DoD's $16M R&D Contract for Engineering Technical Services Awarded to RS Information Systems

Contract Overview

Contract Amount: $16,112,106 ($16.1M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2003-10-01

End Date: 2006-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200403!000021!5700!CA11 !50 CONS/LGCW !FA255001D0003 !A!N! !N!0013 ! !20031001!20040930!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000010122437!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !561710!E! !5!B!S! ! !D!20040930!B! ! !B! !A!N!R!2!003!K! !Z!N!Z! ! !N!A!N!N!C! ! ! !B!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to WYLE INFORMATION SYSTEMS, LLC for work described as: 200403!000021!5700!CA11 !50 CONS/LGCW !FA255001D0003 !A!N! !N!0013 ! !20031001!20040930!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!16000!041!08!COLORADO SPRINGS !EL P… Key points: 1. Contract awarded for Engineering Technical Services in R&D sector. 2. RS Information Systems, Inc. secured the $16M contract. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract duration is 3 years, ending September 30, 2006. 5. The contract type is Cost Plus Award Fee.

Value Assessment

Rating: fair

The contract value is $16,000,000. Without specific benchmarks for similar engineering technical services contracts, a precise pricing assessment is difficult. However, the Cost Plus Award Fee structure suggests potential for cost overruns if not managed carefully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'Full and Open Competition After Exclusion of Sources,' indicating that while open, specific sources were initially excluded. This method can limit the pool of potential bidders and may impact price discovery compared to truly unrestricted full and open competition.

Taxpayer Impact: The $16M expenditure represents taxpayer funds allocated to research and development. The effectiveness of this spending in achieving R&D goals will determine the ultimate value for taxpayers.

Public Impact

Supports critical research and development activities within the Department of Defense. Provides specialized engineering technical services, potentially enhancing defense capabilities. Contract award to a specific company may influence market dynamics in the R&D services sector. The Cost Plus Award Fee structure incentivizes performance but requires robust oversight to control costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Cost Plus Award Fee contracts can be prone to cost overruns.
Contract duration of 3 years is substantial for R&D.

Positive Signals

Addresses a specific need for engineering technical services.
Awarded to a company with a physical presence in Virginia.
Contract has a defined end date, allowing for future re-evaluation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be complex to benchmark due to the unique nature of R&D projects.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award was made to RS Information Systems, Inc., and there is no information on their small business status or subcontracting plans.

Oversight & Accountability

The 'Cost Plus Award Fee' contract type necessitates strong oversight to ensure that costs are reasonable and that award fees are justified by performance. The Department of Defense and the Defense Contract Management Agency are responsible for monitoring this contract's execution.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Limited competition
Cost Plus Award Fee structure
Potential for cost overruns
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to WYLE INFORMATION SYSTEMS, LLC. 200403!000021!5700!CA11 !50 CONS/LGCW !FA255001D0003 !A!N! !N!0013 ! !20031001!20040930!827006867!827006867!827006867!N!RS INFORMATION SYSTEMS, INC !1651 OLD MEADOW ROAD !MC LEAN !VA!22102!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !+000010122437!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !561710!E! !5!B!S! ! !D!200

Who is the contractor on this award?

The obligated recipient is WYLE INFORMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2003-10-01. End: 2006-09-30.

What specific R&D objectives does this contract aim to achieve, and how will success be measured?

The contract aims to provide engineering technical services for research and development. Success will likely be measured against predefined technical milestones and performance metrics outlined in the contract's statement of work. The Cost Plus Award Fee structure suggests that achieving these objectives efficiently and effectively will determine the awarded fee, implying a focus on both technical accomplishment and cost management.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' method for this contract?

This competition method, while open, excludes certain sources, potentially limiting the range of innovative solutions and competitive pricing. Risks include overlooking highly capable vendors or technologies not represented by the included sources. It could also lead to a perception of reduced competition, potentially impacting the government's ability to secure the most advantageous terms and pricing.

How does the Cost Plus Award Fee structure impact the government's ability to control costs for these engineering technical services?

The Cost Plus Award Fee (CPAF) structure allows the contractor to recover allowable costs plus a fee that is composed of a fixed base fee plus a variable award amount. While the award fee incentivizes performance, it requires diligent government oversight to ensure costs are reasonable and that the award fee is earned based on objective performance metrics. Without robust monitoring, there's a risk of cost escalation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: KBR, Inc. (UEI: 784072626)

Address: 1600 INTERNATIONAL DR STE 800, MC LEAN, VA, 22102

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA255001D0003

IDV Type: IDC

Timeline