DoD's $329M contract for engineering and sustainment services awarded to Scientific Research Corporation

Contract Overview

Contract Amount: $32,926,435 ($32.9M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-22

End Date: 2030-09-21

Contract Duration: 1,825 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS SUPPORT ENCOMPASSES TASKING FOR EXISTING BASELINES AND FUTURE CAPABILITIES/SYSTEMS: ENGINEERING, DEVELOPMENT, INTEGRATION, TRAINING, INSTALLATION, AND SUSTAINMENT OF DOMESTIC, COOPERATIVE (COOP) AND FOREIGN MILITARY SALES (FMS).

Place of Performance

Location: ATLANTA, COBB County, GEORGIA, 30339

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to SCIENTIFIC RESEARCH CORPORATION for work described as: THIS SUPPORT ENCOMPASSES TASKING FOR EXISTING BASELINES AND FUTURE CAPABILITIES/SYSTEMS: ENGINEERING, DEVELOPMENT, INTEGRATION, TRAINING, INSTALLATION, AND SUSTAINMENT OF DOMESTIC, COOPERATIVE (COOP) AND FOREIGN MILITARY SALES (FMS). Key points: 1. The contract covers a broad range of services including engineering, development, integration, training, installation, and sustainment. 2. Services extend to domestic, cooperative, and foreign military sales, indicating a wide scope of application. 3. The contract duration of 5 years suggests a long-term need for these specialized services. 4. The award was made under full and open competition, implying a robust bidding process. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control while allowing for flexibility. 6. The base contract value is substantial, reflecting the complexity and criticality of the supported systems.

Value Assessment

Rating: good

The contract's value of over $329 million for a 5-year period for comprehensive engineering and sustainment services appears reasonable given the scope. While specific cost breakdowns are not provided, the CPFF structure allows for oversight of costs against a fixed fee. Benchmarking against similar large-scale defense engineering contracts would be necessary for a definitive value assessment, but the breadth of services suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and innovation for the government. The level of competition is a positive sign for price discovery and ensuring the government receives value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding process and ensuring that the most capable and cost-effective solutions are selected.

Public Impact

The Department of the Navy benefits from sustained engineering and system support, ensuring operational readiness. The contract supports the development, integration, training, installation, and sustainment of critical defense systems. Geographic impact is likely broad, covering domestic operations and potentially extending to allied nations through Foreign Military Sales. The workforce implications include employment for engineers, technicians, and support staff within Scientific Research Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, as contractor profit is fixed regardless of final costs.
The broad scope of services, including future capabilities, introduces inherent risks related to technological evolution and unforeseen challenges.
Sustainment of systems over a 5-year period requires continuous adaptation to evolving threats and technological advancements.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield favorable pricing.
The long contract duration (5 years) provides stability and predictability for critical system support.
The inclusion of training and installation services indicates a comprehensive approach to system lifecycle management.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering and sustainment is characterized by high barriers to entry due to specialized knowledge, security clearances, and established relationships. Spending in this area is driven by the need to maintain and modernize complex military systems, with significant government investment annually. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by the DoD.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) flag is false. There is no explicit mention of subcontracting goals for small businesses within the provided details. Further investigation into the contract's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated by the contract's award through full and open competition, with details often available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Military Systems Sustainment
Foreign Military Sales Support
Naval Systems Modernization
Aerospace Engineering Services

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technological obsolescence over contract duration
Dependency on contractor performance for critical system sustainment
Complexity of managing domestic, cooperative, and FMS requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to SCIENTIFIC RESEARCH CORPORATION. THIS SUPPORT ENCOMPASSES TASKING FOR EXISTING BASELINES AND FUTURE CAPABILITIES/SYSTEMS: ENGINEERING, DEVELOPMENT, INTEGRATION, TRAINING, INSTALLATION, AND SUSTAINMENT OF DOMESTIC, COOPERATIVE (COOP) AND FOREIGN MILITARY SALES (FMS).

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 $32.9 million.

What is the period of performance?

Start: 2025-09-22. End: 2030-09-21.

What is the historical spending pattern for Scientific Research Corporation with the Department of Defense, particularly for similar engineering and sustainment services?

