DoD's $18.3M engineering services contract awarded to Science and Technology Associates, Inc. raises value concerns

Contract Overview

Contract Amount: $18,314,785 ($18.3M)

Contractor: Science and Technology Associates, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-28

End Date: 2009-09-30

Contract Duration: 1,828 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to SCIENCE AND TECHNOLOGY ASSOCIATES, INC. for work described as: Key points: 1. The contract's value proposition appears questionable given the lack of competitive bidding and limited performance data. 2. Sole-source procurement limits price discovery and potentially inflates costs for taxpayers. 3. The absence of a competitive process increases the risk of suboptimal pricing and service delivery. 4. Performance context is limited, making it difficult to assess the contractor's effectiveness and value. 5. This contract falls within the broader category of engineering services, a common area for federal procurement. 6. The long duration of the contract (over 5 years) warrants scrutiny regarding ongoing value and necessity.

Value Assessment

Rating: questionable

Benchmarking the value of this $18.3 million contract is challenging due to its sole-source nature and limited public performance data. Without competitive bids, it's difficult to ascertain if Science and Technology Associates, Inc. provided services at a fair market price. The lack of detailed performance metrics makes it hard to compare the value received against the investment. Future contracts of this type should ideally incorporate more robust performance indicators and explore competitive bidding to ensure better value for taxpayer dollars.

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 among multiple potential vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when circumstances prevent a competitive process. The lack of competition means that taxpayers did not benefit from the price reductions and innovation that can arise from a bidding war among qualified companies.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing, potentially leading to higher costs for taxpayers. It also reduces transparency in the procurement process.

Public Impact

The Department of Defense benefits from specialized engineering services provided by the contractor. The contract supports national security objectives by ensuring the availability of critical engineering expertise. The geographic impact is primarily within the United States, supporting defense infrastructure and operations. The contract likely supports a specialized workforce within the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Limited public performance data makes value assessment difficult.
Long contract duration without clear performance benchmarks could indicate a lack of agility.
Sole-source award limits transparency and accountability.
Absence of small business subcontracting goals may limit broader economic impact.

Positive Signals

Contract awarded to a firm with specialized engineering capabilities.
Contract duration suggests a sustained need for the services.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls under the Engineering Services sector, which is a critical component of the broader professional services market supporting government and private industry. The federal government is a significant consumer of engineering services, procuring them for a wide range of applications including infrastructure development, defense systems, and research. Benchmarking this contract's value is difficult without more specific service details, but federal spending on engineering services typically runs into billions of dollars annually across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary contractor, Science and Technology Associates, Inc., likely performed the majority of the work. The lack of small business involvement means limited opportunities for the small business ecosystem to benefit from this particular federal expenditure.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability is primarily driven by the terms of the Firm Fixed Price contract, requiring delivery of specified engineering services. Transparency is limited due to the sole-source nature and the proprietary information often associated with engineering services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Engineering Services
Professional Services Contracts
Department of Defense Procurement
Sole-Source Contracts
Engineering and Technical Services

Risk Flags

Sole-source award
Lack of competition
Limited performance data
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to SCIENCE AND TECHNOLOGY ASSOCIATES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SCIENCE AND TECHNOLOGY ASSOCIATES, 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 $18.3 million.

What is the period of performance?

Start: 2004-09-28. End: 2009-09-30.

What is the track record of Science and Technology Associates, Inc. with federal contracts, particularly with the Department of Defense?

Science and Technology Associates, Inc. has a history of receiving federal contracts, primarily from the Department of Defense. While specific details on their performance across all contracts are not fully detailed in this data snippet, the award of an $18.3 million sole-source contract suggests a level of trust or unique capability recognized by the agency. Further investigation into past performance reviews, contract modifications, and any disputes or terminations would provide a more comprehensive understanding of their track record. Analyzing their portfolio of awarded contracts can reveal patterns in the types of services they provide and their success rate in fulfilling government requirements.

How does the $18.3 million value of this contract compare to similar engineering services contracts awarded by the Department of the Army?

Comparing the $18.3 million value requires context on the scope and duration of the services. Engineering services contracts can vary significantly in price based on complexity, duration, and specific deliverables. Without knowing the exact nature of the engineering services provided under this contract (e.g., design, analysis, testing, consulting) and its duration (initially awarded in 2004 with an end date in 2009, spanning over 5 years), a direct comparison is difficult. However, for specialized engineering support, $18.3 million over five years averages around $3.6 million annually. This figure needs to be benchmarked against similar sole-source or competed contracts for comparable services within the Department of the Army or other defense agencies to assess if it represents a fair market price.

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

The primary risks associated with awarding a contract of this magnitude on a sole-source basis include: 1. **Lack of Price Competition:** The government may pay a higher price than if the contract were competed, as there is no incentive for the contractor to offer the lowest possible price. 2. **Reduced Innovation:** Without competitive pressure, the contractor may have less incentive to innovate or improve service delivery. 3. **Potential for Complacency:** The contractor might become complacent, assuming continued awards without needing to demonstrate superior performance or cost-effectiveness. 4. **Limited Transparency:** Sole-source awards can be perceived as less transparent, potentially leading to public scrutiny or accusations of favoritism. 5. **Difficulty in Benchmarking:** It becomes harder to benchmark the value and performance against industry standards or competitor offerings.

What specific engineering services were delivered under this contract, and how was their effectiveness measured?

The provided data indicates the contract was for 'Engineering Services' (NAICS code 541330) awarded by the Department of the Army. However, the specific nature of these services (e.g., mechanical engineering, electrical engineering, systems engineering, software engineering support) is not detailed. Similarly, the metrics used to measure the effectiveness of these services are not specified. Typically, effectiveness would be assessed through performance metrics outlined in the contract's Statement of Work (SOW), such as adherence to project timelines, quality of deliverables, technical accuracy, and achievement of specific engineering objectives. Without this detailed information, it is impossible to definitively assess how effective the services were.

What has been the historical spending trend for engineering services by the Department of the Army, and how does this contract fit within that trend?

The Department of the Army consistently spends billions of dollars annually on engineering services, reflecting the vast and complex nature of its operations, research, and development activities. These services are crucial for everything from designing new military equipment and infrastructure to maintaining existing systems and providing technical expertise. This $18.3 million contract, awarded over a period of approximately five years (2004-2009), represents a specific instance of this broader spending trend. While it might seem substantial in isolation, within the context of the Army's overall annual budget for engineering support, it would likely be considered a moderate-sized contract, possibly for a specialized or niche requirement, especially given its sole-source nature.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: 4100 FAIRFAX DR, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $643,000

Exercised Options: $643,000

Current Obligation: $18,314,785

Contract Characteristics

Cost or Pricing Data: YES

Timeline