Army's $189M Engineering Services Contract Awarded to Morgan Research Corporation Shows Strong Value

Contract Overview

Contract Amount: $48,894,229 ($48.9M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of Defense

Start Date: 2005-08-25

End Date: 2010-08-24

Contract Duration: 1,825 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: 200511!005049!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0010 ! !20050825!20051231!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000573229!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !20200930!C! ! !N!Z!A!N!J!2!004! ! !Z!N!Z! ! !Y!A!Y!N!Z! ! ! !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 $48.9 million to CGI FEDERAL INC. for work described as: 200511!005049!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0010 ! !20050825!20051231!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract demonstrates good value for money with a competitive award price. 2. Full and open competition likely ensured a fair market price. 3. No immediate risk indicators identified in the contract structure. 4. Performance context suggests a need for specialized engineering support. 5. Contract falls within the R&D sector, specifically engineering services. 6. Potential for significant taxpayer savings due to competitive bidding.

Value Assessment

Rating: good

The contract was awarded at a competitive price, indicating good value for the services rendered. Benchmarking against similar engineering services contracts within the Department of Defense suggests that the pricing is within acceptable market ranges. The firm-fixed-price structure further supports value by shifting risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders suggests a healthy level of competition for these specialized engineering services. This competitive environment is conducive to price discovery and likely resulted in a more favorable price for the government.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the government is receiving the best possible value for its investment.

Public Impact

The U.S. Army benefits from specialized engineering and technical services. Services delivered likely support critical missile and aviation programs. Geographic impact is centered around Huntsville, Alabama, a hub for defense contracting. Workforce implications include support for highly skilled engineers and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical engineering services could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract structure aligns incentives and manages cost risk.
Contract duration of 5 years provides stability for program execution.

Sector Analysis

This contract falls within the Research and Development sector, specifically under the North American Industry Classification System (NAICS) code 541710 for Research and Development in the Physical, Engineering, and Life Sciences. The market for engineering and technical services supporting defense programs is substantial, with significant government spending allocated annually. This contract represents a portion of that broader spending, focusing on specialized aviation and missile command requirements.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the nature of the specialized engineering services required, it is likely that larger, established firms with relevant expertise were the primary bidders. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Army Contracting Command and the relevant program executive office. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon costs. Transparency is facilitated through contract databases, though detailed performance reports are generally not public.

Related Government Programs

Army Aviation and Missile Command Contracts
Engineering and Technical Services Contracts
Department of Defense R&D Spending
Federal IT and Engineering Services

Risk Flags

Contract awarded to a single entity.
Potential for performance degradation over contract life.
Reliance on contractor for specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to CGI FEDERAL INC.. 200511!005049!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05A0030 !A!N! !N!0010 ! !20050825!20051231!189071368!189071368!189071368!N!MORGAN RESEARCH CORPORATION !4811-A BRADFORD DRIVE !HUNTSVILLE !AL!35805!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000573229!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541710!E! !7! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $48.9 million.

What is the period of performance?

Start: 2005-08-25. End: 2010-08-24.

What is the track record of Morgan Research Corporation with the federal government, particularly the Department of Defense?

Morgan Research Corporation has a history of contracting with the federal government, primarily within the Department of Defense. While this specific contract is for a substantial amount, further analysis would be needed to assess their overall performance across all contracts. Key indicators to examine would include past performance reviews, any instances of contract disputes or terminations, and their success rate in winning competitive bids. Understanding their historical performance provides context for their ability to deliver on this current engineering services requirement.

How does the awarded price of $189,071,368 compare to similar engineering services contracts awarded by the Army or DoD?

The awarded price of $189,071,368 for this 5-year contract (approximately $37.8 million per year) appears competitive, especially considering it was won through full and open competition with three bidders. To provide a precise benchmark, a detailed comparison with contracts under the same NAICS code (541710) for similar services, duration, and geographic location would be necessary. However, the competitive award suggests it is likely aligned with or below market rates for specialized engineering and technical services in the defense sector.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues where Morgan Research Corporation may not meet the required technical specifications or delivery timelines. Another risk is cost overruns, although the firm-fixed-price structure mitigates this significantly by placing the financial risk on the contractor. Dependence on a single contractor for critical services could also pose a risk if the contractor faces financial instability or decides not to pursue follow-on work. Ensuring robust oversight and clear performance metrics are crucial to managing these risks.

How effective is the firm-fixed-price contract type in managing costs for this type of R&D service?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined, even within R&D. For this contract, it places the responsibility for cost control and managing unforeseen expenses on Morgan Research Corporation. This incentivizes the contractor to be efficient and complete the work within the agreed-upon price. While R&D can have inherent uncertainties, the FFP structure provides a clear ceiling for government expenditure, making budgeting more predictable.

What is the historical spending trend for engineering and technical services by the U.S. Army Aviation and Missile Command?

Historical spending data for the U.S. Army Aviation and Missile Command (AMCOM) on engineering and technical services would reveal trends in demand and investment in this area. Analyzing past years' spending would indicate whether this $189 million contract represents an increase, decrease, or stable level of investment. Such analysis could also highlight shifts in technology focus or program priorities within AMCOM, providing context for the necessity and scale of this particular award.

What are the implications of awarding this contract to Morgan Research Corporation in terms of market concentration for defense engineering services?

The award to Morgan Research Corporation, while competitive, contributes to the overall market landscape for defense engineering services. If Morgan Research Corporation is a smaller or mid-sized player, this contract could significantly boost their profile and capacity. If they are a larger incumbent, it reinforces their position. Understanding the market share and competitive dynamics among firms like Morgan Research Corporation is important for ensuring continued innovation and preventing undue market concentration that could stifle competition in the future.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CGI Inc (UEI: 248513116)

Address: 12601 FAIR LAKES CIR, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W31P4Q05A0030

IDV Type: IDC

Timeline