DoD's DARPA/I2O contract for technical support services awarded to Schafer Government Services, LLC for over $84 million

Contract Overview

Contract Amount: $84,329,686 ($84.3M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2017-06-30

End Date: 2021-06-29

Contract Duration: 1,460 days

Daily Burn Rate: $57.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF DARPA/I2O REQUIRES SUPPORT SERVICES IN ITS TECHNICAL WORK IN THE AREAS OF ENTERPRISE NETWORKS, SECURE COMMUNICATIONS, INDUSTRIAL SYSTEMS, AND PURPOSE-BUILT MILITARY SYSTEMS. THESE SUPPORT SERVICES ARE REQUIRED FOR THE EXISTING, PLANNED,AND YET TO BE DEFINED TECHNOLOGY PROGRAMS. THE SCOPE OF THIS EFFORT IS TO PROVIDE KNOWLEDGE BASED TECHNICAL, PROGRAMMATIC /FINANCIAL,AND ADMINISTRATIVE SUPPORT SERVICES FOR EXISTING AND FUTURE DARPA/I2O PROGRAMS. IGF::OT::IGF

Place of Performance

Location: NORTH BILLERICA, MIDDLESEX County, MASSACHUSETTS, 01862

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $84.3 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: IGF::OT::IGF DARPA/I2O REQUIRES SUPPORT SERVICES IN ITS TECHNICAL WORK IN THE AREAS OF ENTERPRISE NETWORKS, SECURE COMMUNICATIONS, INDUSTRIAL SYSTEMS, AND PURPOSE-BUILT MILITARY SYSTEMS. THESE SUPPORT SERVICES ARE REQUIRED FOR THE EXISTING, PLANNED,AND YET TO BE DEFINED TECHNOLOG… Key points: 1. Contract provides essential knowledge-based technical, programmatic, and administrative support for DARPA/I2O's advanced technology programs. 2. Services cover critical areas including enterprise networks, secure communications, industrial systems, and military systems. 3. The contract's duration of four years (2017-2021) allowed for sustained support across evolving technological landscapes. 4. Awarded through full and open competition, suggesting a robust market evaluation for these specialized services. 5. The cost-plus-fixed-fee (CPFF) pricing structure allows for flexibility in scope while managing contractor profit. 6. This contract represents a significant investment in maintaining DARPA's technological edge and program execution capabilities.

Value Assessment

Rating: good

The contract value of over $84 million over four years indicates a substantial investment in specialized technical support. Benchmarking this against similar contracts for advanced research and development support services is challenging due to the unique nature of DARPA's mission. However, the cost-plus-fixed-fee structure, while allowing for scope flexibility, requires careful oversight to ensure costs remain reasonable and aligned with program objectives. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process would provide further insight into the level of competition. Full and open competition generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best value by selecting from a broad pool of capable providers.

Public Impact

The primary beneficiaries are DARPA/I2O's technical programs, ensuring the successful execution of cutting-edge research and development. Services delivered enable advancements in critical defense technologies, including secure communications and advanced military systems. The contract supports a highly specialized workforce of technical, programmatic, and administrative professionals. Geographic impact is national, supporting DARPA's mission across various research institutions and government facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Ensuring continued alignment of support services with DARPA's rapidly evolving technological priorities.
Maintaining a competitive landscape for future support services to avoid contractor lock-in.

Positive Signals

Awarded through full and open competition, indicating a broad market search.
Contract provides critical support for high-priority national security technology programs.
The fixed fee component provides a degree of cost predictability for the government.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced research and development for the Department of Defense. The market for such specialized support services is characterized by a high degree of technical expertise and security clearance requirements. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of DARPA's mission, but significant government investment in R&D support is common across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Schafer Government Services, LLC may be a large business, the contract's nature and scale likely require capabilities beyond the scope of typical small business set-asides. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity for small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, acting on behalf of DARPA/I2O. Mechanisms likely include regular performance reviews, financial audits, and adherence to the terms of the Cost Plus Fixed Fee agreement. Transparency is facilitated through contract award databases, but detailed programmatic oversight is typically internal to the agency to protect sensitive research information.

