DoD awards $22.2M Engineering Services contract to Carnegie Mellon University, a sole-source procurement
Contract Overview
Contract Amount: $22,247,157 ($22.2M)
Contractor: Carnegie Mellon University
Awarding Agency: Department of Defense
Start Date: 2007-09-26
End Date: 2012-09-25
Contract Duration: 1,826 days
Daily Burn Rate: $12.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: TAS::21 2040::TAS
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15213
Plain-Language Summary
Department of Defense obligated $22.2 million to CARNEGIE MELLON UNIVERSITY for work described as: TAS::21 2040::TAS Key points: 1. Significant contract value of over $22 million. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration of 5 years. 4. Focus on Engineering Services within the Defense sector.
Value Assessment
Rating: questionable
The contract's 'COST NO FEE' pricing structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the price reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than they would for a competitively bid contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for reduced innovation by not engaging a broader market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited transparency
Positive Signals
- Contract awarded to a reputable institution (Carnegie Mellon University)
- Services align with specific defense needs
Sector Analysis
This contract falls under Engineering Services (NAICS 541330) within the Defense sector. Spending in this category can vary widely based on project complexity and national security needs. Benchmarks are difficult without specific service details.
Small Business Impact
This contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to participate in this procurement.
Oversight & Accountability
The sole-source justification and lack of competitive bidding warrant close oversight to ensure the government received fair value and that the procurement process was appropriate.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated costs due to no competitive pressure.
- Limited transparency into the justification for sole-sourcing.
- Long contract duration may not reflect evolving needs.
- No small business participation.
Tags
engineering-services, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.2 million to CARNEGIE MELLON UNIVERSITY. TAS::21 2040::TAS
Who is the contractor on this award?
The obligated recipient is CARNEGIE MELLON UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.2 million.
What is the period of performance?
Start: 2007-09-26. End: 2012-09-25.
What was the specific justification for awarding this engineering services contract on a sole-source basis to Carnegie Mellon University?
The justification for a sole-source award typically centers on unique capabilities, specialized knowledge, or the unavailability of other sources that can meet the government's requirements. For Carnegie Mellon University, this could relate to specific research expertise, proprietary technology, or a long-standing relationship on a critical project where transitioning to another vendor would be impractical or detrimental.
How can the Department of Defense ensure fair pricing and value when using sole-source contracts for engineering services?
Ensuring fair pricing on sole-source contracts involves rigorous cost analysis, independent government cost estimates, and thorough negotiation. The DoD can also leverage historical data from similar sole-source procurements, engage third-party experts for validation, and require detailed cost breakdowns from the contractor. Transparency in the justification and negotiation process is also crucial for accountability.
What is the potential long-term impact of relying on sole-source contracts for specialized engineering services on overall defense innovation?
Over-reliance on sole-source contracts can stifle innovation by limiting exposure to a wider range of solutions and approaches from diverse vendors, including emerging companies. While necessary in some cases, a consistent pattern of sole-sourcing may reduce competitive pressure that drives technological advancement and cost-efficiency, potentially leading to a less dynamic defense industrial base.
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
Solicitation ID: W56HZV07R0735
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 5000 FORBES AVE, PITTSBURGH, PA, 15213
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,247,157
Exercised Options: $22,247,157
Current Obligation: $22,247,157
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-26
Current End Date: 2012-09-25
Potential End Date: 2012-09-25 00:00:00
Last Modified: 2021-04-02
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