DCS Corporation awarded $12.87M contract for optical science R&D by Department of the Navy

Contract Overview

Contract Amount: $12,866,744 ($12.9M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2024-05-13

End Date: 2026-04-14

Contract Duration: 701 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OPTICAL SCIENCE DIVISION, CODE 5600, CARRIES OUT A VARIETY OF R&D AND APPLICATION-ORIENTED ACTIVITIES IN THE GENERATION, PROPAGATION, DETECTION, AND USE OF RADIATION IN THE WAVELENGTH REGION BETWEEN NEAR-ULTRAVIOLET AND FAR-INFRARED WAVELENGTHS.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to DCS CORPORATION for work described as: OPTICAL SCIENCE DIVISION, CODE 5600, CARRIES OUT A VARIETY OF R&D AND APPLICATION-ORIENTED ACTIVITIES IN THE GENERATION, PROPAGATION, DETECTION, AND USE OF RADIATION IN THE WAVELENGTH REGION BETWEEN NEAR-ULTRAVIOLET AND FAR-INFRARED WAVELENGTHS. Key points: 1. Contract supports advanced research in optical science, spanning UV to far-infrared wavelengths. 2. Focus on R&D activities suggests potential for technological innovation and future applications. 3. The contract is a Cost Plus Fixed Fee type, indicating shared risk between government and contractor. 4. A single award suggests a specific capability or solution was sought. 5. The duration of 701 days allows for substantial project development and execution. 6. Virginia is the performance location, potentially impacting local workforce and economy.

Value Assessment

Rating: good

The contract value of $12.87 million for a 701-day R&D effort in optical sciences appears reasonable. Benchmarking against similar R&D contracts in specialized scientific fields is challenging without more specific data on the scope of work. However, the Cost Plus Fixed Fee structure, while allowing for flexibility, requires careful monitoring to ensure costs remain within acceptable parameters for the fixed fee component. The contractor, DCS Corporation, has a track record in government contracting, which can be a positive indicator of their ability to manage such projects.

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 bids. The fact that it resulted in a single award suggests that DCS Corporation offered the most advantageous solution based on the evaluation criteria. While full and open competition is generally preferred for maximizing value, the specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to bid, driving down prices and fostering innovation. This approach helps ensure that the government secures the best possible value for its investment.

Public Impact

The Department of the Navy benefits from advanced research in optical science, crucial for defense applications. The contract supports R&D activities that could lead to new technologies in radiation generation, propagation, detection, and use. Performance is located in Virginia, potentially creating or sustaining high-skilled jobs in the region. The research focus may contribute to advancements in areas like sensing, imaging, and directed energy.

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 specialized nature of optical science R&D may limit the pool of qualified contractors.
Reliance on a single awardee could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
DCS Corporation's existing presence in government contracting indicates experience.
The contract duration allows for comprehensive research and development.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541715. This sector is characterized by innovation and the pursuit of scientific knowledge for practical applications. The Department of Defense is a significant investor in this area, seeking advancements that can provide a technological edge. Comparable spending in this sector often involves substantial investment due to the high-risk, high-reward nature of R&D.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this specific contract may not directly benefit small businesses through set-asides, the prime contractor, DCS Corporation, may engage small businesses as subcontractors for specialized services or supplies. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and technical officers. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures to ensure they align with the project's objectives and the fixed fee. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Optical Science Research
Advanced Technology Development
Navy Science and Technology Programs

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage potential cost escalations.
Specialized R&D nature may limit the number of highly qualified bidders.
Single award contract carries inherent risk if contractor performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to DCS CORPORATION. OPTICAL SCIENCE DIVISION, CODE 5600, CARRIES OUT A VARIETY OF R&D AND APPLICATION-ORIENTED ACTIVITIES IN THE GENERATION, PROPAGATION, DETECTION, AND USE OF RADIATION IN THE WAVELENGTH REGION BETWEEN NEAR-ULTRAVIOLET AND FAR-INFRARED WAVELENGTHS.

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 $12.9 million.

What is the period of performance?

Start: 2024-05-13. End: 2026-04-14.

What is DCS Corporation's track record with the Department of the Navy and in R&D contracts?

DCS Corporation has a history of performing contracts for the Department of the Navy and other federal agencies, often in technical and R&D capacities. Their experience typically spans areas related to engineering, scientific research, and technical support. For R&D contracts, their success is often measured by their ability to deliver innovative solutions within the agreed-upon cost and schedule parameters. While specific performance metrics for past R&D projects are not detailed here, their continued award of such contracts suggests a satisfactory performance history. Further review of past performance evaluations and contract close-outs would provide a more granular understanding of their capabilities and reliability in executing complex research initiatives.

How does the $12.87 million value compare to similar optical science R&D contracts?

Benchmarking the $12.87 million value requires comparing it to contracts with similar scope, duration, and technical complexity within the optical science R&D domain. Contracts for fundamental research in specialized fields like optical science can vary significantly. A 701-day (approximately 23-month) effort at this value suggests a focused research program rather than a large-scale development initiative. Without access to a comprehensive database of comparable contracts, it's difficult to provide a precise benchmark. However, for advanced R&D, this figure appears within a reasonable range, especially considering the potential for specialized equipment, highly skilled personnel, and the inherent uncertainties in research outcomes. The Cost Plus Fixed Fee structure also influences the perceived value, as it allows for flexibility in cost but caps the contractor's profit.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with this CPFF contract revolve around cost control and scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost' portion is subject to actual incurred expenses. If project costs escalate beyond initial estimates due to unforeseen technical challenges, material price increases, or inefficient resource management, the total contract value could increase, impacting the overall budget. There's also a risk that the contractor might prioritize activities that increase costs (and thus potentially increase the base for future fixed fees, depending on contract specifics) over achieving the most efficient outcome. Effective government oversight is crucial to mitigate these risks by closely monitoring expenditures, validating costs, and ensuring adherence to the research objectives.

How effective is full and open competition in ensuring value for money in specialized R&D procurements?

Full and open competition is generally the most effective method for ensuring value for money, even in specialized R&D procurements. It broadens the potential bidder pool, encouraging a wider range of innovative approaches and competitive pricing. For R&D, this means the government is more likely to find a contractor with unique expertise or a novel approach that offers superior technical solutions at a competitive price. However, the effectiveness can be influenced by the clarity of the solicitation's technical requirements and evaluation criteria. In highly specialized fields, the number of capable bidders might be limited, potentially reducing the competitive pressure. Nevertheless, the principle of allowing all qualified sources to compete remains the best practice for maximizing taxpayer value and fostering technological advancement.

What are the potential long-term implications of this optical science R&D for national security?

Advancements in optical science have significant potential implications for national security. Research in areas like radiation generation, propagation, and detection can lead to improvements in surveillance and reconnaissance capabilities, advanced targeting systems, secure communications, and potentially new forms of non-lethal or directed energy weapons. The ability to generate, manipulate, and detect radiation across a wide spectrum (UV to far-infrared) is fundamental to developing next-generation sensors, stealth technologies, and electronic warfare systems. By investing in this R&D, the Department of the Navy aims to maintain a technological advantage, ensuring its platforms and personnel are equipped with the most advanced tools to address evolving threats.

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: N0017323REN05

Offers Received: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,751,099

Exercised Options: $19,503,516

Current Obligation: $12,866,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline