DoEHRs contract awarded to Concurrent Technologies Corp for $18.6M in R&D services

Contract Overview

Contract Amount: $18,637,436 ($18.6M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2011-09-23

End Date: 2013-04-22

Contract Duration: 577 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DOEHRS

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to CONCURRENT TECHNOLOGIES CORP for work described as: DOEHRS Key points: 1. Contract value of $18.6M for R&D services. 2. Awarded under full and open competition. 3. Contract duration of 577 days. 4. Services fall under Research and Development in Physical, Engineering, and Life Sciences. 5. Contract type is Cost Plus Fixed Fee. 6. Awarded by the Department of the Army.

Value Assessment

Rating: fair

The contract value of $18.6M for R&D services over approximately 1.5 years appears within a reasonable range for specialized research and development projects. Without specific benchmarks for the DOEHRS system's R&D scope, a direct value-for-money assessment is challenging. However, the Cost Plus Fixed Fee structure suggests that while the contractor's costs are covered, a fixed fee incentivizes efficiency. Further analysis would require comparing this to similar R&D contracts for complex systems or specific technological advancements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed openly suggests a healthy market for the required R&D services. The number of bidders is not specified, but open competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from open competition through potentially lower prices and a wider array of technical solutions being considered, ensuring the government receives the best value.

Public Impact

The Department of the Army benefits from advanced research and development for the DOEHRS system. The contract supports the development of physical, engineering, and life sciences research. The geographic impact is primarily within Pennsylvania, where the contractor is located. The contract likely supports a specialized workforce in research and development fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not closely monitored.
The specific R&D outcomes and their direct applicability to operational needs require ongoing assessment.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract is for research and development, which can lead to technological advancements.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation and specialized expertise. The market size for R&D services is substantial, with government contracts forming a significant portion. This specific contract for the DOEHRS system likely addresses a niche requirement within the broader defense R&D landscape.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a result, small businesses may not have directly benefited from this specific award. However, the prime contractor, Concurrent Technologies Corp, may engage small businesses as subcontractors, depending on the project's needs and their subcontracting plans. The impact on the broader small business ecosystem would depend on the extent of such subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D details might be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Army Systems Development Contracts
Health Information Systems R&D

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Research and Development projects inherently carry technical risks and uncertainties.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to CONCURRENT TECHNOLOGIES CORP. DOEHRS

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2011-09-23. End: 2013-04-22.

What is the track record of Concurrent Technologies Corp in delivering R&D services for the Department of Defense?

Concurrent Technologies Corp (CTC) has a history of performing research and development services for the Department of Defense. Their expertise often lies in areas such as advanced manufacturing, materials science, and systems engineering. Analyzing CTC's past performance on similar cost-plus contracts would be crucial to assess their reliability and efficiency in managing R&D projects. Reviewing past performance evaluations and any contract disputes or awards would provide a clearer picture of their capabilities and adherence to contract terms and budgets.

How does the $18.6M contract value compare to similar R&D efforts for defense systems?

The $18.6 million contract value for the DOEHRS R&D project needs to be benchmarked against comparable research and development efforts within the Department of Defense. R&D contracts can vary significantly in cost based on the complexity of the technology, the duration of the research, and the specific scientific or engineering challenges involved. If DOEHRS represents a novel system or a significant upgrade, this value might be considered standard. However, if it's an incremental improvement or a well-established technology area, the cost could be higher than average. A detailed comparison would involve looking at contracts for similar system development, software R&D, or specialized engineering services awarded over the past few years.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the government bears the risk of cost overruns. If the R&D effort encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can increase significantly. Effective oversight, clear definition of milestones, and robust change management processes are critical to mitigate these risks and ensure the project stays within budget and delivers the intended R&D outcomes.

What is the expected effectiveness or impact of the R&D services funded by this contract?

The expected effectiveness and impact of the R&D services funded by this contract are tied to the advancement of the DOEHRS system. As a research and development contract, the immediate impact may not be a fully operational system but rather the development of new technologies, methodologies, or prototypes. The ultimate effectiveness will be measured by how well these R&D outcomes contribute to the system's future capabilities, efficiency, or reliability. This could translate into improved data management, enhanced analytical tools, or better decision-making support for the Department of the Army. The specific R&D objectives outlined in the contract statement of work would detail the anticipated results and their intended application.

How has federal spending on R&D in physical, engineering, and life sciences (NAICS 541712) trended in recent years?

Federal spending on Research and Development in Physical, Engineering, and Life Sciences (NAICS 541712) has generally shown an upward trend over the past decade, driven by national priorities in areas such as defense, healthcare, energy, and technology. Agencies like the Department of Defense, National Institutes of Health, and Department of Energy are major contributors to this spending. Factors influencing this trend include geopolitical considerations, advancements in scientific fields, and the need for technological innovation to address complex societal and security challenges. While specific year-over-year fluctuations can occur due to budget cycles and shifting priorities, the overall trajectory indicates a sustained investment in scientific and technological advancement.

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: RESEARCH AND DEVELOPMENT › Natural Resources and Environment R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91ZLK09R0005

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 13

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,637,436

Exercised Options: $18,637,436

Current Obligation: $18,637,436

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91ZLK10D0005

IDV Type: IDC

Timeline