DoD Navy Awards $144M Engineering Support Contract to Scientific Research Corporation

Contract Overview

Contract Amount: $144,343,674 ($144.3M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-09

End Date: 2025-03-31

Contract Duration: 1,939 days

Daily Burn Rate: $74.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SSEE FOS AND CCOP, SSEE SHIP NEW CONSTRUCTION (SCN), FOREIGN MILITARY SALES (FMS) UNITED KINGDOM (UK)/NEW ZEALAND (NZ) AND FLEET SUPPORT OFFICE (FSO) ENGINEERING AND TECHNICAL SUPPORT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $144.3 million to SCIENTIFIC RESEARCH CORPORATION for work described as: SSEE FOS AND CCOP, SSEE SHIP NEW CONSTRUCTION (SCN), FOREIGN MILITARY SALES (FMS) UNITED KINGDOM (UK)/NEW ZEALAND (NZ) AND FLEET SUPPORT OFFICE (FSO) ENGINEERING AND TECHNICAL SUPPORT Key points: 1. Contract awarded to Scientific Research Corporation for engineering and technical support. 2. Significant value of $144.3 million over a 5-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Engineering Services sector, vital for naval operations.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar large-scale engineering support contracts is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified vendors to bid, potentially driving down costs and ensuring fair market pricing.

Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, which generally aims for cost-effectiveness. Oversight is crucial to ensure the fixed fee remains reasonable.

Public Impact

Ensures continued engineering and technical expertise for critical naval programs. Supports advanced shipbuilding and fleet readiness through specialized services. Potential for technological advancements stemming from the engineering support provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
Long contract duration (5 years) requires ongoing performance monitoring.
Lack of small business participation noted.

Positive Signals

Full and open competition promotes a competitive market.
Contract supports critical defense capabilities.
Experienced contractor likely to deliver quality services.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's complex acquisition and maintenance programs. Spending in this sector is often substantial due to the technical expertise and specialized nature of the work required for military assets.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award (ss: false, sb: false). Opportunities for small business subcontracting should be explored to foster broader economic participation.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Regular performance reviews, cost audits, and adherence to contract terms are essential to ensure accountability and effective use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long-term contract duration requires sustained oversight.
Lack of explicit small business participation.
Complexity of naval engineering projects may introduce unforeseen challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.3 million to SCIENTIFIC RESEARCH CORPORATION. SSEE FOS AND CCOP, SSEE SHIP NEW CONSTRUCTION (SCN), FOREIGN MILITARY SALES (FMS) UNITED KINGDOM (UK)/NEW ZEALAND (NZ) AND FLEET SUPPORT OFFICE (FSO) ENGINEERING AND TECHNICAL SUPPORT

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 $144.3 million.

What is the period of performance?

Start: 2019-12-09. End: 2025-03-31.

What is the estimated total cost of the fixed fee component within the CPFF structure, and how does it compare to industry standards for similar services?

The specific breakdown of the fixed fee within the Cost Plus Fixed Fee (CPFF) structure is not provided in the data. To assess value, a detailed analysis comparing the proposed fixed fee against benchmarks for engineering and technical support services for naval programs would be necessary. This would involve examining the scope of work, required expertise, and profit margins typical for contracts of this nature.

What are the key performance indicators (KPIs) used to measure the success of Scientific Research Corporation's engineering and technical support, and how are they monitored?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. Effective oversight would necessitate clearly defined KPIs related to technical accuracy, timeliness of deliverables, innovation, and adherence to budget constraints. Regular performance reviews and reporting mechanisms are crucial for monitoring contractor performance and ensuring mission objectives are met.

How does the cost of this contract compare to alternative methods of acquiring similar engineering and technical support, such as in-house capabilities or different contract types?

A comprehensive comparison would require analyzing the total cost of ownership for developing and maintaining in-house capabilities, including personnel, infrastructure, and training. Additionally, evaluating other contract types like Firm-Fixed-Price (FFP) for well-defined scopes or Time and Materials (T&M) for less predictable tasks could reveal cost efficiencies. The CPFF structure chosen suggests a need for flexibility, but its cost-effectiveness relative to alternatives warrants further investigation.

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

Offers Received: 2

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: $150,014,188

Exercised Options: $149,972,381

Current Obligation: $144,343,674

Actual Outlays: $5,054,985

Subaward Activity

Number of Subawards: 93

Total Subaward Amount: $33,721,404

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