DoD awards $7M R&D contract to Rogerco, Inc. for physical sciences research

Contract Overview

Contract Amount: $7,016,193 ($7.0M)

Contractor: Rogerco, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-03-19

End Date: 2029-03-18

Contract Duration: 1,825 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AWARD OF RS3-23-0015

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78701

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.0 million to ROGERCO, INC. for work described as: AWARD OF RS3-23-0015 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contract duration of 5 years allows for sustained research efforts. 5. The awardee, Rogerco, Inc., is based in Texas. 6. The contract is a delivery order under a larger contract vehicle (RS3-23-0015).

Value Assessment

Rating: fair

Benchmarking the value of this $7.02 million contract is challenging without specific deliverables or comparable projects. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a negotiated fixed fee. While this can be appropriate for R&D where costs are uncertain, it requires robust oversight to ensure efficiency. The fixed fee component, while not explicitly provided, is a key factor in assessing contractor incentive and overall value. Without knowing the fee percentage or comparing it to similar R&D efforts, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of competition for this R&D requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and innovative solutions for defense research at a reasonable cost.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the advancement of physical sciences research. The contract supports research and development activities, the specific outcomes of which are not detailed but are crucial for future technological capabilities. The geographic impact is centered in Texas, where the contractor Rogerco, Inc. is located. Workforce implications include employment opportunities for researchers, scientists, and support staff at Rogerco, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The specific R&D objectives and expected outcomes are not detailed, making performance assessment challenging.
Reliance on a single delivery order under a larger contract vehicle may limit flexibility if requirements evolve significantly.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
A 5-year contract duration allows for sustained research and development efforts.
The contractor is based in Texas, potentially supporting regional economic development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and capabilities. The market for defense R&D is characterized by specialized firms and significant government investment. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the Department of Defense or other federal agencies in similar scientific domains.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Rogerco, Inc., a company not identified as a small business in the provided data, suggests that small business participation was not a primary focus for this specific award. Further analysis would be needed to determine if subcontracting opportunities exist within the larger contract vehicle.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army. As a Cost Plus Fixed Fee contract, rigorous financial oversight is expected to monitor expenditures and ensure the fixed fee is justified. Transparency will depend on the reporting requirements stipulated in the contract and the agency's commitment to public disclosure of contract performance information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Programs
Physical Sciences Research Contracts
RS3 Contract Vehicle

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Research and Development outcomes can be inherently uncertain.
Contract is a delivery order, implying reliance on a larger contract vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.0 million to ROGERCO, INC.. AWARD OF RS3-23-0015

Who is the contractor on this award?

The obligated recipient is ROGERCO, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2024-03-19. End: 2029-03-18.

What is Rogerco, Inc.'s track record with federal R&D contracts?

Information regarding Rogerco, Inc.'s specific track record with federal R&D contracts is not detailed in the provided data. To assess their track record, one would need to examine their past performance on similar contracts, including their ability to meet technical requirements, stay within budget, and adhere to timelines. Reviewing contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes would be necessary. A history of successful R&D projects, particularly those aligned with the physical sciences, would indicate a strong capability. Conversely, a history of cost overruns, missed deadlines, or poor technical outcomes would raise concerns.

How does the $7.02 million award compare to similar R&D contracts in the physical sciences?

Comparing this $7.02 million award to similar R&D contracts requires access to a broader dataset of federal procurements in the physical sciences. The size of R&D contracts can vary significantly based on the scope, duration, and complexity of the research. This award appears to be a moderate-sized contract for a specific delivery order. To benchmark effectively, one would need to identify contracts with similar scientific domains (physical, engineering, life sciences), contract types (e.g., CPFF), and agencies (e.g., DoD). Factors such as the number of bidders, the duration of the research, and the specific research objectives would also influence comparability. Without this broader context, it's difficult to definitively state whether $7.02 million represents a high, low, or average investment for this type of research.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a predictable profit margin, the government bears the risk of cost overruns. If the actual costs exceed the initial estimates, the government is obligated to pay those costs, plus the agreed-upon fixed fee. This can lead to the contract exceeding its ceiling if not properly managed. The risk for the government is that the contractor may have less incentive to control costs aggressively compared to fixed-price contracts, as their fee is not directly tied to cost savings. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What is the significance of the contract being a delivery order under the RS3 vehicle?

The significance of this award being a delivery order under the RS3 (Research Support Services) vehicle is that it leverages an existing, pre-competed contract vehicle. RS3 is a multiple-award Indefinite Delivery/Indefinite Quantity (IDIQ) contract designed to provide a broad range of R&D services to the Army. Awarding a delivery order under RS3 means that the initial competition for the overall RS3 vehicle has already occurred, streamlining the process for individual task orders like this one. It suggests that Rogerco, Inc. was one of the pre-qualified awardees of the RS3 contract. This approach can accelerate procurement timelines and potentially reduce administrative burden compared to a standalone competition for each R&D requirement.

How does the 5-year duration impact the potential outcomes of this R&D effort?

A 5-year duration for this R&D contract provides a substantial timeframe for the contractor, Rogerco, Inc., to conduct in-depth research and development in the physical sciences. This extended period is crucial for tackling complex scientific challenges that often require iterative processes, experimentation, and refinement. It allows for the potential development of more mature technologies or deeper scientific understanding compared to shorter-term projects. The extended duration also enables the establishment of a consistent research team and fosters a sustained focus on the project's objectives, increasing the likelihood of achieving significant breakthroughs or delivering robust solutions. However, it also necessitates ongoing oversight to ensure progress and adapt to evolving research landscapes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11921 FREEDOM DR STE 550, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $14,262,490

Exercised Options: $7,016,193

Current Obligation: $7,016,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0058

IDV Type: IDC

Timeline