Army awards $128.5M for R&D services, with a significant portion allocated to basic research

Contract Overview

Contract Amount: $12,459,750 ($12.5M)

Contractor: Century 3-Plus LLC

Awarding Agency: Department of Defense

Start Date: 2005-11-10

End Date: 2011-03-31

Contract Duration: 1,967 days

Daily Burn Rate: $6.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200602!000407!2100!W56HZV!TACOM - WARREN !W56HZV05C0760 !A!N! !Y! ! !20051110!20061231!128508897!128508897!128508897!N!CENTURY 3-PLUS LLC !2410 W AERO PARK CT !TRAVERSE CITY !MI!49686!80340!055!26!TRAVERSE CITY !GRAND TRAVERSE !MICHIGAN !+000002077981!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!U!2!002!E! !Z!Y!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: TRAVERSE CITY, GRAND TRAVERSE County, MICHIGAN, 49686

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to CENTURY 3-PLUS LLC for work described as: 200602!000407!2100!W56HZV!TACOM - WARREN !W56HZV05C0760 !A!N! !Y! ! !20051110!20061231!128508897!128508897!128508897!N!CENTURY 3-PLUS LLC !2410 W AERO PARK CT !TRAVERSE CITY !MI!49686!80340!055!26!TRAVERSE CITY !GRAN… Key points: 1. Contract value of $128.5 million for Research and Development services. 2. Competition was full and open after exclusion of sources, indicating a competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can carry higher risk for cost overruns. 4. The contract duration is approximately 1967 days, suggesting a long-term need for these services. 5. The primary service area is Research and Development in Physical, Engineering, and Life Sciences. 6. The contractor, CENTURY 3-PLUS LLC, has a track record with this specific contract. 7. The contract was awarded by the Department of the Army, a major component of the Department of Defense.

Value Assessment

Rating: fair

The contract value of $128.5 million for R&D services appears substantial. Benchmarking this against similar contracts for basic research and development in physical, engineering, and life sciences would be necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility in research, can lead to higher costs compared to fixed-price contracts if not managed carefully. The awarded amount is the total obligated amount, and actual spending may vary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria. The presence of two bidders indicates some level of competition, but the exclusion of sources might limit the full potential of price discovery. Further details on the exclusion criteria would clarify the extent of competition.

Taxpayer Impact: The 'full and open' competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing. However, the specific exclusions could potentially limit the number of competitive bids received, possibly impacting the final price.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other branches of the Department of Defense, who will receive advanced research and development services. The services delivered are focused on basic research and development within the physical, engineering, and life sciences sectors. The geographic impact is primarily centered around the contractor's location in Traverse City, Michigan, and the Army's operational areas. Workforce implications include employment opportunities for researchers, scientists, and support staff at CENTURY 3-PLUS LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition may have limited the number of potential bidders.
The long duration of the contract (over 5 years) requires sustained oversight to ensure continued value and performance.
The specific nature of basic research can make performance metrics and deliverables less tangible than in other contract types.

Positive Signals

Awarded under full and open competition, suggesting a structured and fair procurement process.
The contract addresses critical R&D needs for the Department of the Army.
The contractor has been awarded a significant contract, indicating a level of trust and capability.
The contract duration suggests a stable, long-term relationship for critical research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on basic research in physical, engineering, and life sciences. This is a critical area for defense innovation. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' represents a significant market within the federal contracting landscape. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services to assess cost-effectiveness.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss' being false. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific contract is not discernible from the data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract databases, but specific performance reviews and audits are internal processes. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Basic Research Initiatives
Physical Sciences Research Contracts
Engineering Sciences Research Contracts
Life Sciences Research Contracts
Advanced Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Exclusion of sources in competition
Long contract duration requires sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to CENTURY 3-PLUS LLC. 200602!000407!2100!W56HZV!TACOM - WARREN !W56HZV05C0760 !A!N! !Y! ! !20051110!20061231!128508897!128508897!128508897!N!CENTURY 3-PLUS LLC !2410 W AERO PARK CT !TRAVERSE CITY !MI!49686!80340!055!26!TRAVERSE CITY !GRAND TRAVERSE !MICHIGAN !+000002077981!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is CENTURY 3-PLUS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2005-11-10. End: 2011-03-31.

What is the historical spending pattern for CENTURY 3-PLUS LLC with the Department of the Army for R&D services?

Analyzing the historical spending for CENTURY 3-PLUS LLC with the Department of the Army requires access to broader contract databases beyond this single award. This specific contract represents a significant award of $128.5 million over its duration. Without data on other contracts awarded to this entity by the Army, it's difficult to establish a comprehensive spending pattern. However, the existence of this large award suggests a capacity and capability that the Army has relied upon for R&D services. Further investigation into contract award history would reveal if this is a recurring vendor for similar services or a one-off engagement.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this R&D contract?

The Cost Plus Fixed Fee (CPFF) contract structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. For R&D, this structure can be beneficial as it provides flexibility to explore innovative solutions where the final scope and costs are not precisely known at the outset. However, it shifts the financial risk to the government, as the contractor is incentivized to incur costs to achieve the fixed fee. Value for money in a CPFF contract is highly dependent on robust government oversight, clear performance metrics, and effective cost control measures to prevent unnecessary expenditures. Without such controls, CPFF contracts can be more expensive than fixed-price alternatives.

What specific types of 'basic research' are covered under this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences' with a NAICS code of 541710. 'Basic research' in this context typically refers to systematic study to gain new knowledge and understanding, directed toward a better understanding of fundamental aspects of phenomena and observable facts, without specific commercial or military applications in view. This could encompass a wide range of scientific inquiry, such as exploring new materials, understanding fundamental biological processes, or investigating novel physics principles relevant to defense applications. The precise sub-areas would be detailed in the contract's statement of work, which is not included in the provided data.

What does 'Full and Open Competition After Exclusion of Sources' mean for the bidding process?

'Full and Open Competition After Exclusion of Sources' is a method of procurement where the agency intends to solicit offers from all responsible sources, but specific sources are excluded based on defined criteria. This is often used when certain capabilities or technologies are proprietary or require specific clearances. While it aims for broad competition, the exclusion of sources can limit the pool of potential bidders. The fact that two bids were received suggests that despite exclusions, there was still a competitive element. However, the number of bidders might have been higher if all sources were considered without exclusion.

Are there any performance risks associated with CENTURY 3-PLUS LLC based on this contract's data?

The provided data does not explicitly detail performance risks associated with CENTURY 3-PLUS LLC. However, general risks inherent in a large, long-term R&D contract of this nature include potential delays in research outcomes, challenges in meeting evolving scientific objectives, and the possibility of cost overruns, particularly given the Cost Plus Fixed Fee (CPFF) structure. The 'exclusion of sources' in the competition might also indirectly suggest potential risks if it limited the availability of highly competitive or specialized vendors. A thorough risk assessment would require reviewing past performance evaluations, if available, and the specific terms of the contract's statement of work.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2410 W AERO PARK CT, TRAVERSE CITY, MI, 01

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

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: YES

Timeline