DoD's $46.5M contract for C4I systems support to Scientific Research Corporation shows strong competition

Contract Overview

Contract Amount: $46,494,284 ($46.5M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-29

End Date: 2026-09-28

Contract Duration: 1,460 days

Daily Burn Rate: $31.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NIWC ATLANTIC IS REQUIRED TO PROVIDE INTEGRATED PRODUCT SUPPORT (IPS)(C6I) SYSTEMS. THIS WORK WILL FULFILL NIWC DEVELOPMENT, SUPPORT, AND SUSTAINMENT OF THE NAVWAR C61 SYSTEMS AND EQUIPMENT.

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $46.5 million to SCIENTIFIC RESEARCH CORPORATION for work described as: NIWC ATLANTIC IS REQUIRED TO PROVIDE INTEGRATED PRODUCT SUPPORT (IPS)(C6I) SYSTEMS. THIS WORK WILL FULFILL NIWC DEVELOPMENT, SUPPORT, AND SUSTAINMENT OF THE NAVWAR C61 SYSTEMS AND EQUIPMENT. Key points: 1. Contract focuses on critical C4I systems development, support, and sustainment for the Navy. 2. Scientific Research Corporation, the contractor, has a significant role in this specialized area. 3. The contract's duration of 4 years suggests a long-term need for these services. 4. Full and open competition indicates a healthy market for these specialized engineering services. 5. The cost-plus-fixed-fee structure allows for flexibility while managing project expenses. 6. This award is part of a larger framework, likely involving multiple delivery orders.

Value Assessment

Rating: good

The contract value of approximately $46.5 million over four years for C4I systems support appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for integrated product support (IPS) and C4I systems development is challenging without more specific data on the scope of services. However, the full and open competition suggests that pricing was likely scrutinized by multiple bidders, contributing to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment for these specialized engineering services. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from a range of capable providers.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government obtains the best value for its investment through a rigorous bidding process.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive enhanced C4I systems. Services delivered include development, support, and sustainment of critical C4I systems and equipment. The geographic impact is primarily within the operational theaters of the Navy, with potential support extending globally. Workforce implications include employment for engineers, technicians, and support staff involved in C4I systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Dependence on a single contractor for critical C4I system sustainment could pose a risk if performance falters.
Scope creep could increase the overall cost beyond initial projections if not tightly controlled.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Long-term contract duration indicates a stable and ongoing requirement for these critical services.
The contractor, Scientific Research Corporation, likely possesses specialized expertise in C4I systems.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on Command, Control, Communications, Computers, and Intelligence (C4I) systems. The market for C4I systems support is highly specialized, often dominated by a few key defense contractors. Spending in this area is critical for national security, enabling seamless communication and information flow for military operations. Comparable spending benchmarks are difficult to ascertain without detailed scope comparisons, but the value reflects the complexity and criticality of modern defense systems.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The prime contractor, Scientific Research Corporation, is a mid-sized company. The absence of a small business set-aside suggests that the nature of the C4I systems support required was deemed to be best fulfilled by larger, specialized firms, potentially limiting direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Information Warfare Center (NIWC) Atlantic, the requiring activity. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, which requires detailed cost reporting and justification. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Information Warfare Systems Command (NAVWAR) Programs
Department of Defense C4I Modernization Efforts
Integrated Product Support (IPS) Contracts
Defense Communications and Network Infrastructure

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Dependence on a single contractor for critical system sustainment.
Potential for scope creep if requirements are not clearly defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.5 million to SCIENTIFIC RESEARCH CORPORATION. NIWC ATLANTIC IS REQUIRED TO PROVIDE INTEGRATED PRODUCT SUPPORT (IPS)(C6I) SYSTEMS. THIS WORK WILL FULFILL NIWC DEVELOPMENT, SUPPORT, AND SUSTAINMENT OF THE NAVWAR C61 SYSTEMS AND EQUIPMENT.

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 $46.5 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-09-28.

