research and Development in the Social Sciences and Humanities,' points to a focus on non-technical, policy-oriented, or strategic analysis. 5. The contract's classification as 'OTHER PROFESSIONAL SERVICES' suggests a broad scope that may encompass consulting, analysis, and advisory functions. 6. The award to a single vendor without competition warrants scrutiny regarding the justification for sole-source procurement.

Value Assessment

Rating: questionable

The contract value of $171.1 million for research and development services is substantial. Without comparable contract data or detailed performance metrics, it is difficult to benchmark the value for money. The 'NOT COMPETED' designation means there was no direct price comparison against other market participants, which inherently limits the ability to assess if the pricing is competitive or represents a fair market value. The use of a 'TIME AND MATERIALS' contract type can sometimes lead to higher costs if not managed closely, as it bases payment on actual labor hours and material costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT COMPETED' basis, indicating a sole-source procurement. The specific justification for this approach is not detailed in the provided data. Sole-source awards typically occur when only one vendor possesses the unique capabilities, proprietary knowledge, or security clearances required for the work, or in cases of urgent need. The lack of competition means that the government did not solicit bids from multiple potential providers, potentially limiting the opportunity for price discovery and innovation that often arises from a competitive bidding process.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive pricing pressures that could have driven down costs. It also raises questions about whether the government secured the best possible value without exploring alternative solutions or vendors.

Public Impact

The primary beneficiary is likely the Department of the Navy, specifically the Marine Corps Combat Development Command, which receives specialized research and analytical support. The services delivered are categorized under 'Research and Development in the Social Sciences and Humanities,' suggesting support for strategic planning, policy analysis, or human factors research. The geographic impact is centered around the Department of Defense and its operational needs, with potential implications for military strategy and personnel. Workforce implications could involve specialized researchers, analysts, and consultants contributing to the development of military doctrine and capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price benchmarking and potential cost savings.
The 'TIME AND MATERIALS' contract type can pose a risk of cost overruns if not rigorously managed.
The broad nature of 'OTHER PROFESSIONAL SERVICES' could lead to scope creep if not clearly defined and monitored.
Absence of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.

Positive Signals

The contract addresses a specific need within Marine Corps Combat Development, indicating a targeted investment.
The long duration suggests a sustained and potentially critical requirement for the services rendered.
The award to a single, presumably specialized, contractor may indicate access to unique expertise.

Sector Analysis

This contract falls within the 'Other Professional Services' category, which is broad and can encompass a wide range of consulting, research, and analytical activities. The specific NAICS code 541720 points to 'Research and Development in the Social Sciences and Humanities.' This sector is characterized by intellectual capital and specialized knowledge. Benchmarking is challenging without more specific details on the research scope, but contracts in this area can range from small, targeted studies to large, multi-year engagements supporting strategic initiatives. The value of $171.1 million suggests a significant, long-term research effort.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. The award was made to 'ECONOMIC RESEARCH SERVICES, INC.', and there is no information regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is not discernible from the data.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. As a Department of Defense contract, it would typically fall under the purview of the relevant agency's contracting officer and potentially the Department of Defense Inspector General for audits and investigations. Transparency is limited due to the sole-source nature and lack of publicly available performance reports or detailed justifications for the procurement method. Accountability would be managed through contract clauses and performance reviews, but the effectiveness of these measures is not assessed here.

Related Government Programs

Marine Corps Research and Development Programs
Department of Defense Professional Services Contracts
Social Science Research Funding
Combat Development Initiatives
Sole-Source Contract Awards

Risk Flags

Sole-source award without clear justification.
Potential for cost overruns due to Time and Materials contract type.
Lack of transparency regarding specific research objectives and outcomes.
Difficulty in assessing value for money without competitive bidding.
Long contract duration may lead to scope misalignment over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to ECONOMIC RESEARCH SERVICES, INC.. 200310!000164!1700!F0264 !MARINE CORPS COMBAT DEVELOPMENT !M0026403C0003 !A!N! !N! !20030312!20040127!031651953!031651953!031651953!N!ECONOMIC RESEARCH SERVICES, IN!4901 TOWER COURT !TALLAHASSEE !FL!32303!01052!095!13!ALBANY !DOUGHERTY !GEORGIA !+000000150000!N!N!000005515917!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541720!E! !1! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ECONOMIC RESEARCH SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2003-03-12. End: 2008-07-27.

