DoD's $35.6M Cyber Mission Engineering contract awarded to Scientific Research Corporation for engineering, operations, and security support

Contract Overview

Contract Amount: $35,610,611 ($35.6M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2020-06-19

End Date: 2025-06-21

Contract Duration: 1,828 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBER MISSION ENGINEERING (CME) TASK ORDER FOR CYBER ENGINEERING, OPERATIONS AND SECURITY SUPPORT SERVICES

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $35.6 million to SCIENTIFIC RESEARCH CORPORATION for work described as: CYBER MISSION ENGINEERING (CME) TASK ORDER FOR CYBER ENGINEERING, OPERATIONS AND SECURITY SUPPORT SERVICES Key points: 1. Value for money assessed through comparison with similar cyber support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the cost-plus fixed fee pricing structure, which may incentivize cost overruns. 4. Performance context is cyber engineering, operations, and security support for the Department of the Navy. 5. Sector positioning within engineering services, specifically cyber-related functions, is noted.

Value Assessment

Rating: fair

The contract's value of $35.6 million over approximately five years requires careful benchmarking against similar cyber engineering and security support services. While the specific details of the services rendered are not fully elaborated, the cost-plus fixed fee (CPFF) structure warrants scrutiny. CPFF contracts can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Benchmarking against other DoD cyber support contracts of similar scope and duration would be crucial to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple offerors had the opportunity to bid. The presence of three bidders, as indicated by the 'no' field, signifies a degree of competition. A full and open competition is generally preferred as it allows for the widest possible pool of potential contractors, fostering a more robust price discovery process and potentially leading to better value for the government.

Taxpayer Impact: The full and open competition increases the likelihood that taxpayers are receiving a fair price for the cyber engineering, operations, and security support services. It minimizes the risk of inflated costs that can sometimes occur with less competitive solicitations.

Public Impact

The Department of the Navy benefits from enhanced cyber engineering, operations, and security capabilities. Services delivered are critical for maintaining the cybersecurity posture of naval assets and information systems. Geographic impact is likely concentrated around naval installations and operational areas requiring cyber support. Workforce implications include the potential for specialized cyber engineering and security roles within Scientific Research Corporation and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee structure may lead to cost escalation if not tightly managed.
The duration of the contract (over 5 years) requires sustained oversight to ensure continued value.
Specific performance metrics and their impact on contractor compensation are not detailed, posing a potential oversight gap.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, Scientific Research Corporation, has a track record in government contracting, suggesting familiarity with federal requirements.
The contract addresses critical cyber mission needs for the Department of the Navy.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on cyber engineering, operations, and security. The market for cyber services is rapidly growing, driven by increasing threats to national security and critical infrastructure. Comparable spending benchmarks would involve analyzing other large-scale cyber support contracts awarded by the Department of Defense and other federal agencies to firms specializing in cybersecurity and advanced engineering solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Scientific Research Corporation, may engage small businesses as subcontractors to fulfill specific aspects of the cyber engineering, operations, and security support, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment milestones. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
Engineering Services
Information Technology Support
Defense Department IT Spending
Naval Operations Support

Risk Flags

Cost-plus fixed fee pricing structure may incentivize cost overruns.
Long contract duration requires sustained oversight to ensure continued value and relevance.
Potential for evolving cyber threats and technologies to outpace contract scope if not managed adaptively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.6 million to SCIENTIFIC RESEARCH CORPORATION. CYBER MISSION ENGINEERING (CME) TASK ORDER FOR CYBER ENGINEERING, OPERATIONS AND SECURITY SUPPORT SERVICES

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 $35.6 million.

What is the period of performance?

Start: 2020-06-19. End: 2025-06-21.

What is the historical spending pattern of the Department of the Navy on cyber engineering and security support services?

