Dod Awards $17.58M for Engineering Services to Research and Development Solutions, Incorporated, With 3 Bidders

Contract Overview

Contract Amount: $17,581,003 ($17.6M)

Contractor: Research and Development Solutions, Incorporated

Awarding Agency: Department of Defense

Start Date: 2009-07-24

End Date: 2009-09-30

Contract Duration: 68 days

Daily Burn Rate: $258.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TO N00178-04-D-4113-N406 TAS::17 1804::TAS

Place of Performance

Location: MIDDLETOWN, NEWPORT County, RHODE ISLAND, 02842

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED for work described as: TO N00178-04-D-4113-N406 TAS::17 1804::TAS Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was competed on a full and open basis, suggesting a competitive marketplace. 3. A fixed-fee contract type implies that costs are controlled by the contractor within agreed limits. 4. The contract duration is relatively short, suggesting a focused scope of work. 5. The award was made by the Defense Contract Management Agency, a key oversight body. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. The contract was awarded as a delivery order under a larger contract vehicle. 8. The contractor is based in Rhode Island, potentially impacting local economic contributions.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the broader contract it falls under and the specific services rendered. However, the total award amount of $17.58 million for engineering services over a short period suggests a significant investment. Further analysis would require comparing the per-unit costs or labor rates against similar engineering contracts within the Department of Defense or other federal agencies to determine if the pricing is competitive and represents good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. With three bidders participating, the competition level appears moderate. A higher number of bidders generally leads to more robust price discovery and potentially lower prices for the government. The presence of three bidders suggests that while there was competition, there may be a limited number of firms capable of meeting the specific requirements.

Taxpayer Impact: A full and open competition with multiple bidders is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price. The moderate number of bidders suggests that while some price pressure was likely exerted, there might be opportunities for even greater savings with broader competition.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its missions. The services delivered likely involve technical analysis, design, or support for defense systems. The geographic impact is primarily within the scope of the Department of Defense's operational needs. Workforce implications include employment for engineers and technical staff at the contractor's firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only three bidders could lead to higher costs than a more robustly competed contract.
The cost-plus-fixed-fee contract type can sometimes lead to cost overruns if not closely managed.
The short duration of the delivery order might indicate a narrowly defined scope, potentially leading to follow-on contracts with associated risks.
Lack of specific details on the engineering services provided makes it difficult to assess the true value and necessity of the expenditure.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The presence of multiple bidders (three) indicates some level of market interest and competition.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight processes.
The contractor, RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED, has secured a federal contract, indicating a level of capability and experience.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, particularly within the defense sector. Companies in this space provide critical technical expertise for the design, development, and maintenance of complex systems. The Department of Defense is a major consumer of these services, often requiring specialized knowledge in areas like aerospace, electronics, and systems engineering. Benchmarks for engineering services can vary widely based on the specific discipline, required security clearances, and project complexity. This contract, valued at $17.58 million, falls within a typical range for substantial engineering support engagements.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of specific small business subcontracting requirements mentioned in the provided data. The award to RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED, suggests a focus on established firms capable of handling significant engineering projects. Further investigation into the prime contractor's subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance with terms and conditions. As a delivery order under a larger contract vehicle, oversight would likely be integrated into existing program management structures. Transparency is generally facilitated through contract databases like FPDS, though specific performance metrics and detailed spending breakdowns may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services Contracts
Research and Development Contracts
Department of Defense IT and Technical Services
Engineering and Technical Support Services

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED. TO N00178-04-D-4113-N406 TAS::17 1804::TAS

Who is the contractor on this award?

The obligated recipient is RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2009-07-24. End: 2009-09-30.

What specific engineering services were provided under this delivery order?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services for the Department of Defense can encompass a wide range of activities, including systems engineering, design and development, technical analysis, testing and evaluation, logistics support, and program management support. Without further documentation, it is impossible to ascertain the precise technical tasks performed under this $17.58 million delivery order. Understanding the specific services is crucial for evaluating the necessity and value of the expenditure.

How does the $17.58 million award compare to similar engineering services contracts awarded by the DoD?

Comparing this $17.58 million award requires context regarding the contract's duration and scope. For a short-duration delivery order (ending September 30, 2009, from a July 24, 2009 start), this is a substantial amount, suggesting a high-intensity or complex set of engineering tasks. However, if this is part of a larger, multi-year contract vehicle, the annual spend might be lower. Benchmarking against other DoD engineering contracts would involve analyzing awards for similar NAICS codes (e.g., 541330) with comparable contract types (Cost Plus Fixed Fee) and durations. Generally, large-scale engineering support for defense systems can range from millions to hundreds of millions of dollars annually, depending on the program's phase and complexity.

What is the track record of RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED with federal contracts?

RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED (RDSI) has a history of receiving federal contracts, as evidenced by this award. To assess their track record thoroughly, one would need to examine their complete contract history across various agencies. Key aspects to review include the total value of contracts awarded, the types of services provided, performance ratings (if available), and any history of contract disputes or terminations. A positive track record typically involves successful completion of contracts, adherence to schedules and budgets, and positive past performance evaluations. Without access to a comprehensive database of RDSI's federal contract history, a definitive assessment of their track record is limited to the information provided for this specific award.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for these engineering services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to RESEARCH AND DEVELOPMENT SOLUTIONS, INCORPORATED, involve the government reimbursing the contractor for allowable costs plus a predetermined fixed fee. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fee) is fixed regardless of the final cost. If costs escalate significantly, the government still pays the actual costs incurred. However, the fixed fee provides the contractor with a defined profit margin. Effective oversight by the contracting agency is crucial to mitigate risks by scrutinizing allowable costs and ensuring the contractor exercises due diligence in managing expenses to achieve the project's objectives within the anticipated cost structure.

How does the competition level of three bidders impact taxpayer value for this contract?

A competition level of three bidders for this engineering services contract represents a moderate level of competition. While it is better than a sole-source award, it is less competitive than scenarios with five or more bidders. With three bidders, there is a reasonable expectation that pricing was influenced by competitive pressures, potentially leading to a fair market price. However, a higher number of bidders could have potentially driven prices down further. Taxpayers benefit from competition as it encourages efficiency and cost-consciousness among contractors. The moderate competition here suggests a balance between ensuring adequate contractor capacity and achieving cost savings, though the potential for greater savings with more bidders cannot be ruled out.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3060

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7921 JONES BRANCH DR, SUIT, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $17,763,365

Exercised Options: $17,763,162

Current Obligation: $17,581,003

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4113

IDV Type: IDC

Timeline