DoD's $55.8M R&D contract for engineering services awarded to Computer Sciences Corporation shows potential value concerns

Contract Overview

Contract Amount: $91,809,937 ($91.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-30

End Date: 2009-12-31

Contract Duration: 1,645 days

Daily Burn Rate: $55.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200510!003911!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0028 !A!N! !Y!0004 ! !20050630!20051231!081390726!081390726!009581091!N!COMPUTER SCIENCES CORPORATION !4090 SOUTH MEMORIAL PARKWA!HUNTSVILLE !AL!35815!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000017213!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!006! ! !Z!N!Z! ! !Y!C!N! ! ! !D!D!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $91.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200510!003911!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0028 !A!N! !Y!0004 ! !20050630!20051231!081390726!081390726!009581091!N!COMPUTER SCIENCES CORPORATION !4090 SOUTH MEMORIAL PARKWA!HUNTSVILLE !AL!35815!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000017213!N!N!… Key points: 1. The contract's value of $55.8 million over its 5-year duration warrants scrutiny for cost-effectiveness. 2. Limited competition dynamics may have influenced pricing, as only one bid was received. 3. The contract's performance period spans over 5 years, indicating a long-term commitment. 4. This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. 5. The award to Computer Sciences Corporation suggests a focus on established contractors for complex R&D needs.

Value Assessment

Rating: fair

The contract value of $55.8 million over approximately 5 years averages to over $11 million annually. Without specific performance metrics or deliverables, it is difficult to benchmark this against similar R&D contracts. The pricing structure, described as Firm Fixed Price, suggests a defined scope, but the overall value proposition requires deeper analysis of the services rendered and their impact. The number of bids received (one) also raises questions about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under a 'full and open competition' but only received one bid. This suggests that while the opportunity was broadly advertised, only one entity, Computer Sciences Corporation, was either capable or willing to submit a proposal. The limited number of bidders restricts price discovery and may indicate potential barriers to entry for other firms or a lack of market interest.

Taxpayer Impact: A single bid limits the government's ability to negotiate favorable terms and potentially leads to higher costs for taxpayers compared to a more competitive scenario.

Public Impact

The primary beneficiaries are likely the Department of the Army and potentially other branches of the Department of Defense requiring advanced engineering and technical services. The services delivered are categorized under 'Engineering Technical Services', crucial for research and development initiatives. The geographic impact is centered around Huntsville, Alabama, a known hub for defense and aerospace activities. This contract supports specialized technical roles, potentially impacting the workforce in the engineering and R&D sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (one bid) raises concerns about potential overpricing and lack of innovation.
The long performance period (over 5 years) could lead to cost overruns if not managed tightly.
Lack of detailed public information on specific deliverables makes value assessment challenging.

Positive Signals

Award to a known entity (Computer Sciences Corporation) suggests a level of trust and established capability.
Firm Fixed Price contract type provides cost certainty if the scope is well-defined.
The contract supports critical R&D functions for the Department of Defense.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and technical services. The market for such services is substantial within the defense industry, driven by the need for continuous innovation and technological advancement. Comparable spending benchmarks would typically involve analyzing other R&D contracts awarded by the DoD for similar engineering support, considering factors like contract duration, scope, and the specific technologies involved. The North American Industry Classification System (NAICS) code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' encompasses a broad range of activities, making direct comparisons challenging without more specific service details.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false'. There is no explicit information regarding subcontracting plans for small businesses. The award to a large contractor like Computer Sciences Corporation suggests that the primary focus is on the prime contractor's capabilities, and the impact on the small business ecosystem would depend on any voluntary subcontracting efforts by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is limited by the publicly available data; detailed performance reports and audits are usually internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Technical Services Contracts
Information Technology and Systems Engineering Support
Aerospace and Aviation Support Services

Risk Flags

Limited Competition
Potential Value Concerns
Long Performance Period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200510!003911!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0028 !A!N! !Y!0004 ! !20050630!20051231!081390726!081390726!009581091!N!COMPUTER SCIENCES CORPORATION !4090 SOUTH MEMORIAL PARKWA!HUNTSVILLE !AL!35815!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000017213!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!006! ! !Z!N!Z! ! !Y!C!N! ! ! !D!D!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $91.8 million.

