DARPA's LRASM integration contract awarded to Schafer Government Services for $22.86M, focusing on R&D

Contract Overview

Contract Amount: $22,864,858 ($22.9M)

Contractor: Schafer Government Services, LLC

Awarding Agency: Department of Defense

Start Date: 2015-06-09

End Date: 2020-05-20

Contract Duration: 1,807 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) LONG RANGE ANTI-SHIP MISSILE (LRASM) INTEGRATION AND TRANSITION

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to SCHAFER GOVERNMENT SERVICES, LLC for work described as: IGF::OT::IGF DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) LONG RANGE ANTI-SHIP MISSILE (LRASM) INTEGRATION AND TRANSITION Key points: 1. Contract value of $22.86 million for research and development. 2. Awarded under full and open competition, suggesting broad market engagement. 3. Contract duration of approximately 5 years indicates a substantial project scope. 4. Focus on advanced missile integration and transition points to critical defense capabilities. 5. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code highlights the technical nature of the work. 6. Virginia is the state where the contractor is located, potentially indicating regional economic impact.

Value Assessment

Rating: good

The contract value of $22.86 million for a 5-year R&D effort appears reasonable given the specialized nature of advanced weapons system integration. Benchmarking against similar DARPA contracts for missile systems integration and transition would provide a more precise value-for-money assessment. However, the fixed fee component suggests a degree of cost control and alignment with project objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and allowed to bid. This approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The presence of a single award suggests that Schafer Government Services, LLC was deemed the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best possible value by leveraging a wider pool of talent and competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. military, who will receive enhanced long-range anti-ship missile capabilities. The services delivered involve complex research, development, integration, and transition activities for a critical defense technology. The geographic impact is primarily national, supporting U.S. defense readiness, with potential for specific deployment locations to be determined. Workforce implications include specialized engineers, scientists, and technical personnel required for advanced R&D in aerospace and defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex R&D projects if not rigorously managed.
Dependence on a single contractor for critical integration and transition phases.
Risk of technological obsolescence if development timelines are not met or if new threats emerge.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Focus on R&D for a key strategic defense capability (LRASM).
Contract duration suggests a commitment to achieving project milestones.
Contractor's specialization in government services and R&D likely aligns with DARPA's needs.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development for advanced weapon systems. The market for such specialized R&D is typically dominated by a few key players with the necessary expertise and security clearances. DARPA's role as an innovation engine means contracts often push technological boundaries, making direct spending benchmarks challenging but essential for assessing innovation value.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests the primary awardee is likely a larger entity capable of handling the full scope of the R&D effort. Further analysis would be needed to determine if small business participation is mandated through other clauses or if it is a voluntary subcontracting effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, under the purview of DARPA. Accountability measures are inherent in the Cost Plus Fixed Fee (CPFF) contract type, which incentivizes the contractor to manage costs within the agreed-upon fixed fee. Transparency is generally maintained through contract reporting and performance reviews, though specific details may be classified due to the nature of the technology.

Related Government Programs

Long Range Anti-Ship Missile (LRASM) Program
DARPA Research and Development Contracts
Advanced Weapons Systems Integration
Department of Defense R&D Spending

Risk Flags

Complex R&D Project
Potential for Schedule Delays
Technology Integration Challenges
Reliance on Specialized Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to SCHAFER GOVERNMENT SERVICES, LLC. IGF::OT::IGF DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA) LONG RANGE ANTI-SHIP MISSILE (LRASM) INTEGRATION AND TRANSITION

Who is the contractor on this award?

The obligated recipient is SCHAFER GOVERNMENT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2015-06-09. End: 2020-05-20.

What is the track record of Schafer Government Services, LLC in similar defense R&D contracts?

Schafer Government Services, LLC has a history of performing various government contracts, including those related to defense and research and development. While specific details on their track record with advanced missile integration and transition are not provided in this summary, their award by DARPA suggests they possess the requisite technical capabilities and experience. A deeper dive into their past performance on similar projects, including client feedback and successful project completions, would offer a more comprehensive understanding of their reliability and expertise in this specialized domain. Examining their financial stability and any past performance issues would also be crucial for a complete assessment.

How does the $22.86 million contract value compare to similar LRASM integration efforts?

Direct comparison of the $22.86 million contract value for LRASM integration and transition is challenging without access to specific, comparable contract data. DARPA contracts are often unique due to their focus on cutting-edge research and development, which can involve higher costs than standard procurement. However, the duration of approximately 5 years (1807 days) for this definitive contract suggests a significant scope of work. Benchmarking against other advanced missile system development or integration contracts, considering factors like system complexity, technology maturity, and the specific phase of development (e.g., early research vs. late-stage integration), would be necessary to determine if this value represents a fair market price and good value for money.

What are the primary risks associated with this LRASM integration and transition contract?

The primary risks associated with this contract stem from the inherent complexities of advanced R&D in defense technology. These include technical risks, such as unforeseen challenges in integrating the LRASM system with existing platforms or achieving desired performance metrics. Schedule risks are also significant, as R&D projects can encounter delays due to technical hurdles or evolving requirements. Cost risks are present, particularly in Cost Plus Fixed Fee (CPFF) contracts, where the contractor must manage expenses effectively to stay within the fixed fee, though the government bears the direct costs. Finally, there's a risk of the technology becoming obsolete or superseded by newer developments before its full operational deployment.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for managing R&D projects like LRASM integration?

The Cost Plus Fixed Fee (CPFF) contract type is often used for R&D efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. It aims to provide a balance by allowing the contractor to recover allowable costs while earning a predetermined fixed fee. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also lead to less aggressive cost reduction efforts compared to fixed-price contracts. For DARPA's LRASM integration, CPFF allows flexibility for innovation while providing a degree of cost predictability for the government, though rigorous oversight is crucial to ensure efficiency and prevent cost creep.

What is the historical spending pattern for LRASM development and integration by DARPA or the Department of Defense?

Historical spending on the Long Range Anti-Ship Missile (LRASM) program by DARPA and the Department of Defense has been substantial, reflecting the strategic importance of this capability. DARPA has historically invested heavily in the foundational research and development phases, often awarding contracts similar to this one to mature the technology. Subsequent development, testing, and procurement phases are typically managed by the military services (e.g., U.S. Air Force, U.S. Navy), involving different contract types and larger overall budgets. Analyzing annual defense budgets and specific program acquisition reports would reveal trends in funding allocation for LRASM, showing shifts from R&D to production and sustainment over time.

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: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911NF15R0011

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Gryphon Technologies, Inc.

Address: 3811 NORTH FAIRFAX DR STE 400, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $23,436,214

Exercised Options: $23,436,214

Current Obligation: $22,864,858

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline