DoD's $12.7M contract for specialized studies awarded to Quantics Inc. shows potential value concerns

Contract Overview

Contract Amount: $12,694,489 ($12.7M)

Contractor: Quantics Incorporated

Awarding Agency: Department of Defense

Start Date: 2002-07-30

End Date: 2010-01-31

Contract Duration: 2,742 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200210!001493!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0016702C0072 !A!N! !N! !20020730!20050731!083253179!083253179!083253179!N!QUANTICS INCORPORATED !211 WELSH POOL ROAD !EXTON !PA!19341!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000070000!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!K! !Z!Y!Z! ! !N!B!N!N! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: EXTON, CHESTER County, PENNSYLVANIA, 19341

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to QUANTICS INCORPORATED for work described as: 200210!001493!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0016702C0072 !A!N! !N! !20020730!20050731!083253179!083253179!083253179!N!QUANTICS INCORPORATED !211 WELSH POOL ROAD !EXTON !PA!19341!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize higher spending without strict cost controls. 2. Limited public data on performance metrics makes it difficult to assess the true value for money. 3. The contract's duration and cost raise questions about efficiency compared to similar specialized studies. 4. While competition was full and open, the final award price relative to initial estimates is not detailed. 5. The specialized nature of the services suggests a niche market, potentially limiting broad competition. 6. Oversight mechanisms are not explicitly detailed, posing a potential risk to accountability.

Value Assessment

Rating: fair

The total award amount of $12,694,489 for specialized studies over approximately 8 years (2002-2010) warrants scrutiny. Without detailed performance metrics or a clear breakdown of deliverables, it's challenging to benchmark the value against similar contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for research and development, can sometimes lead to cost overruns if not managed tightly. Further analysis of the contractor's performance and the specific outcomes achieved would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were initially considered. However, the specific number of bids received and the details of the evaluation process are not publicly available. This level of competition is generally positive for price discovery, but the absence of detailed bid information prevents a thorough assessment of how effectively competition drove down costs.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it theoretically leads to the best value through market forces. However, without transparency into the bidding process and award decision, it's difficult to confirm if taxpayers received optimal pricing.

Public Impact

The primary beneficiaries are likely Department of Defense entities requiring specialized analytical and study services. The contract supports the delivery of 'Other Special Studies & Analyses,' contributing to strategic planning and decision-making. Geographic impact is primarily within the Department of Defense, with potential implications for national security. Workforce implications include the employment of specialized analysts and researchers by Quantics Incorporated.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge effectiveness and efficiency.
Cost-plus-fixed-fee structure could lead to less incentive for cost control compared to fixed-price contracts.
Limited public information on the specific outcomes of the 'special studies' hinders accountability.
The long contract duration (over 8 years) might indicate potential for scope creep or evolving needs without clear re-competition.

Positive Signals

Awarded through a full and open competition, suggesting a broad initial search for qualified contractors.
The contractor, Quantics Incorporated, has a track record of performing government contracts.
The contract falls under a specific NAICS code (541614) for management consulting services, indicating a defined service area.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. The market for such specialized studies within the defense sector is significant, driven by complex national security requirements. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the studies, but the overall federal spending on professional services is in the hundreds of billions annually.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary award went to Quantics Incorporated, and further details on subcontracting plans are not readily available in the provided data. This suggests a limited direct impact on the small business ecosystem for this specific contract.

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 agency's contracting officer and potentially the Inspector General's office. However, the effectiveness of oversight depends on the specific reporting requirements, performance reviews, and audit procedures implemented, which are not publicly disclosed.

Related Government Programs

Department of Defense Research and Development Contracts
Professional, Scientific, and Technical Services Contracts
Management and Consulting Services
Naval Surface Warfare Center Contracts

Risk Flags

Lack of detailed performance metrics.
Cost-plus-fixed-fee structure potential for cost overruns.
Limited transparency on competition specifics.
Unclear scope of 'special studies'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to QUANTICS INCORPORATED. 200210!001493!1700!BW21A !NAVAL SURFACE WARFARE CENTER CAR!N0016702C0072 !A!N! !N! !20020730!20050731!083253179!083253179!083253179!N!QUANTICS INCORPORATED !211 WELSH POOL ROAD !EXTON !PA!19341!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000070000!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541614!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is QUANTICS INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2002-07-30. End: 2010-01-31.

What specific types of 'Other Special Studies & Analyses' were conducted under this contract?

The provided data identifies the contract under NAICS code 541614 (Management Consulting Services) and the PSC code B599 (Other Special Studies & Analyses). However, it does not specify the exact nature or subject matter of these studies. These could range from strategic planning analyses, operational efficiency studies, policy development support, to technical assessments. Without further documentation or reporting from the Naval Surface Warfare Center or Quantics Incorporated, the precise scope of work remains undefined.

How did Quantics Incorporated's performance compare to other potential bidders during the competition phase?

The data indicates the contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting multiple entities were considered. However, specific details regarding the number of bids received, the evaluation criteria, and how Quantics Incorporated's proposal stood out against competitors are not publicly available. This lack of transparency makes it impossible to assess the comparative performance of bidders during the selection process. The award decision would typically be based on factors like technical approach, past performance, price, and small business participation, but the weighting and outcome for this specific contract are not detailed.

What is the typical profit margin for Cost Plus Fixed Fee (CPFF) contracts in this service category?

Profit margins for Cost Plus Fixed Fee (CPFF) contracts can vary significantly based on the complexity of the work, the level of risk involved, and the specific agency's policies. For specialized studies and analyses, particularly those involving research and development or uncertain outcomes, CPFF is often used. While a fixed fee is negotiated upfront, the contractor is reimbursed for actual costs incurred. Typical profit margins might range from 7% to 15% of the total contract cost, but this is a broad generalization. Without knowing the negotiated fee for this specific contract and the final costs, it's difficult to determine the actual profit realized by Quantics Incorporated.

Are there any publicly available performance reviews or outcome reports for this contract?

The provided data does not contain any direct links to or summaries of performance reviews or outcome reports for this specific contract. Federal contract performance information is often not made widely public, especially for specialized studies where findings might be sensitive or classified. Agencies typically maintain internal records of contractor performance, which inform future contracting decisions. Access to such detailed performance data would likely require a Freedom of Information Act (FOIA) request or be available through specific government contract databases not accessible here.

How does the total contract value of approximately $12.7 million compare to other contracts for similar 'special studies' within the DoD?

Comparing the $12.7 million total award value for 'Other Special Studies & Analyses' requires context on the scope, duration, and complexity of those studies. This contract spanned roughly eight years (2002-2010). Without knowing the specific deliverables and the market rates for comparable niche analytical services within the DoD during that period, a direct comparison is challenging. However, for specialized, long-term analytical support, a multi-million dollar contract is not unusual. The key question remains whether the value received justified the cost over the contract's lifespan, which is difficult to ascertain from the available data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 211 WELSH POOL ROAD, EXTON, PA, 06

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline