NSF's $166M IODP contract to IODP Management International, Inc. awarded without competition

Contract Overview

Contract Amount: $166,379,805 ($166.4M)

Contractor: Iodp Management International, Incorporated

Awarding Agency: National Science Foundation

Start Date: 2004-03-31

End Date: 2014-03-31

Contract Duration: 3,652 days

Daily Burn Rate: $45.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: INTEGRATED OCEAN DRILLING PROGRAM (IODP) SUPPORT PLANNING AND SCIENCE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

National Science Foundation obligated $166.4 million to IODP MANAGEMENT INTERNATIONAL, INCORPORATED for work described as: INTEGRATED OCEAN DRILLING PROGRAM (IODP) SUPPORT PLANNING AND SCIENCE SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Long contract duration of 10 years suggests a stable, long-term need for these services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 4. The contract's value of over $166 million over 10 years warrants scrutiny for cost-effectiveness. 5. Lack of competition raises concerns about whether the government secured the best possible value. 6. The contractor has been the sole recipient of this significant funding for an extended period.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and broad service scope. Without competitive bids, it's difficult to ascertain if the $166 million represents a fair market price. The contract type 'COST NO FEE' suggests that the contractor is reimbursed for allowable costs, but the fee structure is not detailed, making a direct value-for-money assessment complex. Comparing it to similar sole-source contracts for scientific support services would be necessary for a more robust evaluation, but such data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The justification for this approach is not provided in the data, but it implies that only one source was deemed capable of fulfilling the requirement. The absence of multiple bidders means there was no competitive pressure to drive down prices or encourage innovative solutions. This significantly limits the government's ability to ensure it is receiving the most advantageous terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition. Without a bidding process, there's no assurance that the negotiated price reflects the lowest possible cost for the services rendered.

Public Impact

The primary beneficiaries are the scientific community involved in the Integrated Ocean Drilling Program, enabling research and data collection. Services delivered likely include program management, scientific planning, data analysis, and logistical support for ocean drilling expeditions. The geographic impact is global, as ocean drilling operations span various international waters. Workforce implications include employment for scientists, engineers, technicians, and administrative staff supporting the program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration without competition raises questions about ongoing necessity and market alternatives.
Broad service scope under a single contract may obscure specific cost drivers and efficiencies.
Lack of transparency in the sole-source justification hinders public understanding of procurement decisions.

Positive Signals

Consistent funding over a decade suggests a critical and sustained need for IODP support services.
The contractor has a long-standing relationship with the program, implying institutional knowledge and stability.
The 'COST NO FEE' contract type, while requiring careful oversight, can facilitate complex, long-term projects.

Sector Analysis

The Integrated Ocean Drilling Program (IODP) falls within the broader scientific research and technical services sector. This contract supports a significant international scientific endeavor focused on Earth's history and processes as recorded in the ocean floor. Comparable spending benchmarks would typically involve other large-scale, long-term scientific research grants or contracts managed by agencies like NSF, NASA, or NOAA. The market for highly specialized scientific program management and support services is often limited, which can sometimes lead to sole-source procurements.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of scientific program management and the sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement. The focus appears to be on the prime contractor's ability to manage the entire program, rather than fostering a broad ecosystem of small business participation.

Oversight & Accountability

Oversight mechanisms for this contract would primarily reside with the National Science Foundation (NSF). As a 'COST NO FEE' contract, NSF would be responsible for monitoring the contractor's incurred costs to ensure they are reasonable, allocable, and allowable. Accountability measures would involve performance reviews and adherence to program objectives. Transparency is limited due to the sole-source nature, but NSF's internal procurement and program management processes would provide some level of oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Science Foundation Research Grants
Oceanographic Research Programs
Scientific Support Services Contracts
International Scientific Collaboration Initiatives

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Cost-reimbursement contract type

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $166.4 million to IODP MANAGEMENT INTERNATIONAL, INCORPORATED. INTEGRATED OCEAN DRILLING PROGRAM (IODP) SUPPORT PLANNING AND SCIENCE SERVICES

Who is the contractor on this award?

The obligated recipient is IODP MANAGEMENT INTERNATIONAL, INCORPORATED.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $166.4 million.

What is the period of performance?

Start: 2004-03-31. End: 2014-03-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, proprietary technology, or the nature of the program requiring a specific, established entity. For the IODP Support Planning and Science Services contract, the justification would likely center on the contractor's unique expertise and established role in managing this complex international scientific program. Without the official justification document, it remains an assumption that such criteria were met. Further investigation into NSF's procurement records would be required to confirm the exact rationale.

How does the 'COST NO FEE' contract type impact cost control and value for money?

A 'COST NO FEE' contract means the contractor is reimbursed for all allowable, allocable, and reasonable costs incurred in performing the contract, but receives no additional profit or fee. While this can be advantageous for complex, long-term projects where defining a fixed price is difficult, it shifts the primary cost control burden to the government. The agency must rigorously monitor and audit the contractor's expenses to prevent overspending. Value for money is achieved if the services are delivered effectively and efficiently within the reimbursed costs. However, without a fee, the contractor may have less incentive for cost reduction compared to a fixed-price contract with profit. Robust government oversight is crucial to ensure that costs remain controlled and that the overall expenditure represents good value.

What are the potential risks associated with a 10-year sole-source contract for scientific services?

A 10-year sole-source contract presents several risks. Firstly, the lack of competition over such a long period means the government may not be benefiting from the most current market prices or innovative approaches that competition could foster. There's a risk of complacency from the contractor, potentially leading to reduced efficiency or responsiveness over time. Secondly, the government's leverage to negotiate better terms diminishes significantly. If the contractor's performance declines or market conditions change, the government is largely locked in. Finally, without periodic re-competition, it becomes harder to assess if the contractor remains the best option for fulfilling the evolving needs of the IODP.

What is the historical spending pattern for IODP support services by the National Science Foundation?

The provided data indicates a single contract awarded in 2004 with an end date of 2014, totaling approximately $166.38 million. This suggests a consistent, significant level of funding allocated to IODP support planning and science services over that decade. Assuming this contract represents the primary mechanism for funding these specific services, the spending pattern appears to be concentrated with one contractor over an extended period. Without data on prior or subsequent contracts for the same services, it's difficult to establish a broader historical trend, but this data point shows a substantial and sustained investment in the program.

How does the scope of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) typically translate to contract deliverables?

NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category encompassing services not classified elsewhere. For a contract like IODP support, this likely includes a wide array of activities such as scientific research planning, data management and analysis, logistical coordination for expeditions, technical consulting, report generation, and potentially specialized laboratory or field support. The deliverables would be defined by the specific statement of work, which would detail the expected outcomes, milestones, and reporting requirements. Given the program's nature, deliverables would focus on advancing scientific understanding of the Earth through ocean drilling.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 1001 CONNECTICUT AVE NW, WASHINGTON, DC, 98

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $166,385,805

Exercised Options: $166,385,805

Current Obligation: $166,379,805

Contract Characteristics

Cost or Pricing Data: YES

Timeline