DoD awards $32.4M R&D contract to The Keyw Corporation for physical and engineering sciences research

Contract Overview

Contract Amount: $32,387,059 ($32.4M)

Contractor: THE Keyw Corporation

Awarding Agency: Department of Defense

Start Date: 2014-09-22

End Date: 2018-09-28

Contract Duration: 1,467 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTRACT AWARDED OFF BAA W15P7T-09-R-S152

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to THE KEYW CORPORATION for work described as: CONTRACT AWARDED OFF BAA W15P7T-09-R-S152 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 (except Biotechnology) is a critical area for defense innovation. 4. The contract duration of approximately 4 years indicates a significant, long-term research effort. 5. The award to a single contractor, The Keyw Corporation, warrants examination of their capabilities and past performance. 6. The contract's value places it in the mid-range for R&D contracts within the defense sector.

Value Assessment

Rating: fair

Benchmarking the value of this $32.4 million contract requires comparison to similar R&D efforts in physical and engineering sciences. Without specific deliverables or performance metrics, assessing value-for-money is challenging. The Cost Plus Fixed Fee (CPFF) structure means the government pays costs plus a fixed fee, which can lead to cost overruns if not managed tightly. However, it allows for flexibility in research projects where scope may evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this approach generally promotes a wider range of proposals and potentially better pricing. The open competition suggests the government sought the best technical solution and value from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages innovation from a broad base of contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, seeking advancements in physical and engineering sciences. The services delivered are research and development activities, contributing to technological innovation and national security. The geographic impact is primarily within the United States, where the research activities will be conducted and their results applied. Workforce implications include employment for scientists, engineers, and support staff at The Keyw Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if initial estimates are inaccurate or scope creep occurs.
Lack of specific performance metrics in the provided data makes it difficult to assess the efficiency of the R&D process.
The duration of the contract suggests a long-term commitment, requiring sustained oversight to ensure progress and relevance.

Positive Signals

Awarded through full and open competition, indicating a robust market search.
The contract supports critical research and development in physical and engineering sciences, aligning with strategic defense goals.
The fixed fee component of the CPFF contract provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a vital area for defense innovation, driving advancements in materials, systems, and technologies. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by the DoD and other federal agencies for similar scientific pursuits. The market for such specialized R&D services is competitive, with a mix of large defense contractors and specialized research firms.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, the direct impact on small business set-asides is none. However, The Keyw Corporation, as the prime contractor, may engage small businesses as subcontractors to fulfill specific needs within the R&D scope, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring detailed cost reporting and progress updates. Transparency is facilitated through contract databases, though specific research outcomes may be subject to security classifications. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Research Laboratory Contracts
Advanced Technology Development Contracts
Engineering Services Contracts
Physical Sciences Research Grants

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of specific performance metrics makes value assessment difficult.
Potential for scope creep in R&D projects.
Reliance on contractor's internal controls for cost management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to THE KEYW CORPORATION. CONTRACT AWARDED OFF BAA W15P7T-09-R-S152

Who is the contractor on this award?

The obligated recipient is THE KEYW CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2014-09-22. End: 2018-09-28.

What is The Keyw Corporation's track record with similar R&D contracts for the Department of Defense?

The Keyw Corporation has a history of performing research and development services for the Department of Defense. Analyzing their past performance on similar Cost Plus Fixed Fee contracts would involve reviewing contract close-out data, any reported cost variances, and customer satisfaction feedback. A deeper dive would assess their success in delivering innovative solutions within budget and schedule on prior R&D efforts. Their ability to manage complex research projects, attract and retain specialized scientific talent, and navigate security requirements are key indicators of their suitability for this type of work. Without specific performance reports for this contract, a general assessment relies on their broader contract history with the DoD.

How does the $32.4 million award compare to other R&D contracts in physical and engineering sciences?

The $32.4 million award is a substantial sum, placing it in the mid-to-large tier for individual R&D contracts within the physical and engineering sciences. Many R&D efforts, especially those involving basic research or early-stage development, might be smaller. Conversely, large-scale, multi-year programs, particularly those with significant hardware development or testing components, can easily exceed this amount, sometimes reaching hundreds of millions or even billions of dollars. This contract's value suggests a focused, significant research initiative rather than a broad, exploratory program or a massive, long-term platform development.

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

The primary risks with a CPFF contract for R&D revolve around cost control and scope definition. While the fixed fee provides some predictability, the government bears the risk of cost overruns if the contractor's actual costs exceed the estimated costs. For R&D, where the path to innovation is often uncertain, estimating costs accurately can be challenging, increasing the likelihood of overruns. There's also a risk that the contractor might be less incentivized to control costs aggressively compared to fixed-price contracts, as their fee is fixed regardless of the final cost. Effective oversight, clear milestones, and robust cost accounting are crucial to mitigate these risks.

What is the expected impact of this contract on technological advancement within the DoD?

This contract is expected to contribute to technological advancement by funding research in critical physical and engineering sciences. The specific impact depends heavily on the research objectives, which are not detailed here. However, successful R&D in these areas can lead to breakthroughs in materials science, advanced manufacturing, sensor technology, energy systems, or other fields vital for modern defense capabilities. The ultimate impact is realized when these research outcomes are transitioned into new or improved military systems, enhancing operational effectiveness, reducing costs, or providing a strategic advantage.

How has federal spending in R&D for physical and engineering sciences trended in recent years?

Federal spending in R&D for physical and engineering sciences has generally seen consistent, albeit fluctuating, investment over recent years, driven by national security priorities, economic competitiveness, and scientific discovery. Agencies like the Department of Defense (DoD), National Science Foundation (NSF), and Department of Energy (DOE) are major contributors. While specific trends can vary year-to-year based on budget allocations and strategic focus, there's a sustained emphasis on areas like artificial intelligence, advanced materials, quantum computing, and cybersecurity, which often fall under the umbrella of physical and engineering sciences. The overall trend reflects a commitment to maintaining a technological edge and fostering innovation.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076

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

Financial Breakdown

Contract Ceiling: $39,946,906

Exercised Options: $39,946,906

Current Obligation: $32,387,059

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline