DoD's $23.3M R&D Contract with SERCO SERVICES INC. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $23,337,524 ($23.3M)
Contractor: Serco Services Inc.
Awarding Agency: Department of Defense
Start Date: 2005-10-01
End Date: 2010-12-29
Contract Duration: 1,915 days
Daily Burn Rate: $12.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $23.3 million to SERCO SERVICES INC. for work described as: Key points: 1. Significant investment in R&D, focusing on physical, engineering, and life sciences. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Contract duration of 1915 days indicates a long-term project. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts is difficult without more specific details on the scope of work and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the Cost Plus Fixed Fee structure can sometimes obscure true cost efficiencies compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being utilized for research and development, with the ultimate value dependent on the successful outcomes and innovations generated by the contract.
Public Impact
Supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved capabilities. The long-term nature of the contract suggests a commitment to a specific research agenda. Transparency in spending is crucial given the Cost Plus Fixed Fee structure, requiring robust oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to higher than anticipated costs.
- Lack of specific performance metrics makes it difficult to assess R&D effectiveness.
- Contract duration is lengthy, increasing exposure to potential scope creep or changing research needs.
Positive Signals
- Awarded through full and open competition, promoting a fair marketplace.
- Investment in critical R&D areas for the Department of Defense.
- Long-term commitment allows for sustained research efforts.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is vital for technological advancement and national security, with typical contract values varying widely based on project scope and complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is essential to manage costs and ensure the effective execution of R&D objectives under a Cost Plus Fixed Fee arrangement.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (1915 days).
- Lack of specific performance metrics in provided data.
- Potential for cost overruns without stringent oversight.
Tags
research-and-development-in-the-physical, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to SERCO SERVICES INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SERCO SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2005-10-01. End: 2010-12-29.
What specific research outcomes or technological advancements are expected from this $23.3M contract?
The contract's focus on 'Research and Development in the Physical, Engineering, and Life Sciences' suggests potential advancements in areas like materials science, advanced engineering solutions, or biomedical research relevant to defense applications. However, without specific deliverables outlined, the precise expected outcomes remain general. The success will be measured by the tangible innovations and their applicability to DoD's mission.
How effectively does the Cost Plus Fixed Fee structure balance innovation incentives with cost control for this long-term R&D project?
The Cost Plus Fixed Fee (CPFF) structure aims to incentivize innovation by covering allowable costs plus a fixed fee, reducing contractor risk. However, it can also lead to cost overruns if not rigorously managed, potentially increasing taxpayer burden. Effective oversight is critical to ensure costs remain reasonable and the fixed fee appropriately reflects the effort and risk involved in achieving the R&D goals.
What is the potential long-term impact of this R&D investment on the Department of Defense's capabilities?
This significant investment in R&D has the potential to yield substantial long-term benefits for the DoD, including the development of cutting-edge technologies, enhanced operational capabilities, and improved strategic advantages. The success hinges on the quality of research, the relevance of the findings to evolving defense needs, and the successful transition of research outcomes into practical applications.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1050 N NEWPORT RD, COLORADO SPRINGS, CO, 80916
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA251705D9000
IDV Type: IDC
Timeline
Start Date: 2005-10-01
Current End Date: 2010-12-29
Potential End Date: 2010-12-29 00:00:00
Last Modified: 2016-09-26
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