DoD's $107M R&D contract to Concurrent Technologies Corp shows fair value with 1 bid

Contract Overview

Contract Amount: $21,420,627 ($21.4M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2006-08-23

End Date: 2012-02-22

Contract Duration: 2,009 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OTHER DEFENSE (OPERATIONAL)

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to CONCURRENT TECHNOLOGIES CORP for work described as: OTHER DEFENSE (OPERATIONAL) Key points: 1. Contract value of $107 million for R&D services. 2. Full and open competition was utilized. 3. Contract awarded to a single bidder. 4. Performance period spans over 5 years. 5. Contract type is Cost Plus Fixed Fee. 6. Geographic location of performance is Pennsylvania.

Value Assessment

Rating: fair

The contract's total value of $107 million over approximately 5.5 years suggests a moderate annual spend for R&D services. Benchmarking against similar contracts is challenging without more specific service details, but the Cost Plus Fixed Fee structure implies that costs were estimated and a fixed fee was added. The value appears reasonable given the duration and the nature of R&D, though a detailed cost breakdown would be needed for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Despite this broad solicitation, only one bid was received and accepted. This situation can sometimes suggest a lack of market interest or a highly specialized requirement that only one firm could meet.

Taxpayer Impact: While full and open competition is generally preferred for taxpayer value, receiving only one bid may limit price negotiation leverage and could indicate potential future sole-source situations if the market is not robust.

Public Impact

Benefits the Department of Defense by funding critical research and development. Services delivered likely involve advanced physical, engineering, or life sciences research. Geographic impact is concentrated in Pennsylvania, supporting local technical expertise. Workforce implications include employment for researchers, engineers, and support staff in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition despite full and open solicitation could indicate market concentration or barriers to entry.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.

Positive Signals

Full and open competition was utilized, adhering to best practices for government contracting.
Contract awarded to Concurrent Technologies Corp, a known entity in defense contracting.
The contract duration allows for sustained research efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Department of Defense is a major investor in R&D to maintain technological superiority. Comparable spending benchmarks in this sector are highly variable, depending on the specific scientific or engineering discipline. The market size for defense R&D is substantial, with numerous firms competing for government contracts.

Small Business Impact

The data indicates that small business participation was not a specific requirement for this contract (ss: false, sb: false). There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary focus was on technical capability rather than small business inclusion, and the impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific R&D project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Advanced Technology Development Contracts
Federal R&D Spending

Risk Flags

Single bid received under full and open competition.
Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to CONCURRENT TECHNOLOGIES CORP. OTHER DEFENSE (OPERATIONAL)

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2006-08-23. End: 2012-02-22.

What is the track record of Concurrent Technologies Corp with the Department of Defense?

Concurrent Technologies Corporation (CTC) has a significant history of working with the Department of Defense (DoD) and other federal agencies. They specialize in research, development, and engineering services, often focusing on areas like advanced manufacturing, defense systems, and energy technologies. CTC has been awarded numerous contracts over the years, ranging in value and scope. Their performance history with the DoD generally indicates a capability to deliver on complex R&D projects. Specific performance metrics and past performance evaluations for individual contracts would be detailed in DoD's contractor performance assessment reporting system (CPARS), which is not publicly accessible in its entirety. However, their continued success in securing DoD contracts suggests a generally positive track record.

How does the value of this contract compare to other R&D contracts in the physical, engineering, and life sciences sector?

The $107 million total value for this contract, spread over approximately 5.5 years, represents an average annual spend of roughly $19.5 million. This figure is substantial but falls within the typical range for large-scale R&D initiatives funded by the Department of Defense. Many DoD R&D contracts can range from tens of millions to hundreds of millions of dollars, particularly those involving cutting-edge technology development or long-term research programs. Contracts in the physical, engineering, and life sciences sector are diverse; some might focus on basic research with smaller budgets, while others, like this one, likely involve applied research and development with higher costs due to specialized equipment, personnel, and facilities required. Without knowing the specific technical area, a precise comparison is difficult, but the contract's value is consistent with significant federal investment in defense-related R&D.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type, especially for R&D, revolve around cost control and potential for cost growth. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs rigorously, as cost overruns are generally covered, provided they are allowable. While the fixed fee provides some incentive for efficiency, it doesn't directly link profit to cost savings. For R&D, where the scope and technical challenges can be uncertain, estimating costs accurately upfront is difficult, increasing the likelihood of cost increases. Robust government oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541710) typically entail for federal spending?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' covers establishments primarily engaged in conducting research and experimental development in these fields. This includes basic research, applied research, and experimental development. Federal spending under this code supports a wide array of scientific and technological advancements crucial for national security, economic competitiveness, and public well-being. Examples include research in areas like advanced materials, aerospace engineering, biotechnology, computer science, environmental science, medical research, and nanotechnology. Agencies like the Department of Defense, National Science Foundation, National Institutes of Health, and Department of Energy are major funders of R&D activities classified under this code, aiming to push the boundaries of knowledge and develop innovative solutions to complex problems.

How does the duration of this contract (2009-2012) reflect historical R&D spending patterns for the DoD?

The contract duration of approximately 5.5 years (August 2006 to February 2012) aligns with historical R&D spending patterns for the DoD, which often involves multi-year commitments to foster sustained research and development efforts. Federal R&D projects, particularly those in complex scientific and engineering domains, require significant time to yield meaningful results. The DoD's strategy typically involves funding research across various stages, from basic science to prototype development, necessitating contracts that span several fiscal years. The period of this contract falls within a time when defense spending was substantial, and investments in technological advancement were a priority. Multi-year contracts provide stability for contractors, allowing them to invest in personnel and infrastructure, and ensure continuity in critical research programs, reflecting a common approach to managing long-term R&D investments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 13

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

Financial Breakdown

Contract Ceiling: $23,407,258

Exercised Options: $23,407,258

Current Obligation: $21,420,627

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N0001406D0048

IDV Type: IDC

Timeline