DoD Awards $151M for Naval Research Lab Support, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $27,946,823 ($27.9M)

Contractor: Innovative Concepts, Inc.

Awarding Agency: Department of Defense

Start Date: 2000-08-30

End Date: 2007-04-04

Contract Duration: 2,408 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200012!1700!000968!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6023 !A!*!* !20000830!20050831!151218443!151218443!151218443!N!0PDU3!INNOVATIVE CONCEPTS INC. !8200 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000200000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!2!001!B!* !Z!N!Z!* !* !N!B!N!C!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to INNOVATIVE CONCEPTS, INC. for work described as: 200012!1700!000968!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6023 !A!*!* !20000830!20050831!151218443!151218443!151218443!N!0PDU3!INNOVATIVE CONCEPTS INC. !8200 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAI… Key points: 1. The contract awarded to Innovative Concepts Inc. for $151,218,443 over 2408 days focuses on RDTE/OTHER DEFENSE-BASIC RESEARCH. 2. While the contract type is Cost Plus Fixed Fee, the lack of detailed cost breakdowns makes assessing true value challenging. 3. The competition method was 'FULL AND OPEN COMPETITION', but the specific impact on price discovery and cost savings is not detailed. 4. The primary risk lies in the potential for cost overruns inherent in Cost Plus Fixed Fee contracts without robust oversight.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, with a total value of $151,218,443, lacks sufficient transparency to benchmark against similar basic research contracts. The absence of detailed cost breakdowns hinders a clear assessment of pricing reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION'. However, the provided data does not detail the number of bids received or how the competition influenced the final price, leaving the effectiveness of price discovery unclear.

Taxpayer Impact: The significant taxpayer investment of over $151 million warrants greater transparency regarding cost efficiency and the specific research outcomes achieved.

Public Impact

Taxpayers are funding advanced defense research, with the ultimate benefits and applications not fully disclosed. The long duration of the contract (2408 days) suggests a sustained need for these research services. The awardee, Innovative Concepts Inc., is a private entity, indicating a reliance on external contractors for specialized research capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdowns for a Cost Plus Fixed Fee contract.
Limited information on the impact of 'full and open competition' on price discovery.
Potential for cost overruns without clear performance metrics or oversight details.

Positive Signals

Awarded under a competitive process, suggesting potential for innovation.
Supports critical defense research for the Naval Research Laboratory.
Long contract duration indicates a sustained and important need.

Sector Analysis

This contract falls under the Research, Development, Test, and Evaluation (RDTE) sector, specifically basic research within defense. Spending in this area is crucial for technological advancement but often involves high uncertainty and long development cycles, making cost benchmarking difficult.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The provided data lacks specific details regarding the oversight mechanisms in place for this Cost Plus Fixed Fee contract. Robust oversight is critical to ensure funds are used efficiently and research objectives are met.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of transparency in cost reporting.
Potential for contractor inefficiency due to Cost Plus Fixed Fee structure.
Limited insight into the specific research deliverables and their impact.
Unclear effectiveness of the competitive bidding process on final price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to INNOVATIVE CONCEPTS, INC.. 200012!1700!000968!E3250 !NAVAL RESEARCH LABORATORY !N0017300C6023 !A!*!* !20000830!20050831!151218443!151218443!151218443!N!0PDU3!INNOVATIVE CONCEPTS INC. !8200 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000200000!N!N!000000000000!AD91!RDTE/OTHER DEFENSE-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !8731!3!A!S!*!B!A!*!A !N!U!

Who is the contractor on this award?

The obligated recipient is INNOVATIVE CONCEPTS, 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 $27.9 million.

What is the period of performance?

Start: 2000-08-30. End: 2007-04-04.

What specific research objectives were achieved with the $151 million awarded, and how do these align with the Naval Research Laboratory's strategic goals?

The provided data does not specify the research objectives or outcomes. To assess value, a detailed report outlining the scientific and technological advancements, their alignment with NRL's mission, and their potential future applications would be necessary. Without this, it's difficult to quantify the return on investment for the taxpayer.

Given the Cost Plus Fixed Fee structure, what measures were in place to mitigate the risk of cost overruns and ensure efficient use of funds?

The data does not detail specific risk mitigation measures for cost overruns. Typically, Cost Plus Fixed Fee contracts require stringent oversight, regular audits, and clear performance metrics to control costs. The absence of this information raises concerns about potential inefficiencies and the government's ability to manage the contractor's spending effectively.

How effective was the 'full and open competition' in driving down costs and ensuring the best value was obtained for this basic research contract?

While the contract was advertised as 'full and open competition,' the data lacks details on the number of bids received, the evaluation process, and how competition influenced the final negotiated price. To assess effectiveness, we would need to know if multiple technically capable vendors participated and if the pricing reflected competitive pressures, rather than just the cost-plus model.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Elbit Systems Ltd (UEI: 514421098)

Address: 8200 GREENSBORO DRIVE, MCLEAN, VA, 90

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline