DoD Awards $500M R&D Contract for STORM Sustainment to MAG DS CORP
Contract Overview
Contract Amount: $500,586,724 ($500.6M)
Contractor: MAG DS Corp
Awarding Agency: Department of Defense
Start Date: 2019-02-26
End Date: 2024-10-31
Contract Duration: 2,074 days
Daily Burn Rate: $241.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT SERVICES FOR THE STORM REQUIREMENT.
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724
Plain-Language Summary
Department of Defense obligated $500.6 million to MAG DS CORP for work described as: THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT SERVICES FOR THE STORM REQUIREMENT. Key points: 1. Significant investment in R&D for critical sustainment services. 2. MAG DS CORP secures a large contract in the R&D sector. 3. Potential risks associated with long-term operation and sustainment. 4. Focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: fair
The contract value of $500M over 5 years suggests a substantial investment. Benchmarking against similar R&D sustainment contracts is difficult without more specific service details, but the duration and cost indicate a significant commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not carefully managed.
Taxpayer Impact: Taxpayers are funding a significant R&D sustainment effort, with the expectation of long-term operational benefits. The competitive award aims to ensure value for money.
Public Impact
Ensures continued operation and support for the STORM requirement. Supports technological advancement and maintenance within the DoD. Potential for job creation and economic activity in New Jersey.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term sustainment costs can escalate.
- Reliance on a single contractor for critical operations.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense requirements.
- Long contract duration allows for stable planning.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation and maintaining technological superiority, with significant government investment typically seen in areas supporting national security.
Small Business Impact
The data indicates this is a large contract awarded to MAG DS CORP. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific task order.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would involve monitoring performance, costs, and adherence to contract terms to ensure accountability and effective use of funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long-term contract duration increases exposure to evolving technology.
- CPFF structure requires robust government oversight to manage costs.
- Dependence on a single contractor for critical sustainment.
- Potential for scope creep in R&D related tasks.
- Geographic concentration in New Jersey.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $500.6 million to MAG DS CORP. THIS TASK ORDER IS CREATED FOR OPERATION AND SUSTAINMENT SERVICES FOR THE STORM REQUIREMENT.
Who is the contractor on this award?
The obligated recipient is MAG DS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $500.6 million.
What is the period of performance?
Start: 2019-02-26. End: 2024-10-31.
What specific technological advancements or operational efficiencies are expected from the STORM sustainment services?
The expected outcomes would likely include maintaining the operational readiness of the STORM system, potentially incorporating upgrades or enhancements identified during the sustainment period. Specific advancements depend on the nature of the STORM requirement itself, but the goal is to ensure the system remains effective and efficient for its intended purpose over the contract's duration.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this R&D sustainment contract?
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. While the fixed fee provides some incentive, potential for cost overruns exists if the government's oversight is not rigorous or if unforeseen technical challenges arise during sustainment.
How will the effectiveness of the sustainment services be measured to ensure value for the taxpayer?
Effectiveness will be measured through key performance indicators (KPIs) defined in the contract, such as system uptime, response times for issues, successful implementation of maintenance, and achievement of any specified performance improvements. Regular performance reviews and audits by the Department of the Army will ensure the contractor meets obligations and delivers 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 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: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $656,374,422
Exercised Options: $656,374,422
Current Obligation: $500,586,724
Actual Outlays: $236,251
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T17D0100
IDV Type: IDC
Timeline
Start Date: 2019-02-26
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 12:10:00
Last Modified: 2025-09-04
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