Naval Sea Systems Command awards $13.3M contract for R&D services to 21st Century Systems, Inc

Contract Overview

Contract Amount: $13,285,526 ($13.3M)

Contractor: 21ST Century Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-02-28

End Date: 2010-12-31

Contract Duration: 2,132 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200505!047670!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6300 !A!N! !N! ! !20050228!20060221!949183701!949183701!949183701!N!21ST CENTURY SYSTEMS, INC !12152 WINDSOR HALL WAY !HERNDON !VA!20170!37000!055!31!OMAHA !DOUGLAS !NEBRASKA !+000003080000!N!N!000025912207!AZ14!RDTE/OTHER RESEARCH & DEVELOPMENT-DEMO/VALID !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !20200930!B! ! !B! !A!N!U!1!001!B! !C!Y!Z! ! !N!B!Y!N! ! !Z! !A!A!000!A!B!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68106

State: Nebraska Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to 21ST CENTURY SYSTEMS, INC. for work described as: 200505!047670!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6300 !A!N! !N! ! !20050228!20060221!949183701!949183701!949183701!N!21ST CENTURY SYSTEMS, INC !12152 WINDSOR HALL WAY !HERNDON !VA!20170!37000!055!31!OMAHA !DOUG… Key points: 1. Contract awarded for research, development, testing, and evaluation services. 2. The contract value is approximately $13.3 million over its period of performance. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can carry higher risk for the government. 5. The contractor, 21st Century Systems, Inc., is based in Herndon, Virginia. 6. The contract was awarded by the Naval Sea Systems Command, a key DoD acquisition entity.

Value Assessment

Rating: fair

The contract value of $13.3 million for R&D services appears to be within a reasonable range for specialized engineering and development work. However, without specific benchmarks for the exact nature of the R&D, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, can lead to higher costs compared to fixed-price contracts if not managed carefully. The duration of the contract (over 5 years) suggests a significant scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The data indicates one award, but the 'full and open' designation implies multiple bids were likely solicited and evaluated.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive advanced research and development services. Services delivered include research, development, testing, and evaluation, likely contributing to naval technology advancements. The geographic impact is primarily within the United States, with the contractor based in Virginia and the awarding agency in Washington D.C. Workforce implications include employment opportunities for engineers, scientists, and technical staff at 21st Century Systems, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (over 5 years) increases the risk of scope creep or changing requirements.
Limited public information on the specific R&D deliverables makes it difficult to assess performance outcomes.
Reliance on a single contractor for a significant R&D effort could pose a risk if the contractor faces challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, 21st Century Systems, Inc., has experience in government contracting.
The Naval Sea Systems Command is a major defense acquisition organization with established oversight processes.
The contract is for research and development, which is crucial for maintaining technological superiority.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense R&D services is highly specialized, with significant government spending directed towards innovation and technological advancement. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the R&D, but contracts of this value are common for complex engineering and development projects within the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily be conducted by the Naval Sea Systems Command (NAVSEA) and potentially the Defense Contract Management Agency (DCMA). Accountability measures are typically embedded within the contract terms, including performance metrics and reporting requirements. Transparency is facilitated through contract awards databases like FPDS, though detailed R&D project specifics may be limited due to security or proprietary concerns. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research and Development
Defense Engineering Services
Department of Defense R&D Contracts
Naval Sea Systems Command Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Long contract duration
Limited public detail on R&D scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to 21ST CENTURY SYSTEMS, INC.. 200505!047670!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C6300 !A!N! !N! ! !20050228!20060221!949183701!949183701!949183701!N!21ST CENTURY SYSTEMS, INC !12152 WINDSOR HALL WAY !HERNDON !VA!20170!37000!055!31!OMAHA !DOUGLAS !NEBRASKA !+000003080000!N!N!000025912207!AZ14!RDTE/OTHER RESEARCH & DEVELOPMENT-DEMO/VALID !S1 !SERVICES !000 !* !541330!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is 21ST CENTURY 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 $13.3 million.

What is the period of performance?

Start: 2005-02-28. End: 2010-12-31.

What specific research and development activities does this contract encompass?

The contract data indicates the primary purpose is 'RDTE/OTHER RESEARCH & DEVELOPMENT-DEMO/VALID' under NAICS code 541330 (Engineering Services). While the specific technical details of the R&D are not publicly disclosed in this summary, it is for the Naval Sea Systems Command. This suggests the work likely pertains to advancing naval technologies, systems, or platforms. The 'DEMO/VALID' designation implies that the R&D may involve demonstrating and validating new concepts or technologies before potential wider adoption or integration into naval systems. Further details would typically be found in the contract's statement of work (SOW).

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for R&D?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development where the scope of work is not precisely defined at the outset, making fixed-price contracts difficult to establish. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This type offers flexibility for evolving R&D projects but carries a higher risk for the government compared to fixed-price contracts, as costs can exceed initial estimates. The government's primary control is through diligent oversight of allowable costs and ensuring the fixed fee remains appropriate for the effort.

What is the track record of 21st Century Systems, Inc. with government contracts?

21st Century Systems, Inc. has a history of receiving government contracts, primarily within the Department of Defense. The provided data shows this specific contract awarded in 2005. While this data point is from the mid-2000s, it indicates the company's capability to secure and perform on defense-related R&D and engineering services. A comprehensive assessment of their track record would require analyzing their complete contract history, including performance reviews, past performance evaluations, and any documented issues or successes on prior awards.

What is the significance of the 'full and open competition' designation for this contract?

The 'full and open competition' designation signifies that the contract was awarded after a process where all responsible sources were permitted to submit a bid. This is generally considered the most desirable method of government procurement as it maximizes the pool of potential offerors, fosters robust competition, and is intended to result in the best value for the government. It implies that the agency did not impose restrictive barriers to entry, allowing a wide range of companies to compete, which can lead to more innovative solutions and competitive pricing for taxpayers.

How does this contract's value compare to other R&D contracts within the defense sector?

The $13.3 million value for this R&D contract awarded in 2005 is a moderate sum within the broader defense R&D landscape. Large-scale defense R&D programs can run into hundreds of millions or even billions of dollars. However, for specific technology development, demonstration, and validation efforts, a contract of this size is not unusual. Its significance lies in its contribution to naval technological advancement rather than its sheer dollar amount compared to the largest defense programs. Benchmarking requires comparing it to similar R&D efforts for naval systems or related technologies.

What are the potential risks associated with a long-duration R&D contract like this?

Long-duration R&D contracts, such as this one spanning over five years (from initial award in 2005 to an extended end date in 2010), carry several inherent risks. These include the potential for requirements to change significantly over the contract period due to evolving threats or technological advancements, leading to scope creep and cost increases. There's also a risk that the initial technological assumptions may prove incorrect, rendering the R&D less valuable. Furthermore, maintaining consistent contractor performance and oversight over an extended period requires sustained effort and resources from the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 12152 WINDSOR HALL WAY, HERNDON, VA, 11

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline