DoD spent $40.7M on R&D with The Keyw Corporation via cost-plus-fixed-fee contract
Contract Overview
Contract Amount: $40,695,407 ($40.7M)
Contractor: THE Keyw Corporation
Awarding Agency: Department of Defense
Start Date: 2002-07-29
End Date: 2009-09-30
Contract Duration: 2,620 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $40.7 million to THE KEYW CORPORATION for work described as: Key points: 1. Significant investment in R&D services, indicating a need for specialized scientific expertise. 2. The Keyw Corporation secured a substantial contract, suggesting strong capabilities in its field. 3. Potential for cost overruns inherent in Cost Plus Fixed Fee contracts requires careful monitoring. 4. Spending concentrated in the Research and Development sector, aligning with national defense priorities.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to higher costs if not managed tightly. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. However, the specific pricing mechanisms within the CPFF structure warrant scrutiny to ensure value.
Taxpayer Impact: Taxpayer funds were used for advanced R&D. The effectiveness and efficiency of this spending will determine the ultimate value for money.
Public Impact
Supports advanced research and development initiatives critical for national security. Investment in a specific contractor may foster innovation and expertise within the defense sector. Long contract duration suggests a sustained need for the services provided.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending.
- Long contract duration increases exposure to potential cost escalations.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition promotes market fairness.
- Contract supports critical R&D efforts.
- Established contractor with a long-term relationship.
Sector Analysis
This contract falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences. Spending in this area is crucial for technological advancement but can be prone to cost variability.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is essential to manage costs and ensure deliverables meet requirements.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (7+ years).
- Lack of specific performance metrics in provided data.
- Potential for cost escalation in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.7 million to THE KEYW CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is THE KEYW CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $40.7 million.
What is the period of performance?
Start: 2002-07-29. End: 2009-09-30.
What specific R&D outcomes were achieved, and did they justify the $40.7 million expenditure?
Assessing the precise value requires detailed analysis of the research deliverables and their impact on defense capabilities. Without specific outcome reports, it's difficult to definitively state if the $40.7 million was fully justified. The CPFF structure necessitates a focus on the quality and utility of the research produced relative to the costs incurred.
What were the primary risks associated with this Cost Plus Fixed Fee contract, and how were they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies would typically involve stringent cost monitoring, detailed audits, and clear definition of allowable costs. The long duration of this contract amplifies these risks, requiring sustained vigilance from the contracting agency.
How effective was the full and open competition in ensuring competitive pricing for these specialized R&D services?
While full and open competition is designed to foster competitive pricing, the specialized nature of R&D services can limit the pool of qualified bidders. The effectiveness in this case depends on the number and quality of proposals received. The CPFF structure itself can sometimes obscure true cost efficiency, making it harder to gauge if the lowest price technically feasible was achieved.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,828,721
Exercised Options: $40,828,719
Current Obligation: $40,695,407
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-07-29
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2024-04-18
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