DoD's $4.2M R&D contract to Group W Inc. for physical sciences research shows strong competition

Contract Overview

Contract Amount: $4,229,538 ($4.2M)

Contractor: Group W Inc

Awarding Agency: Department of Defense

Start Date: 2024-08-15

End Date: 2026-08-14

Contract Duration: 729 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OPERATIONS ANALYSIS BRANCH (OAB)

Plain-Language Summary

Department of Defense obligated $4.2 million to GROUP W INC for work described as: OPERATIONS ANALYSIS BRANCH (OAB) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Research and Development in Physical, Engineering, and Life Sciences is a key area for DoD. 3. The contract duration of 729 days suggests a significant, multi-year research effort. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award to Group W Inc. represents a specific investment in specialized scientific capabilities. 6. This contract falls under the broad category of R&D, crucial for technological advancement.

Value Assessment

Rating: good

The contract value of approximately $4.2 million for a 729-day research and development effort appears reasonable given the specialized nature of R&D services. Without specific benchmarks for this particular type of physical sciences research, a direct per-unit cost comparison is difficult. However, the fixed-price nature of the contract provides cost certainty. The award was made through full and open competition, which typically drives competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally leads to a more competitive environment, potentially resulting in better pricing and value for the government. The agency sought proposals from all responsible sources.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance, ultimately benefiting the government's budget.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, which will receive the results of the physical sciences research. The services delivered are focused on research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is likely concentrated within the research facilities of the contractor and the relevant DoD entities, with potential for broader national security implications. Workforce implications include employment for scientists, engineers, and support staff involved in the research project at Group W Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the quality and impact of the R&D.
The specific area of 'physical, engineering, and life sciences' is broad; the actual research focus could carry inherent risks.
No information is available on the contractor's past performance on similar government contracts.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely vetted multiple capable vendors.
The contract is a Firm Fixed Price (FFP) type, which shifts cost risk to the contractor and provides budget certainty.
The contract duration of nearly two years indicates a substantial and potentially impactful research project.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within physical, engineering, and life sciences (NAICS 541712). This sector is critical for innovation and maintaining technological superiority for defense agencies. Spending in this area is often characterized by long-term investments, specialized expertise, and a focus on future capabilities. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the DoD or other federal agencies for similar scientific disciplines.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Group W Inc., would be responsible for managing the entire scope of work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified research outcomes. Transparency is generally facilitated through contract award databases, though specific research details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Army Science and Technology Programs
Physical Sciences Research Contracts
Engineering Research and Development
Life Sciences Research Contracts

Risk Flags

Potential for research to yield uncertain or non-applicable results.
Contractor performance risk in delivering complex R&D outcomes.
Scope creep risk if research objectives are not clearly defined and managed.
Reliance on specialized expertise which may be difficult to replace.
Potential for findings to become obsolete quickly in rapidly evolving scientific fields.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.2 million to GROUP W INC. OPERATIONS ANALYSIS BRANCH (OAB)

Who is the contractor on this award?

The obligated recipient is GROUP W INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-08-14.

What is Group W Inc.'s track record with the federal government, particularly on R&D contracts?

Information regarding Group W Inc.'s specific track record with the federal government, especially concerning Research and Development (R&D) contracts, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government awards. Without this historical data, it is difficult to gauge their reliability and expertise in executing similar R&D projects. Further investigation into federal procurement databases and contractor performance systems would be necessary to establish a baseline for their performance.

How does the $4.2 million value compare to similar R&D contracts in physical sciences?

The $4.2 million contract value for a 729-day R&D effort in physical sciences is within a common range for specialized research projects. However, a precise comparison requires detailed knowledge of the specific research scope, deliverables, and the level of innovation required. Contracts in this domain can vary significantly based on factors like the complexity of the scientific inquiry, the need for proprietary technology, and the required personnel expertise. Benchmarking against similar contracts awarded by the Department of Defense or other agencies for comparable scientific disciplines would provide a more accurate assessment of value for money. The firm-fixed-price structure suggests a defined scope, which aids in value assessment.

What are the primary risks associated with this specific R&D contract?

The primary risks associated with this R&D contract include technical risks inherent in scientific research, where outcomes are not guaranteed. There's a risk that the research may not yield the desired results or that unforeseen challenges could delay progress. Another risk relates to contractor performance; while awarded through full and open competition, the contractor's ability to deliver on complex R&D objectives needs to be monitored. Furthermore, the broad categorization of 'physical, engineering, and life sciences' could mask specific technical hurdles or regulatory compliance issues depending on the precise research focus. The fixed-price nature, while beneficial for cost control, could also incentivize the contractor to cut corners if not properly overseen.

How effective is the 'full and open competition' approach for R&D contracts of this nature?

The 'full and open competition' approach is generally considered highly effective for R&D contracts as it maximizes the pool of potential offerors, increasing the likelihood of finding the most innovative and cost-effective solutions. For specialized fields like physical sciences, this method allows the government to solicit proposals from a wide range of academic institutions, research firms, and established companies, fostering innovation and potentially uncovering novel approaches. This competitive pressure typically drives down prices and encourages higher quality performance. The Department of the Army's choice of this method suggests a commitment to obtaining the best value and technological advancement for taxpayer investment in R&D.

What is the historical spending trend for R&D in physical sciences by the Department of the Army?

Historical spending trends for R&D in physical sciences by the Department of the Army are typically substantial, reflecting the critical role of scientific advancement in maintaining military readiness and technological superiority. While specific figures for this exact sub-category (NAICS 541712) are not provided, the Army consistently invests billions annually across various R&D efforts. This includes foundational research, applied research, and advanced technology development. Factors influencing spending include evolving geopolitical landscapes, emerging threats, and the drive for technological innovation in areas like materials science, energy, and advanced manufacturing. Analyzing multi-year budget allocations and contract awards would reveal patterns and priorities within the Army's R&D portfolio.

What are the potential long-term implications of this contract for technological advancement within the DoD?

This contract has the potential to contribute significantly to long-term technological advancement within the DoD by fostering innovation in critical areas of physical, engineering, and life sciences. The research outcomes could lead to the development of new materials, improved systems, or enhanced operational capabilities that provide a strategic advantage. Successful R&D efforts often form the basis for future technological breakthroughs and can influence the direction of military modernization. The investment signifies the DoD's commitment to staying at the forefront of scientific discovery and applying it to defense challenges, potentially impacting future weapon systems, communication technologies, or soldier support systems.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QVN24R0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2650 PARK TOWER DR, VIENNA, VA, 22180

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,054,307

Exercised Options: $4,269,538

Current Obligation: $4,229,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F069GA

IDV Type: FSS

Timeline