DoD's $7.4M contract for IT and engineering services awarded to Scientific Research Corporation

Contract Overview

Contract Amount: $7,418,712 ($7.4M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2024-11-04

End Date: 2030-09-30

Contract Duration: 2,156 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COVERS SE, SSA, TDA, ILS ISEA SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, PROCUREMENT, AND SUSTAINMENT SUPPORT TO THE AIS, JTT, AND OTHER PMW 120 PROGRAMS IN SUPPORT OF THE BA DIVISION AT NIWC ATLANTIC.

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $7.4 million to SCIENTIFIC RESEARCH CORPORATION for work described as: COVERS SE, SSA, TDA, ILS ISEA SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, PROCUREMENT, AND SUSTAINMENT SUPPORT TO THE AIS, JTT, AND OTHER PMW 120 PROGRAMS IN SUPPORT OF THE BA DIVISION AT NIWC ATLANTIC. Key points: 1. Contract focuses on critical IT and engineering support for naval programs. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost-plus-fixed-fee structure may incentivize cost management by the contractor. 4. Long performance period indicates a need for sustained support. 5. Contractor has a track record in providing similar services. 6. Geographic focus on Georgia for service delivery.

Value Assessment

Rating: good

The contract value of $7.4 million over approximately 6 years appears reasonable for the scope of IT and engineering services required for naval programs. Benchmarking against similar contracts for development, production, installation, procurement, and sustainment support for complex systems like AIS and JTT is necessary for a definitive value assessment. However, the fixed-fee component within the cost-plus structure aims to provide some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the availability of qualified contractors in the market for these specialized services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract, leading to more competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Navy and its Program Executive Office (PEO) for C4I, specifically PMW 120, who will receive essential IT and engineering support. Services delivered include development, production, installation, procurement, and sustainment support for critical naval systems such as the Afloat Integrated Network (AIS) and Joint Tactical Terminal (JTT). The geographic impact is centered in Georgia, where the contractor, Scientific Research Corporation, is located and likely where key personnel will be based for service delivery. Workforce implications include the potential for skilled IT and engineering professionals to be employed by Scientific Research Corporation to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract (over 6 years) requires sustained oversight to ensure performance remains optimal.
Reliance on a single awardee for critical sustainment support could pose a risk if contractor performance degrades.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor has experience in providing similar services, indicating a degree of familiarity with the requirements.
The contract supports essential naval IT and communication systems, aligning with strategic defense objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT and complex systems for the Department of Defense. The market for defense IT and engineering services is substantial, driven by the continuous need for modernization, sustainment, and cybersecurity of military platforms. Comparable spending benchmarks would involve analyzing other contracts for similar system support, development, and sustainment within the Navy and other defense agencies, often measured in the millions to billions of dollars annually for major programs.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is also no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best overall offer through full and open competition, rather than specifically targeting small business participation. The impact on the small business ecosystem is therefore likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Information Warfare Systems Command (NIWC Atlantic) and the relevant Program Management (PMW) offices. Accountability measures are typically embedded within the contract's performance work statement (PWS), with defined deliverables, milestones, and quality standards. 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 (NIWC) Contracts
Program Executive Office for Command, Control, Communications, Computers, and Intelligence (PEO C4I) Contracts
Information Technology Support Services
Engineering Services for Defense Systems
Systems Development and Sustainment Contracts

Risk Flags

Long contract duration requires sustained oversight.
Cost-plus-fixed-fee structure necessitates careful cost monitoring.
Reliance on a single contractor for critical sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.4 million to SCIENTIFIC RESEARCH CORPORATION. COVERS SE, SSA, TDA, ILS ISEA SERVICES FOR DEVELOPMENT, PRODUCTION, INSTALLATION, PROCUREMENT, AND SUSTAINMENT SUPPORT TO THE AIS, JTT, AND OTHER PMW 120 PROGRAMS IN SUPPORT OF THE BA DIVISION AT NIWC ATLANTIC.

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 $7.4 million.

What is the period of performance?

Start: 2024-11-04. End: 2030-09-30.

What is the track record of Scientific Research Corporation in delivering similar IT and engineering services to the Department of Defense?

Scientific Research Corporation (SRC) has a history of providing complex engineering, technology, and support services to the U.S. military and government agencies. Their expertise often spans areas like command and control systems, electronic warfare, intelligence, surveillance, and reconnaissance (ISR), and information technology infrastructure. For PMW 120 programs specifically, SRC's involvement would likely focus on the development, integration, testing, and sustainment of communication and information systems critical for naval operations. A detailed review of their past performance on similar contracts, including any past performance evaluations or awards, would provide further insight into their capabilities and reliability in meeting demanding defense requirements.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar IT and engineering support contracts?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracts, particularly for research, development, and complex system integration where the final costs can be uncertain. In a CPFF contract, the government reimburses the contractor for allowable costs incurred plus a predetermined fixed fee representing profit. This structure aims to incentivize the contractor to control costs, as the fee remains constant regardless of the final cost. Compared to fixed-price contracts, CPFF offers more flexibility for the government when dealing with evolving requirements or high technical risk. However, it requires robust government oversight to ensure costs are reasonable and allocable. Industry benchmarks often show a fee range of 7-15% of the estimated cost, depending on the contract's complexity, risk, and the contractor's role.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for this contract would likely be detailed within the Performance Work Statement (PWS) and could include metrics related to system availability and uptime, response times for technical support, successful integration of new system components, adherence to project schedules and milestones, quality of deliverables (e.g., documentation, software), and cybersecurity compliance. For sustainment services, KPIs might focus on Mean Time Between Failures (MTBF) and Mean Time To Repair (MTTR) for supported systems. The effectiveness of the contractor's management and technical teams would also be indirectly assessed through their ability to meet these defined performance standards consistently throughout the contract's duration.

What is the historical spending trend for similar IT and engineering services by the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards IT and engineering services to maintain and modernize its vast array of platforms and systems. Historical spending trends show a substantial and often increasing investment in areas like C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), cybersecurity, network infrastructure, and software development. Agencies like NIWC Atlantic and PEOs such as PMW 120 are major spenders in this domain. Annual expenditures can range from hundreds of millions to billions of dollars, reflecting the complexity and critical nature of naval technological requirements. Factors influencing these trends include evolving threats, technological advancements, and strategic defense priorities.

Are there any identified risks associated with the contractor's ability to deliver on the sustainment support for PMW 120 programs?

Risks associated with contractor delivery on sustainment support can be multifaceted. For Scientific Research Corporation, potential risks might include the retention of key technical personnel over the long contract duration, ensuring up-to-date knowledge of evolving naval technologies, and maintaining robust cybersecurity practices to protect sensitive defense information. The complexity of the AIS and JTT systems themselves presents inherent risks, such as unforeseen technical challenges during sustainment or integration. Furthermore, the CPFF contract type, while offering flexibility, necessitates vigilant government oversight to mitigate risks of cost creep and ensure efficient resource utilization. A thorough risk assessment would also consider the contractor's financial stability and supply chain resilience.

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: N6523624R3019

Offers Received: 1

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: $47,731,380

Exercised Options: $40,389,437

Current Obligation: $7,418,712

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