DoD's $12.6M R&D Contract with RTI Under Full and Open Competition Shows Moderate Duration

Contract Overview

Contract Amount: $12,582,911 ($12.6M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Defense

Start Date: 2006-11-14

End Date: 2013-01-31

Contract Duration: 2,270 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SI-1413

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $12.6 million to RESEARCH TRIANGLE INSTITUTE for work described as: SI-1413 Key points: 1. The contract value of $12.6 million is moderate for R&D services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 2270 days (over 6 years) is substantial. 4. The sector is R&D in Physical, Engineering, and Life Sciences, a critical area for defense.

Value Assessment

Rating: fair

The contract value of $12.6M over 6 years suggests a moderate annual spend. Without specific benchmarks for similar R&D contracts, assessing value is difficult. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of 'FULL AND OPEN COMPETITION' indicates that multiple bidders were allowed to submit proposals. This method generally promotes price discovery and can lead to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds than a non-competitive award.

Public Impact

Taxpayers benefit from a competitive bidding process for R&D services. The long contract duration suggests a sustained need for the research services provided. The Department of the Army's investment in R&D supports technological advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
  • Long contract duration may indicate potential for scope creep or evolving requirements.

Positive Signals

  • Full and open competition utilized.
  • Contract supports critical R&D for the Department of Defense.

Sector Analysis

This contract falls under the R&D sector, specifically for Physical, Engineering, and Life Sciences (excluding Biotechnology). Spending in this sector is crucial for national security and technological advancement, with significant government investment annually.

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 awarded under full and open competition, suggesting a degree of oversight in the selection process. However, the Cost Plus Fixed Fee structure requires diligent monitoring to ensure cost control and prevent overruns.

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

  • Cost Plus Fixed Fee contract type.
  • Long contract duration.
  • Lack of specific performance metrics in provided data.
  • Potential for cost overruns with CPFF.

Tags

research-and-development-in-the-physical, department-of-defense, nc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.6 million to RESEARCH TRIANGLE INSTITUTE. SI-1413

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2006-11-14. End: 2013-01-31.

What specific R&D was conducted under this contract, and did it meet the Army's objectives?

The contract's NAICS code (541712) indicates Research and Development in the Physical, Engineering, and Life Sciences. To assess effectiveness, one would need to review project reports, milestones achieved, and final deliverables against the contract's statement of work and the Army's stated research goals.

How did the final cost compare to the initial estimates, given the Cost Plus Fixed Fee structure?

A Cost Plus Fixed Fee (CPFF) contract means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. To assess value, we'd need to compare the final incurred costs against the initial estimated cost and the fixed fee. Significant deviations could indicate issues with cost control or scope management.

Were there any performance issues or contract modifications during the 6-year period?

The contract duration of over 6 years (2270 days) for R&D services warrants scrutiny for potential performance issues or the need for significant modifications. Reviewing contract modification history and performance reviews would reveal if the project stayed on track or encountered substantial challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTNatural Resources and Environment R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIANGLE PARK, NC, 27709

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,582,911

Exercised Options: $12,582,911

Current Obligation: $12,582,911

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2006-11-14

Current End Date: 2013-01-31

Potential End Date: 2013-01-31 00:00:00

Last Modified: 2017-08-30

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