What is the track record of Scientific Research Corporation with the Department of Defense, particularly in C4I systems support?

Scientific Research Corporation (SRC) has a history of working with the Department of Defense on various technology and engineering projects. While specific details on their C4I systems support track record for this particular contract's scope would require deeper analysis of past performance reviews and contract history, SRC is generally recognized for its capabilities in areas such as radar systems, electronic warfare, and command and control technologies. Their involvement in complex defense systems suggests a level of expertise relevant to this contract. Further investigation into their performance on similar contracts, including any past issues or commendations, would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling the requirements of NIWC Atlantic.

How does the estimated cost of this contract compare to similar C4I systems support contracts awarded by the Navy or other branches?

Comparing the estimated cost of $46.5 million for this 4-year contract requires careful consideration of the specific services provided under Integrated Product Support (IPS) for C4I systems. Without a detailed breakdown of the scope, deliverables, and labor categories, a direct cost-per-year or cost-per-service comparison is difficult. However, given the specialized nature of C4I systems, which are critical for military operations and involve complex hardware, software, and integration, this level of investment is not unusual. Contracts for similar defense systems integration and sustainment can range from tens to hundreds of millions of dollars depending on scale and complexity. The full and open competition suggests that the pricing was vetted against market rates, implying it is likely within a reasonable range for the services rendered.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential technical challenges in developing, supporting, and sustaining complex C4I systems, the possibility of cost overruns inherent in a Cost Plus Fixed Fee (CPFF) contract structure, and the risk of contractor performance issues impacting critical Navy operations. Mitigation strategies likely involve robust technical oversight from NIWC Atlantic, stringent performance metrics and reporting requirements, and regular reviews of contractor progress and expenditures. The CPFF structure itself, while allowing flexibility, necessitates close financial monitoring by the government to control costs. Furthermore, the competitive nature of the award suggests a baseline level of contractor capability, and contract clauses likely address remedies for non-performance.

How effective is the current C4I system being supported, and what improvements are expected from this contract?

The effectiveness of the current C4I system and the specific improvements expected from this contract are not detailed in the provided data. However, the contract's objective is to fulfill NIWC's development, support, and sustainment requirements for NAVWAR C4I systems and equipment. This implies that the contract aims to maintain the operational readiness of existing systems, potentially upgrade them with new technologies, and ensure their continued functionality in evolving threat environments. Improvements likely focus on enhancing interoperability, increasing data processing capabilities, improving security, and ensuring the systems meet the current and future operational needs of the Navy. The success of these improvements will be measured by the system's performance metrics and its contribution to mission effectiveness.

What has been the historical spending trend for C4I systems support by the Department of the Navy over the past five years?

Historical spending trends for C4I systems support by the Department of the Navy over the past five years would require access to comprehensive federal procurement databases and detailed analysis. Generally, spending in this area has been substantial and likely increasing, driven by the need to modernize aging infrastructure, counter evolving threats, and integrate new technologies across naval platforms. The Navy consistently invests heavily in C4I capabilities to maintain its information dominance and operational advantage. Specific figures would fluctuate based on major program starts, upgrades, and sustainment needs. This $46.5 million contract represents a portion of that broader investment, focusing on specific systems managed by NIWC Atlantic.

What is the significance of the 'Delivery Order' (AW) type for this contract?

The 'Delivery Order' (AW) designation indicates that this contract is likely a type of indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the $46.5 million represents the total value or ceiling for this specific order placed against a larger, pre-existing contract. Delivery orders are used to procure specific quantities of supplies or services at defined times. This approach provides flexibility for the government, allowing them to order services as needed up to the contract ceiling, rather than committing to a fixed quantity upfront. It is a common method for acquiring ongoing support or services where exact future needs may not be precisely known at the outset.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523621R3049

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY, 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: $105,178,753

Exercised Options: $83,369,886

Current Obligation: $46,494,284

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $23,811,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8474

IDV Type: IDC

Timeline