Navy's $16.1M Weather Observation Services Contract Awarded to Control Systems Research, Inc

Contract Overview

Contract Amount: $16,133,902 ($16.1M)

Contractor: Control Systems Research, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-12-31

End Date: 2011-09-30

Contract Duration: 1,003 days

Daily Burn Rate: $16.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WEATHER OBSERVATION SERVICES

Place of Performance

Location: VALPARAISO, OKALOOSA County, FLORIDA, 32580

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to CONTROL SYSTEMS RESEARCH, INC. for work described as: WEATHER OBSERVATION SERVICES Key points: 1. Contract awarded for essential weather observation services, supporting critical defense operations. 2. Sole-source award raises questions about potential missed savings from broader competition. 3. Contract duration of nearly three years suggests a sustained need for these services. 4. Fixed-price contract type offers some cost certainty for the government. 5. Awarded to a single vendor, highlighting potential lack of market competition. 6. Services provided in Florida, indicating a specific geographic focus for weather monitoring.

Value Assessment

Rating: fair

The total contract value of $16.1 million for weather observation services appears to be within a reasonable range for a multi-year federal contract of this nature. However, without specific benchmarks for similar weather observation systems or detailed service level agreements, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some cost control, but the lack of competition limits the ability to definitively benchmark pricing against market alternatives. Further analysis would require comparing the scope of services and deliverables to other contracts for similar capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that Control Systems Research, Inc. was the only vendor considered. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple interested parties. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to fully competed contracts. The absence of competition here means the government did not benefit from the potential cost reductions that could arise from multiple vendors vying for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without a competitive process, there is less assurance that the price reflects the lowest possible cost for the required services.

Public Impact

The Department of the Navy benefits from continuous and reliable weather observation data. These services are crucial for operational planning, safety, and mission effectiveness within naval aviation and maritime operations. The contract's geographic focus in Florida suggests support for naval installations or operations in that region. The contract likely supports a specialized workforce within Control Systems Research, Inc. responsible for operating and maintaining the weather observation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for a sole-source award.
Contract duration and value may indicate a significant reliance on a single vendor, posing a risk if performance issues arise.

Positive Signals

Fixed-price contract type offers some cost predictability.
Award to an established entity suggests potential for reliable service delivery.
Contract supports critical defense functions, indicating a necessary service.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, specifically related to weather and meteorological services. This sector is vital for various government functions, including defense, aviation, and disaster management. The market for specialized weather observation services can be niche, often requiring specific technological expertise and certifications. While the overall market size for weather services is substantial, contracts for highly specialized government needs, especially those requiring sole-source justification, represent a smaller segment. Benchmarking this contract's value against other federal weather observation contracts would provide further context on its cost-effectiveness.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The sole-source nature of the award further limits opportunities for small businesses to participate as prime contractors. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary benefits of this contract accrue to the large business prime contractor, with limited direct impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and approval process would have undergone specific review. Transparency regarding the specific oversight mechanisms and accountability measures is limited without access to the full contract file and associated documentation. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NOAA Weather Services
DoD Meteorological and Oceanographic Services
Federal Aviation Administration Weather Systems

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to CONTROL SYSTEMS RESEARCH, INC.. WEATHER OBSERVATION SERVICES

Who is the contractor on this award?

The obligated recipient is CONTROL SYSTEMS RESEARCH, 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 $16.1 million.

What is the period of performance?

Start: 2008-12-31. End: 2011-09-30.

What specific weather observation capabilities does Control Systems Research, Inc. provide under this contract?

The provided data indicates the contract is for 'WEATHER OBSERVATION SERVICES.' While the specific technical details are not elaborated, these services typically involve the deployment, operation, and maintenance of meteorological equipment to collect data on atmospheric conditions. This can include parameters such as temperature, humidity, wind speed and direction, barometric pressure, precipitation, and visibility. For defense applications, these services often require high accuracy, reliability, and real-time data transmission to support mission-critical decision-making, potentially involving specialized sensors and data processing capabilities tailored to naval operational environments.

How does the $16.1 million contract value compare to similar weather observation service contracts awarded by the federal government?

A direct comparison of the $16.1 million contract value is difficult without more specific details on the scope of services, duration, and geographic coverage. However, federal spending on weather and meteorological services is substantial, encompassing various agencies like NOAA and the FAA, with contracts ranging from equipment procurement to data analysis. Multi-year contracts for specialized observation systems can easily reach millions of dollars. The fact that this is a sole-source award to Control Systems Research, Inc. for nearly three years suggests a significant, ongoing requirement. To benchmark effectively, one would need to identify contracts with comparable service levels, technological sophistication, and operational tempo, ideally those awarded through competitive processes to establish a clearer market price.

What are the potential risks associated with awarding a nearly $16.1 million contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Taxpayers may not receive the best value for their money, as the government does not benefit from the price reductions that typically occur when multiple vendors compete. Furthermore, sole-source contracts can create vendor lock-in, making it difficult and costly to switch providers in the future. There's also a potential risk if the sole-source provider experiences performance issues, financial instability, or ceases operations, as there are no readily available alternative vendors vetted through a competitive process. This increases the government's reliance on a single entity.

What is the track record of Control Systems Research, Inc. in providing weather observation services to the federal government?

The provided data indicates that Control Systems Research, Inc. (CSR) was awarded this specific contract for weather observation services. To assess their track record, further investigation into CSR's past performance on similar contracts, client satisfaction, and history of meeting delivery schedules and technical requirements would be necessary. Information regarding previous contracts, their values, durations, and outcomes, particularly with the Department of the Navy or other defense agencies, would shed light on their experience and reliability in this specialized field. Without this additional context, it's difficult to definitively evaluate their established performance history.

What are the implications of the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) for this contract?

The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category used when a business activity does not fit into a more specific industry classification. For this weather observation services contract, it suggests that the services provided by Control Systems Research, Inc. are specialized and do not neatly align with more defined categories like meteorological consulting (which might have its own code) or specific engineering services. This broad classification can sometimes make it harder to benchmark spending or understand the precise nature of the services without additional detail. It implies a unique or multifaceted service offering that falls outside standard industry definitions.

How does the contract's fixed-price type (PT: FIRM FIXED PRICE) influence its risk profile and value for money?

A Firm Fixed Price (FFP) contract type is generally favored by the government because it shifts the majority of the cost risk to the contractor. This means the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. For the government, this provides budget certainty and predictability, as the total cost is known upfront. For taxpayers, it can be beneficial if the contractor manages their costs efficiently, as savings are retained by the contractor. However, if the contractor significantly underestimates costs or faces unforeseen challenges, they may absorb losses, potentially impacting their long-term viability or willingness to bid competitively on future contracts. The value for money is maximized when the FFP is established through robust competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018909T0068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 368 ADAMS AVE, VALPARAISO, FL, 32580

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,133,902

Exercised Options: $16,133,902

Current Obligation: $16,133,902

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Timeline