DoD's $53.7M contract for JAMS Project Office Support awarded to SYSTEM STUDIES & SIMULATION, INC. shows concerning value

Contract Overview

Contract Amount: $53,737,309 ($53.7M)

Contractor: System Studies & Simulation, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-02-22

End Date: 2015-10-20

Contract Duration: 2,797 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: JAMS PROJECT OFFICE SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35801

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to SYSTEM STUDIES & SIMULATION, INC. for work described as: JAMS PROJECT OFFICE SUPPORT Key points: 1. The contract's value proposition appears questionable given the duration and lack of clear performance metrics. 2. Competition was limited, raising concerns about price discovery and potential overpayment. 3. Risk indicators are elevated due to the extended performance period and the nature of the services. 4. The contract's performance context is broad, encompassing research and development, which can be difficult to benchmark. 5. This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. 6. The firm fixed-price contract type offers some cost certainty but may not incentivize efficiency. 7. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', indicating a complex procurement history.

Value Assessment

Rating: concerning

The total award amount of $53.7 million over a performance period of approximately 7.6 years (2797 days) suggests a significant investment. Benchmarking the value is challenging without specific deliverables and performance outcomes. However, the average annual cost approaches $7 million, which seems high for project office support unless it involves highly specialized, long-term research integration. Compared to similar R&D support contracts, the cost per year appears to be on the higher end, especially considering the lack of detailed performance data provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources', which implies that while initially intended for broad competition, certain sources were excluded, potentially limiting the bidder pool. The presence of only two bidders (indicated by 'no': 2) further suggests limited competition. This level of competition may not have driven the most competitive pricing, potentially leading to a higher cost for the government.

Taxpayer Impact: Limited competition can mean taxpayers did not benefit from the lowest possible price, as fewer companies vied for the contract. This could translate to a less efficient use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities requiring project office support for R&D initiatives. The services delivered include research and development support, likely involving analysis, simulation, and technical guidance. The geographic impact is primarily within Alabama (ST: AL, SN: ALABAMA), where the contractor is located. Workforce implications include the employment of personnel by SYSTEM STUDIES & SIMULATION, INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (nearly 8 years) increases the risk of cost overruns and scope creep.
Limited competition suggests potential for suboptimal pricing and reduced value for taxpayer money.
The 'Research and Development' nature of the contract can be inherently unpredictable, making fixed-price contracts challenging to manage effectively.
Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
The 'After Exclusion of Sources' clause indicates a potentially complex procurement history that warrants further investigation.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government, assuming the scope remains stable.
The contractor, SYSTEM STUDIES & SIMULATION, INC., has secured a significant award, indicating some level of established relationship or capability.
The contract falls under a specific NAICS code (541712), suggesting a focus on specialized R&D services.
The contract was awarded by the Department of the Army, a major component of the DoD, implying a need for these specialized services.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)). The R&D sector is characterized by innovation and often long-term projects. Comparable spending benchmarks are difficult to establish without knowing the specific R&D focus, but contracts in this area can range widely in value. The total award of $53.7 million over nearly eight years places it as a moderately large contract within this specialized R&D support category.

Small Business Impact

The contract details indicate that small business participation was not a primary focus, as the 'ss' (small business set-aside) and 'sb' (small business) flags are both false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor is likely a large business, and the contract's structure does not appear to prioritize opportunities for the small business ecosystem in this instance.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures would be tied to the contract's performance clauses and delivery schedules. Transparency is generally facilitated through contract award databases, but detailed performance reporting is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Army R&D Support Services
System Studies and Simulation Contracts
Federal R&D Spending
Long-Term Government Contracts

Risk Flags

Limited Competition
Extended Performance Period
Potential for Cost Overruns
Lack of Specific Performance Metrics
Complex Procurement History ('After Exclusion of Sources')

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to SYSTEM STUDIES & SIMULATION, INC.. JAMS PROJECT OFFICE SUPPORT

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 $53.7 million.

What is the period of performance?

Start: 2008-02-22. End: 2015-10-20.

What specific R&D projects or initiatives does JAMS PROJECT OFFICE SUPPORT entail, and how is the contractor's performance measured against these objectives?

The provided data does not specify the exact R&D projects supported by JAMS PROJECT OFFICE SUPPORT. The contract falls under NAICS code 541712, indicating research and development in physical, engineering, and life sciences. Without access to the contract's statement of work (SOW) or performance work statement (PWS), it is impossible to detail the specific objectives or how the contractor's performance is measured. Typically, R&D support contracts would include metrics related to research milestones, technical reports, data analysis, simulation accuracy, and adherence to project timelines. The extended duration and firm fixed-price nature suggest a need for clear, measurable outcomes to ensure value for money.

How does the $53.7 million total award compare to similar R&D support contracts awarded by the Department of the Army or DoD in recent years?

Benchmarking the $53.7 million award requires comparing it to contracts with similar scopes, durations, and R&D focus areas. Given the nearly 8-year performance period, the average annual cost is approximately $7 million. This figure appears on the higher end for general project office support, even within the R&D sector, unless the support involves highly specialized technical expertise or management of complex, multi-faceted research programs. Without specific details on the services rendered and the complexity of the R&D, a precise comparison is difficult. However, contracts of this magnitude often involve significant technological development or strategic research initiatives.

What were the specific reasons for excluding other potential sources during the procurement process for this contract?

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This procurement method typically indicates that an initial broad solicitation was made, but certain sources were subsequently excluded based on specific criteria, such as technical qualifications, past performance, or other requirements outlined in the solicitation. The exact reasons for exclusion are not detailed in the provided data. Such exclusions can occur for various reasons, including the need for specialized capabilities, proprietary technology, or specific security clearances that only a limited number of entities possess. This process can sometimes lead to reduced competition.

What is the track record of SYSTEM STUDIES & SIMULATION, INC. in performing similar R&D support contracts for the federal government?

The provided data indicates that SYSTEM STUDIES & SIMULATION, INC. was awarded this $53.7 million contract. To assess their track record, one would need to examine their past performance on similar contracts, including their success in meeting deadlines, staying within budget, and delivering quality services. Information on previous awards, contract performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any past disputes or terminations would be crucial. Without this additional information, it's difficult to definitively assess their experience and reliability in performing R&D support.

Given the contract's duration and scope, what are the primary risks associated with its execution, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the long duration (nearly 8 years), scope creep as R&D projects evolve, and the possibility of technological obsolescence. Another significant risk stems from the limited competition, which could result in suboptimal pricing. Mitigation strategies would typically involve robust contract management, regular performance reviews, strict change control processes to manage scope, and clear communication channels between the government and the contractor. The firm fixed-price nature also implies that the contractor bears more risk for cost overruns, provided the scope remains unchanged.

How has federal spending in the R&D sector, particularly for physical, engineering, and life sciences support, trended over the past decade, and where does this contract fit?

Federal spending in the R&D sector, especially for physical, engineering, and life sciences, has generally seen consistent investment, driven by national security, technological advancement, and public health priorities. While specific figures fluctuate annually, the DoD remains a significant funder of R&D. This $53.7 million contract, awarded over nearly eight years, represents a substantial, albeit specific, allocation within this broader spending category. It fits within the trend of the government outsourcing specialized R&D support functions to private sector entities to leverage expertise and manage complex projects.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W9113M07R0006

Offers Received: 2

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, Woman Owned Business

Financial Breakdown

Contract Ceiling: $58,947,045

Exercised Options: $58,947,045

Current Obligation: $53,737,309

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9113M08D0002

IDV Type: IDC

Timeline