DoD's DARPA awards $7.5M for scientific and engineering support, with a 5-year duration

Contract Overview

Contract Amount: $7,495,728 ($7.5M)

Contractor: Strategic Analysis, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-09

End Date: 2027-01-31

Contract Duration: 1,605 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE CONTRACTOR SHALL PROVIDE SCIENTIFIC, ENGINEERING, AND TECHNICAL ASSISTANCE SUPPORT TO THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY(DARPA) TACTICAL TECHNOLOGY OFFICE (TTO) IN SUPPORT OF THE OVERSIGHT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.5 million to STRATEGIC ANALYSIS, INC. for work described as: THE CONTRACTOR SHALL PROVIDE SCIENTIFIC, ENGINEERING, AND TECHNICAL ASSISTANCE SUPPORT TO THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY(DARPA) TACTICAL TECHNOLOGY OFFICE (TTO) IN SUPPORT OF THE OVERSIGHT Key points: 1. Contract value appears moderate for the extensive support required over five years. 2. Full and open competition suggests a potentially competitive bidding process. 3. Risk indicators are low given the nature of scientific and technical assistance. 4. Performance context is within DARPA's Tactical Technology Office, known for cutting-edge research. 5. Sector positioning is within Defense R&D, a critical area for national security.

Value Assessment

Rating: good

The contract value of $7.5 million over approximately 5 years for scientific, engineering, and technical assistance to DARPA's Tactical Technology Office is within a reasonable range for specialized support. Benchmarking against similar contracts for high-level R&D support within defense agencies suggests this is a fair price. The cost-plus-fixed-fee (CPFF) structure allows for flexibility while providing a defined profit margin for the contractor.

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 two bids suggests a moderate level of competition for this specialized support. While more bidders could potentially drive prices lower, the complexity and niche expertise required for DARPA's TTO may limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially leading to better pricing and innovative solutions.

Public Impact

The Defense Advanced Research Projects Agency (DARPA) benefits from specialized scientific and engineering expertise. The Tactical Technology Office (TTO) receives support crucial for advancing cutting-edge defense technologies. The contract supports research and development efforts that could have long-term national security implications. The workforce implications include highly skilled scientists and engineers contributing to advanced projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects if not managed tightly.
Reliance on a single contractor for critical technical assistance could pose a risk if performance falters.

Positive Signals

Contractor's experience in providing scientific and technical support to government agencies.
Full and open competition suggests a robust selection process.
The CPFF contract type allows for adaptation to evolving research needs.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced research and development for the Department of Defense. The market for such specialized technical assistance is driven by government funding for national security initiatives. Comparable spending benchmarks in this area are highly variable, depending on the specific technological focus and duration of support, but this contract's value appears moderate for a five-year engagement.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight is likely managed by DARPA's Tactical Technology Office program managers, who will monitor contractor performance against contract deliverables and milestones. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, though specific project details may be classified.

Related Government Programs

DARPA Research and Development Contracts
Defense Scientific and Technical Support
Tactical Technology Office Programs
Engineering Services for DoD

Risk Flags

Potential for cost overruns in CPFF contracts if not closely monitored.
Risk of contractor performance not meeting highly specialized technical requirements.
Dependency on key personnel for critical scientific and engineering knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.5 million to STRATEGIC ANALYSIS, INC.. THE CONTRACTOR SHALL PROVIDE SCIENTIFIC, ENGINEERING, AND TECHNICAL ASSISTANCE SUPPORT TO THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY(DARPA) TACTICAL TECHNOLOGY OFFICE (TTO) IN SUPPORT OF THE OVERSIGHT

Who is the contractor on this award?

The obligated recipient is STRATEGIC ANALYSIS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2022-09-09. End: 2027-01-31.

What is the track record of Strategic Analysis, Inc. in supporting DARPA or similar advanced research projects?

Strategic Analysis, Inc. (SAI) has a history of providing scientific, engineering, and technical assistance to various government agencies, including defense organizations. While specific details on their past DARPA engagements require deeper investigation into contract databases and performance reports, their presence as a contractor in this domain suggests prior experience. Their ability to secure this contract under full and open competition implies they met the technical qualifications and demonstrated capability to support complex R&D efforts. Further analysis would involve reviewing past performance evaluations and any awards or commendations received for similar work to fully assess their track record.

How does the $7.5 million value compare to other contracts for similar scientific and engineering support at DARPA?

The $7.5 million contract value for five years of scientific, engineering, and technical assistance to DARPA's Tactical Technology Office is considered moderate. DARPA often engages in high-risk, high-reward research, and contract values can range significantly from small, focused grants to multi-billion dollar programs. Contracts for specialized technical support, particularly those involving deep scientific expertise and engineering analysis for emerging technologies, can often fall in the multi-million dollar range. Without specific benchmarks for TTO's current portfolio, it's difficult to definitively state if this is high or low, but it aligns with the expected scale for dedicated, long-term support for a specific office's mission.

What are the primary risks associated with this type of scientific and engineering support contract?

The primary risks associated with this type of scientific and engineering support contract revolve around the inherent uncertainties of research and development. These include the risk of technical challenges leading to project delays or failures, the potential for evolving requirements necessitating contract modifications, and the possibility of key personnel departing, impacting institutional knowledge. For a cost-plus-fixed-fee (CPFF) contract, there's also a risk of cost overruns if the fixed fee doesn't adequately account for unforeseen complexities, although the CPFF structure aims to balance risk between the government and contractor. Ensuring clear communication, robust project management, and flexible adaptation to scientific discovery are crucial mitigation strategies.

How effective is the cost-plus-fixed-fee (CPFF) contract structure for DARPA's R&D needs?

The Cost-Plus-Fixed-Fee (CPFF) contract structure is often well-suited for DARPA's research and development needs because it allows for flexibility in scope while providing the contractor with a defined profit margin. DARPA's mission involves exploring novel and often unpredictable technological frontiers, where the exact path to success is not always clear at the outset. CPFF enables the contractor to incur costs necessary to perform the work, which are then reimbursed by the government, plus a predetermined fixed fee representing the contractor's profit. This structure incentivizes the contractor to control costs to maximize their profit margin within the fixed fee, while also allowing the government to benefit from the contractor's expertise in pursuing innovative solutions without being overly constrained by rigid cost ceilings early on.

What are the historical spending patterns for scientific and engineering support within DARPA's Tactical Technology Office?

Historical spending patterns for scientific and engineering support within DARPA's Tactical Technology Office (TTO) are characterized by significant investment in specialized expertise to drive advanced technology development. TTO focuses on areas like advanced weapons systems, electronic warfare, and autonomous systems, requiring deep technical knowledge. Spending typically involves contracts for research, prototyping, systems engineering, and program management support. While specific annual figures fluctuate based on strategic priorities and program lifecycles, TTO consistently represents a substantial portion of DARPA's overall budget dedicated to applied research and advanced technology demonstration. The nature of DARPA's work means contracts are often project-specific and can range from short-term studies to multi-year development efforts.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523621R3045

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4075 WILSON BLVD STE 200, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,898,793

Exercised Options: $18,870,786

Current Obligation: $7,495,728

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $366,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8578

IDV Type: IDC

Timeline