DoD's Joint Threat Warning System technical support contract awarded to Scientific Research Corporation for over $5.6M

Contract Overview

Contract Amount: $5,603,962 ($5.6M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2027-09-14

Contract Duration: 729 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: JOINT THREAT WARNING SYSTEM (JTWS) TECHNICAL SUPPORT

Place of Performance

Location: HANAHAN, BERKELEY County, SOUTH CAROLINA, 29410

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to SCIENTIFIC RESEARCH CORPORATION for work described as: JOINT THREAT WARNING SYSTEM (JTWS) TECHNICAL SUPPORT Key points: 1. Contract value appears reasonable for specialized engineering services supporting a critical defense system. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The cost-plus-fixed-fee structure warrants scrutiny to ensure cost control and prevent overruns. 4. Performance period of two years provides a stable base for ongoing support. 5. This contract falls within the broader category of defense engineering and technical services. 6. The awardee, Scientific Research Corporation, has a track record in government contracting.

Value Assessment

Rating: good

The contract value of approximately $5.6 million over two years for technical support of the Joint Threat Warning System (JTWS) appears to be within a reasonable range for specialized engineering services. Benchmarking against similar contracts for defense system technical support suggests that the pricing is competitive, especially given the full and open competition. The cost-plus-fixed-fee (CPFF) contract type, while allowing for flexibility, requires careful monitoring of costs to ensure value for money. Without specific per-unit cost data, a direct comparison is difficult, but the overall contract value seems aligned with industry standards for such critical support.

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 evaluated. The presence of full and open competition generally suggests a robust market for the required engineering services, which can lead to more competitive pricing and a wider selection of qualified contractors. The specific number of bidders is not provided, but the method of competition implies that the government sought the best value from a broad range of potential providers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government receives high-quality services at a fair price. This approach maximizes the use of taxpayer funds by preventing sole-source awards that could be more expensive.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, ensuring the continued operational effectiveness of the Joint Threat Warning System. The services delivered include essential technical support, maintenance, and potentially upgrades for the JTWS, a critical intelligence and warning system. The geographic impact is likely focused on naval operations and command centers where the JTWS is deployed, potentially worldwide. Workforce implications include the employment of skilled engineers and technical specialists 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 incentivize contractors to incur higher costs if not closely managed, potentially impacting overall value.
Reliance on a single awardee for critical technical support could pose a risk if performance issues arise or if the contractor faces financial instability.
The specific technical expertise required for JTWS may limit the pool of truly qualified contractors, even under full and open competition.

Positive Signals

Award under full and open competition suggests a competitive process that likely yielded a qualified contractor at a reasonable price.
The contract is for technical support of a critical defense system, indicating its importance and the need for reliable service.
Scientific Research Corporation's experience in government contracting suggests a familiarity with compliance and performance expectations.

Sector Analysis

The defense engineering services sector is characterized by highly specialized technical expertise and long-term relationships between government agencies and contractors. This contract for technical support of the Joint Threat Warning System fits within this sector, focusing on maintaining and enhancing a critical defense capability. The market size for such specialized support is substantial, driven by the continuous need to update and sustain complex military systems. Comparable spending benchmarks in defense IT and engineering services often involve multi-million dollar contracts for system sustainment and upgrades.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated within this award. This means that opportunities for small businesses to participate as prime contractors or significant subcontractors may be limited for this particular contract, though the prime contractor may still engage small businesses as part of their broader supply chain.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Navy, a component of the Department of Defense. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Joint Threat Warning System (JTWS)
Department of Defense Engineering Services
Naval Systems Support Contracts
Intelligence and Warning Systems Support
Cost Plus Fixed Fee Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Potential for vendor lock-in if specialized knowledge is highly concentrated.
Dependence on a single contractor for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to SCIENTIFIC RESEARCH CORPORATION. JOINT THREAT WARNING SYSTEM (JTWS) TECHNICAL SUPPORT

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 $5.6 million.

What is the period of performance?

Start: 2025-09-15. End: 2027-09-14.

What is Scientific Research Corporation's track record with similar Department of Defense contracts?

Scientific Research Corporation (SRC) has a significant history of contracting with the Department of Defense, particularly in areas related to electronic warfare, command and control systems, and intelligence, surveillance, and reconnaissance (ISR). They have been awarded numerous contracts for research, development, testing, and production of advanced technologies. Their experience often involves complex system integration, software development, and technical support for sophisticated military platforms. Analyzing SRC's past performance on similar CPFF contracts would reveal their ability to manage costs effectively and deliver on technical requirements within budget constraints. Historical data suggests SRC is a capable contractor, but a detailed review of past performance ratings and any contract disputes would provide a more complete picture of their reliability and value proposition.

How does the awarded value compare to historical spending on JTWS technical support?

To accurately compare the awarded value of $5,603,962.31 to historical spending on JTWS technical support, one would need access to historical contract data for this specific system. Assuming this is a recurring need, analyzing previous contract awards for JTWS sustainment and technical support over the past 5-10 years would provide a baseline. Factors such as inflation, scope changes, and technological advancements would need to be considered for a fair comparison. If this is a new system or a significant upgrade, direct historical comparison might be less relevant. However, if previous support contracts were in a similar dollar range, it suggests a consistent level of investment in maintaining the JTWS. A significant deviation upwards or downwards could indicate changes in system criticality, support requirements, or market pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for technical support of the Joint Threat Warning System (JTWS) is the potential for cost overruns if not adequately managed. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fixed fee incentivizes efficiency to some extent, it does not directly cap the total cost to the government. If the contractor's costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient practices, the government bears the burden of these increased costs, up to the contract's ceiling. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives value for its investment.

How effective is the Joint Threat Warning System (JTWS) and what is the impact of this contract on its effectiveness?

The Joint Threat Warning System (JTWS) is designed to provide early warning of potential threats, enabling timely defensive actions. Its effectiveness is critical for national security, particularly in detecting and responding to various hostile activities. This contract for technical support is directly linked to maintaining and enhancing the JTWS's operational readiness and performance. By ensuring the system is properly maintained, updated, and troubleshooted, the contract directly contributes to its overall effectiveness. Reliable technical support minimizes downtime, improves system accuracy, and allows for the integration of necessary upgrades, thereby ensuring the JTWS can continue to fulfill its vital warning mission effectively against evolving threats.

What is the typical duration and value range for engineering services contracts supporting complex defense systems?

Engineering services contracts supporting complex defense systems typically range from several hundred thousand dollars to tens or even hundreds of millions of dollars, depending on the scope, duration, and criticality of the system. Durations can vary significantly, from short-term support tasks lasting a few months to long-term sustainment contracts spanning multiple years, often with options for extension. Contracts for specialized technical support, like that for the JTWS, often fall into the multi-million dollar range over a period of 1-5 years. The value is influenced by factors such as the complexity of the technology, the level of expertise required, the number of systems deployed, and the specific services needed (e.g., maintenance, upgrades, training, software development). This $5.6 million, two-year contract appears to be within the typical range for sustainment support of a significant defense system.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523625R3018

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: $24,418,654

Exercised Options: $6,346,979

Current Obligation: $5,603,962

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $535,853

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