DoD's $102.6M R&D contract with SYSTEM STUDIES & SIMULATION, INC. awarded via full and open competition

Contract Overview

Contract Amount: $102,626,252 ($102.6M)

Contractor: System Studies & Simulation, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-21

End Date: 2023-12-30

Contract Duration: 2,475 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: IGF::CT::IGF

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $102.6 million to SYSTEM STUDIES & SIMULATION, INC. for work described as: IGF::CT::IGF Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Significant duration of 2475 days suggests a long-term, complex project. 3. Awarded as a Delivery Order, indicating it's part of a larger contract vehicle. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. No small business set-aside was utilized. 6. The contract was awarded to a single entity, SYSTEM STUDIES & SIMULATION, INC.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed task orders and deliverables. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not meticulously managed. Comparing it to similar R&D contracts requires understanding the specific scientific and engineering challenges addressed. The total award amount of over $102 million over approximately 7 years indicates a substantial investment, but its value-for-money depends heavily on the successful outcomes and innovations achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit offers. This typically leads to a more competitive bidding process. However, the data indicates this was a 'Delivery Order,' which might imply it was placed against an existing indefinite-delivery indefinite-quantity (IDIQ) contract. The number of bidders for this specific delivery order is not provided, which limits a full assessment of the competitive dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the effectiveness of this competition for this specific delivery order is unclear without knowing the number of bids received.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, seeking advancements in physical, engineering, and life sciences. The services delivered are research and development, aiming to produce new knowledge, technologies, or solutions. The geographic impact is primarily within Alabama (ST), where the contractor is located, but the research outcomes could have national security implications. Workforce implications include employment for scientists, engineers, and support staff at SYSTEM STUDIES & SIMULATION, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty if not closely monitored.
Long contract duration (2475 days) increases the risk of scope creep or evolving requirements.
Lack of specific details on deliverables makes it hard to assess performance against objectives.
The contract is a Delivery Order, suggesting it might be part of a larger, potentially less competitive, IDIQ vehicle.

Positive Signals

Awarded through Full and Open Competition, indicating a broad solicitation for offers.
The contractor, SYSTEM STUDIES & SIMULATION, INC., has secured a significant contract, suggesting capability and past performance.
The substantial award amount reflects the perceived importance and complexity of the R&D effort.

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 supporting the Department of Defense is substantial, with numerous firms competing for contracts. Benchmarking requires comparing this to other large-scale, multi-year R&D efforts within the defense sector, considering the specific scientific domains involved.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scale and nature of the R&D required were likely beyond the typical capacity or scope of small business set-aside programs. There is no information provided regarding subcontracting plans or actual subcontracting with small businesses, which is a missed opportunity for broader economic impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and material costs to ensure compliance and prevent overspending. Transparency is limited by the nature of R&D contracts, where specific technical details and progress may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Research and Development in Physical Sciences
Research and Development in Engineering Sciences
Research and Development in Life Sciences
Time and Materials Contracts
Delivery Orders

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of transparency regarding specific R&D deliverables and outcomes.
Limited insight into the number of bidders for this specific Delivery Order.
No indication of small business subcontracting utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.6 million to SYSTEM STUDIES & SIMULATION, INC.. IGF::CT::IGF

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 $102.6 million.

What is the period of performance?

Start: 2017-03-21. End: 2023-12-30.

What specific R&D projects or technological advancements are being pursued under this contract?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' However, it does not specify the exact nature of the R&D projects. These could range from advanced materials science, novel engineering solutions for defense platforms, or breakthroughs in biological applications relevant to military operations. Without access to the contract's statement of work or task orders, the precise R&D focus remains undisclosed. Further investigation would require accessing contract details through official procurement databases or agency reports that might offer more granular project descriptions.

How does the $102.6 million total award compare to similar R&D contracts awarded by the Department of the Army in the past five years?

Comparing this $102.6 million award requires context regarding the specific R&D domain (physical, engineering, life sciences) and the contract duration (2475 days, approx. 6.8 years). The Department of the Army awards numerous R&D contracts annually, varying significantly in value and scope. Large, multi-year R&D efforts in specialized scientific fields can easily reach or exceed this amount. For instance, contracts for developing next-generation weapon systems, advanced simulation capabilities, or critical medical countermeasures often involve similar or higher funding levels. A direct comparison would necessitate identifying contracts with comparable NAICS codes, contract types (though T&M can inflate costs), and project complexity. The fact that this is a Delivery Order against a potentially larger IDIQ could mean the total value of the underlying IDIQ is much higher, making this specific award a portion of a larger R&D investment.

What are the primary risks associated with the Time and Materials (T&M) contract type for this R&D effort?

The primary risk with a Time and Materials (T&M) contract for a long-duration R&D project like this is cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the R&D effort proves more complex or time-consuming than initially estimated, or if labor rates increase, the total cost can escalate significantly beyond initial projections. For taxpayers, this means potential overspending if the government's oversight and management of the contractor's time and materials are not rigorous. Effective risk mitigation requires strong government oversight, detailed tracking of hours and expenses, and clear definitions of what constitutes billable time and materials.

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

SYSTEM STUDIES & SIMULATION, INC. has been awarded this substantial contract, suggesting a positive track record or strong competitive positioning. However, a comprehensive assessment of their performance requires examining past federal contract awards, including their value, duration, and performance reviews (if publicly available). Information on past performance, including any awards, terminations, or disputes, would provide crucial insights into their reliability, technical expertise, and ability to manage complex R&D projects within budget and schedule. Without specific historical data on their prior government contracts, it's difficult to definitively assess their track record beyond the fact they secured this significant award.

How does the competition level ('full-and-open') translate into potential cost savings or value for the taxpayer in this specific instance?

Awarding this contract under 'Full and Open Competition' theoretically maximizes the pool of potential bidders, fostering a competitive environment that should drive down prices and encourage innovative solutions. This process allows the government to select the offer that provides the best value, considering both price and technical merit. However, the effectiveness of this competition in translating to taxpayer savings is contingent on several factors not detailed here: the number of bids received, the technical complexity of the requirements, and the specific evaluation criteria used. If only a few highly specialized firms could bid, or if the technical requirements were so stringent that they limited competition, the price advantage might be less pronounced. The 'Delivery Order' nature also implies this might be one of many orders under a larger contract vehicle, where the initial competition for the IDIQ itself is the primary driver of overall value.

What are the implications of this contract being a 'Delivery Order' rather than a standalone contract?

A 'Delivery Order' typically signifies that this contract is a task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of contract vehicle. This means that the initial competition and contract negotiation likely occurred when the parent IDIQ contract was awarded. The current award represents a specific call for services or supplies under the terms established by that overarching agreement. The implications include potentially streamlined procurement for subsequent needs, but also that the competition for this specific delivery order might be limited to the awardees of the parent IDIQ. The overall value and terms were established earlier, and this order specifies the quantity, delivery schedule, and potentially price for a particular requirement.

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: TIME AND MATERIALS (Y)

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: $106,647,465

Exercised Options: $102,626,252

Current Obligation: $102,626,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q09A0019

IDV Type: IDC

Timeline