DoD's $42.4M R&D contract with SYSTEM STUDIES & SIMULATION, INC. awarded in 2010 shows long-term engagement

Contract Overview

Contract Amount: $42,377,054 ($42.4M)

Contractor: System Studies & Simulation, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2017-05-17

Contract Duration: 2,421 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE AWARD

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to SYSTEM STUDIES & SIMULATION, INC. for work described as: BASE AWARD Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Long contract duration of 2421 days suggests sustained R&D needs. 3. Firm Fixed Price contract type indicates price certainty for the government. 4. Awarded by the Department of the Army, part of the Department of Defense. 5. Contractor SYSTEM STUDIES & SIMULATION, INC. has a significant federal footprint. 6. No small business set-aside indicates a focus on larger, potentially specialized firms.

Value Assessment

Rating: fair

The base award of $42.4 million over a period of approximately 6.6 years represents a substantial investment in R&D. Without specific performance metrics or comparable contract data for similar research projects, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government. The long duration implies a potentially consistent need for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The Army's decision to use full and open competition indicates confidence in the market's ability to provide suitable research and development services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government explores a wide range of capabilities.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Department of the Army, receiving advanced research and development services. The services delivered are in the domain of physical, engineering, and life sciences R&D, potentially leading to technological advancements. The geographic impact is primarily associated with the contractor's location in Alabama (AL), though the research outcomes could have national defense implications. Workforce implications include employment for scientists, engineers, and support staff at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential scope creep if not managed effectively.
Lack of specific performance metrics makes it difficult to gauge the full impact of the R&D investment.
Reliance on a single contractor for an extended period might limit exposure to newer technologies or approaches.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
The sustained nature of the contract indicates a consistent need and potentially successful delivery of services over time.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization and technological advancement. The market for R&D services is highly specialized, often involving firms with deep technical expertise and a proven track record. Comparable spending benchmarks in this niche are difficult to establish without more specific details on the research scope, but significant government investment in defense-related R&D is common.

Small Business Impact

The absence of small business set-aside flags (ss: false, sb: false) indicates that this contract was not specifically targeted towards small businesses. This suggests that the nature of the R&D required likely favored larger, more established firms with specialized capabilities. There is no direct information on subcontracting plans, but in large R&D contracts, there is often an opportunity for small businesses to participate as subcontractors, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified outcomes within the agreed budget. Transparency is facilitated through contract award databases, though detailed R&D progress reports are often considered 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 Investments
Advanced Technology Development Contracts
Engineering and Technical Services

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Lack of specific performance metrics makes objective assessment of R&D success difficult.
Potential for contractor performance degradation over extended contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to SYSTEM STUDIES & SIMULATION, INC.. BASE AWARD

Who is the contractor on this award?

The obligated recipient is SYSTEM STUDIES & SIMULATION, 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 $42.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2017-05-17.

What was the specific nature of the research and development conducted under this contract?

The contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' While the specific project details are not provided in the summary data, this classification suggests the research likely involved scientific inquiry and experimentation to advance knowledge and understanding in areas such as physics, chemistry, materials science, various engineering disciplines, and biological sciences, excluding biotechnology. The Department of the Army would have defined the scope and objectives, aiming to develop new technologies, improve existing systems, or solve complex technical challenges relevant to national defense.

How does the $42.4 million award compare to typical R&D spending for similar projects within the Department of the Army?

Comparing this $42.4 million award requires context on the typical scale and duration of R&D projects within the Department of the Army. R&D contracts can vary significantly in cost depending on the complexity, duration, and technological risk involved. A contract spanning over 2400 days (approx. 6.6 years) suggests a long-term, potentially foundational research effort rather than a short-term applied research task. Without access to specific project types and their associated budgets, it's challenging to benchmark definitively. However, major defense R&D initiatives often involve multi-million dollar investments, making this award appear substantial but not necessarily outlier-level for a multi-year, in-depth research program.

What are the key performance indicators (KPIs) or deliverables expected from SYSTEM STUDIES & SIMULATION, INC. under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, for R&D contracts, deliverables might include research reports, prototypes, technical data packages, feasibility studies, experimental results, and recommendations for further development. Performance would be assessed against the achievement of research objectives, the quality and validity of findings, adherence to timelines (if specified beyond the overall contract duration), and the successful transfer of knowledge or technology. The contracting officer and program managers would monitor progress against the statement of work.

What is the track record of SYSTEM STUDIES & SIMULATION, INC. with federal contracts, particularly with the Department of Defense?

SYSTEM STUDIES & SIMULATION, INC. has a history of federal contracting, as indicated by this award. To assess their track record thoroughly, one would need to examine their complete contract history, including past performance evaluations, any contract disputes or terminations, and the types of services they have provided. Their involvement in a significant R&D contract with the Department of the Army suggests they possess the necessary technical expertise and capabilities deemed valuable by the agency. A deeper dive into their contract portfolio would reveal the extent of their experience and success in meeting federal requirements.

Given the firm fixed-price contract type, what is the potential risk of cost overruns for the contractor, and how does this impact value for the government?

Under a Firm Fixed Price (FFP) contract, the contractor, SYSTEM STUDIES & SIMULATION, INC., assumes the primary risk for cost overruns. This means they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure is advantageous for the government as it provides budget certainty and protects against unexpected cost increases. The value for the government is enhanced because the price is fixed upfront. However, if the contractor significantly underestimates costs, they may face financial losses, potentially impacting their motivation or ability to deliver fully. Conversely, if they accurately estimate or find efficiencies, they retain the profit, which is a standard incentive in FFP contracts.

How does the long contract duration (2421 days) influence the assessment of this contract's risk and value?

A long contract duration, such as 2421 days (approximately 6.6 years), can introduce both risks and value considerations. For value, it suggests a sustained, critical need for the R&D services, implying that the work is foundational or requires long-term investigation. This can lead to deeper expertise development and potentially more impactful outcomes. However, risks associated with long durations include potential obsolescence of technology by the end of the contract, shifts in government priorities, contractor performance degradation over time, and challenges in maintaining consistent oversight. The firm fixed-price nature helps mitigate budget risk, but the government must ensure the R&D remains relevant and the contractor stays engaged and effective throughout the extended period.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 615 DISCOVERY DR NW, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $114,402,890

Exercised Options: $42,377,054

Current Obligation: $42,377,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0019

IDV Type: IDC

Timeline