DoD's $33.3M operations support contract awarded to Scientific Research Corporation raises value and competition concerns

Contract Overview

Contract Amount: $33,271,899 ($33.3M)

Contractor: Scientific Research Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-19

End Date: 2022-09-18

Contract Duration: 1,004 days

Daily Burn Rate: $33.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: OPERATIONS SUPPORT AND EVENT COORDINATION

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $33.3 million to SCIENTIFIC RESEARCH CORPORATION for work described as: OPERATIONS SUPPORT AND EVENT COORDINATION Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Duration of over 1000 days suggests a long-term need for these services. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 4. Lack of competition raises questions about whether the government received the best possible value. 5. The specific services provided are critical for operational support and event coordination. 6. Geographic location of performance is Alabama, indicating a regional impact.

Value Assessment

Rating: questionable

Benchmarking the value of this $33.3 million contract is challenging due to its sole-source nature and the specific nature of 'operations support and event coordination.' Without competitive bids, it's difficult to ascertain if the pricing is aligned with market rates or if alternative, more cost-effective solutions were overlooked. The Cost Plus Fixed Fee structure, while allowing for flexibility, can sometimes lead to higher overall costs if not meticulously managed. A comparison to similar contracts for event coordination and operational support, especially those awarded competitively, would be necessary to provide a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service. However, the absence of competition means that the Department of Defense did not benefit from the price reductions and innovation that can arise from a competitive bidding process. The lack of bidders prevents a clear understanding of the market's response and potential pricing variations.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive pressure. Without competing bids, there is a reduced incentive for the contractor to offer the lowest possible price, potentially leading to less efficient use of public funds.

Public Impact

The Department of Defense benefits directly through enhanced operational support and event coordination capabilities. Services likely ensure smooth execution of military operations and events, contributing to mission readiness. The contract's performance in Alabama has implications for the local workforce and economy in that region. The specific nature of the services supports the logistical and administrative functions within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Cost Plus Fixed Fee contract type can potentially lead to higher costs if not managed stringently.
Lack of transparency in the procurement process due to sole-source award.

Positive Signals

Contract awarded to a known entity (Scientific Research Corporation) which may imply existing expertise.
The contract addresses essential operational support and event coordination needs for the Army.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector. This sector is characterized by a wide range of specialized services supporting government and commercial operations. While specific market size data for 'operations support and event coordination' is not readily available, the overall federal spending on professional services is substantial. This contract represents a portion of the Department of Defense's expenditure on maintaining operational readiness and executing events, fitting within the larger landscape of defense contracting.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, the direct impact on the small business ecosystem is likely minimal. Without a competitive bidding process that includes small business participation goals, opportunities for small businesses to engage in this specific service area are absent.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction may be invoked if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Defense Logistics Agency Support Contracts
Army Event Planning and Management Services
Operational Readiness Support Contracts
Professional and Technical Services for DoD

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.3 million to SCIENTIFIC RESEARCH CORPORATION. OPERATIONS SUPPORT AND EVENT COORDINATION

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC RESEARCH 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 $33.3 million.

What is the period of performance?

Start: 2019-12-19. End: 2022-09-18.

What is the track record of Scientific Research Corporation with the Department of Defense?

Scientific Research Corporation (SRC) has a history of contracting with the Department of Defense and other federal agencies. Analyzing their past performance on similar contracts, particularly those involving operations support and event coordination, would be crucial. This includes reviewing past performance evaluations, any documented issues or disputes, and their overall success rate in meeting contract requirements. Understanding their experience and reliability with the DoD provides context for their ability to execute this current contract effectively and efficiently. Without specific data on past performance metrics for this contractor on similar DoD contracts, a full assessment of their track record remains incomplete.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other award types in terms of cost efficiency for similar services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves a high degree of uncertainty, allowing for flexibility. However, compared to fixed-price contracts, CPFF can be less cost-efficient for the government. In fixed-price contracts, the contractor bears more risk and has a stronger incentive to control costs to maximize profit. With CPFF, the government reimburses the contractor's allowable costs plus a fixed fee, which can sometimes lead to cost overruns if not managed rigorously. For services like operations support and event coordination, if the scope can be clearly defined, a competitive fixed-price bid might yield better value for taxpayers.

What are the primary risks associated with sole-source awards for operational support services?

The primary risks associated with sole-source awards for operational support services include a lack of competitive pricing, potentially leading to higher costs for the government. Without competition, there is reduced incentive for the contractor to innovate or improve efficiency. Furthermore, it limits the government's ability to explore alternative solutions or vendors that might offer better value or specialized capabilities. There's also a risk of vendor lock-in, making it difficult to switch providers in the future. Transparency in the procurement process is diminished, making it harder to justify the expenditure to taxpayers and stakeholders.

What specific 'operations support and event coordination' services are included under this contract?

The provided data indicates the contract is for 'OPERATIONS SUPPORT AND EVENT COORDINATION' but does not detail the specific services. Typically, such services could encompass a wide range of activities including logistical planning, venue management, scheduling, resource allocation, technical support for events, coordination of personnel, travel arrangements, and on-site support during operations or events. The exact nature of these services is critical for understanding the contract's value and assessing performance. Further details would likely be found in the contract's statement of work (SOW) or performance work statement (PWS).

What is the historical spending trend for similar operations support and event coordination contracts within the Department of the Army?

Analyzing historical spending trends for similar contracts within the Department of the Army is essential for context. Without specific data on past expenditures for 'operations support and event coordination,' it's difficult to establish a precise trend. However, federal spending in this category can fluctuate based on operational tempo, the number and scale of events, and strategic priorities. A review of previous years' budgets and contract awards for comparable services would reveal whether this $33.3 million award represents an increase, decrease, or stable level of investment. Understanding these patterns helps in assessing the current contract's financial significance and potential future spending.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W900KK17R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2300 WINDY RIDGE PKWY STE 400S, ATLANTA, GA, 30339

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

Financial Breakdown

Contract Ceiling: $43,577,363

Exercised Options: $43,577,363

Current Obligation: $33,271,899

Actual Outlays: $4,797,366

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $16,289,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK17D0010

IDV Type: IDC

Timeline