DoD's $12M R&D contract with KEYW Corporation for physical sciences research shows strong competition
Contract Overview
Contract Amount: $11,981,225 ($12.0M)
Contractor: THE Keyw Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2025-01-31
Contract Duration: 1,221 days
Daily Burn Rate: $9.8K/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
Plain-Language Summary
Department of Defense obligated $12.0 million to THE KEYW CORPORATION for work described as: LABOR Key points: 1. Contract awarded to a single entity, The Keyw Corporation, for specialized R&D services. 2. The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences category. 3. Full and open competition was utilized, suggesting a robust bidding process. 4. The contract duration is substantial, spanning over 1200 days, indicating a long-term project. 5. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 6. Geographic focus is on Washington D.C., potentially impacting local economic development.
Value Assessment
Rating: good
Benchmarking the value of this specific $11.98 million contract is challenging without more granular data on the scope of R&D services. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost overruns if not meticulously managed. The fixed fee component provides some incentive for the contractor to control costs, but the primary cost driver is the actual expense incurred. Comparing this to similar R&D contracts within the Department of Defense for specialized physical sciences research would be the next step in a comprehensive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This method is generally preferred as it maximizes the pool of potential offerors and fosters a competitive environment. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition, which should theoretically lead to more favorable pricing and better technical solutions for the government.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered, ensuring the government receives the best value for its investment.
Public Impact
The primary beneficiary is the Department of Defense, which will receive advanced research and development services in physical sciences. The contract supports innovation and technological advancement within the defense sector. The geographic impact is concentrated in Washington D.C., where the contractor is located. Workforce implications may include employment opportunities for scientists, engineers, and support staff within The Keyw Corporation and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
- Limited information on specific performance metrics makes it difficult to assess the effectiveness of the R&D.
- The specialized nature of the R&D may limit the number of truly competitive bidders in the future.
- Concentration of R&D spending in a single geographic area (Washington D.C.).
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The contractor, The Keyw Corporation, is likely experienced in R&D services.
- The contract duration suggests a significant and potentially impactful research project.
- The R&D focus aligns with critical defense needs.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical sciences. The R&D services market is highly specialized, with significant government investment driven by national security and technological advancement needs. The Department of Defense is a major consumer of these services. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D efforts, considering factors like scientific discipline, project complexity, and contract type.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement for this particular award. However, the prime contractor, The Keyw Corporation, may engage small businesses as subcontractors if it aligns with their project needs and procurement strategy.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy, a component of the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment milestones tied to deliverables. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense Research and Development Programs
- Physical Sciences Research Contracts
- Naval Research Laboratory Contracts
- Advanced Technology Development Contracts
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns.
- Long contract duration may lead to obsolescence or shifting research priorities.
- Limited visibility into specific performance metrics and deliverables.
Tags
research-and-development, department-of-defense, department-of-the-navy, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, washington-dc, large-contract, technology-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to THE KEYW CORPORATION. LABOR
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 $12.0 million.
What is the period of performance?
Start: 2021-09-28. End: 2025-01-31.
What is the specific scope of 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' covered by this contract?
The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is broad. For this specific contract with The Keyw Corporation, the precise scope would be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS) within the contract documentation. This typically outlines the specific research objectives, methodologies, expected outcomes, and technical requirements. Without access to the SOW, it's impossible to know if it pertains to materials science, advanced physics, chemical engineering, or other sub-disciplines within the physical sciences relevant to the Department of Defense's mission.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other R&D contracts awarded by the Department of the Navy?
The Cost Plus Fixed Fee (CPFF) structure is common for R&D contracts where the scope is not fully defined at the outset, allowing for flexibility as research progresses. The government pays the contractor's actual allowable costs plus a fixed fee representing profit. Compared to other DoD R&D contracts, CPFF is frequently used, but it carries a higher risk of cost growth than fixed-price contracts. The Navy, like other services, uses CPFF when the nature of the work makes it difficult to estimate costs accurately beforehand. Benchmarking would involve analyzing the ratio of fixed fee to total estimated cost across similar R&D awards to assess if this contract's fee is within typical ranges.
What is The Keyw Corporation's track record with government R&D contracts, particularly with the Department of Defense?
The Keyw Corporation has a history of securing and performing on government contracts, including those with the Department of Defense. Their portfolio often includes work in areas such as intelligence analysis, cybersecurity, and advanced technology solutions. Information available through contract databases (like FPDS) would detail their past performance, including contract values, agencies served, and contract types. A review of their past performance ratings and any reported issues or successes on similar R&D projects would provide insight into their capabilities and reliability for this specific contract.
What are the potential risks associated with a long-duration (1221 days) R&D contract?
Long-duration R&D contracts, like this 1221-day award, present several risks. Firstly, the technological landscape can change rapidly, potentially making the research objectives or outcomes obsolete before the contract concludes. Secondly, maintaining consistent contractor performance and engagement over an extended period can be challenging. Thirdly, the CPFF structure, combined with a long duration, increases the potential for cumulative cost growth if not rigorously managed. Finally, ensuring the continued relevance and alignment of the research with evolving defense needs requires proactive oversight and potential contract modifications.
How does the $11.98 million total value compare to the average R&D spending for the Department of the Navy in the physical sciences domain?
Determining the exact average R&D spending for the Department of the Navy specifically in the physical sciences domain requires access to detailed budget and spending reports, which are often aggregated. However, $11.98 million is a significant, though not exceptionally large, sum for a single R&D contract. The Navy invests billions annually in R&D across various scientific and engineering disciplines. This contract likely represents a focused effort within a specific area of physical sciences. To provide a precise comparison, one would need to analyze the Navy's R&D budget allocations for the relevant fiscal years and identify comparable projects within the physical sciences category.
What are the implications of this contract being awarded in Washington D.C. for workforce and economic impact?
Awarding this contract to The Keyw Corporation, located in Washington D.C., suggests a direct economic impact within that metropolitan area. It implies job creation or retention for highly skilled personnel such as scientists, engineers, and researchers. The concentration of R&D activities in a specific geographic location can foster a local ecosystem of expertise and potentially attract further investment in related fields. However, it also means that the direct benefits are localized, and opportunities for other regions to participate in this specific R&D effort are limited unless through remote work or subcontracting.
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
Solicitation ID: N0017321RTS02
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,568,983
Exercised Options: $13,568,983
Current Obligation: $11,981,225
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $2,019,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017316D2010
IDV Type: IDC
Timeline
Start Date: 2021-09-28
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-12-09
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