DoD's $16.2M contract for classified project support awarded to Scientific Research Corporation

Contract Overview

Contract Amount: $16,183,779 ($16.2M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2022-09-14

End Date: 2026-09-13

Contract Duration: 1,460 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TERRESTRIAL COLLECTION IDENTIFY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) PROGRAM MANAGEMENT, ENGINEERING, AND LOGISTICS SUPPORT TO CLASSIFIED PROJECTS.

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $16.2 million to SCIENTIFIC RESEARCH CORPORATION for work described as: TERRESTRIAL COLLECTION IDENTIFY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) PROGRAM MANAGEMENT, ENGINEERING, AND LOGISTICS SUPPORT TO CLASSIFIED PROJECTS. Key points: 1. Contract provides essential program management, engineering, and logistics support for classified terrestrial collection operations. 2. The awardee, Scientific Research Corporation, has a history of supporting complex government projects. 3. The contract duration of 1460 days (4 years) indicates a long-term need for these specialized services. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful monitoring of costs. 5. This contract falls under engineering services, a critical sector for national defense and intelligence. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $16.2 million over four years suggests a reasonable annual spend for specialized engineering and program management support. Benchmarking against similar classified support contracts is difficult due to the nature of the work. However, the pricing structure (Cost Plus Fixed Fee) is common for complex projects where scope may evolve. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a competitive environment, which is generally favorable for price discovery and innovation. This approach allows the government to select the most capable and cost-effective solution from a broad range of potential contractors.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other Department of Defense entities requiring classified terrestrial collection capabilities. The contract delivers essential program management, engineering, and logistics support crucial for the success of classified projects. The geographic impact is likely concentrated around the contractor's facilities and operational areas, with potential for broader national security implications. The contract supports a specialized workforce of engineers, program managers, and logistics professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
The classified nature of the projects limits transparency and public scrutiny of performance and value.
Reliance on a single contractor for critical support functions could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor has a demonstrated capability in providing similar support services.
The contract duration suggests a stable, long-term requirement, allowing for efficient planning and resource allocation.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a vital component of the defense industrial base. The market for specialized engineering and program management support for classified projects is often characterized by a limited number of highly qualified contractors. Spending in this area is driven by national security requirements and the need for advanced technological solutions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Scientific Research Corporation, is not a small business. There is no explicit information regarding subcontracting plans for small businesses. Further investigation would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Given the classified nature of the projects, oversight mechanisms may involve specialized security protocols and reporting structures. Transparency is inherently limited, but accountability would be managed through contract performance metrics and adherence to security requirements. Inspector General jurisdiction may apply depending on the specific nature of any alleged fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Intelligence Community Support Services
Naval Sea Systems Command (NAVSEA) Contracts
Engineering and Technical Services

Risk Flags

Cost Overruns Potential (CPFF)
Limited Transparency (Classified Work)
Contractor Performance Risk
Security Breach Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.2 million to SCIENTIFIC RESEARCH CORPORATION. TERRESTRIAL COLLECTION IDENTIFY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) PROGRAM MANAGEMENT, ENGINEERING, AND LOGISTICS SUPPORT TO CLASSIFIED PROJECTS.

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 $16.2 million.

What is the period of performance?

Start: 2022-09-14. End: 2026-09-13.

What is the track record of Scientific Research Corporation in supporting classified defense projects?

Scientific Research Corporation (SRC) has a significant track record of supporting U.S. government agencies, including the Department of Defense and intelligence community, on complex and often classified projects. Their expertise spans program management, systems engineering, software development, and logistics. SRC has been awarded numerous contracts for advanced technology development, electronic warfare systems, and command and control systems. Their history suggests a capability to handle sensitive projects requiring high levels of security clearance and technical proficiency. The longevity and value of their past contracts often indicate successful performance and client satisfaction within the defense sector.

How does the value of this contract compare to similar classified support services?

Direct comparison of this $16.2 million contract for classified project support to similar contracts is challenging due to the inherent lack of public data for classified procurements. However, the annual value of approximately $4.05 million ($16.2M / 4 years) for integrated program management, engineering, and logistics support for specialized operations appears within a reasonable range for high-skill, sensitive government contracting. Contracts of this nature often require specialized personnel with security clearances and deep technical expertise, justifying higher costs compared to unclassified, standard service contracts. The cost-plus-fixed-fee structure also implies that actual costs will be reimbursed plus a negotiated profit, which can fluctuate based on project demands.

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

Key risks include potential cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts, especially for classified projects where scope can be fluid and unforeseen technical challenges may arise. Another significant risk is the limited transparency due to the classified nature of the work, which can complicate performance oversight and value assessment. Contractor performance degradation or security breaches are also critical risks. Mitigation strategies likely involve rigorous government oversight by program managers and contracting officers, strict adherence to security protocols, performance metrics defined within the contract, and regular reporting requirements. The competitive award process also serves as an initial risk mitigation by selecting a contractor with a proven track record.

How effective is the Cost Plus Fixed Fee (CPFF) pricing structure for this type of classified support?

The CPFF structure is often employed for classified projects like this one because the exact scope and technical requirements may not be fully defined at the outset, or they may evolve significantly during the contract period. This structure allows the government to reimburse the contractor for actual allowable costs incurred, plus a predetermined fixed fee representing the contractor's profit. While it provides flexibility to adapt to changing requirements, it also carries a risk of cost escalation if not managed carefully. Effective mitigation involves robust government oversight of costs, clear definition of allowable expenses, and strong program management to control project scope and direction, ensuring the fixed fee remains appropriate for the effort.

What is the historical spending trend for Terrestrial Collection Identify Operations (TCIO) Integrated Product Team (IPT) support?

Analyzing historical spending trends specifically for the 'TERRESTRIAL COLLECTION IDENTIFY OPERATIONS (TCIO) INTEGRATED PRODUCT TEAM (IPT) PROGRAM MANAGEMENT, ENGINEERING, AND LOGISTICS SUPPORT TO CLASSIFIED PROJECTS' is challenging due to the classified nature of the data. However, general trends in defense spending on intelligence, surveillance, and reconnaissance (ISR) capabilities, which often involve terrestrial collection, have been substantial and generally increasing over the past two decades. Contracts for program management, engineering, and logistics support are recurring needs for such programs. The $16.2 million awarded here represents a specific funding allocation for this IPT's operations over a four-year period, suggesting a consistent, albeit unquantified, level of investment in this capability area.

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: N6523622R3032

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: $21,571,033

Exercised Options: $21,571,033

Current Obligation: $16,183,779

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $3,412,174

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