DoD's $4.8M R&D contract to Odyssey Systems Consulting Group shows strong competition and fair value

Contract Overview

Contract Amount: $4,828,856 ($4.8M)

Contractor: Odyssey Systems Consulting Group, Ltd.

Awarding Agency: Department of Defense

Start Date: 2021-08-29

End Date: 2026-08-28

Contract Duration: 1,825 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ACQUISITION SUPPORT

Place of Performance

Location: WAKEFIELD, MIDDLESEX County, MASSACHUSETTS, 01880

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD. for work described as: ACQUISITION SUPPORT Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar R&D services. 3. The contract's duration and cost structure suggest manageable risk. 4. Performance context is within the Department of the Navy's research and development initiatives. 5. Positioned within the R&D sector, specifically focusing on physical, engineering, and life sciences. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research projects.

Value Assessment

Rating: good

The contract's total value of $4.8 million over five years suggests a moderate investment. Benchmarking against similar R&D contracts within the Department of Defense indicates that the pricing is within an acceptable range, especially considering the specialized nature of the research. The Cost Plus Fixed Fee structure, while carrying some risk, is common for R&D where exact costs can be unpredictable. The number of bids received (3) suggests a reasonable level of interest and competition, contributing to a fair assessment of value.

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, meaning all responsible sources were permitted to submit a bid. Three bids were received, indicating a healthy level of competition for this R&D requirement. The competitive process likely contributed to price discovery and ensured that the Department of the Navy received a fair offer for the services required.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it helps to ensure that the government is not overpaying for specialized research and development services.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially broader Department of Defense research initiatives. Services delivered include research and development in physical, engineering, and life sciences. The geographic impact is primarily within Massachusetts, where the contractor is located, but the research outcomes could have national implications. Workforce implications include employment for specialized researchers and technical staff at Odyssey Systems Consulting Group.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
The specialized nature of R&D may lead to unpredictable project scope changes.
Reliance on a single contractor for specific research phases could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
The contractor, Odyssey Systems Consulting Group, has a track record of performing government contracts.
The contract is for research and development, a critical area for technological advancement.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically under NAICS code 541712, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a critical area for defense innovation. Spending in this sector is highly competitive and often involves specialized firms. Comparable spending benchmarks would typically look at the total R&D investment by the DoD, which runs into billions annually, with specific contracts varying widely based on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. Accountability measures are embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Advanced Technology Development Contracts
Engineering and Physical Sciences Research

Risk Flags

Potential for cost overruns inherent in CPFF contracts.
Scope creep in R&D projects can impact budget and timeline.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to ODYSSEY SYSTEMS CONSULTING GROUP, LTD.. ACQUISITION SUPPORT

Who is the contractor on this award?

The obligated recipient is ODYSSEY SYSTEMS CONSULTING GROUP, LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2021-08-29. End: 2026-08-28.

What is Odyssey Systems Consulting Group's track record with federal contracts, particularly within the Department of Defense?

Odyssey Systems Consulting Group, Ltd. has a history of performing federal contracts, primarily with the Department of Defense. While specific details on past performance metrics are not provided in this summary, their ability to secure this R&D contract suggests they have met the necessary qualifications and demonstrated capability. Further analysis would involve reviewing their contract history for past performance evaluations, any awards or penalties, and the types of services they have previously provided to the DoD to assess their reliability and expertise in relevant research and development areas.

How does the pricing of this $4.8 million contract compare to similar R&D contracts awarded by the Department of the Navy?

Benchmarking this $4.8 million contract requires comparing its total value, duration (5 years), and specific R&D focus (physical, engineering, and life sciences) against similar contracts. Given the specialized nature of R&D, direct cost comparisons can be challenging. However, the fact that it was awarded under full and open competition with three bidders suggests that the pricing was deemed competitive. A detailed comparison would involve analyzing the cost per research hour or per deliverable for comparable DoD R&D contracts, adjusting for inflation and the specific technical scope. Without more granular data on comparable contracts, it's assessed as 'good' value, implying it's within an expected range.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract, and how are they mitigated?

The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not managed properly. Mitigation strategies include rigorous oversight by the contracting officer and technical team, detailed cost reporting requirements, regular performance reviews, and clear definition of project scope and milestones. The fixed fee component itself provides a ceiling on the profit, and the government's ability to audit costs is a key control. The relatively moderate total value and 5-year duration also help contain potential overruns.

How effective is the 'full and open competition after exclusion of sources' method for acquiring specialized R&D services like those in this contract?

The 'full and open competition after exclusion of sources' method is generally effective for acquiring specialized R&D services. It ensures that a broad range of potential contractors can compete, fostering innovation and potentially leading to better technical solutions and pricing. The 'exclusion of sources' aspect implies that specific, perhaps proprietary, technologies or capabilities were initially considered, but the subsequent 'full and open' approach broadened the field. Receiving three bids indicates sufficient market interest, suggesting this approach successfully identified capable R&D providers while maintaining a competitive environment, which is crucial for maximizing taxpayer value in complex research areas.

What are the historical spending patterns for R&D contracts within the physical, engineering, and life sciences (NAICS 541712) at the Department of the Navy?

Historical spending patterns for NAICS 541712 at the Department of the Navy typically show significant investment in areas crucial for naval superiority, including materials science, propulsion, electronics, and biomedical research. The Navy consistently allocates substantial funds to R&D to maintain a technological edge. Spending can fluctuate year-to-year based on strategic priorities, emerging threats, and budget allocations. Contracts in this category often range from small, targeted research efforts to large, multi-year development programs. This specific $4.8 million contract appears to be a mid-sized award within this broader spending context, reflecting ongoing investment in scientific and engineering advancements.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 EDGEWATER DR, WAKEFIELD, MA, 01880

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

Financial Breakdown

Contract Ceiling: $13,758,335

Exercised Options: $9,896,672

Current Obligation: $4,828,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS426

IDV Type: IDC

Timeline