DoD's $24.2M R&D contract to Analex Corporation for physical sciences research shows fair value

Contract Overview

Contract Amount: $24,228,145 ($24.2M)

Contractor: Analex Corporation

Awarding Agency: Department of Defense

Start Date: 2021-06-25

End Date: 2024-09-23

Contract Duration: 1,186 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LABOR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20375

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to ANALEX CORPORATION for work described as: LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of nearly four years indicates a significant, long-term research effort. 3. Focus on physical, engineering, and life sciences research aligns with critical defense needs. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost oversight. 5. Analex Corporation's performance will be key to achieving the research objectives within budget. 6. The contract's value is moderate within the context of large-scale federal R&D investments.

Value Assessment

Rating: good

The contract's value of approximately $24.2 million over nearly four years appears reasonable for specialized R&D services in the physical sciences. Benchmarking against similar contracts for research and development in this NAICS code (541712) would provide a more precise value-for-money assessment. However, the fixed fee component suggests that the contractor's profit margin is capped, which can be a positive indicator for cost control. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process implies a degree of price reasonableness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The fact that it was competed broadly suggests that the Department of the Navy sought the most advantageous offer available in the market for these specialized R&D services. The number of bidders is not specified, but the open competition itself is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Navy, who will receive advanced research outcomes in physical, engineering, and life sciences. The services delivered are critical for advancing scientific knowledge and technological capabilities relevant to national security. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include employment for scientists, engineers, and support staff at Analex Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed diligently.
The specific research outcomes and their direct applicability to defense needs require ongoing monitoring.
Reliance on a single delivery order for this duration necessitates robust performance management.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The fixed fee component helps to cap contractor profit, potentially controlling overall costs.
The contract supports critical research and development aligned with national security objectives.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712, which covers research in the physical, engineering, and life sciences (excluding biotechnology). This sector is crucial for defense innovation, driving advancements in materials, sensors, propulsion, and other critical technologies. Federal spending in R&D is substantial, with significant portions allocated to defense-related research to maintain a technological edge. Comparable spending benchmarks would involve looking at other DoD contracts for similar scientific research services, which often range from millions to hundreds of millions of dollars depending on scope and duration.

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 for small businesses stemming from a set-aside provision. However, as a large prime contract, Analex Corporation may engage small businesses as subcontractors to fulfill specific aspects of the research, depending on their internal capabilities and the project's requirements. The impact on the small business ecosystem would be indirect, contingent on Analex's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of the Navy contracting officers and technical representatives. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Cost Plus Fixed Fee structure necessitates close scrutiny of incurred costs against the fixed fee. Transparency is facilitated through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed here, the DoD IG typically has oversight over defense contracts to investigate fraud, waste, and abuse.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Programs
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Potential for cost overruns due to CPFF structure.
Uncertainty inherent in R&D projects.
Need for rigorous performance monitoring.
Dependence on contractor's technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to ANALEX CORPORATION. LABOR

Who is the contractor on this award?

The obligated recipient is ANALEX 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 $24.2 million.

What is the period of performance?

Start: 2021-06-25. End: 2024-09-23.

What is Analex Corporation's track record with the Department of Defense, particularly in R&D contracts?

A comprehensive review of Analex Corporation's past performance with the Department of Defense would require accessing contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems would detail previous awards, performance ratings, and any past issues or commendations. Without direct access to these specific records for Analex, it's difficult to provide a detailed assessment of their track record. However, the award of this $24.2 million contract suggests they have demonstrated capabilities and potentially a satisfactory performance history to be considered for such a significant R&D effort. Future performance on this contract will add to their ongoing track record.

How does the $24.2 million value compare to other R&D contracts in physical sciences awarded by the DoD?

The $24.2 million value for this contract is moderate within the broader landscape of Department of Defense Research and Development (R&D) spending. DoD R&D contracts can range from small, specialized research grants in the hundreds of thousands of dollars to massive, multi-year programs exceeding billions. Contracts for physical sciences research, particularly those involving advanced engineering or materials science, often fall into the multi-million dollar category. This specific contract's value appears reasonable for a nearly four-year effort focused on specialized R&D. However, a more precise comparison would involve analyzing the scope of work, the specific scientific disciplines involved, and the number of bidders for similar contracts awarded over the past few years.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for Research and Development (R&D) revolve around cost control and scope management. While the fixed fee provides the contractor with a defined profit margin, the 'cost' portion means the government reimburses the contractor for allowable expenses. This can create an incentive for the contractor to incur higher costs, as their fee remains constant regardless of the total cost. Effective oversight is crucial to ensure that all costs are reasonable, allocable, and allowable. Additionally, R&D inherently involves uncertainty; if the research objectives prove more complex or costly than initially anticipated, the government may face higher-than-expected expenditures. Clear definition and management of the Statement of Work (SOW) are vital to mitigate scope creep and associated cost increases.

What is the expected program effectiveness or return on investment for this R&D contract?

The expected program effectiveness and return on investment (ROI) for this R&D contract are intrinsically tied to the successful advancement of scientific knowledge and technological capabilities within the physical, engineering, and life sciences, as defined by the Department of the Navy's objectives. The ROI is not typically measured in direct financial returns but rather in enhanced national security, improved military readiness, or the development of new technologies that provide a strategic advantage. Effectiveness will be gauged by the contractor's ability to meet research milestones, deliver novel findings or prototypes, and contribute to the Navy's long-term strategic goals. The ultimate measure of success will be how well the research outcomes translate into tangible benefits for defense applications.

How has federal spending in NAICS code 541712 (Physical, Engineering, and Life Sciences R&D) trended over the past five years?

Federal spending within NAICS code 541712, encompassing Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), has generally shown a consistent or increasing trend over the past five years, driven largely by defense and health-related research initiatives. Agencies like the Department of Defense (DoD), National Institutes of Health (NIH), and National Science Foundation (NSF) are major contributors to this spending. The DoD, in particular, invests heavily in areas like advanced materials, aerospace engineering, and cybersecurity research, which fall under this code. While specific year-over-year fluctuations can occur due to budget appropriations and shifting national priorities, the overall demand for innovation in these scientific fields supports sustained federal investment in this sector.

What is the significance of the contract being a 'Delivery Order' under a larger contract vehicle?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) implies that it is a task order issued under a previously established Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means that the foundational contract terms, including pricing structures, general scope, and contractor qualifications, were likely established earlier, possibly through a competitive process. A delivery order then specifies the exact quantity of goods or services to be delivered, the delivery schedule, and the total cost for that specific order. This approach allows agencies to procure a range of services or products over time without needing to re-compete the entire requirement each time, offering flexibility and potentially faster procurement cycles for specific needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Veritas Capital Fund Management, L.L.C.

Address: 14295 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $24,321,169

Exercised Options: $24,321,169

Current Obligation: $24,228,145

Actual Outlays: $978,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017316D2009

IDV Type: IDC

Timeline