DoD's $244M DCGS-N contract awarded to Scientific Research Corporation for engineering services

Contract Overview

Contract Amount: $24,423,006 ($24.4M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-09

End Date: 2025-05-29

Contract Duration: 1,998 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REQUIREMENT FOR SUPPORT OF THE DISTRIBUTED COMMON GROUND SYSTEM NAVY (DCGS-N) FAMILY OF SYSTEMS (FOS) AND OTHER PMW 120 PROGRAMS.

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to SCIENTIFIC RESEARCH CORPORATION for work described as: REQUIREMENT FOR SUPPORT OF THE DISTRIBUTED COMMON GROUND SYSTEM NAVY (DCGS-N) FAMILY OF SYSTEMS (FOS) AND OTHER PMW 120 PROGRAMS. Key points: 1. Contract provides critical engineering support for the Navy's intelligence systems. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Long-term contract duration (1998 days) indicates sustained need for services. 4. Cost-plus-fixed-fee structure may incentivize cost control by the contractor. 5. Focus on engineering services aligns with the need for complex system development and maintenance. 6. Contractor has a significant presence in South Carolina, potentially impacting local workforce. 7. This award represents a substantial investment in naval intelligence capabilities.

Value Assessment

Rating: good

The contract's value of approximately $244 million over its period of performance appears reasonable for the scope of engineering services required for a complex intelligence system like DCGS-N. Benchmarking against similar large-scale defense engineering contracts would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common in R&D and complex services, requires careful oversight to ensure costs remain controlled and that the fixed fee is appropriate for the risk and effort involved. Without specific cost breakdowns or comparisons to industry standards for similar services, a definitive value judgment is challenging, but the scale suggests a significant but potentially justified investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this significant requirement. While more than one bidder is positive, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process, including the evaluation criteria and the number of proposals received, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive enhanced intelligence processing and dissemination capabilities. Services delivered include engineering support for the Distributed Common Ground System Navy (DCGS-N) family of systems and other Program Executive Office (PEO) programs. The geographic impact is primarily national, supporting naval operations worldwide, with a specific contractor presence in South Carolina. Workforce implications include employment opportunities for engineers and technical staff, particularly in the contractor's operational locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not managed diligently.
Reliance on a single contractor for a critical system like DCGS-N could pose a risk if performance issues arise.
The long duration of the contract may reduce flexibility to adapt to rapidly changing technological needs.
Limited information on specific performance metrics makes it difficult to assess ongoing effectiveness.
The absence of small business subcontracting goals (sb: false) might limit opportunities for smaller firms in this contract.

Positive Signals

Awarded through full and open competition, indicating a structured and fair procurement process.
The contractor, Scientific Research Corporation, has a track record in defense contracting, suggesting experience with similar requirements.
The contract addresses a critical need for naval intelligence systems, supporting national security objectives.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.
The contract's duration suggests a stable and ongoing requirement, allowing for focused development and support.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of complex military systems. The DCGS-N program itself is a significant intelligence system, and contracts supporting such platforms are often awarded to specialized firms with deep technical expertise. Benchmarks for similar large-scale engineering support contracts within the Department of Defense would typically range in the hundreds of millions of dollars over several years, reflecting the complexity and criticality of the systems involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Consequently, there are no explicit subcontracting requirements for small businesses mandated by this award. This means that opportunities for small businesses to participate in this contract are likely limited to those that might be engaged by the prime contractor, Scientific Research Corporation, on a voluntary basis or through lower-tier subcontracts. The absence of a small business set-aside or subcontracting plan may reduce the direct economic impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers, who are responsible for monitoring performance, approving payments, and ensuring compliance with contract terms. The Department of Defense's Inspector General (IG) may also conduct audits or investigations into contract execution, cost management, and performance to ensure accountability and identify any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns are often not publicly disclosed.

