DoD awards $19.1M for R&D operations support, with Semper Valens Solutions Inc. as prime

Contract Overview

Contract Amount: $19,130,347 ($19.1M)

Contractor: Semper Valens Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2026-03-14

Contract Duration: 911 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ESI OPS3 - FOLLOW-ON CONTRACT FROM ESI DIRECTORATE FOR OPERATIONS SUPPORT

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to SEMPER VALENS SOLUTIONS, INC. for work described as: ESI OPS3 - FOLLOW-ON CONTRACT FROM ESI DIRECTORATE FOR OPERATIONS SUPPORT Key points: 1. Contract value represents a significant investment in specialized R&D support services. 2. Full and open competition suggests a robust bidding process, potentially driving competitive pricing. 3. The contract's duration of 911 days indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure cost control. 5. This contract falls within the Research and Development sector, specifically physical, engineering, and life sciences. 6. The award is a follow-on to previous ESI Directorate operations support, suggesting continuity and established performance.

Value Assessment

Rating: good

The contract value of $19.1 million for 911 days of operations support appears reasonable given the specialized nature of R&D services. Benchmarking against similar contracts for advanced research support would provide a more precise value-for-money assessment. The CPFF structure, while common in R&D, necessitates diligent oversight to manage costs effectively and ensure the fixed fee remains appropriate for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the method itself suggests a deliberate effort to maximize competition.

Taxpayer Impact: Taxpayers benefit from a process designed to yield the best value through a wide range of potential providers, encouraging efficiency and cost-effectiveness.

Public Impact

The primary beneficiaries are the Department of Defense and its research initiatives, receiving critical operational support. Services delivered likely include program management, administrative support, and technical assistance for R&D projects. The geographic impact is centered around the Department of the Army's operations, likely within Maryland (ST=MD). Workforce implications may involve skilled professionals in research support, program management, and administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed meticulously.
The follow-on nature of the contract warrants a review of the performance history of the incumbent contractor.
The specific R&D area (541715) can be complex, requiring specialized expertise that may be difficult to source.
Reliance on a single contractor for follow-on work could reduce future competitive pressure.

Positive Signals

Awarded under full and open competition, suggesting a fair and broad solicitation process.
The contract is a follow-on, implying a level of proven capability and performance from the contractor.
The duration of the contract (911 days) indicates a stable, long-term requirement for these services.
The contractor, Semper Valens Solutions, Inc., is established, suggesting a track record of service delivery.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541715, which covers physical, engineering, and life sciences R&D. The market for R&D support services is substantial, with significant government spending allocated to advancing scientific and technological capabilities. This contract represents a portion of that investment, supporting critical operational functions within the Department of the Army's research endeavors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB=false). There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future related procurements.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are inherent in the CPFF structure, requiring the contractor to justify costs against the fixed fee. Transparency is typically facilitated through contract reporting mechanisms and performance reviews, though specific IG jurisdiction would depend on the nature of any potential issues.

Related Government Programs

Department of Defense Research and Development Contracts
Operations Support Services
Federal IT and Engineering Support
Army Research Laboratory Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Follow-on contract - review incumbent performance.
NAICS 541715 - specialized R&D services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to SEMPER VALENS SOLUTIONS, INC.. ESI OPS3 - FOLLOW-ON CONTRACT FROM ESI DIRECTORATE FOR OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is SEMPER VALENS SOLUTIONS, 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 $19.1 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-03-14.

What is the performance history of Semper Valens Solutions, Inc. on similar government contracts?

A review of Semper Valens Solutions, Inc.'s contract history would be necessary to assess their performance on similar government contracts. This would involve examining past performance evaluations, any documented issues or awards, and their track record with Cost Plus Fixed Fee (CPFF) contracts. Understanding their experience with R&D operations support specifically, and their ability to manage costs within a CPFF framework, is crucial. Data from sources like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would provide insights into their reliability, quality of service, and adherence to contract terms. Without this specific data, the assessment of their track record remains general.

How does the awarded amount compare to similar R&D operations support contracts?

To benchmark the $19.1 million award, one would compare it against contracts for similar R&D operations support services, considering factors like contract duration, scope of work, and the specific scientific or engineering disciplines involved. For instance, contracts supporting advanced research in areas like aerospace, defense technology, or biomedical sciences often command higher values due to specialized expertise and equipment requirements. Analyzing the average cost per day or per year for comparable services across different agencies (e.g., DoD, NASA, NSF) would provide a clearer picture. The current award's value relative to these benchmarks would indicate whether it represents a fair market price or potentially an outlier, necessitating further investigation into the unique aspects of this particular requirement.

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

The primary risk with a CPFF contract for R&D operations is the potential for cost overruns. While the contractor is paid a fixed fee, the 'cost plus' component means the government reimburses allowable costs incurred. If the contractor's costs exceed initial estimates, the government bears that burden. This can be exacerbated in R&D environments where project scope can evolve, and unforeseen technical challenges arise. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong program management to ensure the contractor maintains cost discipline. The fixed fee itself also needs to be appropriately set to incentivize efficiency without unduly burdening the contractor.

How effective are the oversight mechanisms for this type of contract within the Department of the Army?

The effectiveness of oversight for this contract hinges on the Department of the Army's established procedures for managing CPFF contracts, particularly in R&D settings. Key oversight mechanisms include regular progress reviews, detailed financial reporting by the contractor, audits of incurred costs, and performance evaluations. The presence of a dedicated contracting officer's representative (COR) or technical point of contact is crucial for monitoring day-to-day progress and ensuring adherence to technical requirements. The Army's specific policies on R&D contract oversight, including the rigor of their cost analysis and performance assessment processes, would determine the overall effectiveness. Inspector General involvement is typically reserved for fraud, waste, or abuse, but their potential jurisdiction underscores the importance of accountability.

What is the historical spending trend for R&D operations support within the Department of the Army?

Analyzing historical spending trends for R&D operations support within the Department of the Army would involve examining aggregate data over several fiscal years. This would reveal patterns in contract awards, average contract values, and the types of services most frequently procured. Understanding these trends helps contextualize the current $19.1 million award – is it consistent with past spending, an increase, or a decrease? Such analysis can identify periods of heightened investment in R&D support, shifts in contracting strategies (e.g., towards full and open vs. other methods), and the prevalence of specific contract types like CPFF. This historical perspective is vital for budget planning and assessing the long-term commitment to R&D operational capabilities.

What are the implications of this contract being a follow-on award?

A follow-on award suggests that the Department of the Army has had a prior contract with Semper Valens Solutions, Inc. (or a predecessor) for similar operations support services. This typically implies a degree of satisfaction with the contractor's past performance, potentially streamlining the award process. However, it also raises questions about the level of competition achieved. While this award was under full and open competition, subsequent follow-on actions under the same contract vehicle might not always maintain the same level of competitive rigor. It signifies continuity of services and potentially reduced transition costs, but necessitates careful review of the incumbent's performance to ensure continued value and prevent complacency.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2413 GLENN DR, CANYON LAKE, TX, 78133

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $21,939,246

Exercised Options: $21,939,246

Current Obligation: $19,130,347

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0010

IDV Type: IDC

Timeline