The Department of the Navy, like other branches of the DoD, has seen a significant and consistent increase in spending on cybersecurity and related engineering services over the past decade. This trend is driven by the escalating cyber threat landscape and the increasing reliance on digital systems for command, control, and intelligence. Analyzing historical data reveals a shift from traditional IT support to more specialized cyber operations, threat intelligence, and mission assurance services. Specific figures for cyber engineering and security support would require a deep dive into the Navy's budget appropriations and contract award databases, looking for contracts categorized under relevant NAICS codes (e.g., 541330 for Engineering Services, 541512 for Computer Systems Design Services, 541611 for Administrative Management and General Management Consulting Services with a cyber focus) and keywords related to cyber operations, security, and engineering. This contract's value of $35.6 million represents a portion of this broader spending, and its duration suggests a long-term commitment to these capabilities.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry benchmarks for similar cyber support services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in government contracting, particularly for complex services where the scope may evolve or is not fully defined at the outset. For cyber engineering, operations, and security support, CPFF can be advantageous when innovation or adaptation is required. However, it carries inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a predetermined fee. Industry benchmarks for CPFF contracts in the cyber domain vary widely based on the specific services, required expertise, and contract duration. Generally, the fixed fee component is negotiated as a percentage of the estimated costs, and this percentage is a key area for benchmarking. A fee that is too high may indicate a lack of competitive pressure or an inflated cost estimate. Conversely, a fee that is too low might not adequately incentivize contractor performance or could signal an unrealistic cost proposal. Comparing the fee percentage on this $35.6 million contract against similar DoD cyber support contracts awarded through full and open competition would provide insight into whether the government is achieving competitive pricing for the contractor's profit and overhead.

What is Scientific Research Corporation's track record with the Department of Defense, specifically in cyber-related contracts?

Scientific Research Corporation (SRC) has a notable track record of performing contracts for the Department of Defense (DoD) and other federal agencies. Their portfolio often includes work in areas such as aerospace, defense electronics, and information technology, which frequently intersect with cyber capabilities. To assess their specific track record in cyber-related contracts, one would examine past awards, contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past performance issues or successes. SRC's experience in complex engineering and systems integration suggests a foundational capability relevant to cyber mission engineering. However, a detailed analysis would require reviewing specific cyber-focused contracts they have held, the value and duration of those contracts, and the outcomes achieved. Their ability to secure this $35.6 million task order under full and open competition suggests a positive past performance assessment by the Department of the Navy.

What are the potential risks associated with a five-year contract for cyber mission engineering, and how are they mitigated?

A five-year contract for cyber mission engineering presents several potential risks. Firstly, the rapidly evolving nature of cyber threats and technologies means that the requirements defined at the start of the contract may become outdated over its lifespan. This necessitates flexibility and adaptability from both the contractor and the government. Secondly, long-term contracts can sometimes lead to complacency or a decrease in competitive urgency if not managed proactively. Thirdly, the CPFF structure, as mentioned, carries the risk of cost escalation. Mitigation strategies typically include robust contract management, regular performance reviews, incorporating mechanisms for contract modification or re-scoping as technology and threats evolve, and strong oversight to ensure adherence to performance standards and cost controls. The Department of the Navy would likely employ program managers and contracting officers to actively monitor performance, manage risks, and ensure the contractor remains aligned with mission objectives throughout the contract's duration.

How does the geographic location of the contractor (Georgia) impact the delivery of cyber mission engineering services to the Department of the Navy?

The geographic location of the contractor, Scientific Research Corporation, being based in Georgia, has implications for the delivery of cyber mission engineering services to the Department of the Navy. While many cyber services can be delivered remotely, critical operations, security support, and direct engineering often require on-site presence at naval installations or operational command centers. If the contract requires significant on-site support, SRC may need to establish local presence or deploy personnel to various Navy facilities, potentially incurring travel and relocation costs that are factored into the contract. Conversely, if the services are largely delivered from SRC's Georgia facilities, the Navy would need to ensure secure communication channels and remote access protocols are robust. The contract's specific performance work statement (PWS) would detail the required locations for service delivery, thus defining the extent of geographic impact and logistical considerations for the contractor.

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: N6523620R3906

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY STE 400S, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $36,290,191

Exercised Options: $36,290,191

Current Obligation: $35,610,611

Actual Outlays: $256,738

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,562,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523619D4809

IDV Type: IDC

Timeline