DCS Corporation awarded $31.4M for optical sciences R&D, serving the Department of the Navy

Contract Overview

Contract Amount: $31,402,400 ($31.4M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2011-08-02

End Date: 2017-07-30

Contract Duration: 2,189 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 56-9605-11 OPTICAL SCIENCES R&D

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.4 million to DCS CORPORATION for work described as: 56-9605-11 OPTICAL SCIENCES R&D Key points: 1. Contract value of $31.4 million over its period of performance. 2. Awarded under full and open competition, indicating a broad search for qualified contractors. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control. 4. Performance period spanned from August 2011 to July 2017. 5. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical sciences. 6. The contract was not set aside for small businesses. 7. The contractor, DCS Corporation, has a history of federal contract awards.

Value Assessment

Rating: good

The contract value of $31.4 million for a nearly six-year R&D effort in optical sciences appears reasonable. While specific benchmarks for this niche R&D are difficult to ascertain without more granular data on the specific research objectives and deliverables, the CPFF contract type suggests a structured approach to managing costs. The duration and scope align with typical federal research and development projects in specialized scientific fields.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specialized R&D requirement. A higher number of bidders might have been expected for a contract of this value, but the nature of advanced optical sciences R&D can limit the pool of highly qualified and capable firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of potential contractors to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The Department of the Navy benefits from advancements in optical sciences, potentially enhancing surveillance, communication, or targeting capabilities. The contract supports research and development activities, pushing the boundaries of scientific knowledge in optics. The geographic impact is primarily within the United States, where the contractor's research facilities are located. The contract likely supported a workforce of scientists, engineers, and technical staff within DCS Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The limited number of bidders (2) might indicate a specialized niche where competition is inherently constrained.
Lack of small business participation means fewer opportunities for smaller innovative firms in this specific award.

Positive Signals

Awarded through full and open competition, ensuring a broad search for expertise.
The CPFF structure provides a fixed profit margin, aligning incentives for efficient project completion.
DCS Corporation's established presence suggests a track record of delivering on federal contracts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on optical sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would typically be found within broader R&D categories for defense agencies, where contracts for specialized scientific research can range from millions to hundreds of millions of dollars depending on complexity and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this specific contract were limited to potential subcontracting roles, if any were established by the prime contractor. The absence of a small business set-aside suggests the requirement was likely deemed to require specialized capabilities more readily available from larger, established firms.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy, likely through contracting officers and technical representatives responsible for monitoring performance, costs, and adherence to contract terms. The CPFF structure necessitates careful monitoring of allowable costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific research details may be proprietary or classified.

Related Government Programs

Department of Defense Research and Development
Naval Research Laboratory Contracts
Optical Engineering Services
Advanced Technology Development

Risk Flags

Cost Overruns Potential (CPFF)
Limited Competition Pool
R&D Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.4 million to DCS CORPORATION. 56-9605-11 OPTICAL SCIENCES R&D

Who is the contractor on this award?

The obligated recipient is DCS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2011-08-02. End: 2017-07-30.

What is the track record of DCS Corporation in securing federal contracts, particularly in R&D?

DCS Corporation has a significant history of securing federal contracts across various agencies, including the Department of Defense. Their awards often span research and development, engineering services, and technical support. For instance, prior to this optical sciences contract, they likely held other R&D awards that demonstrate their capability in specialized scientific and technical domains. Their consistent presence in federal contracting suggests a robust understanding of government procurement processes and a proven ability to deliver on contract requirements. Analyzing their portfolio would reveal a focus on defense-related technologies and scientific innovation, aligning with the nature of the $31.4 million optical sciences contract.

How does the $31.4 million contract value compare to similar optical sciences R&D contracts?

Benchmarking the $31.4 million value for this optical sciences R&D contract requires context regarding its specific scope, duration, and the technological advancements sought. Contracts for specialized R&D in fields like optics can vary widely. A nearly six-year effort for a definitive contract suggests a substantial, long-term research objective. Similar contracts within the Department of Defense for advanced materials, sensor development, or laser technology could range from tens to hundreds of millions of dollars. The value appears within a reasonable range for a focused, multi-year R&D initiative, especially considering the specialized expertise and resources required. Without detailed technical specifications, a precise comparison is challenging, but the amount reflects a significant investment in scientific exploration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like the one awarded to DCS Corporation, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit, the 'cost plus' element means the government reimburses allowable costs. If the research proves more complex or requires more resources than initially anticipated, the total cost to the government can escalate significantly. There's a risk that the contractor might not be sufficiently incentivized to minimize costs, as their profit is fixed regardless of the final cost. Effective oversight is crucial to ensure that all costs incurred are reasonable, allocable, and necessary for the R&D effort, and that the scope remains aligned with the original objectives.

What does the limited number of bidders (2) imply about the market for optical sciences R&D?

The fact that only two bidders responded to this full and open competition for optical sciences R&D suggests a highly specialized and potentially concentrated market. This could indicate that the number of companies possessing the specific technical expertise, facilities, and security clearances required for this particular project is limited. It may also suggest that the contract's requirements were very specific, or that the bidding process itself presented barriers to entry for a wider range of firms. While full and open competition aims for maximum participation, the reality in niche scientific fields is often a smaller pool of highly qualified entities. This concentration can sometimes lead to less aggressive pricing compared to markets with numerous competitors.

How has federal spending in optical sciences R&D evolved over time?

Federal spending in optical sciences R&D has generally seen consistent investment, particularly driven by defense and national security needs. Agencies like the Department of Defense (DoD), NASA, and the National Science Foundation (NSF) are major contributors. Spending trends are influenced by technological advancements, geopolitical factors, and national priorities. For example, increased focus on areas like directed energy, advanced sensors, quantum optics, and satellite technology would likely correlate with increased R&D funding in optical sciences. While specific historical spending data for 'optical sciences R&D' as a distinct category can be difficult to isolate, overall R&D spending by the DoD has fluctuated but remained substantial, with significant portions allocated to physics, engineering, and materials science, which encompass optical research.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PARK DR STE 500, ALEXANDRIA, VA, 22310

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,984,421

Exercised Options: $39,984,421

Current Obligation: $31,402,400

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,053,635

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline