DoD's $64.6M contract for network management supports global information grid situational awareness

Contract Overview

Contract Amount: $64,579,870 ($64.6M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2018-08-14

End Date: 2023-08-14

Contract Duration: 1,826 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE NETWORK MANAGEMENT AND MONITORING CAPABILITIES WITH THE END GOAL OF FACILITATING GLOBAL INFORMATION GRID (GIG) SITUATIONAL AWARENESS (SA) AND NETWORK OPERATIONS (NETOPS) IN DIRECT SUPPORT OF SPACE AND NAVAL WARFARE SYSTEMS CENTER ATLANTIC (SSC ATLANTIC).

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $64.6 million to SCIENTIFIC RESEARCH CORPORATION for work described as: PROVIDE NETWORK MANAGEMENT AND MONITORING CAPABILITIES WITH THE END GOAL OF FACILITATING GLOBAL INFORMATION GRID (GIG) SITUATIONAL AWARENESS (SA) AND NETWORK OPERATIONS (NETOPS) IN DIRECT SUPPORT OF SPACE AND NAVAL WARFARE SYSTEMS CENTER ATLANTIC (SSC ATLANTIC). Key points: 1. Contract aims to enhance global information grid situational awareness and network operations. 2. Focus on supporting Space and Naval Warfare Systems Center Atlantic (SSC Atlantic). 3. Contract duration of 5 years indicates a long-term need for these services. 4. Scientific Research Corporation is the incumbent contractor. 5. This contract falls under engineering services, a broad category with diverse applications. 6. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for network management and monitoring within the DoD. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs than fixed-price contracts if the contractor's costs exceed initial estimates. The total value of $64.6 million over five years suggests a significant investment in maintaining critical network infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and value for the government. The number of bidders, if available, would provide further insight into the level of competition and its impact on price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and drives down costs through market forces, ensuring government funds are used efficiently.

Public Impact

Naval warfare systems and operations are directly supported by enhanced network awareness. Global information grid (GIG) situational awareness is improved, aiding military decision-making. Network operations centers benefit from advanced monitoring capabilities. Personnel involved in network management and operations will utilize the services provided. The geographic impact is global, given the nature of the Global Information Grid.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to increase their fee, potentially leading to less cost efficiency.
Lack of specific performance metrics makes it difficult to assess the true value for money and effectiveness of the network management services.
The long duration of the contract (5 years) could lead to vendor lock-in and reduced flexibility in adopting newer technologies if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract directly supports critical military operations related to naval warfare and global information grid awareness.
Scientific Research Corporation, as the incumbent, likely possesses institutional knowledge and established processes for this specific requirement.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure and network operations for defense applications. The market for network management and monitoring solutions is vast, encompassing both commercial and government sectors. Benchmarks for similar large-scale defense network support contracts would typically range in the tens to hundreds of millions of dollars over multi-year periods, depending on the scope and complexity.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting goals for this contract. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, Scientific Research Corporation, voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy and SSC Atlantic. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits, especially given the Cost Plus Fixed Fee structure. Transparency is usually managed through contract reporting requirements and potential access by the Government Accountability Office (GAO) or relevant Inspector General offices.

Related Government Programs

Global Information Grid (GIG) Services
Network Operations and Maintenance
Defense Information Systems Network (DISN) Support
Space and Naval Warfare Systems Command (SPAWAR) Contracts
IT Services for Department of Defense

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring to ensure cost efficiency.
Potential for scope creep in long-term IT service contracts.
Dependence on a single contractor for critical network operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.6 million to SCIENTIFIC RESEARCH CORPORATION. PROVIDE NETWORK MANAGEMENT AND MONITORING CAPABILITIES WITH THE END GOAL OF FACILITATING GLOBAL INFORMATION GRID (GIG) SITUATIONAL AWARENESS (SA) AND NETWORK OPERATIONS (NETOPS) IN DIRECT SUPPORT OF SPACE AND NAVAL WARFARE SYSTEMS CENTER ATLANTIC (SSC ATLANTIC).

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH 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 $64.6 million.

What is the period of performance?

Start: 2018-08-14. End: 2023-08-14.

What is the track record of Scientific Research Corporation in delivering similar network management and monitoring services to the Department of Defense?

Scientific Research Corporation (SRC) has a history of providing complex technical services to the Department of Defense. While specific details on their performance for this particular contract (541330 - Engineering Services) are not fully detailed in the provided data, SRC's general profile includes work in areas like command, control, communications, computers, and intelligence (C4I) systems, electronic warfare, and aerospace engineering. Their experience often involves supporting critical defense missions. To fully assess their track record for this specific contract, a review of past performance evaluations, any contract modifications, and delivery order history would be necessary. This would reveal their ability to meet deadlines, manage costs within the CPFF structure, and achieve the technical objectives related to network situational awareness and operations for SSC Atlantic.

How does the $64.6 million total contract value compare to other similar network management contracts within the DoD?

The total contract value of $64.6 million over five years, averaging approximately $12.9 million per year, places this contract in the mid-to-large tier for specialized IT and network support services within the Department of Defense. Comparable contracts for enterprise-level network management, monitoring, and situational awareness solutions for large commands like SSC Atlantic can range significantly. Some contracts supporting broader enterprise IT infrastructure or global communication networks can reach hundreds of millions or even billions of dollars. Conversely, smaller, more localized network support contracts might be in the single-digit millions annually. This contract's value suggests a significant but not top-tier investment, likely focused on a critical but defined scope of network operations supporting naval warfare systems.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for network management services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for network management services revolve around cost control and potential for contractor inefficiency. In a CPFF structure, the government reimburses the contractor for allowable costs and pays a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee is fixed regardless of the total cost incurred. This lack of direct cost-saving incentive for the contractor can lead to cost overruns if not rigorously managed. For network management, risks include scope creep where additional services are added without proper cost adjustments, inefficient resource allocation, and potentially less emphasis on innovative cost-saving measures by the contractor. Robust government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

How does the 'full and open competition' award method impact the overall value and efficiency of this contract?

Awarding this contract through 'full and open competition' is a significant positive factor for value and efficiency. This method ensures that all responsible sources are permitted to submit a bid, fostering a competitive environment. Competition typically drives down prices as contractors vie for the award, and it encourages innovation as they seek to differentiate their offerings. For taxpayers, this means a higher likelihood that the government is receiving the best possible price for the required network management and monitoring services. It also broadens the pool of potential solutions, increasing the chances of selecting a contractor with the most effective and efficient approach to meeting the complex needs of SSC Atlantic and the Global Information Grid.

What are the potential implications of this contract on the future of network operations and situational awareness within the Navy?

This contract has direct implications for the future of network operations and situational awareness within the Navy by ensuring the continued support and enhancement of the Global Information Grid (GIG). By investing in robust network management and monitoring capabilities, the Navy aims to maintain and improve its ability to understand and control its network environment in real-time. This is critical for effective command and control, intelligence dissemination, and overall mission success, particularly in contested operational environments. The services procured under this contract likely contribute to the development and implementation of advanced network technologies and strategies, potentially influencing how the Navy approaches network security, data flow optimization, and the integration of new communication systems in the future.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523617R3097

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PARKWAY,, ATLANTA, GA, 30339

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $68,759,805

Exercised Options: $67,853,624

Current Obligation: $64,579,870

Actual Outlays: $7,792,663

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $50,013,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4121

IDV Type: IDC

Timeline