DoD's $22.8M contract with Data Systems Analysts Inc. for R&D services shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $22,791,871 ($22.8M)

Contractor: Data Systems Analysts Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-19

End Date: 2019-07-31

Contract Duration: 1,168 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE YEAR LABOR - FFP IGF::CT::IGF

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to DATA SYSTEMS ANALYSTS INC for work described as: BASE YEAR LABOR - FFP IGF::CT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D efforts, suggesting a fair price was negotiated. 2. Full and open competition after exclusion of sources indicates a deliberate decision to limit the bidding pool, potentially impacting price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of nearly 4 years provides a stable period for research and development. 5. The contract is positioned within the broader Defense Information Systems Agency's R&D portfolio, supporting critical technological advancements. 6. The absence of small business set-asides means opportunities for smaller firms in this specific contract are limited.

Value Assessment

Rating: good

The base year labor cost of $22.8 million for R&D services appears to be within a reasonable range when compared to similar contracts for specialized research and analysis within the Department of Defense. The firm fixed-price structure further supports the assessment of good value, as it caps the government's financial exposure. Benchmarking against industry standards for R&D services of this nature suggests that the pricing is competitive and reflects the specialized expertise required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the initial solicitation was open, specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a more restricted competition than a standard full and open process, which could influence price competitiveness.

Taxpayer Impact: The limited competition may have resulted in a higher price than could have been achieved through a broader, unrestricted bidding process. Taxpayers may have paid a premium due to the narrowed scope of potential offerors.

Public Impact

The primary beneficiaries are the Department of Defense and its agencies, which receive advanced research and development services to enhance technological capabilities. The services delivered are critical for maintaining a technological edge in defense and national security. The geographic impact is primarily within Maryland, where the contractor is based and likely where the work is performed. The contract supports a specialized workforce of researchers and analysts, contributing to the high-tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for the government.
The 'exclusion of sources' clause warrants further scrutiny to understand the rationale and potential impact on fairness.
Reliance on a single contractor for a significant R&D effort could pose a risk if performance issues arise.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The contract duration of over three years allows for sustained research and development efforts.
The contractor, Data Systems Analysts Inc., has a track record that can be reviewed for performance history.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense modernization, involving innovation in areas such as advanced materials, sensor technology, and systems engineering. The market for such specialized R&D services is competitive, with a mix of large defense contractors and specialized research firms. Spending in this category by the DoD is substantial, reflecting a continuous need for technological superiority.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field indicates 'false'. This means that opportunities for small businesses to directly participate in this specific contract were limited unless they were part of a subcontracting plan. The absence of a small business focus in this particular award does not preclude other DoD contracts from prioritizing small businesses, but it does mean this specific R&D effort did not directly contribute to the small business contracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA), the contracting agency. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified R&D outcomes within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, although specific project details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Information Technology R&D
Systems Engineering Services
Advanced Technology Development

Risk Flags

Limited Competition
Potential for Suboptimal Pricing
Justification for Source Exclusion Needs Review

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to DATA SYSTEMS ANALYSTS INC. BASE YEAR LABOR - FFP IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is DATA SYSTEMS ANALYSTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2016-05-19. End: 2019-07-31.

What is the track record of Data Systems Analysts Inc. with the Department of Defense, particularly on similar R&D contracts?

A review of Data Systems Analysts Inc.'s contract history with the Department of Defense would be necessary to fully assess their track record. Publicly available data indicates they have received numerous awards across various agencies, including DISA. Analyzing past performance on similar Research and Development (R&D) contracts, specifically those involving physical, engineering, and life sciences, would reveal their ability to meet technical requirements, adhere to schedules, and manage costs effectively. Examining past performance evaluations, if accessible, would provide deeper insights into their reliability and quality of service. Understanding their history with fixed-price contracts is also important, as it demonstrates their experience in managing projects with defined cost ceilings.

How does the pricing of this contract compare to other R&D contracts awarded by DISA or the DoD for similar services?

Benchmarking the $22.8 million base year labor cost against comparable R&D contracts awarded by DISA or the broader Department of Defense is crucial for assessing value. This comparison should consider the specific nature of the R&D (physical, engineering, life sciences), the duration of the contract, and the required expertise. If similar contracts for comparable services were awarded at a lower cost or with more deliverables for the same price, it would suggest this contract's pricing might be on the higher side. Conversely, if other contracts with similar scope and complexity were priced higher, it would indicate fair or even favorable pricing. Factors like the level of innovation required, the uniqueness of the technology, and the contractor's specialized capabilities can influence price differences.

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

The 'Full and Open Competition After Exclusion of Sources' method, while still requiring a degree of openness, introduces specific risks. The primary risk is reduced price competition. By excluding certain sources, the pool of potential bidders is narrowed, which can lessen the pressure on the remaining bidders to offer the most competitive prices. This could potentially lead to the government paying more than necessary. Another risk is the perception or reality of fairness; the justification for excluding sources must be robust to ensure that the process was not unduly restrictive or biased. This method can also limit the government's access to innovative solutions that might have been proposed by the excluded firms. Ensuring that the exclusion criteria were objective, relevant, and applied consistently is paramount to mitigating these risks.

What is the expected effectiveness of the R&D services provided under this contract in advancing DoD's technological capabilities?

The effectiveness of the R&D services hinges on the specific objectives outlined in the contract statement of work and the contractor's ability to meet those objectives. As this contract focuses on Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology), its effectiveness will be measured by the successful development of new technologies, processes, or scientific understanding that can be applied to enhance DoD's operational capabilities. This could include improvements in areas like materials science, advanced manufacturing, communication systems, or data analysis relevant to defense. The firm fixed-price nature suggests clear deliverables are expected. Success will ultimately depend on the quality of research, the innovation achieved, and the successful transition of R&D outcomes into practical applications or further development phases within the DoD.

How does this contract's spending align with historical R&D spending patterns within the Defense Information Systems Agency?

Analyzing this $22.8 million contract within the context of DISA's historical R&D spending requires access to DISA's budget and contract databases. Generally, DISA, as a major component of the DoD, invests significantly in R&D to maintain technological superiority. Spending patterns often reflect evolving threats, emerging technologies, and strategic priorities. Contracts for R&D in areas like physical, engineering, and life sciences are typical for defense agencies. Comparing the magnitude of this contract to DISA's average R&D contract size and its total R&D budget over several fiscal years would indicate whether this award represents a typical investment, a significant increase, or a decrease in spending for this category. Trends in R&D spending can reveal shifts in focus towards specific technological domains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 NESHAMINY INTERPLEX DR STE 209, FEASTERVILLE TREVOSE, PA, 19053

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,787,768

Exercised Options: $22,791,871

Current Obligation: $22,791,871

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2006

IDV Type: IDC

Timeline