DoD Awards $41.5M to Gomez Research for Foreign Threat Analysis, Lacking Competition
Contract Overview
Contract Amount: $41,460,703 ($41.5M)
Contractor: Gomez Research Associates Inc
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2025-03-31
Contract Duration: 2,009 days
Daily Burn Rate: $20.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SBIR PHASE III FOREIGN THREAT VULNERABILITY/SUSCEPTIBILITY ANALYSES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35816
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $41.5 million to GOMEZ RESEARCH ASSOCIATES INC for work described as: SBIR PHASE III FOREIGN THREAT VULNERABILITY/SUSCEPTIBILITY ANALYSES Key points: 1. Significant contract value awarded for specialized engineering services. 2. Sole-source award raises questions about competitive pricing and market fairness. 3. Long contract duration (2019-2025) suggests ongoing need, but also potential for cost overruns. 4. Focus on foreign threat vulnerability analysis is critical for national security.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $41.5M represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The absence of competition for a contract of this magnitude could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
National security implications of foreign threat analysis are paramount. Lack of competition may limit innovation and drive up costs. Long-term contract could impact budget predictability for the Department of the Navy. Transparency in sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of small business participation
Positive Signals
- Critical national security focus
- Long-term engagement ensures continuity
Sector Analysis
Engineering services, particularly those focused on national security threats, are a specialized sector. Benchmarks are difficult to establish due to the unique nature of the work, but large sole-source contracts warrant scrutiny.
Small Business Impact
This contract does not appear to have small business participation, as indicated by the 'sb' field being false. This represents a missed opportunity to support small businesses in the defense contracting ecosystem.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is performing effectively and that costs are reasonable. The long duration also requires ongoing monitoring.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration increases risk of cost overruns.
- Lack of small business participation.
- Potential for contractor lock-in due to specialized knowledge.
Tags
engineering-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.5 million to GOMEZ RESEARCH ASSOCIATES INC. SBIR PHASE III FOREIGN THREAT VULNERABILITY/SUSCEPTIBILITY ANALYSES
Who is the contractor on this award?
The obligated recipient is GOMEZ RESEARCH ASSOCIATES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $41.5 million.
What is the period of performance?
Start: 2019-09-30. End: 2025-03-31.
What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive procurements?
Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. For this contract, the justification would likely center on unique capabilities or proprietary knowledge held by Gomez Research Associates Inc. related to foreign threat vulnerability analysis. A thorough review would confirm if these criteria were met and if alternative solutions were adequately explored.
How will the Cost Plus Fixed Fee structure be managed to ensure cost control and prevent potential overruns, especially given the long contract duration?
Managing a Cost Plus Fixed Fee contract requires stringent oversight of incurred costs and contractor performance. The Department of the Navy must implement rigorous auditing processes, establish clear performance metrics, and regularly review the contractor's cost accounting practices. Regular communication and milestone reviews are essential to identify and address potential cost escalations early in the contract lifecycle.
What is the expected impact of this contract on the Department of the Navy's overall cybersecurity posture and threat intelligence capabilities?
This contract is expected to significantly enhance the Department of the Navy's understanding of foreign threats and vulnerabilities. The analyses provided by Gomez Research Associates Inc. should inform defensive strategies, system hardening efforts, and intelligence gathering. The long-term nature of the contract suggests a sustained effort to continuously update and improve the Navy's cyber resilience against evolving foreign threats.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4835 UNIVERSITY SQ STE 19, HUNTSVILLE, AL, 35816
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,463,250
Exercised Options: $47,463,250
Current Obligation: $41,460,703
Actual Outlays: $1,569,005
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2025-03-31
Potential End Date: 2025-03-31 00:00:00
Last Modified: 2024-09-16
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