DoD's $12M R&D contract to Wyle Information Systems shows fair value with 3 bidders

Contract Overview

Contract Amount: $11,988,473 ($12.0M)

Contractor: Wyle Information Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2008-11-30

Contract Duration: 791 days

Daily Burn Rate: $15.2K/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: SIDC DELIVERY ORDER

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to WYLE INFORMATION SYSTEMS, LLC for work described as: SIDC DELIVERY ORDER Key points: 1. The contract's value appears reasonable given the R&D nature and competitive bidding. 2. Competition dynamics indicate a healthy market for these specialized research services. 3. Risk indicators are moderate, typical for R&D contracts with performance-based elements. 4. Performance context suggests a focus on scientific and engineering research outcomes. 5. Sector positioning places this within the broader defense R&D landscape.

Value Assessment

Rating: good

The contract's total value of approximately $12 million over two years suggests a reasonable investment for specialized R&D services. Benchmarking against similar research and development contracts within the Department of Defense indicates that the pricing structure, likely Cost Plus Award Fee, is common for incentivizing performance. The presence of three bidders in a full and open competition further supports the assessment that the awarded price reflects a competitive market rate for the expertise required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential offerors were solicited. The participation of three bidders suggests a reasonable level of competition for this specific research and development requirement. This level of competition is generally sufficient to drive price discovery and ensure that the government receives competitive proposals.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario would have yielded.

Public Impact

The primary beneficiaries are the Department of Defense research initiatives, advancing scientific and engineering capabilities. Services delivered include advanced research and development in physical, engineering, and life sciences. Geographic impact is primarily within the defense research ecosystem, potentially supporting innovation nationwide. Workforce implications include employment for highly skilled scientists, engineers, and research professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
R&D projects can face scope creep or unforeseen technical challenges impacting timelines and budgets.
Dependence on a single contractor for specialized R&D expertise could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
The contractor, WYLE INFORMATION SYSTEMS, LLC, likely possesses specialized expertise relevant to the R&D scope.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks in this sector are highly variable, depending on the specific scientific domain and project complexity. However, a $12 million award for a two-year R&D effort is within a typical range for specialized research tasks.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on specialized R&D services may limit opportunities for broad small business participation, unless specific technical niches are outsourced.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms are key accountability measures. Transparency is facilitated through contract databases and reporting requirements. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Technology Development Contracts
Engineering and Scientific Services Contracts

Risk Flags

Potential for cost overruns in CPA contracts.
R&D project complexity and uncertainty.
Contractor performance risk.
Dependence on specialized contractor expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to WYLE INFORMATION SYSTEMS, LLC. SIDC DELIVERY ORDER

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2006-10-01. End: 2008-11-30.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' conducted under this contract?

The provided data indicates the contract falls under NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences.' While the specific project details are not included in this summary, this classification suggests the work likely involves fundamental research, applied research, or experimental development aimed at discovering new knowledge or creating new applications in fields such as materials science, aerospace engineering, biotechnology, or environmental science. The contract's Cost Plus Award Fee structure implies that the government is seeking innovative solutions and is willing to incentivize the contractor for achieving specific performance objectives and milestones within these scientific domains.

How does the Cost Plus Award Fee (CPA) structure influence contractor behavior and cost control for this R&D contract?

The Cost Plus Award Fee (CPA) structure is designed to incentivize contractor performance by allowing the contractor to recover allowable costs plus a base fee, with the potential for an additional award fee based on the government's evaluation of performance against predetermined criteria. For this R&D contract, the CPA structure encourages WYLE INFORMATION SYSTEMS, LLC to not only manage costs but also to excel in achieving research objectives, innovation, and timely delivery. The government's role in evaluating performance and determining the award fee is critical for cost control and ensuring value for money. Effective oversight is necessary to prevent potential cost overruns and ensure that award fees are justified by exceptional performance, rather than routine execution.

What are the potential risks associated with a two-year R&D contract awarded to a single entity, even with multiple bidders initially?

Even with initial competition, a two-year R&D contract awarded to a single entity carries inherent risks. These include potential contractor performance issues, such as delays, quality deficiencies, or failure to meet technical milestones. There's also the risk of 'key person' dependency, where the departure of critical personnel could disrupt the project. Furthermore, the specialized nature of R&D means that unforeseen technical challenges or shifts in research direction could lead to scope creep or budget overruns. The government's reliance on one contractor for the duration also limits flexibility if the project's needs evolve significantly or if alternative solutions emerge.

Can the performance outcomes of this contract be benchmarked against other similar R&D efforts within the Department of Defense?

Benchmarking the performance outcomes of this specific R&D contract against other similar efforts within the Department of Defense (DoD) can be challenging without access to detailed project reports and performance metrics. While the contract value and duration provide some context, the unique nature of R&D means that 'success' is often defined by specific, project-dependent milestones and discoveries. Publicly available data typically focuses on contract awards and financials, not the granular technical achievements or scientific breakthroughs. However, comparisons can be made regarding the efficiency of cost management, adherence to schedule, and the achievement of defined technical objectives, provided such data is accessible through government performance reviews or program evaluations.

What is the historical spending pattern for WYLE INFORMATION SYSTEMS, LLC with the Department of Defense, and does this contract align with their typical contract types and values?

Analyzing the historical spending patterns for WYLE INFORMATION SYSTEMS, LLC with the Department of Defense is crucial for understanding their track record and the context of this specific $12 million R&D contract. Without access to a comprehensive contract database, it's difficult to provide precise historical figures. However, if WYLE INFORMATION SYSTEMS, LLC has a history of performing similar R&D services for the DoD, this contract may represent a continuation or expansion of that relationship. The 'Cost Plus Award Fee' (CPA) contract type is common for R&D where performance is difficult to define precisely upfront. The contract value of $12 million over two years appears to be a substantial, but not necessarily outlier, award for a specialized R&D provider within the defense sector.

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: Court Square Capital Partners, L.P. (UEI: 610537735)

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

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,988,473

Exercised Options: $11,988,473

Current Obligation: $11,988,473

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA255001D0003

IDV Type: IDC

Timeline