Related Government Programs

DARPA Research and Development Programs
Department of Defense Technical Support Services
Advanced Communications Technology Contracts
Cybersecurity and Network Infrastructure Support
Military Systems Engineering Support

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Technical Obsolescence
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.3 million to SCHAFER GOVERNMENT SERVICES, LLC. IGF::OT::IGF DARPA/I2O REQUIRES SUPPORT SERVICES IN ITS TECHNICAL WORK IN THE AREAS OF ENTERPRISE NETWORKS, SECURE COMMUNICATIONS, INDUSTRIAL SYSTEMS, AND PURPOSE-BUILT MILITARY SYSTEMS. THESE SUPPORT SERVICES ARE REQUIRED FOR THE EXISTING, PLANNED,AND YET TO BE DEFINED TECHNOLOGY PROGRAMS. THE SCOPE OF THIS EFFORT IS TO PROVIDE KNOWLEDGE BASED TECHNICAL, PROGRAMMATIC /FINANCIAL,AND ADMINISTRATIVE SUPPORT SERVICES FOR EXISTING AND FUTURE DARPA/I2O PROGRAMS. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $84.3 million.

What is the period of performance?

Start: 2017-06-30. End: 2021-06-29.

What is the track record of Schafer Government Services, LLC in supporting similar advanced technology programs for the Department of Defense?

Schafer Government Services, LLC has a history of providing support services to various government agencies, including the Department of Defense. Their expertise often lies in areas such as intelligence, defense, and cybersecurity. For DARPA/I2O, their ability to provide knowledge-based technical, programmatic, and administrative support across enterprise networks, secure communications, and military systems is crucial. While specific details on past performance for DARPA/I2O are not provided in this data snippet, their general profile suggests they possess the requisite capabilities. Further investigation into their past performance reviews and other contract awards would offer a more comprehensive understanding of their track record in delivering complex support services.

How does the awarded value of $84.3 million compare to other similar technical support contracts for advanced R&D programs?

The $84.3 million contract value over four years for DARPA/I2O's technical support services is substantial, reflecting the specialized and critical nature of the work. Comparing it directly to 'similar' contracts is challenging because DARPA's mission is unique, focusing on high-risk, high-reward research. However, large-scale R&D support contracts for agencies like the National Science Foundation (NSF) or other defense research entities can range from tens to hundreds of millions of dollars over similar or longer periods. The key differentiator here is DARPA's focus on breakthrough technologies. The value appears commensurate with the scope of providing comprehensive support across multiple advanced technology domains for a leading research agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced technical support?

The primary risk with a CPFF contract, like the one awarded to Schafer Government Services, LLC, is the potential for cost overruns if the government does not maintain rigorous oversight. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' portion means the government bears the risk of actual expenses incurred. For advanced technical support, scope creep or unforeseen technical challenges can significantly increase costs. Effective risk mitigation involves detailed contract monitoring, clear definition of deliverables, regular performance reviews, and robust financial auditing to ensure costs are reasonable, allocable, and necessary for the program's objectives.

How effective is full and open competition in ensuring value for money in specialized R&D support services?

Full and open competition is generally considered the most effective method for ensuring value for money, especially in specialized R&D support services. It maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For DARPA/I2O, this approach allows the agency to select from a wide range of technically capable firms, potentially uncovering novel solutions or more cost-effective approaches. While the initial competition process can be resource-intensive, the long-term benefits of securing the best possible technical expertise at a competitive price typically outweigh the costs, leading to better overall value for taxpayer dollars.

What is the historical spending pattern for technical support services within DARPA/I2O or similar defense research programs?

Historical spending on technical support services for DARPA/I2O and similar defense research programs tends to be significant and consistent, reflecting the ongoing need for specialized expertise to manage and execute complex technological initiatives. DARPA, by its nature, requires continuous support across a diverse portfolio of cutting-edge projects. Spending patterns often show a steady demand for services ranging from scientific and engineering support to program management and administrative functions. The total amount spent can fluctuate based on strategic priorities, the number and scale of active programs, and the specific contracting vehicles used (e.g., IDIQs, specific task orders). This $84 million contract represents a substantial, but not necessarily atypical, investment for a multi-year period supporting critical R&D efforts.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523617R3075

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gryphon Technologies, Inc.

Address: 3811 N FAIRFAX DR STE 400, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $99,018,794

Exercised Options: $99,018,794

Current Obligation: $84,329,686

Actual Outlays: $4,071,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7914

IDV Type: IDC

Timeline