Naval Research Laboratory contract awarded to SFA, Inc. for $22.57M for R&D services

Contract Overview

Contract Amount: $22,577,727 ($22.6M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2003-09-24

End Date: 2011-09-30

Contract Duration: 2,928 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200312!002802!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017303C6016 !A!N! !N! !20030924!20040930!048010532!048010532!048010532!N!SFA, INC !9315 LARGO DRIVE WEST, SUI!LARGO !MD!20774!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000146000!N!N!000025642402!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!A! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to THE KEYW CORPORATION for work described as: 200312!002802!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017303C6016 !A!N! !N! !20030924!20040930!048010532!048010532!048010532!N!SFA, INC !9315 LARGO DRIVE WEST, SUI!LARGO !MD!20774!50000!001!11!WASHINGTON !DISTR… Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition indicates a competitive bidding process. 3. Contract duration of approximately 8 years suggests a long-term need for services. 4. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 5. The primary contractor is SFA, Inc., with The KeyW Corporation listed as a potential subcontractor or related entity. 6. The contract falls under the 'Research and Development' sector, specifically NAICS code 541710.

Value Assessment

Rating: fair

The contract value of $22.57 million over approximately 8 years for R&D services appears reasonable given the duration and scope. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar R&D contracts for the Naval Research Laboratory would provide a clearer picture of pricing efficiency. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed closely, as the contractor is reimbursed for all allowable costs plus a fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit a bid. The number of bidders is not explicitly stated in the provided data, but the designation implies a competitive process. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is intended to drive down costs through market forces and encourage multiple companies to vie for the contract, potentially leading to better value.

Public Impact

The primary beneficiary is the Naval Research Laboratory, which receives R&D services to advance scientific and technological capabilities. Services delivered likely include research, analysis, and development in physical, engineering, and life sciences, supporting naval innovation. The geographic impact is centered around the Naval Research Laboratory, likely in Washington D.C. and surrounding areas, with potential for broader defense applications. Workforce implications include employment opportunities for scientists, engineers, and support staff within SFA, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not adequately monitored.
Long contract duration (approx. 8 years) requires sustained oversight to ensure continued relevance and value.
Limited information on specific performance metrics makes it difficult to assess the effectiveness of the R&D outcomes.
The presence of 'The KeyW Corporation' as a separate entity raises questions about the prime-subcontractor relationship and potential for cost duplication or complexity.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Contract supports critical Research and Development for the Naval Research Laboratory, aligning with defense innovation goals.
The contract is managed by the Defense Contract Management Agency (DCMA), indicating established oversight structures.
The primary contractor, SFA, Inc., is associated with a specific NAICS code (541710), suggesting specialization in R&D services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is crucial for technological advancement and national security. The market size for defense R&D is substantial, with significant government investment. This contract represents a portion of the Navy's investment in scientific and technological innovation, likely contributing to future defense capabilities. Comparable spending benchmarks would involve analyzing other R&D contracts awarded by the Department of Defense to similar firms for comparable services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities if SFA, Inc. chooses to engage small businesses for specialized support, or through competition with larger firms that may have established small business subcontracting programs.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases, though specific performance details may be limited due to the nature of R&D and national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Laboratory Contracts
Department of Defense Research and Development
Cost Plus Fixed Fee Contracts
NAICS 541710 Services
Defense Contract Management Agency Oversight

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Long contract duration necessitates ongoing performance evaluation and adaptation.
Limited public information on specific R&D deliverables hinders detailed value assessment.
Potential for complexity or cost inefficiencies due to the involvement of multiple corporate entities (SFA, Inc. and The KeyW Corporation).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to THE KEYW CORPORATION. 200312!002802!1700!E3250 !NAVAL RESEARCH LABORATORY !N0017303C6016 !A!N! !N! !20030924!20040930!048010532!048010532!048010532!N!SFA, INC !9315 LARGO DRIVE WEST, SUI!LARGO !MD!20774!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000000146000!N!N!000025642402!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

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 $22.6 million.

What is the period of performance?

Start: 2003-09-24. End: 2011-09-30.

What specific R&D projects or areas did this contract fund for the Naval Research Laboratory?

The provided data indicates the contract was for 'Research and Development in the Physical, Engineering, and Life Sciences' under NAICS code 541710. However, it does not specify the exact projects or research areas funded. Typically, contracts of this nature support a range of activities aimed at advancing naval technology, improving existing systems, or exploring new scientific frontiers relevant to defense. Detailed project information would likely be found in internal Naval Research Laboratory documentation or classified reports, as specific R&D outcomes can be sensitive.

How does the $22.57 million contract value compare to other R&D contracts of similar scope and duration awarded by the Department of Defense?

Benchmarking the $22.57 million contract value requires comparing it against similar R&D contracts awarded by the Department of Defense (DoD) for services falling under NAICS code 541710, with a duration of approximately 8 years. Without access to a comprehensive database of all DoD R&D contracts, a precise comparison is difficult. However, R&D contracts can vary significantly in cost based on the complexity of the research, the personnel involved, and the required equipment. A contract of this value over 8 years suggests a substantial, ongoing research effort. Further analysis would involve identifying comparable contracts and examining their total values, durations, and specific technical scopes to determine if this contract represents a competitive price point.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D where the scope may evolve, carries inherent risks. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the total cost. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable. Without stringent monitoring and control, CPFF contracts can lead to cost overruns compared to fixed-price contracts. For this specific contract, the Naval Research Laboratory and DCMA would need robust mechanisms to track expenditures and ensure efficient resource utilization.

What was the track record of SFA, Inc. and The KeyW Corporation in performing similar R&D contracts prior to this award?

The provided data identifies SFA, Inc. as the prime contractor and The KeyW Corporation as a separate entity, potentially a subcontractor or related party. To assess their track record, one would need to examine past performance on similar government contracts. This would involve reviewing contract histories, past performance evaluations (if publicly available), and any documented issues or successes. Without specific historical data on these entities' performance on DoD R&D contracts, it's challenging to definitively state their track record. Government contract databases often contain information on past awards and performance ratings, which would be essential for a thorough assessment.

How does the duration of this contract (approximately 8 years) align with typical R&D cycles in the defense sector?

The duration of approximately 8 years for this R&D contract aligns with the long-term nature of many defense research and development cycles. Developing new technologies, conducting rigorous testing, and integrating them into defense systems often requires sustained effort over multiple years. Shorter-term contracts might focus on specific research phases or feasibility studies, while longer durations are common for more comprehensive development programs. An 8-year period suggests a commitment to a significant research endeavor, potentially covering multiple stages from initial concept to prototype development or early-stage implementation, reflecting the typical pace of innovation in the defense sector.

What is the significance of the NAICS code 541710 in understanding the scope and nature of this contract?

The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is highly significant as it precisely defines the domain of work for this contract. It indicates that the services procured involve scientific inquiry and experimentation to expand knowledge and understanding in fields like physics, chemistry, biology, engineering disciplines, and related sciences. This contrasts with R&D in social sciences or computer software design. Understanding this code helps contextualize the contract's purpose, the types of expertise required from the contractor, and the potential applications of the research outcomes, which are critical for national defense and technological advancement.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $25,642,402

Exercised Options: $25,642,402

Current Obligation: $22,577,727

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline