DoD's $32M R&D Contract with TECHWERKS LLC: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $31,989,126 ($32.0M)
Contractor: Techwerks LLC
Awarding Agency: Department of Defense
Start Date: 2017-06-30
End Date: 2022-07-10
Contract Duration: 1,836 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: IGF::OT::IGF
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to TECHWERKS LLC for work described as: IGF::OT::IGF Key points: 1. The contract awarded to TECHWERKS LLC for R&D services represents a significant investment. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a structured but potentially limited bidding process. 3. The 'FIRM FIXED PRICE' contract type aims to control costs, but the final value of $31.99M warrants scrutiny. 4. The R&D sector is critical for innovation, making oversight of such contracts essential for national security and technological advancement.
Value Assessment
Rating: fair
The contract's value of $31.99M for R&D services needs comparison against similar contracts in the physical, engineering, and life sciences sector. Without specific benchmarks for comparable research projects, assessing its value for money is challenging.
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'. This method implies that while open to all, specific sources were initially excluded, which could impact the breadth of competition and potentially the final price discovery.
Taxpayer Impact: The fixed-price nature aims to protect taxpayers from cost overruns, but the effectiveness depends on the initial pricing accuracy and the scope of work.
Public Impact
Taxpayers are funding critical research and development initiatives through this contract. The contract's duration (1836 days) indicates a long-term commitment to the research objectives. The specific R&D area (541712) suggests a focus on advancements in physical, engineering, and life sciences, excluding biotechnology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Potential for cost creep despite fixed price if scope changes.
- Lack of clear performance metrics in provided data.
Positive Signals
- Fixed-price contract type for cost control.
- Awarded under a full and open competition framework.
- Supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for technological advancement and national security, with significant government investment aimed at fostering innovation and maintaining a competitive edge.
Small Business Impact
The data indicates that TECHWERKS LLC is not a small business, as the 'sb' field is false. This contract was not specifically set aside for small business participation.
Oversight & Accountability
Oversight is crucial for R&D contracts to ensure that funds are used effectively and that research objectives are met. The Department of the Army's contracting activity suggests internal oversight mechanisms are in place, but their effectiveness would depend on detailed performance monitoring.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Lack of detailed performance metrics.
- Uncertainty regarding the specific R&D deliverables and their impact.
- Long contract duration may not adapt to rapidly changing R&D landscapes.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to TECHWERKS LLC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is TECHWERKS 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 $32.0 million.
What is the period of performance?
Start: 2017-06-30. End: 2022-07-10.
What specific research outcomes were achieved relative to the $31.99M investment?
The provided data does not detail the specific research outcomes or deliverables associated with the $31.99M contract. To assess the value, a review of the final reports, prototypes, or technological advancements generated by TECHWERKS LLC would be necessary. This would allow for a comparison against the initial objectives and the overall investment.
How did the exclusion of sources impact the final price and quality of research?
The 'exclusion of sources' in the competition process could have limited the number of bidders, potentially reducing price competition and the diversity of innovative approaches. While the contract is fixed-price, the initial pricing might have been less competitive than if a broader pool of bidders had been allowed, impacting the overall value and quality of the research obtained.
What mechanisms are in place to ensure the R&D conducted aligns with evolving DoD needs?
The contract's duration and fixed-price nature suggest a defined scope. However, ensuring alignment with evolving DoD needs typically requires robust program management, regular technical reviews, and potentially contract modifications if the research direction needs to pivot. The effectiveness of these mechanisms is not detailed in the provided data.
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: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911QY17R0029
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 626 W SIGWALT ST, ARLINGTON HEIGHTS, IL, 60005
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $43,745,443
Exercised Options: $34,892,278
Current Obligation: $31,989,126
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-06-30
Current End Date: 2022-07-10
Potential End Date: 2022-07-10 00:00:00
Last Modified: 2021-02-03
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