What is the specific nature of the 'Research and Development in the Social Sciences and Humanities' being conducted under this contract?

The provided data classifies the contract under NAICS code 541720, 'Research and Development in the Social Sciences and Humanities.' This broad category suggests the research likely focuses on areas such as human behavior, social structures, policy analysis, economic trends, or strategic studies relevant to military operations and planning, rather than purely technical or engineering R&D. Without further details on the specific Statement of Work (SOW), it's impossible to pinpoint the exact research topics. However, given the 'MARINE CORPS COMBAT DEVELOPMENT' designation, the research could be aimed at understanding adversary motivations, optimizing force deployment strategies, analyzing the impact of social factors on mission success, or developing new doctrines based on socio-political insights.

Why was this contract awarded on a sole-source (NOT COMPETED) basis?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this procurement approach is not provided. Common reasons for sole-source awards include the contractor possessing unique capabilities, proprietary technology, or specialized knowledge essential for the requirement that cannot be obtained from other sources. Alternatively, it could be due to urgent and compelling circumstances where competition is not feasible, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), the precise reason remains speculative.

How does the 'TIME AND MATERIALS' contract type potentially impact cost and oversight compared to a fixed-price contract?

A 'TIME AND MATERIALS' (T&M) contract, like the one used here, bases payment on the actual cost of direct labor (at specified hourly rates) and indirect costs, plus a fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of the contractor's actual costs. T&M contracts offer flexibility, especially when the scope of work is not well-defined or is expected to change. However, they carry a higher risk of cost overruns for the government because the final price is not predetermined. Effective oversight is crucial for T&M contracts, requiring diligent monitoring of labor hours, material costs, and contractor performance to ensure efficiency and prevent potential abuse or scope creep. Without robust oversight, T&M can be more expensive than fixed-price alternatives.

What is the historical spending pattern for similar 'Research and Development in the Social Sciences and Humanities' contracts within the Department of the Navy or Marine Corps?

The provided data focuses on a single contract and does not offer historical spending patterns for similar R&D in social sciences and humanities within the Department of the Navy or Marine Corps. To establish such patterns, one would need to analyze a broader dataset of contracts awarded over several fiscal years, filtering by the relevant NAICS code (541720) and agency (Department of the Navy/Marine Corps). This analysis would reveal trends in contract values, durations, competition levels, and the types of contractors typically awarded such work. Without this broader context, it's difficult to determine if the $171.1 million value and sole-source nature of this specific contract are typical or outliers for this type of research within the organization.

What are the potential risks associated with the long contract duration (1964 days)?

A contract duration of 1964 days (approximately 5.4 years) for R&D services presents several potential risks. Firstly, the scope of work may evolve significantly over such a long period, potentially leading to misalignment between the original objectives and the current needs of the Marine Corps Combat Development Command. Secondly, maintaining contractor performance and engagement at a high level over an extended duration can be challenging. Thirdly, the longer the contract, the greater the potential for cost increases due to inflation or changes in market rates for labor and materials, especially if the contract terms do not adequately account for these factors. Finally, a long duration might also indicate a lack of agility or a difficulty in breaking down the requirement into smaller, more manageable, and competitively sourced phases.

Does the contractor, Economic Research Services, Inc., have a significant track record with the Department of Defense or similar research contracts?

The provided data identifies 'ECONOMIC RESEARCH SERVICES, INC.' as the contractor but does not include information about their specific track record, past performance ratings, or experience with the Department of Defense or similar research contracts. To assess their track record, one would need to consult additional databases such as the Federal Procurement Data System (FPDS), the Contractor Performance Assessment Reporting System (CPARS), or conduct a broader search for their contract history. Without this information, it is impossible to determine if they have a history of successful performance, any past issues, or if this is a new or relatively untested relationship for the government in this domain.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities

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

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Corpsource Holdings, LLC

Address: 4901 TOWER COURT, TALLAHASSEE, FL, 32303

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline