DoD's $13.8M ENCORE II IT contract awarded to Pragmatics, LLC for R&D services

Contract Overview

Contract Amount: $13,865,284 ($13.9M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-14

End Date: 2011-03-01

Contract Duration: 898 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: R&D

Official Description: ENCORE II IT SOLUTIONS

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.9 million to PRAGMATICS, LLC for work described as: ENCORE II IT SOLUTIONS Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of 898 days indicates a substantial project scope. 3. Awarded under full and open competition, suggesting a robust bidding process. 4. The contract's value of over $13 million warrants scrutiny for cost-effectiveness. 5. Focus on R&D in specialized scientific fields implies a need for advanced technical expertise. 6. The contract's performance period spans across fiscal years, requiring consistent oversight.

Value Assessment

Rating: fair

The contract value of $13.8 million for R&D services is substantial. Without specific benchmarks for comparable R&D contracts in the physical, engineering, and life sciences, it is difficult to definitively assess value for money. However, the duration of the contract (898 days) suggests a significant scope of work, which could justify the expenditure if deliverables are met effectively. Further analysis would require comparing the specific R&D tasks and outcomes to industry standards and other government R&D investments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was open, certain sources may have been excluded prior to the solicitation. This suggests a competitive process, but the exclusion of specific sources could potentially limit the breadth of competition and impact price discovery. The number of bidders is not specified, which is crucial for a complete assessment of competitive dynamics.

Taxpayer Impact: A full and open competition, even with exclusions, generally aims to achieve fair market prices for taxpayers. However, the specific nature of any exclusions needs to be understood to ensure no taxpayer funds were unnecessarily inflated due to limited vendor participation.

Public Impact

The primary beneficiaries are likely the Department of Defense and its associated research initiatives, aiming to advance scientific and technological capabilities. Services delivered include research and development in physical, engineering, and life sciences, potentially leading to new technologies or improved existing ones. The geographic impact is primarily within Virginia, where the contract is registered, but the R&D outcomes could have national or global implications for defense. Workforce implications may include the employment of highly skilled scientists, engineers, and researchers, both within the prime contractor and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in R&D projects, which can lead to cost overruns if not managed tightly.
The exclusion of certain sources in the competition process warrants investigation to ensure fairness and optimal pricing.
Ensuring the R&D outcomes align with evolving defense needs and technological advancements is critical for long-term value.

Positive Signals

Awarded through a full and open competition process, indicating a structured and potentially competitive procurement.
The contract is for R&D, suggesting investment in innovation and future capabilities for the Department of Defense.
The specific NAICS code (541712) points to specialized research and development, implying a focus on high-value technical work.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. This is a critical area for defense modernization, encompassing a wide range of scientific disciplines. The market for such services is highly specialized, often involving a mix of large corporations and niche research firms. Government spending in this sector is substantial, driven by the need for technological superiority and innovation in national security.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this award. The primary contractor, Pragmatics, LLC, would determine any subcontracting opportunities based on their own business strategy and project needs, independent of a small business set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) within the Department of Defense. Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is generally facilitated through contract award databases, though detailed project specifics might be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

ENCORE II
Information Technology Support Services
Research and Development Contracts
Department of Defense IT Procurement
Defense Information Systems Agency Contracts

Risk Flags

Potential for limited competition due to source exclusions.
R&D projects inherently carry technical and performance risks.
Long contract duration requires sustained oversight to prevent scope creep and ensure alignment with evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.9 million to PRAGMATICS, LLC. ENCORE II IT SOLUTIONS

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $13.9 million.

What is the period of performance?

Start: 2008-09-14. End: 2011-03-01.

What is the track record of Pragmatics, LLC with Department of Defense R&D contracts?

Pragmatics, LLC has a history of securing contracts with the Department of Defense, often in the IT and professional services space. While this specific award is for R&D, their broader experience with the DoD suggests familiarity with government contracting processes and requirements. To fully assess their track record for R&D, a deeper dive into their past performance on similar research-oriented projects, including successful delivery of innovative solutions and adherence to budget and schedule, would be necessary. Analyzing past performance reviews and any documented issues or successes on prior DoD R&D contracts would provide a more comprehensive picture of their capabilities and reliability in this specialized domain.

How does the $13.8 million value compare to similar R&D contracts in the physical, engineering, and life sciences sector?

The $13.8 million value for this contract is a significant but not extraordinary amount for R&D services within the physical, engineering, and life sciences sector, especially for a multi-year effort. The Department of Defense and other federal agencies frequently award contracts in the tens or hundreds of millions for complex research projects. Benchmarking this specific contract's value would require identifying comparable contracts based on the specific R&D focus (e.g., materials science, advanced engineering, specific life science applications), the duration, the complexity of the research, and the performing agency. Without more granular data on the specific research objectives and deliverables, a precise comparison is challenging, but the award falls within a common range for substantial government R&D investments.

What are the primary risks associated with this R&D contract for the Department of Defense?

The primary risks associated with this R&D contract include technical risk (the research may not yield the desired outcomes or breakthroughs), schedule risk (delays in research progress can impact subsequent phases or operational deployment), cost risk (R&D projects can be prone to cost overruns due to unforeseen challenges or scope adjustments), and performance risk (the contractor may not deliver the expected quality or quantity of research results). Additionally, there's a risk of misalignment with evolving defense needs if the research focus becomes outdated. Ensuring robust project management, clear performance metrics, and flexible but controlled adaptation to research findings are key to mitigating these risks.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for money?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad competition with specific requirements. While 'full and open' suggests an intention to solicit from all responsible sources, the 'after exclusion of sources' clause indicates that certain potential bidders were not considered from the outset. This exclusion could be based on specific technical capabilities, security clearances, or other pre-defined criteria. If the exclusions are well-justified and based on essential requirements, this method can still yield good value by focusing competition among highly qualified vendors. However, if exclusions are overly broad or not adequately justified, it could limit competition, potentially leading to higher prices and reduced value for money compared to a truly unrestricted full and open competition.

What is the historical spending pattern for ENCORE II IT SOLUTIONS contracts within the Department of Defense?

The provided data pertains to a specific award under the ENCORE II IT SOLUTIONS umbrella, valued at approximately $13.8 million. The ENCORE II contract vehicle itself was designed to provide a broad range of IT services to the DoD. Historical spending patterns for ENCORE II would encompass numerous awards across various task orders and contractors, likely totaling billions of dollars over its lifecycle. Analyzing the overall spending under ENCORE II would reveal trends in IT service procurement, common task areas, and the distribution of funds among different contractors and agencies within the DoD. This specific award represents a single data point within that larger spending landscape.

What are the implications of the contract's duration (898 days) on project management and oversight?

A contract duration of 898 days (approximately 2.5 years) for an R&D project necessitates a structured and phased approach to project management and oversight. It implies that the research is expected to be complex and potentially iterative, requiring sustained effort and funding. Effective oversight will involve regular progress reviews, milestone tracking, and performance assessments at defined intervals rather than a single end-of-contract evaluation. The contractor must demonstrate consistent progress and adaptability to research findings. For the government, this duration requires dedicated program management resources to ensure the project stays on track, within budget, and continues to align with evolving strategic objectives throughout its extended lifecycle.

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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 22102

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $13,865,285

Exercised Options: $13,865,284

Current Obligation: $13,865,284

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2010

IDV Type: IDC

Timeline