DoD's $11M R&D contract with SERCO SERVICES INC. awarded in 2006 for physical sciences research

Contract Overview

Contract Amount: $11,025,474 ($11.0M)

Contractor: Serco Services Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-01

End Date: 2008-07-11

Contract Duration: 741 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80914

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to SERCO SERVICES INC. for work described as: Key points: 1. Contract value appears reasonable for specialized R&D services over a two-year period. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed closely. 4. Performance period of approximately two years is typical for R&D projects. 5. The contract falls within the broad category of physical, engineering, and life sciences research. 6. Awarded by the Department of the Air Force, indicating a focus on defense-related R&D.

Value Assessment

Rating: fair

Benchmarking this specific R&D contract's value is challenging without detailed scope of work and deliverables. However, an $11 million award over two years for specialized research is within a plausible range for government contracts. The Cost Plus Fixed Fee (CPFF) structure, while common in R&D, carries inherent risks of cost escalation if the contractor's actual costs exceed estimates significantly, impacting the overall value for money. Further analysis would require comparing the contractor's performance and final costs against the initial fixed fee and estimated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process designed to foster competition and potentially achieve better pricing and innovation. The number of bidders is not specified, but the open competition framework generally leads to a wider pool of potential offerors, which is favorable for price discovery and selecting the best value solution.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible research outcomes and pricing for the government's investment in R&D.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, gaining insights and advancements in physical sciences relevant to national security. The services delivered involve research and development activities, contributing to technological innovation. The geographic impact is primarily within Colorado, where the contract was awarded. Workforce implications include employment for scientists, engineers, and support staff involved in the R&D project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending to maximize the fixed fee percentage if not carefully monitored.
Lack of specific details on deliverables makes it difficult to assess the true value and impact of the R&D conducted.
The contract duration of approximately two years might be insufficient for groundbreaking R&D, potentially leading to incomplete projects or rushed findings.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive selection process.
The contract focuses on Research and Development, a critical area for technological advancement.
The contractor, SERCO SERVICES INC., has a history of government contracting, implying some level of established processes and experience.

Sector Analysis

This contract falls under the Research and Development sector, specifically within NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is crucial for innovation and technological advancement across various industries, including defense. Government spending in this area often supports fundamental research, applied research, and experimental development. Comparable spending benchmarks would involve analyzing other DoD R&D contracts within the physical sciences domain, considering factors like project scope, duration, and contractor expertise.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The focus was on full and open competition, which may or may not have involved small businesses as prime contractors or subcontractors depending on their capabilities and bidding strategies.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification from the contractor. Transparency is generally facilitated through contract award databases, though specific project details and performance reviews may be less publicly accessible for R&D contracts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical Sciences Research Initiatives
Advanced Technology Development Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited information on specific deliverables hinders assessment of R&D value.
Contract duration may be insufficient for complex R&D outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2006-07-01. End: 2008-07-11.

What was the specific research area within physical sciences for this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' However, it does not specify the precise research area within this broad category. Contracts in this domain can encompass a wide range of disciplines, including but not limited to materials science, physics, chemistry, aerospace engineering, and environmental science. To determine the specific research area, one would need to consult the contract's statement of work (SOW) or other detailed documentation associated with the award. This level of detail is crucial for understanding the contract's objectives and potential impact.

How did SERCO SERVICES INC.'s performance compare to expectations for this contract?

The provided data does not include performance metrics or evaluation reports for this specific contract. Assessing SERCO SERVICES INC.'s performance would require access to contract close-out documents, performance reviews, or any post-award assessments conducted by the Department of the Air Force. Without this information, it is impossible to definitively state how their performance compared to expectations. Factors such as adherence to schedule, quality of research outcomes, and effective cost management would be key indicators of performance. Government contract databases sometimes contain performance ratings, but these are not included in the abbreviated data.

What were the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is cost overrun. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the contractor's actual costs significantly exceed the estimated costs, the total expenditure for the government can be higher than initially anticipated. This structure can also create an incentive for contractors to incur higher costs to increase the base upon which the fixed fee is calculated, although the fee itself is fixed. Effective oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks.

Were there any significant cost underruns or overruns on this contract?

The provided data does not contain information regarding cost underruns or overruns for this contract. To determine if there were significant deviations from the estimated costs, one would need to review the contract's financial records, including interim payment reports and the final contract cost reconciliation. CPFF contracts inherently involve the risk of cost overruns, but also the possibility of cost savings if the project is completed under budget. Without access to the detailed financial closure documents, it is not possible to answer this question.

What is the historical spending pattern for SERCO SERVICES INC. with the Department of Defense in R&D?

The provided data only includes details for this single contract awarded in 2006. To analyze SERCO SERVICES INC.'s historical spending patterns with the Department of Defense (DoD) in R&D, a broader dataset encompassing all their contracts with the DoD over time would be necessary. This would allow for an examination of the volume, value, and types of R&D contracts awarded to the company. It would also reveal trends in their involvement in different R&D sub-sectors and their success rate in securing such contracts. Without this broader context, it's impossible to establish a historical spending pattern.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1050 N NEWPORT RD, COLORADO SPRINGS, CO, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Parent Contract

Parent Award PIID: FA251705D9000

IDV Type: IDC

Timeline