DoD's $15M Engineering Services Contract Awarded to Syracuse Research Corp. Raises Value Concerns

Contract Overview

Contract Amount: $15,034,098 ($15.0M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2007-12-15

Contract Duration: 806 days

Daily Burn Rate: $18.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!008681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CS609 !A!N! !Y! ! !20050930!20060228!063053771!063053771!063053771!N!SYRACUSE RESEARCH CORP !6225 RUNNING RIDGE RD !NORTH SYRACUSE !NY!13212!53660!067!36!NORTH SYRACUSE !ONONDAGA !NEW YORK !+000002414969!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !20200930!B! ! !N!A!D!N!J!1!001!N!2A!C!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212, UNITED STATES OF AMERICA

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to SRC INC for work described as: 200512!008681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CS609 !A!N! !Y! ! !20050930!20060228!063053771!063053771!063053771!N!SYRACUSE RESEARCH CORP !6225 RUNNING RIDGE RD !NORTH SYRACUSE !NY!13212!53660!067!36!NORTH SYRACUSE !ONON… Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Significant duration of 806 days suggests a substantial need for engineering services. 3. The contract's value of over $15 million warrants scrutiny for cost-effectiveness. 4. Lack of competition indicates potential risks of inflated pricing and reduced service quality. 5. The 'Engineering Services' category (NAICS 541330) is broad and requires further definition for precise benchmarking. 6. Awarded by the Defense Contract Management Agency, suggesting a focus on defense-related engineering needs.

Value Assessment

Rating: questionable

The contract's value of $15,034,098.10 for engineering services appears substantial. Without competitive bidding, it is difficult to benchmark this price against market rates or similar contracts. The lack of transparency in the pricing structure makes it challenging to assess whether the government received fair value for the services rendered. Further analysis would be needed to compare the scope of work and deliverables to other engineering service contracts of similar size and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Syracuse Research Corp., was solicited. This approach bypasses the competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they generally lead to less price competition and can result in higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. This can lead to a less efficient use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, which receives engineering technical services. Services delivered include engineering and technical support, crucial for defense operations and development. The geographic impact is centered in New York, where Syracuse Research Corp. is located. Workforce implications include employment opportunities for engineers and technical staff at Syracuse Research Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and value assessment.
The broad nature of 'Engineering Services' could obscure specific performance metrics.
Contract duration of over two years requires ongoing monitoring for effectiveness.

Positive Signals

Syracuse Research Corp. is a known entity providing services to the government.
The contract specifies a firm fixed price, which can provide cost certainty if the scope is well-defined.
Awarded by the Defense Contract Management Agency, indicating a focus on critical defense needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing a wide range of technical consulting and design services. The market for engineering services is substantial, with significant government spending, particularly within the defense sector. Comparable spending benchmarks are difficult to establish without a more precise definition of the services rendered, but large-scale engineering support contracts can range from millions to billions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting plans for small businesses. The award to a single, presumably larger, entity suggests that small businesses were not actively involved in this specific procurement. This could represent a missed opportunity to foster small business participation in defense contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be tied to the terms of the firm fixed-price contract, including delivery schedules and quality standards. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the value proposition more challenging.

Related Government Programs

Defense Engineering Services
Technical Support Services
Department of Defense Contracts
Sole Source Procurements

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on service specifics and value.
Potential for cost inefficiencies due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to SRC INC. 200512!008681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CS609 !A!N! !Y! ! !20050930!20060228!063053771!063053771!063053771!N!SYRACUSE RESEARCH CORP !6225 RUNNING RIDGE RD !NORTH SYRACUSE !NY!13212!53660!067!36!NORTH SYRACUSE !ONONDAGA !NEW YORK !+000002414969!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is SRC INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2005-09-30. End: 2007-12-15.

What specific engineering services were provided under this contract?

The data indicates the contract was for 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541330. However, the specific nature of these services is not detailed in the provided data. This could range from research and development support, system design, testing, analysis, or other specialized engineering functions critical to defense operations. Without a detailed statement of work, it is difficult to ascertain the precise technical contributions made by Syracuse Research Corp. under this $15 million award.

How does the $15 million contract value compare to similar engineering services contracts awarded by the DoD?

Benchmarking this $15 million contract value against similar DoD engineering services contracts is challenging without more specific details on the scope of work. The NAICS code 541330 covers a vast array of engineering disciplines. However, for a contract spanning over two years (806 days), $15 million represents a significant investment. Typically, large-scale, complex engineering projects or long-term support contracts can easily reach tens or hundreds of millions of dollars. The sole-source nature of this award, however, prevents a direct comparison based on competitive pricing.

What are the risks associated with awarding a contract of this size on a sole-source basis?

The primary risk of a sole-source award for a $15 million contract is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the most cost-effective solution. Other risks include reduced incentive for the contractor to innovate or provide exceptional service, as there is no competitive pressure. Furthermore, it raises questions about whether alternative solutions or contractors were adequately explored, potentially limiting the government's access to the best available technology or expertise.

What was the justification for awarding this contract as sole-source?

The provided data does not include the specific justification for awarding this contract as sole-source. Typically, sole-source justifications are based on factors such as the urgency of the need, the unique capabilities of a single contractor, the unavailability of comparable services from other sources, or specific statutory authority. Without this documentation, it is impossible to assess the validity of the sole-source determination and whether it was in the best interest of the government.

What is the track record of Syracuse Research Corp. in performing similar government contracts?

Syracuse Research Corp. (SRC Inc.) has a history of performing government contracts, particularly within the defense sector. While the provided data confirms this specific $15 million award, a comprehensive assessment of their track record would require examining past performance reviews, contract completion history, and any instances of disputes or contract modifications across their portfolio. Their continued engagement with government agencies suggests a baseline level of capability, but the quality and value of their past performance would need deeper investigation.

How does the contract duration (806 days) impact the assessment of value for money?

A contract duration of 806 days (approximately 2.2 years) for $15 million suggests a substantial and ongoing need for the engineering services. For value-for-money assessment, this extended period implies that the services are critical and likely require sustained effort. However, it also increases the risk associated with potential cost overruns or scope creep if not managed tightly. The firm fixed-price nature provides some cost certainty, but the long duration necessitates robust oversight to ensure the services remain relevant and effectively delivered throughout the contract period.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7502 ROUND POND RD, NORTH SYRACUSE, NY, 13212

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline