DCS Corporation awarded $43.2M for R&D services, with contract performance spanning over 4 years

Contract Overview

Contract Amount: $43,203,892 ($43.2M)

Contractor: DCS Corporation

Awarding Agency: Department of Defense

Start Date: 2017-01-24

End Date: 2023-05-31

Contract Duration: 2,318 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $43.2 million to DCS CORPORATION for work described as: IGF::OT::IGF Key points: 1. Value for money appears reasonable given the extensive performance period and the nature of R&D services. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, typical for R&D contracts with a cost-plus-fixed-fee structure. 4. Performance context shows a long duration, indicating a sustained need for the services provided. 5. This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. 6. The contract's value is significant but within the expected range for large-scale R&D efforts.

Value Assessment

Rating: good

The contract's total value of $43.2 million over approximately 4 years suggests a substantial investment in research and development. Benchmarking against similar R&D contracts is challenging without specific service details, but the duration and cost indicate a significant undertaking. The cost-plus-fixed-fee structure allows for flexibility in R&D but requires careful oversight to ensure cost control and value realization. The fixed fee component provides some incentive for the contractor to manage costs efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of multiple bidders generally fosters price discovery and encourages competitive pricing. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the level of competition.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at competitive prices, maximizing the return on investment for federal funds.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, receiving advanced research and development services. Services delivered include research and development in physical, engineering, and life sciences, contributing to technological advancements. The geographic impact is primarily national, supporting defense capabilities and innovation within the United States. Workforce implications include employment opportunities for scientists, engineers, and technical personnel within DCS Corporation and its potential subcontractors.

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 long performance period may present challenges in adapting to rapidly evolving R&D landscapes.
Defining clear deliverables and success metrics for R&D can be inherently difficult, posing a risk to performance evaluation.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
DCS Corporation's long-standing presence and experience in defense contracting are positive signals.
The substantial contract value indicates a significant level of trust and capability recognized by the agency.

Sector Analysis

The Research and Development (R&D) sector, particularly within defense, is characterized by innovation and long-term investment. This contract, categorized under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences), represents a segment focused on scientific discovery and technological advancement. The market size for defense R&D is substantial, with significant government funding allocated annually to maintain technological superiority. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense and other federal agencies.

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 specifically mandated for small businesses through a set-aside program. However, large prime contractors like DCS Corporation often engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency is facilitated through contract reporting mechanisms, and potential issues could be addressed by the agency's Inspector General if fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Naval Research Laboratory Contracts
Advanced Technology Development Contracts
Engineering and Technical Services Contracts

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Cost-plus-fixed-fee structure requires diligent cost oversight.
R&D inherently carries uncertainty in outcomes and timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.2 million to DCS CORPORATION. IGF::OT::IGF

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 $43.2 million.

What is the period of performance?

Start: 2017-01-24. End: 2023-05-31.

What is DCS Corporation's track record with similar R&D contracts for the Department of Defense?

DCS Corporation has a significant history of performing R&D services for the Department of Defense. While specific details on past R&D contracts are not provided in this data snippet, their sustained engagement with the DoD suggests a proven capability. Analyzing their past performance on similar cost-plus-fixed-fee contracts, their ability to meet technical milestones, and their history of cost control would provide a more comprehensive understanding of their track record. Federal procurement databases and agency performance reviews would be valuable resources for this deeper dive.

How does the $43.2 million contract value compare to other R&D contracts in the physical, engineering, and life sciences sector?

The $43.2 million contract value is substantial and falls within the upper range for R&D contracts, particularly those with a multi-year performance period. The Department of Defense frequently awards large R&D contracts to support its technological advancements. To benchmark effectively, one would need to compare this value against the average and median contract values for similar NAICS codes (541712) awarded by the DoD and other agencies over comparable timeframes. Factors like the specific research area, the novelty of the technology, and the contractor's expertise influence these values.

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

The primary risks with CPFF contracts for R&D involve potential cost overruns and contractor efficiency. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' portion means the government reimburses allowable costs. If R&D efforts are more complex or costly than initially anticipated, the total cost to the government can escalate. Contractors may also have less incentive to control costs aggressively compared to fixed-price contracts, as their profit is fixed regardless of the final cost. Effective oversight, clear scope definition, and robust cost tracking are crucial to mitigate these risks.

How does the duration of this contract (over 4 years) impact the assessment of its value and risk?

The extended duration of over 4 years for this R&D contract suggests a long-term strategic investment by the Department of Defense. This duration can be advantageous for complex R&D projects requiring sustained effort and iterative development. From a value perspective, it allows for deeper exploration and potential breakthroughs. However, it also introduces risks related to technological obsolescence, shifting program priorities, and the potential for cost creep over time. Managing such long-term contracts requires adaptive planning and continuous performance monitoring to ensure ongoing relevance and cost-effectiveness.

What is the significance of the 'After Exclusion of Sources' clause in the 'Full and Open Competition' award?

The 'After Exclusion of Sources' clause within a 'Full and Open Competition' award indicates that while the competition was intended to be broad, specific sources were excluded from consideration. This is often done for reasons such as national security, proprietary information, or unique capabilities possessed by a limited number of entities. While it still represents a form of competition, it is less open than a standard full and open competition where all responsible sources are considered. The justification for excluding sources is critical for understanding the true level of competition and its potential impact on pricing and innovation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042115R0029

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6909 METRO PK DR STE 500, ALEXANDRIA, VA, 22310

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

Financial Breakdown

Contract Ceiling: $56,434,144

Exercised Options: $56,434,144

Current Obligation: $43,203,892

Actual Outlays: $737,992

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $50,883,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline