DoD's $46.5M R&D Contract for Legacy Kabul: Full & Open Competition, High Unit Cost
Contract Overview
Contract Amount: $46,479,044 ($46.5M)
Contractor: Domestic Awardees (undisclosed)
Awarding Agency: Department of Defense
Start Date: 2010-09-28
End Date: 2012-05-28
Contract Duration: 608 days
Daily Burn Rate: $76.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LEGACY KABUL
Plain-Language Summary
Department of Defense obligated $46.5 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: LEGACY KABUL Key points: 1. Significant investment in R&D for a complex, undisclosed project. 2. Full and open competition was utilized, suggesting a robust market. 3. High per-unit cost raises questions about value for money. 4. Contract type (Cost Plus Fixed Fee) can lead to cost overruns.
Value Assessment
Rating: questionable
The contract's total value is substantial. However, the per-unit cost of $764,46 is exceptionally high, especially for R&D services. Benchmarking against similar contracts is difficult without more specific project details, but this figure warrants scrutiny.
Cost Per Unit: $764,46
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing, but the final price achieved here appears high.
Taxpayer Impact: Taxpayer funds are being utilized for a research and development project with a high per-unit cost, necessitating careful oversight to ensure value.
Public Impact
Public funds are directed towards advanced research and development. The specific nature of the 'Legacy Kabul' project remains undisclosed, limiting public understanding. The high cost per unit suggests a potentially specialized or resource-intensive undertaking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Undisclosed project details
- Cost Plus Fixed Fee contract type
Positive Signals
- Full and open competition utilized
- Significant investment in R&D
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but can be highly variable in cost and outcome. Benchmarks are difficult without knowing the specific R&D area.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight would focus on ensuring the R&D objectives are met within the cost constraints and that the Cost Plus Fixed Fee structure is appropriately managed.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High per-unit cost
- Cost Plus Fixed Fee contract type
- Undisclosed project details
- Potential for cost overruns
- Limited transparency on small business participation
Tags
research-and-development-in-the-physical, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to DOMESTIC AWARDEES (UNDISCLOSED). LEGACY KABUL
Who is the contractor on this award?
The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.5 million.
What is the period of performance?
Start: 2010-09-28. End: 2012-05-28.
What specific R&D activities were performed under this contract, and how does the $764,46 per-unit cost align with industry standards for similar research?
The provided data classifies the contract under 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' (NAICS 541712). However, the specific nature of the 'Legacy Kabul' project is undisclosed. Without this detail, it's impossible to accurately benchmark the per-unit cost of $764,46 against industry standards. This high figure suggests either a highly specialized area of research, significant overhead, or potential inefficiencies that warrant further investigation.
Given the 'Cost Plus Fixed Fee' structure and the high per-unit cost, what are the primary risks to taxpayer value and project completion?
The primary risk to taxpayer value is the potential for cost overruns inherent in 'Cost Plus' contracts, especially when combined with a high initial per-unit cost. The fixed fee component might incentivize the contractor to control costs, but the 'cost plus' aspect means the government bears the brunt of unexpected expenses. Risks to project completion include the contractor potentially cutting corners on quality to manage costs, or the project becoming prohibitively expensive, leading to termination or reduced scope.
How effective is 'full and open competition' in ensuring value for money when dealing with complex, potentially sensitive R&D projects like 'Legacy Kabul'?
Full and open competition is generally the most effective method for ensuring value for money as it maximizes the pool of potential bidders and fosters price competition. However, for highly specialized R&D, the number of capable bidders might be limited, potentially reducing the competitive pressure. The effectiveness in this case is questionable due to the high per-unit cost achieved despite competition. This suggests that either the market for this specific R&D is inherently expensive, or the evaluation criteria may have prioritized factors other than the lowest cost.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1800 F ST NW, WASHINGTON, DC, 20405
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,584,672
Exercised Options: $46,584,672
Current Obligation: $46,479,044
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-09-28
Current End Date: 2012-05-28
Potential End Date: 2012-05-28 00:00:00
Last Modified: 2021-08-25
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