What is the period of performance?

Start: 2005-06-30. End: 2009-12-31.

What specific engineering and technical services were provided under this contract, and how did they contribute to the Army's R&D objectives?

The contract data indicates the service type as 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific nature of these services is not detailed in the provided data. These could range from systems engineering, software development, testing and evaluation, to specialized research in areas like missile technology or aviation systems, aligning with the known missions of the US Army Aviation and Missile Command. The contribution to R&D objectives would depend on the precise tasks performed, such as developing prototypes, conducting feasibility studies, or providing technical expertise for new weapon systems. Without more granular information on the Statement of Work (SOW), it's impossible to quantify their specific impact on R&D goals.

How does the $55.8 million contract value compare to similar R&D engineering services contracts awarded by the Department of the Army?

Benchmarking the $55.8 million contract value requires comparing it to similar contracts awarded by the Department of the Army for 'Engineering Technical Services' within the R&D domain (NAICS 541710). Factors such as contract duration, scope complexity, and the specific technological focus are crucial for a fair comparison. Given this contract's duration of approximately 5 years (1645 days), the annual average is roughly $11.16 million. A comprehensive analysis would involve searching contract databases for awards of similar size and scope over comparable periods. However, preliminary assessment suggests that for a long-term, specialized R&D support role, this value is within a plausible range, though the limited competition (one bid) raises concerns about whether this represents optimal value for the government.

What are the potential risks associated with a 'full and open competition' yielding only a single bid for a contract of this magnitude?

A single bid in a 'full and open competition' presents several risks. Firstly, it significantly reduces price competition, potentially leading to the government paying a higher price than if multiple bids were received. Secondly, it may indicate a lack of market interest or capacity, suggesting that the requirements were too specialized, the barriers to entry too high, or the solicitation unattractive. This could limit future innovation and contractor availability. Thirdly, it raises questions about the thoroughness of the market research conducted prior to solicitation. The government might not have effectively reached all potential sources, or the specific requirements might have inadvertently favored a single incumbent or dominant player, thereby stifling competition and potentially impacting long-term cost efficiency and technological advancement.

What is the track record of Computer Sciences Corporation (CSC) in performing similar large-scale R&D contracts for the Department of Defense?

Computer Sciences Corporation (CSC), prior to its merger with The Enterprise Solutions division of HP, had a significant track record in providing IT and engineering services to the federal government, including the Department of Defense. CSC was known for undertaking large, complex projects. While specific performance details for this particular contract (W31P4Q05A0028) are not publicly detailed, CSC's history suggests experience in managing substantial contracts. However, assessing their track record requires examining past performance evaluations, any contract disputes, and the successful delivery of similar R&D or engineering support services. Without access to contractor performance assessment reporting (CPARS) or detailed project outcomes for CSC's historical DoD contracts, a definitive assessment of their track record on similar R&D endeavors remains limited based solely on this award data.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS 541710) sector evolved over the past decade, and where does this contract fit?

Federal spending in NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' has generally seen fluctuations driven by national priorities, budget cycles, and geopolitical factors. The Department of Defense is consistently one of the largest federal spenders in this category, focusing on areas like advanced materials, aerospace, cybersecurity, and defense systems. Over the past decade, there has been a notable emphasis on areas like artificial intelligence, quantum computing, and hypersonics. This $55.8 million contract, awarded in 2005, represents a specific investment within this broad sector during that period. While significant in its own right, it is one of many contracts contributing to the overall federal R&D expenditure, reflecting the government's ongoing commitment to technological superiority and scientific advancement in critical fields.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 310 THE BRIDGE ST, HUNTSVILLE, AL, 35806

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0028

IDV Type: IDC

Timeline