DoD's $15.5M R&D Contract for Synchronization Tech Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $15,521,613 ($15.5M)

Contractor: Aspen Consulting Group Inc

Awarding Agency: Department of Defense

Start Date: 2020-06-19

End Date: 2023-06-23

Contract Duration: 1,099 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BROAD AGENCY ANNOUNCEMENT FOR SYNCHRONIZATION TECHNOLOGY AND ARCHITECTURE MODERNIZATION INVESTMENTS FOR NOBLE ADVANCEMENT

Place of Performance

Location: POINT PLEASANT BORO, OCEAN County, NEW JERSEY, 08742

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to ASPEN CONSULTING GROUP INC for work described as: BROAD AGENCY ANNOUNCEMENT FOR SYNCHRONIZATION TECHNOLOGY AND ARCHITECTURE MODERNIZATION INVESTMENTS FOR NOBLE ADVANCEMENT Key points: 1. The contract awarded to ASPEN CONSULTING GROUP INC for synchronization technology and architecture modernization represents a significant investment in R&D. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. However, the Cost Plus Fixed Fee (CPFF) contract type can pose risks if not managed tightly, potentially leading to cost overruns. 4. The R&D sector, particularly in advanced technologies, often involves inherent uncertainties and long development cycles.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee structure, while common in R&D, requires careful oversight to ensure costs remain reasonable and aligned with project milestones. Without detailed cost breakdowns and performance metrics, it's difficult to definitively assess value against industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the specific impact on pricing is contingent on the number and quality of bids received and the negotiation process.

Taxpayer Impact: Taxpayer funds are being invested in advanced R&D, which has the potential for long-term technological advancement and national security benefits, but also carries the risk of not yielding desired outcomes.

Public Impact

Investment in advanced synchronization technology could lead to improved military operational efficiency. Modernizing architecture is crucial for adapting to evolving technological landscapes and threats. The R&D focus suggests potential for future innovation and technological breakthroughs. Contract duration of nearly three years indicates a substantial and complex undertaking.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost escalation.
Lack of specific performance metrics makes value assessment difficult.
R&D projects inherently carry a risk of failure or delayed outcomes.

Positive Signals

Awarded under full and open competition.
Focus on critical modernization and synchronization technologies.
Potential for significant technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is critical for maintaining technological superiority but often involves higher risk and longer timelines compared to procurement of existing technologies.

Small Business Impact

The data provided does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical for the Department of the Army to manage the Cost Plus Fixed Fee contract effectively, ensuring that costs are controlled and that the project stays on track to deliver the intended technological advancements.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Cost Plus Fixed Fee contract type.
R&D projects have inherent uncertainty and risk of failure.
Potential for cost overruns without strict oversight.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to ASPEN CONSULTING GROUP INC. BROAD AGENCY ANNOUNCEMENT FOR SYNCHRONIZATION TECHNOLOGY AND ARCHITECTURE MODERNIZATION INVESTMENTS FOR NOBLE ADVANCEMENT

Who is the contractor on this award?

The obligated recipient is ASPEN CONSULTING GROUP 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 $15.5 million.

What is the period of performance?

Start: 2020-06-19. End: 2023-06-23.

What specific technological advancements or efficiencies are expected from this synchronization technology and architecture modernization?

The expected advancements likely relate to improving the speed, reliability, and interoperability of data and communication systems within the Department of Defense. Modernizing architecture aims to create a more agile, secure, and scalable infrastructure, enabling better synchronization of information across various platforms and units, ultimately enhancing operational effectiveness.

How will the effectiveness of the R&D investment be measured, given the inherent uncertainties in research and development?

Effectiveness will likely be measured through a combination of technical milestones, prototype demonstrations, and successful integration testing. Key performance indicators might include improvements in data transfer rates, system uptime, security vulnerability reduction, and successful proof-of-concept validation for new architectural components. Regular reviews and independent assessments will be crucial.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this R&D context?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed plus a fixed fee. This could lead to cost overruns if not rigorously monitored. Additionally, defining the 'fixed fee' and ensuring it accurately reflects the effort and risk involved is crucial for fair compensation and taxpayer value.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56KGU19R9999

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2405 SHORE HAVEN CT, POINT PLEASANT BEACH, NJ, 08742

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

Financial Breakdown

Contract Ceiling: $22,756,354

Exercised Options: $18,401,461

Current Obligation: $15,521,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline