DoD's $46.3M Fixed-Price Labor Contract with Dynamics Research Corporation Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $46,328,227 ($46.3M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Defense
Start Date: 2011-03-29
End Date: 2015-12-18
Contract Duration: 1,725 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIXED PRICED LABOR
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $46.3 million to DYNAMICS RESEARCH CORPORATION for work described as: FIXED PRICED LABOR Key points: 1. Significant contract value of $46.3 million for labor services. 2. Awarded to Dynamics Research Corporation, a single vendor. 3. Contract duration spans over 4 years, indicating a substantial project. 4. Services fall under Administrative Management and General Management Consulting. 5. Utilized a Firm Fixed Price contract type.
Value Assessment
Rating: good
The contract is firm fixed price, which generally provides good value by capping costs. The price per unit is not directly calculable without more detailed labor hour data, but the overall value suggests a significant investment in consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely led to a fair price discovery. The use of a delivery order under a larger contract vehicle is a common procurement method.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a fair price for the consulting services rendered, avoiding potential overpayment associated with less competitive methods.
Public Impact
Impacts administrative and management functions within the Department of the Army. Supports consulting services crucial for operational efficiency. The large contract value indicates a significant reliance on external expertise. Potential for job creation or support for the consulting industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes.
- Potential for scope creep in long-term labor contracts.
- Vendor lock-in if follow-on work is not competitively bid.
Positive Signals
- Firm Fixed Price contract type limits cost overruns.
- Full and open competition ensures a competitive initial award.
- Long contract duration allows for sustained support and expertise.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this sector can vary widely based on government needs for strategic advice and operational support.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is Dynamics Research Corporation, and further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded under a delivery order, suggesting it's part of a larger contract vehicle. Oversight would involve monitoring the delivery of services against the fixed-price labor agreement and ensuring compliance with contract terms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is substantial (over 4 years).
- Fixed-price labor can be inflexible to changing market rates.
- No explicit mention of performance metrics or KPIs.
- Potential for contractor to under-deliver if estimates were too generous.
- Reliance on a single awardee for a significant service.
Tags
administrative-management-and-general-ma, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.3 million to DYNAMICS RESEARCH CORPORATION. FIXED PRICED LABOR
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $46.3 million.
What is the period of performance?
Start: 2011-03-29. End: 2015-12-18.
What specific management and administrative challenges did this contract aim to address for the Department of the Army?
The contract likely aimed to provide expert consulting services to improve the efficiency, effectiveness, and strategic direction of various administrative and management functions within the Department of the Army. This could include process optimization, organizational restructuring, policy development, or program management support, addressing complex operational challenges.
What are the potential risks associated with a firm fixed-price labor contract of this duration?
A key risk is that the fixed price might not adequately account for unforeseen labor cost increases or scope changes over the 4-year period, potentially leading to reduced profit for the contractor or pressure to cut corners. Additionally, if the initial labor estimates were inaccurate, the government might overpay for the actual effort expended.
How effectively did the full and open competition process ensure value for money compared to other potential contract types?
Full and open competition is generally effective in driving competitive pricing. However, the value for money also depends on the clarity of the statement of work and the evaluation criteria used. A firm fixed-price contract further enhances value by capping costs, but the long duration means the initial competitive pricing must remain relevant throughout the performance period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Engility Corporation
Address: 60 FRONTAGE RD, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,913,437
Exercised Options: $46,913,437
Current Obligation: $46,328,227
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $732,390
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW08D0013
IDV Type: IDC
Timeline
Start Date: 2011-03-29
Current End Date: 2015-12-18
Potential End Date: 2015-12-18 12:12:00
Last Modified: 2024-06-28
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