DoD Awards $80.8M for Defense Operational System Development to Simpex Technologies

Contract Overview

Contract Amount: $18,011,140 ($18.0M)

Contractor: Simpex Technologies Incorporated

Awarding Agency: Department of Defense

Start Date: 2004-02-11

End Date: 2010-12-31

Contract Duration: 2,515 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200407!000422!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0084 !A!N! !Y! ! !20040211!20091231!808812929!808812929!808812929!N!SIMPEX TECHNOLOGIES, INC !14692 CENTRAL AVENUE !CHINO !CA!91710!29300!003!24!FORT GEORGE G. MEADE!ANNE ARUNDEL !MARYLAND !+000001540000!N!N!000000000000!AD97!RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!999!E! !Z!Y!Z! ! !N!A!N!N!B! ! ! !A!A!00 !A!B!N! ! ! !Y!9700!SE RE !0001! !

Place of Performance

Location: CHINO, SAN BERNARDINO County, CALIFORNIA, 91710

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to SIMPEX TECHNOLOGIES INCORPORATED for work described as: 200407!000422!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0084 !A!N! !Y! ! !20040211!20091231!808812929!808812929!808812929!N!SIMPEX TECHNOLOGIES, INC !14692 CENTRAL AVENUE !CHINO !CA!91710!29300!003!24!FORT GEORGE G. MEADE!ANNE… Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over 5 years, indicating a significant, long-term project. 4. The awardee, Simpex Technologies, Inc., is a small business, potentially impacting market dynamics.

Value Assessment

Rating: fair

The contract value of $80.88 million over approximately 5.7 years results in an average annual value of roughly $14.1 million. Benchmarking this against similar R&D contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of potential contractors to bid. This method is generally expected to yield fair market prices.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Supports advanced defense operational system development, potentially enhancing national security capabilities. The contract award to a California-based company contributes to regional economic activity. Long-term nature of the contract provides stability for the awarded company and its employees.

Waste & Efficiency Indicators

Waste Risk Score: 71 / 10

Warning Flags

Potential for cost overruns in R&D projects.
Dependence on a single small business for critical defense development.

Positive Signals

Awarded through full and open competition.
Contract supports critical defense research and development.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Defense R&D spending is a significant portion of the overall federal budget, with a focus on technological advancement and maintaining military superiority.

Small Business Impact

Simpex Technologies, Inc. is identified as a small business. While this can foster small business growth, it also raises questions about the company's capacity to handle a contract of this magnitude and complexity independently.

Oversight & Accountability

The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring performance and adherence to contract terms.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract awarded to a small business for a significant R&D effort.
Cost-Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Long contract duration increases exposure to changing technological needs and market conditions.
Limited information on the specific systems being developed hinders a full risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to SIMPEX TECHNOLOGIES INCORPORATED. 200407!000422!2100!W911QX!USA MATERIEL COMMAND ACQUISITION!W911QX04C0084 !A!N! !Y! ! !20040211!20091231!808812929!808812929!808812929!N!SIMPEX TECHNOLOGIES, INC !14692 CENTRAL AVENUE !CHINO !CA!91710!29300!003!24!FORT GEORGE G. MEADE!ANNE ARUNDEL !MARYLAND !+000001540000!N!N!000000000000!AD97!RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is SIMPEX TECHNOLOGIES INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.0 million.

What is the period of performance?

Start: 2004-02-11. End: 2010-12-31.

What specific defense operational systems are being developed under this contract, and what is their projected impact on military capabilities?

The data indicates the contract is for 'RDTE/OTHER DEFENSE-OPERATIONAL SYSTEM DEVELOPMENT.' Specific system details are not provided. The projected impact would depend on the nature of these systems, but generally, such R&D aims to enhance intelligence, surveillance, reconnaissance, communication, or weapon system capabilities, ultimately contributing to improved military effectiveness and national security.

Given Simpex Technologies is a small business, what measures are in place to mitigate risks associated with their capacity and performance on this large R&D contract?

While the contract is large, the 'COST PLUS FIXED FEE' structure suggests risk sharing. The government likely has oversight mechanisms, performance metrics, and potentially phased funding tied to milestones. However, the inherent risks of relying on a small business for significant R&D may necessitate close monitoring and contingency planning by the contracting agency.

How does the $80.88 million contract value compare to industry benchmarks for similar defense operational system development R&D projects?

Without specific details on the systems being developed, a direct benchmark is challenging. However, $80.88 million over nearly six years averages to about $14 million annually. This figure needs to be compared against the typical cost of similar R&D efforts within the defense sector, considering factors like technology maturity, complexity, and required expertise to determine if it represents good value.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14692 CENTRAL AVENUE, CHINO, CA, 35

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $145,600

Exercised Options: $145,600

Current Obligation: $18,011,140

Contract Characteristics

Cost or Pricing Data: YES

Timeline