DoD's $1.45B R&D Contract for Ocean Acoustics: Full Competition, High Risk
Contract Overview
Contract Amount: $14,493,639 ($14.5M)
Contractor: Ocean Acoustical Services and Instrumentation Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-25
End Date: 2015-03-31
Contract Duration: 2,409 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Place of Performance
Location: LOWELL, MIDDLESEX County, MASSACHUSETTS, 01854
Plain-Language Summary
Department of Defense obligated $14.5 million to OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, INC. for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. Significant investment in specialized ocean acoustics R&D. 2. Full and open competition was utilized, suggesting a robust market. 3. Contract duration is extensive (2008-2015), raising concerns about adaptability. 4. High potential for cost overruns given the Cost Plus Fixed Fee structure.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risk of cost escalation. Benchmarking CPFF R&D contracts is challenging due to variability, but the extended duration and complexity suggest potential for exceeding initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, indicating a healthy market for ocean acoustical services. This method typically drives better price discovery and value, though the CPFF structure can still lead to cost growth.
Taxpayer Impact: Taxpayer funds are directed towards advanced R&D, with the potential for significant technological advancements. However, the CPFF structure necessitates careful oversight to ensure cost efficiency.
Public Impact
Advancement of critical defense technology in ocean acoustics. Potential for dual-use applications in scientific research and commercial sectors. Long-term commitment of resources may impact funding for other priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun risk due to CPFF
- Long contract duration (2008-2015)
- Potential for scope creep in R&D
Positive Signals
- Utilized full and open competition
- Focus on critical R&D area
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Spending in this sector is crucial for technological advancement but can be highly variable and prone to cost overruns, especially with CPFF contracts.
Small Business Impact
The data does not indicate whether small businesses participated in this contract. Given the specialized nature of ocean acoustics and the large contract value, it's possible that larger, specialized firms were the primary awardees.
Oversight & Accountability
The extensive duration of this contract (over 6 years) suggests a need for robust oversight to manage costs and ensure progress aligns with objectives. The CPFF structure requires diligent monitoring of expenditures and performance.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High risk of cost overruns due to CPFF structure.
- Extended contract duration (2008-2015) increases risk of obsolescence and scope creep.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for contractor inefficiency under CPFF.
- Limited insight into specific technological outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, INC.. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Who is the contractor on this award?
The obligated recipient is OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.5 million.
What is the period of performance?
Start: 2008-08-25. End: 2015-03-31.
What specific technological advancements were achieved through this extensive R&D contract, and did they justify the investment?
The contract focused on ocean acoustical services and instrumentation systems. Without detailed performance reports or final deliverables, it's difficult to assess the specific advancements. The long duration and CPFF structure suggest a complex R&D effort where tangible outcomes might take time to materialize and their ultimate value is often realized in subsequent applications or systems.
How effectively was the Cost Plus Fixed Fee structure managed to mitigate cost overrun risks over the contract's 2409-day period?
Managing a CPFF contract over such an extended period requires rigorous oversight. Key mitigation strategies would include detailed cost tracking, regular performance reviews, and strict change control processes. The effectiveness hinges on the contracting officer's ability to control scope creep and ensure contractor efficiency, which is inherently challenging with R&D.
Given the full and open competition, were there alternative approaches or contract types that could have offered better value or cost certainty for this R&D effort?
While full and open competition is ideal for price discovery, the CPFF structure itself introduces uncertainty. For R&D with evolving requirements, CPFF is often chosen. However, exploring options like Cost Plus Incentive Fee (CPIF) or fixed-price incentive contracts, if technical uncertainties could be better defined, might have offered stronger incentives for cost control.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Thayermahan, Inc
Address: 175 CABOT ST STE 410, LOWELL, MA, 01854
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,119,207
Exercised Options: $15,119,207
Current Obligation: $14,493,639
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-25
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2024-06-05
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