DoD's $16.9M contract with The Keyw Corporation for acoustic research shows a high cost per unit
Contract Overview
Contract Amount: $16,901,602 ($16.9M)
Contractor: THE Keyw Corporation
Awarding Agency: Department of Defense
Start Date: 2018-06-15
End Date: 2023-12-14
Contract Duration: 2,008 days
Daily Burn Rate: $8.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF PR 71-3006-16 LABORATORY AND AT SEA ACOUSTIC TECHNIQUES
Place of Performance
Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $16.9 million to THE KEYW CORPORATION for work described as: IGF::OT::IGF PR 71-3006-16 LABORATORY AND AT SEA ACOUSTIC TECHNIQUES Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 2. Limited public data makes a comprehensive value-for-money assessment challenging. 3. The contract's duration and cost raise questions about long-term efficiency. 4. Performance context is obscured by the lack of detailed deliverables. 5. This contract falls within the broad R&D sector, specifically physical sciences. 6. The Keyw Corporation's track record with similar contracts warrants further review. 7. The contract's value is significant within its niche research area.
Value Assessment
Rating: fair
The contract's total value of $16.9 million over approximately five years suggests a substantial investment in research and development. Benchmarking this against similar contracts for specialized acoustic research is difficult without more granular data on deliverables and specific research outcomes. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. The provided data does not allow for a direct comparison of unit costs for specific research tasks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the number of actual bidders is not specified, which limits the assessment of the competitive landscape. Full and open competition generally promotes price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process and the number of proposals received would provide further insight into the effectiveness of the competition.
Taxpayer Impact: Full and open competition suggests that taxpayers benefited from a potentially competitive bidding process, which should have driven down costs compared to a sole-source award. However, without knowing the number of bidders, it's difficult to definitively state the extent of taxpayer savings.
Public Impact
The Department of the Navy benefits from specialized acoustic research capabilities. Services delivered include laboratory and at-sea acoustic techniques. The geographic impact is primarily focused on the contractor's operational areas and potential deployment sites for at-sea testing. Workforce implications include employment for specialized scientific and technical personnel within The Keyw Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure may lead to cost overruns without stringent oversight.
- Lack of detailed performance metrics makes it difficult to assess true value for money.
- The long contract duration could indicate potential for scope creep or evolving research needs that inflate costs.
- Limited transparency on specific research outcomes hinders public accountability.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Contract supports critical research and development for national defense.
- The Keyw Corporation is a known entity in defense contracting, potentially bringing relevant expertise.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences). This is a broad category encompassing scientific research and experimental development. Spending in this sector is crucial for technological advancement and national security. Comparable spending benchmarks would involve analyzing other DoD contracts for similar specialized R&D services, particularly those involving advanced acoustic technologies.
Small Business Impact
The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on the prime contractor, The Keyw Corporation. There is no explicit information on subcontracting plans or their impact on the small business ecosystem. Future analysis could explore if Keyw has a history of subcontracting with small businesses on similar contracts.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight and performance monitoring are crucial to ensure funds are used efficiently and effectively. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected. Transparency is limited by the proprietary nature of R&D, but contract award details and basic performance reporting should be publicly accessible.
Related Government Programs
- Department of Defense Research and Development Contracts
- Naval Research Laboratory Contracts
- Acoustic Technology Development
- Cost-Plus-Fixed-Fee Contracts
- Scientific and Technical Services Contracts
Risk Flags
- Cost-plus-fixed-fee structure carries inherent risk of cost overruns.
- Lack of specific performance metrics hinders objective assessment of value.
- Limited public detail on competition effectiveness (number of bidders).
- Contract duration is substantial, requiring ongoing oversight.
Tags
research-and-development, department-of-defense, department-of-the-navy, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, maryland, scientific-research, acoustic-technology, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.9 million to THE KEYW CORPORATION. IGF::OT::IGF PR 71-3006-16 LABORATORY AND AT SEA ACOUSTIC TECHNIQUES
Who is the contractor on this award?
The obligated recipient is THE KEYW 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 $16.9 million.
What is the period of performance?
Start: 2018-06-15. End: 2023-12-14.
What is The Keyw Corporation's track record with similar government contracts, particularly in acoustic research?
The Keyw Corporation, now part of PAE, has a history of securing various government contracts, including those related to intelligence, defense, and technology services. While specific details on their acoustic research portfolio require deeper database searches, their general experience in complex R&D and technical services suggests a capacity to handle such contracts. Analyzing past performance evaluations, contract modifications, and any past performance issues on similar projects would provide a clearer picture of their reliability and expertise in this specialized field. Information on their success rate in winning competitive bids for acoustic R&D would also be relevant.
How does the cost of this contract compare to similar R&D efforts in acoustic technology?
Directly comparing the cost of this $16.9 million contract to similar R&D efforts is challenging without detailed information on the specific research objectives, deliverables, and the duration of comparable projects. Contracts for specialized R&D can vary significantly based on the complexity of the technology, the required expertise, and the scope of work. To establish a benchmark, one would need to identify other contracts awarded by the Department of Defense or other agencies for advanced acoustic techniques, sensor development, or related maritime technologies. Analyzing the cost per research year or cost per specific deliverable across multiple contracts would be necessary for a meaningful comparison.
What are the primary risks associated with this cost-plus-fixed-fee contract structure for acoustic research?
The primary risk associated with a Cost-Plus-Fixed-Fee (CPFF) contract structure, especially in R&D, is the potential for cost overruns. While the 'fixed fee' provides a ceiling on the contractor's profit, the 'cost' portion is reimbursable. If the research proves more complex or time-consuming than initially estimated, the government bears the increased cost. This structure can reduce the contractor's incentive to control costs rigorously, as their profit margin is fixed regardless of the final cost. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.
How effective has The Keyw Corporation been in delivering on its government contracts based on past performance data?
Assessing The Keyw Corporation's effectiveness requires a review of their past performance evaluations and contract completion records. As a contractor that has held numerous government awards, their performance history would likely be documented in systems like the Contractor Performance Assessment Reporting System (CPARS). A thorough analysis would involve examining ratings on factors such as technical performance, cost control, schedule adherence, and management. Any instances of contract disputes, terminations, or significant performance deficiencies would be critical indicators of potential risks. Conversely, consistently high ratings would suggest a reliable and capable contractor.
What is the historical spending trend for acoustic research and development within the Department of the Navy?
Analyzing historical spending trends for acoustic R&D within the Department of the Navy requires accessing and aggregating data from various contract databases over several fiscal years. This would involve filtering contracts by relevant keywords (e.g., 'acoustic,' 'sonar,' 'hydroacoustics'), NAICS codes related to R&D, and the specific agency (Navy). Trends could reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify major contractors or research areas receiving significant investment. Such analysis helps contextualize the $16.9 million contract within the broader budgetary priorities and historical investment patterns of the Navy in acoustic technologies.
What specific deliverables or research outcomes were expected from this $16.9 million contract?
The provided data summary does not specify the exact deliverables or research outcomes expected from this contract. Contracts for R&D, particularly those using a CPFF structure, often focus on achieving specific research objectives, developing prototypes, conducting tests, or generating reports on findings. Without access to the contract statement of work (SOW) or detailed performance work statements (PWS), it is impossible to list the precise outputs. Understanding these deliverables is crucial for evaluating the contract's success and the value received by the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017318RDU01
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,466,920
Exercised Options: $44,466,920
Current Obligation: $16,901,602
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $541,863
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-06-15
Current End Date: 2023-12-14
Potential End Date: 2023-12-14 00:00:00
Last Modified: 2025-05-15
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