DoD's $27.7M R&D contract with Sterling Research Corp. awarded in 2005 for 5 years

Contract Overview

Contract Amount: $27,763,088 ($27.8M)

Contractor: Sterling Research Corporation

Awarding Agency: Department of Defense

Start Date: 2005-09-23

End Date: 2010-09-30

Contract Duration: 1,833 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 243

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to STERLING RESEARCH CORPORATION for work described as: Key points: 1. Contract value represents a significant investment in research and development. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 4. Performance period spans over 1800 days, indicating a long-term research objective. 5. The North American Industry Classification System (NAICS) code 541710 points to a focus on physical, engineering, and life sciences research. 6. The contract was awarded by the Department of the Army, a major component of the DoD. 7. The contract was awarded in 2005, with performance extending into 2010.

Value Assessment

Rating: fair

The contract's total value of $27.7 million over approximately five years suggests a substantial investment. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, carries inherent risks of cost escalation if not managed diligently. Benchmarking against similar R&D contracts within the DoD for comparable scientific research would be necessary for a more precise evaluation of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. The presence of 243 bids suggests a highly competitive environment, which typically drives down prices and encourages innovation. This level of competition is generally favorable for the government and taxpayers.

Taxpayer Impact: A high number of bidders indicates that the government likely received competitive pricing and a wide range of technical solutions, maximizing the value of taxpayer funds.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, seeking advancements in physical, engineering, and life sciences. The contract supports research and development activities, potentially leading to new technologies or improved scientific understanding. The geographic impact is primarily associated with the contractor's location in Utah (ST='UT', SN='UTAH'), where the research activities would be conducted. The contract may have implications for the scientific and technical workforce, both within the contractor's organization and potentially in related research fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not rigorously managed.
The long performance period (1833 days) increases the risk of scope creep or changing research priorities.
Limited information on specific deliverables makes it difficult to assess the return on investment.
The exclusion of sources in the competition type, while still full and open, warrants a review of the justification for exclusion.

Positive Signals

Awarded under full and open competition with a large number of bids (243), indicating strong market interest and potential for competitive pricing.
The contract focuses on R&D, which is crucial for technological advancement and national security.
The contractor is Sterling Research Corporation, suggesting a specialized entity in the R&D sector.
The contract was awarded by the Department of the Army, a significant agency within the DoD.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541710, which covers R&D in the physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant government investment, particularly in defense and technology. Comparable spending benchmarks would involve analyzing other DoD R&D contracts for similar scientific disciplines and contract values.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss=false, sb=false). Therefore, the primary focus was on obtaining the best research capabilities through open competition. There is no explicit information regarding subcontracting plans for small businesses within the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed R&D progress reports are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Investments
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Initiatives

Risk Flags

Cost-plus-fixed-fee structure requires diligent oversight to prevent cost overruns.
Long performance period increases risk of scope creep or changing requirements.
Limited specific details on deliverables hinder precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to STERLING RESEARCH CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is STERLING 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 $27.8 million.

What is the period of performance?

Start: 2005-09-23. End: 2010-09-30.

What specific research areas were covered under this $27.7 million contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, the specific research areas are not detailed. Typically, contracts under this code could encompass a wide range of scientific disciplines, from materials science and advanced manufacturing to biotechnology, environmental science, or cybersecurity research, depending on the Army's specific needs at the time of award in 2005. Further investigation into the contract's statement of work or associated documentation would be required to identify the precise research objectives and deliverables.

How does the number of bids (243) compare to typical R&D contract competitions within the Department of Defense?

A total of 243 bids for a research and development contract, especially one valued at $27.7 million, is exceptionally high. For large, complex R&D efforts, the number of interested and capable bidders can vary significantly. However, such a high number strongly suggests that the research area was of broad interest to the industry, that the solicitation was well-publicized, and that the requirements were potentially accessible to a wide range of firms. This level of competition is generally seen as a positive indicator for achieving competitive pricing and accessing diverse technical solutions, often exceeding the average number of bids seen for many specialized or niche R&D procurements within the DoD.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract structure, while common for R&D where the scope may evolve, presents specific risks. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor does not manage costs effectively, the total cost to the government can exceed initial estimates, even though the fee remains fixed. This can lead to budget overruns and potentially less value for money if the final cost is disproportionately high compared to the achieved research outcomes. Robust government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks in a CPFF arrangement.

What was Sterling Research Corporation's track record or specialization prior to or during this contract?

The provided data identifies Sterling Research Corporation as the contractor and indicates the contract was for R&D in physical, engineering, and life sciences. However, it does not offer details on the company's specific track record, past performance on similar contracts, or its specialization beyond the broad NAICS code. To assess their track record, one would need to examine other federal contract awards to Sterling Research Corporation, reviews of their performance on this specific contract (if available), and their established expertise in the relevant scientific fields. Without this additional information, it's difficult to gauge their specific capabilities or historical success rate.

How does the $27.7 million total award value compare to annual R&D spending in the physical, engineering, and life sciences by the Department of the Army?

The $27.7 million award value represents a specific investment in a particular R&D effort over a five-year period. To contextualize this, one would need to compare it against the Department of the Army's total annual budget allocated for Research, Development, Test, and Evaluation (RDT&E). The Army's RDT&E budget typically runs into billions of dollars annually, covering a vast array of scientific and technological advancements across numerous domains. Therefore, while $27.7 million is a substantial sum for a single contract, it likely represents a fraction of the Army's overall R&D spending. A detailed comparison would require accessing historical Army RDT&E budget data and identifying the proportion allocated to the physical, engineering, and life sciences sectors.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 243

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 360 WAKARA WAY, SALT LAKE CITY, UT, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline