Dod's $9.87M R&D Contract for ICE Management Systems, Inc. Awarded in 2006

Contract Overview

Contract Amount: $9,871,452 ($9.9M)

Contractor: ICE Management Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-09

End Date: 2008-05-30

Contract Duration: 568 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D AIR

Place of Performance

Location: TEMECULA, RIVERSIDE County, CALIFORNIA, 92590

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to ICE MANAGEMENT SYSTEMS, INC. for work described as: R&D AIR Key points: 1. The contract's value of approximately $9.87 million for R&D services suggests a significant investment in specialized research. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) indicates a structure where costs are reimbursed plus a fixed fee, which can incentivize efficiency but also carries cost overrun risks. 4. The duration of 568 days (approx. 1.5 years) is typical for focused R&D projects. 5. The contract's focus on 'Research and Development in the Physical, Engineering, and Life Sciences' places it within a critical sector for technological advancement. 6. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this $9.87 million R&D contract is challenging without specific details on the research scope and deliverables. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can sometimes lead to higher final costs compared to fixed-price contracts if not managed tightly. The fixed fee component aims to provide contractor incentive, but the overall value for money depends heavily on the successful outcomes of the research and its alignment with DoD objectives. Comparing it to similar R&D efforts within the physical, engineering, and life sciences would provide a clearer picture of its cost-effectiveness.

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. This approach generally fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that it was competed openly suggests the Department of Defense sought the widest possible range of capabilities and offers. The number of bidders is not specified, but the open nature implies multiple entities likely vied for the contract.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a broad spectrum of qualified contractors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, which stand to gain from advancements in physical, engineering, and life sciences research. The services delivered are focused on research and development, aiming to produce new knowledge, technologies, or methodologies. The geographic impact is primarily within the United States, where the research activities would be conducted and where the benefits of the R&D are expected to materialize. Workforce implications include employment for scientists, engineers, and support staff involved in the research and development process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not meticulously monitored.
The specific R&D outcomes and their ultimate utility are not detailed, making it hard to assess the full return on investment.
The duration of the contract (568 days) might be insufficient for groundbreaking R&D, potentially requiring follow-on contracts.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
The contract supports critical R&D in physical, engineering, and life sciences, aligning with strategic defense objectives.
The fixed fee component in the CPFF structure provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, encompassing advancements in materials, electronics, biotechnology, and more. The market for defense R&D is characterized by high specialization, significant government investment, and a mix of large defense contractors and niche research firms. Comparable spending benchmarks would involve looking at other DoD R&D contracts within similar scientific domains and of similar scale.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all responsible sources, including large businesses. While there's no direct indication of subcontracting requirements for small businesses, it's common for larger prime contractors to engage small businesses for specialized support. The absence of a small business set-aside means the direct impact on the small business ecosystem for this specific award is likely limited, though indirect opportunities through subcontracting may exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure the fixed fee remains appropriate and that the project stays within budget. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development
Army Research Laboratory Contracts
Physical Sciences Research
Engineering Sciences Research
Life Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Lack of specific R&D deliverables in summary data makes value assessment difficult.
Contract duration may be short for complex R&D, potentially requiring follow-on funding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to ICE MANAGEMENT SYSTEMS, INC.. R&D AIR

Who is the contractor on this award?

The obligated recipient is ICE MANAGEMENT SYSTEMS, 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 $9.9 million.

What is the period of performance?

Start: 2006-11-09. End: 2008-05-30.

What was the specific nature of the R&D conducted under this contract?

The contract data specifies the North American Industry Classification System (NAICS) code 541710, which covers 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not detail the precise research topics or objectives. Given the awarding agency (Department of the Army) and the broad NAICS code, the R&D could have spanned areas such as advanced materials, sensor technology, robotics, biotechnology for soldier performance, or computational modeling. Without access to the contract statement of work or final reports, the exact deliverables and scientific focus remain unspecified in the provided data.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of risk and incentive?

The CPFF contract type is common for R&D where the scope is not fully defined at the outset, making fixed-price contracts difficult. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs to protect their fee, but the government bears the risk of cost overruns. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less flexibility for cost-sharing based on performance targets. Compared to Firm Fixed Price (FFP), CPFF shifts more cost risk to the government but allows for greater flexibility in evolving R&D projects. The fixed fee is negotiated upfront and generally remains constant, providing some budget predictability for the government.

What is the typical duration for R&D contracts of this magnitude within the Department of Defense?

The duration of this contract was 568 days, approximately 1.5 years. This timeframe is relatively standard for many focused R&D projects within the Department of Defense, particularly for initial research phases or specific technology development efforts. However, groundbreaking R&D can often require longer periods, sometimes spanning multiple years and involving several contract phases or follow-on awards. The 1.5-year duration suggests a project with defined objectives and milestones achievable within that period, rather than exploratory, long-term fundamental research which might necessitate longer contract terms or different funding mechanisms.

What does the 'CA' status code signify for this contract?

The status code 'ST' is listed as 'CA', which typically stands for 'California' in contract data, indicating the state where the contractor or a significant portion of the contract's work was performed. This is a geographical identifier rather than an indicator of contract performance or type. It helps in understanding the distribution of federal spending and the geographic footprint of contractors supporting the Department of Defense.

Were there any performance issues or contract modifications noted for this contract?

The provided data does not include specific details on contract modifications, performance issues, or disputes related to this contract. Standard contract data often omits such granular information unless it leads to significant changes in scope, cost, or duration. To ascertain if there were performance issues or modifications, one would typically need to access more detailed contract files, such as modification logs, performance reviews, or contract close-out documentation, which are not available in this summary dataset.

How does the $9.87 million R&D spending compare to the overall DoD R&D budget?

The $9.87 million awarded for this specific R&D contract represents a very small fraction of the Department of Defense's overall Research, Development, Test, and Evaluation (RDT&E) budget. For context, the DoD's RDT&E budget typically runs into the tens of billions of dollars annually. For example, in fiscal year 2007 (around the time this contract was active), the DoD requested over $70 billion for RDT&E. Therefore, while $9.87 million is a substantial sum for a single contract, it is a minor allocation within the vast R&D funding landscape of the entire Department of Defense.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 27464 COMMERCE CENTER DR STE C, TEMECULA, CA, 92590

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,871,452

Exercised Options: $9,871,452

Current Obligation: $9,871,452

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline