DoD's $23.4M engineering services contract with Scientific Research Corporation shows fair competition and potential value

Contract Overview

Contract Amount: $23,437,415 ($23.4M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-11-22

End Date: 2025-05-21

Contract Duration: 2,007 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK ORDER

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to SCIENTIFIC RESEARCH CORPORATION for work described as: TASK ORDER Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Duration of over 2000 days indicates a long-term need for these engineering services. 3. Cost Plus Fixed Fee contract type requires careful monitoring of costs to ensure value. 4. The contract is a task order under a larger IDIQ, common for ongoing government needs. 5. Small business participation is not explicitly indicated, warranting further investigation. 6. The contract's value is moderate within the context of large federal engineering procurements.

Value Assessment

Rating: good

The contract's value of $23.4 million over its period of performance appears reasonable for specialized engineering services. Benchmarking against similar Department of Defense contracts for engineering services would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bids suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically leads to lower prices and better quality services compared to non-competitive awards.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for naval systems or infrastructure. The geographic impact is primarily within Georgia, where the contractor is located, but the services support national defense. Workforce implications include employment for engineers and technical staff at Scientific Research Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.
The long duration of the contract could lead to scope creep if not carefully managed.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor has a track record with the Department of Defense, suggesting familiarity with requirements.
The contract addresses a specific engineering need, indicating a clear purpose and objective.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The federal government is a significant consumer of engineering services, particularly the Department of Defense, for complex system design, development, and maintenance. Spending in this sector often involves specialized expertise and can range from small, targeted projects to large-scale, multi-year endeavors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting. This suggests that larger, established firms were the primary focus of this procurement. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Department of Defense Engineering Services Contracts
Naval Systems Engineering Support
Professional, Scientific, and Technical Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to prevent cost overruns.
Potential for scope creep due to the long duration of the contract.
Lack of explicit small business subcontracting requirements may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to SCIENTIFIC RESEARCH CORPORATION. TASK ORDER

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 $23.4 million.

What is the period of performance?

Start: 2019-11-22. End: 2025-05-21.

What is the historical spending pattern for Scientific Research Corporation with the Department of Defense?

Analyzing the historical spending for Scientific Research Corporation with the Department of Defense reveals a consistent engagement, particularly within the Navy. Over the past several years, the company has secured multiple contracts and task orders, primarily in the realm of engineering and technical services. This pattern suggests a strong working relationship and a recognized capability to meet DoD requirements. The total value of these historical awards provides context for the current contract's scale and indicates the government's ongoing reliance on SRC's expertise for specific defense-related projects. Further examination of past performance reviews and contract modifications could offer deeper insights into the contractor's reliability and cost-effectiveness over time.

How does the per-unit cost of this contract compare to similar engineering services contracts awarded by the Navy?

Benchmarking the per-unit cost for this specific contract against similar engineering services contracts awarded by the Navy is challenging without detailed breakdowns of the services rendered and the specific labor categories involved. However, the overall contract value of $23.4 million spread over its duration suggests a moderate investment for specialized engineering support. Contracts for complex defense systems or infrastructure often command higher per-unit costs due to the specialized knowledge, security clearances, and rigorous quality standards required. A detailed comparison would necessitate access to granular data on labor hours, rates, and the specific technical tasks performed across multiple, comparable contracts to ascertain if this contract represents a competitive price point.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($23.4 million) revolve around cost control and potential for contractor inefficiency. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government bears the risk of cost overruns. If not meticulously managed, this structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. Key risks include scope creep, where the project's objectives expand beyond the initial agreement without commensurate adjustments to the fee or schedule, and inadequate cost accounting or reporting by the contractor. Robust oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

What is the expected impact of this contract on the specific engineering services market within Georgia?

This contract is likely to have a positive economic impact on the engineering services market within Georgia, particularly for Scientific Research Corporation and its local workforce. The $23.4 million award signifies a significant injection of federal funds into the state's economy, supporting high-skilled jobs in engineering, project management, and technical support. It reinforces Georgia's position as a hub for defense contracting and specialized technical services. Furthermore, the contract may stimulate subcontracting opportunities for other Georgia-based businesses, including small businesses, that can provide supporting services or components. The long-term nature of the contract also provides stability and predictability for the contractor and its employees, contributing to the overall health of the regional engineering sector.

How does the competition level (4 bidders) for this contract influence its overall value proposition for the taxpayer?

The competition level of four bidders for this contract is a positive indicator for taxpayer value. A higher number of bidders generally leads to more competitive pricing, as companies vie to win the contract by offering the best combination of cost and technical merit. This level of competition suggests that the government had multiple viable options, reducing the risk of awarding the contract at an inflated price. It also encourages innovation, as bidders strive to differentiate their proposals. While four bidders represent a reasonable level of competition, a more thorough analysis would consider the qualifications and potential collusion among bidders. However, in the absence of such concerns, this level of competition is generally seen as beneficial for ensuring taxpayer funds are used efficiently.

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: N6523619R3021

Offers Received: 4

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: $32,637,330

Exercised Options: $32,637,330

Current Obligation: $23,437,415

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $7,326,748

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