Analyzing the historical spending patterns of Scientific Research Corporation (SRC) with the Department of Defense (DoD) is crucial for understanding their track record and the context of this $329 million award. While specific historical data is not provided here, a comprehensive review would involve examining past contracts awarded to SRC by the DoD, focusing on the period, value, and nature of services rendered. This analysis should identify trends in contract types (e.g., CPFF, fixed-price), competition levels, and performance ratings. For instance, if SRC has a history of successfully delivering complex engineering and sustainment services on time and within budget for the Navy or other DoD branches, it strengthens the confidence in their ability to execute this new contract. Conversely, any past performance issues, cost overruns, or disputes would raise red flags. Comparing the current contract's value and duration to previous awards can also indicate whether SRC's role is expanding or remaining consistent within the DoD's portfolio.

How does the pricing structure (Cost Plus Fixed Fee) for this contract compare to industry benchmarks for similar defense engineering services?

The Cost Plus Fixed Fee (CPFF) pricing structure for this $329 million contract with Scientific Research Corporation (SRC) warrants comparison against industry benchmarks for defense engineering and sustainment services. CPFF contracts are common in R&D and complex service environments where the scope may evolve, but they carry inherent risks of cost escalation if not managed tightly. Benchmarking would involve assessing the typical fixed fee percentages and allowable cost structures for contracts of similar size, duration, and technical complexity within the Department of Defense (DoD). For example, if the fixed fee for SRC appears significantly higher than the average for comparable services, it could indicate a less competitive negotiation or higher perceived risk. Conversely, a fee within the typical range suggests reasonable pricing. Furthermore, the government's ability to audit costs and control expenditures under a CPFF contract is a key factor. A thorough benchmark would also consider the specific types of engineering, development, and sustainment tasks included, as well as the level of innovation required, to ensure a fair comparison.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract to ensure successful delivery and value for money?

Ensuring successful delivery and value for money on this $329 million Department of the Navy contract hinges on clearly defined Key Performance Indicators (KPIs) and robust risk mitigation strategies. While specific KPIs are not detailed in the provided data, typical metrics for engineering and sustainment services include system uptime/availability, response times for technical support, successful integration of new capabilities, training completion rates, and adherence to project milestones. The government will likely monitor these through regular performance reports and technical reviews. Risk mitigation strategies should address potential challenges inherent in a 5-year CPFF contract. This could involve stringent cost controls and auditing processes to manage the 'cost-plus' aspect, contingency planning for technological obsolescence or integration issues, and proactive cybersecurity measures to protect sensitive defense systems. Regular communication channels and a clear escalation process for issues between the Navy and Scientific Research Corporation are also critical for proactive problem-solving and ensuring the contract delivers its intended value.

What is the projected impact of this contract on the specific defense systems or platforms it supports, and how does it align with broader DoD modernization goals?

This $329 million contract with Scientific Research Corporation (SRC) is projected to have a significant impact on the specific defense systems and platforms it supports by ensuring their continued engineering, development, integration, training, installation, and sustainment over a five-year period. This includes support for both existing baselines and future capabilities, suggesting a role in both maintaining current operational readiness and facilitating upgrades or new system introductions. The contract's scope, encompassing domestic, cooperative, and Foreign Military Sales (FMS), indicates its importance in supporting a wide array of U.S. military assets and potentially allied forces. Alignment with broader DoD modernization goals is likely, as sustainment and upgrades are critical for keeping defense capabilities relevant against evolving threats. The contract's focus on 'future capabilities/systems' directly points to its role in advancing the DoD's technological edge and ensuring long-term strategic advantage, contributing to modernization efforts across various defense sectors.

How does the competition level (3 bidders) for this contract influence the government's ability to achieve cost savings and secure innovative solutions?

The competition level of three bidders for this $329 million Department of the Navy contract is a positive indicator for the government's ability to achieve cost savings and secure innovative solutions. With three distinct proposals, Scientific Research Corporation (SRC) and its competitors were incentivized to offer competitive pricing and demonstrate unique value propositions to win the award. This level of competition generally prevents a single contractor from dictating terms and prices, leading to a more favorable outcome for the taxpayer. Furthermore, multiple bidders often bring diverse approaches and technical expertise, increasing the likelihood that the government will receive not only cost-effective solutions but also innovative methods for engineering, development, and sustainment. The government's evaluation process would have assessed both price and technical merit, allowing them to select the best overall value, which includes considerations for innovation and long-term performance beyond just the lowest initial cost.

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: N6523624R3044

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: $252,474,586

Exercised Options: $221,336,134

Current Obligation: $32,926,435

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