DoD's $47.8M Imperatis Corp. R&D contract for 'LEGACY PROJECT QANDAHAR' raises value and performance questions

Contract Overview

Contract Amount: $47,828,140 ($47.8M)

Contractor: Imperatis Corp.

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2012-05-28

Contract Duration: 608 days

Daily Burn Rate: $78.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LEGACY PROJECT QANDAHAR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $47.8 million to IMPERATIS CORP. for work described as: LEGACY PROJECT QANDAHAR Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize spending over efficiency. 2. Limited public information on performance metrics makes value assessment difficult. 3. The contract duration of 608 days for R&D suggests a complex or lengthy development cycle. 4. The specific nature of 'LEGACY PROJECT QANDAHAR' is not detailed, hindering understanding of its purpose and impact. 5. Benchmarking against similar R&D contracts is challenging without more specific project details. 6. The absence of small business subcontracting requirements warrants further investigation into broader economic impact.

Value Assessment

Rating: questionable

The $47.8 million award for a 608-day research and development project, utilizing a Cost Plus Fixed Fee (CPFF) contract type, presents potential value concerns. CPFF contracts can sometimes lead to higher costs if not rigorously managed, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without detailed performance metrics or a clear understanding of the project's deliverables, it is difficult to benchmark the value for money. Comparing this to similar R&D efforts in the defense sector would require more granular data on the specific research outcomes and their alignment with strategic 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 bidders had the opportunity to submit proposals. This competitive process is generally favorable for price discovery and ensuring a fair market price. However, the number of bids received and the specific evaluation criteria are not detailed, which limits a deeper analysis of the competitive intensity and its impact on the final award price.

Taxpayer Impact: Full and open competition suggests that taxpayers benefited from a potentially competitive bidding process, which can help drive down costs compared to sole-source awards.

Public Impact

The primary beneficiaries are likely the Department of Defense, through the research and development outcomes. The services delivered are in research and development, focusing on physical, engineering, and life sciences. The geographic impact is not specified but is likely tied to defense operations or strategic interests. Workforce implications would involve specialized researchers and technical personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding specific project goals and deliverables hinders performance evaluation.
Cost-plus-fixed-fee contract type may not be the most cost-effective for R&D if not tightly managed.
Limited information on the contractor's specific track record for similar complex R&D projects.
The broad NAICS code (541712) for R&D doesn't specify the exact technological domain, making risk assessment harder.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract is with Imperatis Corp., a known entity in the government contracting space.
The project falls under a standard R&D NAICS code, indicating adherence to established research categories.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically under NAICS code 541712, which covers R&D in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is critical for defense innovation, requiring significant investment in scientific and technical expertise. The total federal spending on R&D is substantial, with defense R&D forming a significant portion. This contract represents a specific investment within that broader landscape, aiming to advance technological capabilities for national security.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this award. This suggests that the primary focus was on technical capability and price, rather than promoting small business engagement directly through set-asides. There is no information provided on subcontracting plans, making it difficult to assess the potential impact on the small business ecosystem or opportunities for small business innovation within this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, including cost reporting and milestone achievement. Transparency is limited by the proprietary nature of R&D and the specific details of 'LEGACY PROJECT QANDAHAR'. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Physical Sciences Research Grants
Life Sciences Research Initiatives

Risk Flags

Cost-plus-fixed-fee contract type may lead to cost overruns.
Lack of specific project details hinders performance and value assessment.
Long project duration increases risk of obsolescence and scope creep.
Limited information on contractor's specific R&D performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.8 million to IMPERATIS CORP.. LEGACY PROJECT QANDAHAR

Who is the contractor on this award?

The obligated recipient is IMPERATIS CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $47.8 million.

What is the period of performance?

Start: 2010-09-28. End: 2012-05-28.

What is the specific nature and objective of 'LEGACY PROJECT QANDAHAR'?

The provided data does not specify the exact nature or objectives of 'LEGACY PROJECT QANDAHAR'. The designation 'LEGACY PROJECT' suggests it might be related to maintaining or upgrading existing systems, or perhaps a long-term initiative with historical roots. The NAICS code 541712 indicates it falls under Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Without further details, it is impossible to ascertain the project's specific technological domain, its intended application, or the expected outcomes. This lack of clarity makes it challenging to assess the project's strategic importance or its potential impact.

How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this R&D contract?

The Cost Plus Fixed Fee (CPFF) contract structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. For R&D projects, this structure can be beneficial when the scope of work is uncertain or likely to evolve, allowing flexibility. However, it carries a risk of cost overruns if not managed diligently, as the contractor has less incentive to control costs compared to fixed-price contracts. The 'fixed fee' component provides some predictability for the contractor's profit, but the total cost to the government can fluctuate. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to ensure value for money under a CPFF arrangement, especially for a project valued at nearly $48 million over 608 days.

What is Imperatis Corp.'s track record with similar large-scale R&D contracts for the Department of Defense?

Information regarding Imperatis Corp.'s specific track record with large-scale R&D contracts for the Department of Defense is not detailed in the provided data. While the contract was awarded through full and open competition, suggesting the company was deemed capable, a comprehensive assessment would require reviewing past performance evaluations, project success rates, and experience with similar R&D endeavors. Understanding their history with CPFF contracts and their ability to deliver complex research outcomes within budget and schedule would provide further insight into their suitability and the potential risks associated with this award.

Are there any comparable R&D contracts that can be used to benchmark the pricing and scope of this award?

Benchmarking the pricing and scope of this $47.8 million, 608-day R&D contract is difficult without more specific details about 'LEGACY PROJECT QANDAHAR' and its deliverables. Federal procurement databases often contain information on similar contracts, but direct comparisons require matching not only the NAICS code (541712) and agency (DoD) but also the technological domain, complexity, and expected outcomes. Contracts for basic research, applied research, or advanced technology development can vary significantly in cost and duration. Without knowing the specific scientific or engineering challenges being addressed, it's hard to find precise comparables to assess if the $47.8 million represents a fair market price for the anticipated R&D effort.

What are the potential risks associated with the 608-day duration of this R&D project?

A duration of 608 days (approximately 20 months) for an R&D project of this magnitude suggests a potentially complex undertaking. Risks associated with such a long duration include the possibility of scope creep, where project requirements expand over time, leading to increased costs. There's also the risk of technological obsolescence; R&D can be a fast-moving field, and by the time the project concludes, the developed technology might be outdated. Furthermore, maintaining contractor focus and project momentum over an extended period can be challenging. Effective project management, regular reviews, and adaptive planning are essential to mitigate these risks and ensure the project remains relevant and on track.

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: 2231 CRYSTAL DR STE 401, ARLINGTON, VA, 22202

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $47,947,555

Exercised Options: $47,947,555

Current Obligation: $47,828,140

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline