Naval Research contract for R&D services awarded to Titan Corporation for over $122 million

Contract Overview

Contract Amount: $47,838,614 ($47.8M)

Contractor: Engility LLC

Awarding Agency: Department of Defense

Start Date: 2003-06-26

End Date: 2006-06-30

Contract Duration: 1,100 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200309!001783!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0150 !A!N! !N!P00005 !20030626!20041011!122739944!122739944!048341838!N!TITAN CORPORATION, THE !9925 CARROLL CANYON ROAD !SAN DIEGO !CA!92131!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000005000000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! !C! ! !99990909!B! ! !A! !A!U!U!2!003!E! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.8 million to ENGILITY LLC for work described as: 200309!001783!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0150 !A!N! !N!P00005 !20030626!20041011!122739944!122739944!048341838!N!TITAN CORPORATION, THE !9925 CARROLL CANYON ROAD !SAN DIEGO !CA!92131!66000!073!06!SAN DIEGO !SAN D… Key points: 1. Contract focused on research and development in physical, engineering, and life sciences. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. Performance period spans over three years, indicating a substantial project duration. 5. The contractor, Titan Corporation, is positioned within the defense R&D sector. 6. The contract value is significant, reflecting the scope of research and development.

Value Assessment

Rating: fair

The contract value of $122,739,944 for a period of approximately three years for R&D services appears within a reasonable range for complex defense research. However, without specific benchmarks for similar R&D projects within the Office of Naval Research or comparable agencies, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where costs are uncertain, can lead to higher final costs than fixed-price contracts if not managed closely. Further analysis of the contractor's performance and final cost compared to initial estimates would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows 3 bids were received. This level of competition is generally positive for price discovery and can lead to more favorable pricing for the government. The fact that multiple bidders participated suggests a healthy market for these types of R&D services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive advanced research and development outputs. Services delivered include research and development in physical, engineering, and life sciences, potentially leading to new technologies and capabilities. The geographic impact is primarily centered around the contractor's location in San Diego, California, and the Naval research facilities. Workforce implications include employment opportunities for scientists, engineers, and support staff at Titan Corporation and potentially at naval research centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not rigorously managed.
The duration of the contract (over 3 years) requires sustained oversight to ensure performance and adherence to research objectives.
The nature of R&D contracts inherently involves uncertainty, making it difficult to predict final outcomes and costs precisely.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract is for research and development, which is crucial for advancing technological capabilities.
The contractor, Titan Corporation, is a known entity in the defense sector, suggesting some level of established capability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' represents a significant segment of the federal contracting market. Spending in this area is critical for maintaining technological superiority and innovation within defense and other government agencies. Comparable spending benchmarks would typically be found within the broader R&D spending categories of the Department of Defense and other science-focused agencies.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The prime contractor, Titan Corporation, is likely a large business given the contract value and nature of work. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this record. The impact on the small business ecosystem would depend on whether Titan Corporation actively seeks small business subcontractors for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the CPFF contract structure, requiring the contractor to justify costs incurred. Transparency is generally facilitated through contract reporting mechanisms, although specific details of R&D progress might be subject to classification or proprietary restrictions. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Office of Naval Research Basic Research Programs
Department of Defense Research, Development, Test, and Evaluation (RDT&E)
Advanced Technology Development Contracts
Science and Technology Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Nature of R&D involves uncertainty in outcomes and final costs.
Need for sustained oversight due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.8 million to ENGILITY LLC. 200309!001783!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0150 !A!N! !N!P00005 !20030626!20041011!122739944!122739944!048341838!N!TITAN CORPORATION, THE !9925 CARROLL CANYON ROAD !SAN DIEGO !CA!92131!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000005000000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! !C! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is ENGILITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $47.8 million.

What is the period of performance?

Start: 2003-06-26. End: 2006-06-30.

What is the track record of Titan Corporation in performing similar R&D contracts for the Department of Defense?

Assessing Titan Corporation's track record requires a deeper dive into historical contract data. While this specific award indicates they were selected for a significant R&D effort, it doesn't detail past performance. Generally, for R&D contracts, agencies look for a history of successful project completion, adherence to timelines and budgets (within the bounds of R&D uncertainty), and the ability to deliver innovative solutions. A review of their contract history, including any past performance evaluations or awards/debarments, would provide a clearer picture of their reliability and expertise in executing complex research and development tasks for the DoD.

How does the awarded amount compare to the initial estimated cost or ceiling for this R&D effort?

The provided data indicates an 'Award Amount' of $122,739,944. For Cost Plus Fixed Fee (CPFF) contracts, there is typically a 'Cost Ceiling' which represents the maximum amount the government is obligated to pay for allowable costs. Without knowing the initial estimated cost or the established cost ceiling, it's difficult to definitively assess if the awarded amount is high or low relative to expectations. CPFF contracts allow for flexibility as research progresses, but the final cost should ideally remain close to the initial estimates or be well-justified if it exceeds them. Further documentation would be needed to compare the awarded amount against the contract's ceiling and initial cost projections.

What specific areas of 'Research and Development in the Physical, Engineering, and Life Sciences' does this contract cover?

The data categorizes this contract under 'RDTE/OTHER DEFENSE-BASIC RESEARCH' and assigns NAICS code 541710, which broadly covers 'Research and Development in the Physical, Engineering, and Life Sciences.' However, the specific sub-disciplines or research areas are not detailed in this summary record. Typically, such contracts would have detailed statements of work (SOW) outlining the precise research objectives, methodologies, and expected deliverables. These could range from materials science, advanced computing, aerospace engineering, biotechnology, to various other scientific and technical fields relevant to naval operations and defense capabilities.

What were the key evaluation criteria used in selecting Titan Corporation from the three bidders?

The provided data confirms that the contract was awarded under 'FULL AND OPEN COMPETITION' and that there were '3' bids received. However, it does not specify the evaluation criteria used for selecting the winning proposal. For R&D contracts, especially those awarded by the Department of Defense, evaluation criteria often include technical approach, past performance, management capability, key personnel, and price. The relative weighting of these factors can vary significantly depending on the agency's priorities and the nature of the research. A full proposal analysis or the contract award justification document would be required to understand the specific evaluation metrics.

Are there any known risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific R&D project?

The primary risk associated with a CPFF contract is the potential for the contractor to incur costs exceeding the initial estimates, as the government agrees to pay allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, it doesn't provide the same cost control as fixed-price contracts. For R&D, where costs can be highly unpredictable, CPFF is often necessary. However, rigorous oversight is crucial to ensure costs are reasonable, allocable, and allowable. Risks include scope creep, inefficient performance, and potential for cost overruns if the government's monitoring and control mechanisms are not robust. The 'fee' is fixed, meaning the contractor's profit is capped, but the government's total expenditure is not.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 35 NEW ENGLAND BUSINESS CENTER DR STE 200, ANDOVER, MA, 01810

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

Financial Breakdown

Contract Ceiling: $2,590,303

Exercised Options: $2,590,303

Current Obligation: $47,838,614

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline