DoD's $18.4M R&D Contract for Physical Sciences Lacks Small Business Participation
Contract Overview
Contract Amount: $18,436,760 ($18.4M)
Contractor: International Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2008-05-02
End Date: 2009-04-01
Contract Duration: 334 days
Daily Burn Rate: $55.2K/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: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92131
Plain-Language Summary
Department of Defense obligated $18.4 million to INTERNATIONAL SYSTEMS, LLC for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. The contract focuses on R&D in physical, engineering, and life sciences, excluding biotechnology. 2. International Systems, LLC secured this contract under full and open competition. 3. The absence of small business participation is a notable concern. 4. The contract value is $18.4 million, with a duration of 334 days.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking this specific R&D effort is challenging due to its specialized nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. However, the lack of small business involvement indicates potential barriers or a narrow focus in outreach.
Taxpayer Impact: Taxpayer funds are being used for specialized R&D. While competition was open, the lack of small business inclusion might limit innovation and economic benefit distribution.
Public Impact
This contract supports critical research and development efforts for the Department of the Navy. The focus on physical, engineering, and life sciences could lead to advancements in various technological fields. The lack of small business participation may limit opportunities for smaller, innovative firms to contribute and grow.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- No small business participation
- Cost Plus Fixed Fee contract type can be prone to cost overruns
Positive Signals
- Full and open competition utilized
- Supports critical DoD research
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money.
Small Business Impact
The contract explicitly states no small business participation. This is a significant drawback, as it misses opportunities to foster innovation and economic growth within the small business community.
Oversight & Accountability
Oversight will be critical for the Cost Plus Fixed Fee structure to ensure costs remain within reasonable bounds and that the research objectives are met effectively. The Department of the Navy is responsible for this oversight.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation
- Potential for cost overruns with CPFF contract type
- Limited transparency on specific R&D outcomes
- No clear indication of technology transfer or commercialization plans
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to INTERNATIONAL SYSTEMS, LLC. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.4 million.
What is the period of performance?
Start: 2008-05-02. End: 2009-04-01.
What specific technological advancements are expected from this R&D contract, and how will they benefit national security?
The contract aims to advance research in physical, engineering, and life sciences. Specific advancements are not detailed but are expected to contribute to the Department of the Navy's technological superiority and address evolving national security challenges. The ultimate benefit lies in enhanced defense capabilities and potential dual-use applications.
Given the lack of small business participation, were alternative contracting strategies considered to encourage their involvement?
The data indicates the contract was awarded under 'full and open competition,' suggesting a broad solicitation. However, it does not specify if specific strategies were employed to ensure small business inclusion. Future solicitations could benefit from set-asides or subcontracting requirements to foster small business engagement.
How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns and ensure efficient use of taxpayer funds?
The Department of the Navy will implement rigorous oversight mechanisms, including regular cost reviews, performance monitoring, and milestone tracking. Clear performance metrics and defined deliverables will be crucial to manage the contractor's efforts and control expenditures within the fixed fee framework.
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: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 9925 CARROLL CANYON RD, SAN DIEGO, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,036,760
Exercised Options: $20,036,760
Current Obligation: $18,436,760
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-05-02
Current End Date: 2009-04-01
Potential End Date: 2009-04-01 00:00:00
Last Modified: 2009-06-23
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