Related Government Programs

Distributed Common Ground System Navy (DCGS-N)
Naval Intelligence Systems
Department of Defense Engineering Services
Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Program Executive Office (PEO) for Information Warfare

Risk Flags

Potential for cost overruns due to CPFF structure
System obsolescence risk in a rapidly evolving technological landscape
Cybersecurity vulnerabilities inherent in intelligence systems
Dependence on contractor performance for critical intelligence functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to SCIENTIFIC RESEARCH CORPORATION. REQUIREMENT FOR SUPPORT OF THE DISTRIBUTED COMMON GROUND SYSTEM NAVY (DCGS-N) FAMILY OF SYSTEMS (FOS) AND OTHER PMW 120 PROGRAMS.

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 $24.4 million.

What is the period of performance?

Start: 2019-12-09. End: 2025-05-29.

What is Scientific Research Corporation's track record with similar large-scale defense engineering contracts?

Scientific Research Corporation (SRC) has a history of performing complex engineering and technical services for the Department of Defense and other government agencies. While specific details on past contracts of this exact magnitude and scope are not provided in the summary data, SRC is known for its work in areas such as command and control systems, intelligence processing, and electronic warfare. Their experience likely includes managing large teams, adhering to stringent security requirements, and delivering sophisticated technical solutions. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their capabilities and reliability for this DCGS-N program.

How does the awarded amount compare to the estimated value or budget for the DCGS-N program?

The provided data indicates an award amount of $24,423,006.24. However, this figure likely represents a specific delivery order or a portion of the total contract value over its extended duration (1998 days). The total contract ceiling or estimated value over its entire period of performance is not explicitly stated but can be inferred to be significantly higher, potentially reaching hundreds of millions of dollars given the program's scope and the contract's duration. Without the total contract ceiling or the program's allocated budget, a direct comparison is difficult. The $24.4M figure might represent the value of a specific task order or the initial funding allocated.

What are the key performance indicators (KPIs) used to assess the contractor's performance on this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for engineering services supporting complex systems like DCGS-N, KPIs would likely include metrics related to system uptime and availability, response times for technical support, successful implementation of system upgrades or modifications, adherence to project schedules, and quality of engineering documentation. The Cost Plus Fixed Fee (CPFF) structure suggests that performance might also be indirectly monitored through the contractor's ability to manage costs within the fixed fee parameters while delivering the required technical outcomes. Formal performance reviews and acceptance of deliverables would be the primary mechanisms for assessment.

What is the historical spending trend for DCGS-N support contracts over the past five years?

The provided data focuses on a single award to Scientific Research Corporation. To analyze historical spending trends for DCGS-N support, one would need to examine contract awards data for the DCGS-N program and related PEO programs over the past five years. This would involve identifying all prime contracts, delivery orders, and task orders issued for DCGS-N support, noting the awarding agencies, contractors, amounts, and periods of performance. Such an analysis would reveal whether spending has been consistent, increasing, or decreasing, and identify the primary contractors involved in supporting the system over time. This specific award represents a portion of that historical spending.

Are there any identified risks associated with the technology or systems being supported by this contract?

The DCGS-N program supports intelligence gathering and processing, which inherently involves risks related to cybersecurity, data integrity, and system obsolescence. As a "family of systems," DCGS-N likely comprises multiple interconnected components, increasing the complexity of integration and the potential for vulnerabilities. Rapid advancements in technology and evolving threat landscapes mean that systems like DCGS-N require continuous updates and modernization to remain effective and secure. Risks could also stem from the reliance on specific software or hardware, potential interoperability challenges between different system components, and the need to protect sensitive intelligence data from unauthorized access or compromise.

What is the potential impact of this contract on future competition for similar naval intelligence system support?

This contract, awarded to Scientific Research Corporation, could influence future competition in several ways. Firstly, SRC's successful performance could position them favorably for future recompetes or related programs, potentially deterring some competitors if their performance is perceived as superior. Conversely, the detailed requirements and performance data generated during this contract's lifecycle could provide valuable insights for other potential bidders in future solicitations, potentially leveling the playing field. The level of competition (3 bidders) suggests that the market is not entirely dominated by a single entity, leaving room for other capable firms to compete effectively if they possess the necessary expertise and resources.

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: 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: $24,423,006

Exercised Options: $24,423,006

Current Obligation: $24,423,006

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,968,124

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