DOI awarded $5.5M for R&D in physical sciences, engineering, and life sciences

Contract Overview

Contract Amount: $5,482,783 ($5.5M)

Contractor: Scientific Systems Company, Inc.

Awarding Agency: Department of the Interior

Start Date: 2019-01-22

End Date: 2020-08-31

Contract Duration: 587 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SCIENTIFIC SYSTEMS COMPANY INC., RAID-T - RAPID AUTONOMOUS INSTIGATED DISCOVERY OF THREATS

Place of Performance

Location: WOBURN, MIDDLESEX County, MASSACHUSETTS, 01801

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Interior obligated $5.5 million to SCIENTIFIC SYSTEMS COMPANY, INC. for work described as: SCIENTIFIC SYSTEMS COMPANY INC., RAID-T - RAPID AUTONOMOUS INSTIGATED DISCOVERY OF THREATS Key points: 1. Contract value of $5.5M for R&D services. 2. Competition was full and open, indicating a potentially competitive bidding process. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 4. Performance period spanned from January 2019 to August 2020. 5. The North American Industry Classification System (NAICS) code 541715 covers R&D in physical, engineering, and life sciences. 6. The contract was awarded to SCIENTIFIC SYSTEMS COMPANY, INC.

Value Assessment

Rating: fair

The contract value of $5.5 million for R&D services is moderate. Without specific benchmarks for similar rapid autonomous discovery of threats (RAID-T) projects, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed carefully. However, it also allows for flexibility in research projects where costs may be uncertain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and can lead to better pricing for the government. The presence of 5 bids indicates a reasonable level of interest in the opportunity.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

This contract supports research and development in advanced scientific fields. The project, 'RAID-T - Rapid Autonomous Instigated Discovery of Threats,' aims to advance threat detection capabilities. The primary beneficiary is likely the Department of the Interior's research and development initiatives. The contract supports scientific and engineering workforce through research activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher final costs if not rigorously managed.
The duration of the contract (587 days) is relatively short for complex R&D, potentially limiting long-term impact.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The project's focus on 'Rapid Autonomous Instigated Discovery of Threats' addresses critical national security or operational needs.
The contractor, SCIENTIFIC SYSTEMS COMPANY, INC., has a specific contract for this R&D initiative.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in the Physical, Engineering, and Life Sciences. This sector is characterized by innovation and the pursuit of new knowledge and technologies. Federal spending in R&D is crucial for advancing scientific understanding and developing solutions to complex problems. Comparable spending benchmarks would depend on the specific sub-field of R&D and the scale of the project.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, the direct impact on small business set-asides is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of the Interior. The Cost Plus Fixed Fee structure necessitates careful monitoring of costs and progress to ensure adherence to the contract terms and to manage the fixed fee appropriately. Transparency would be facilitated through contract reporting mechanisms, though specific details on public accessibility of progress reports are not provided.

Related Government Programs

Department of the Interior Research and Development Programs
Autonomous Systems Research
Threat Detection Technology Development
Scientific and Engineering Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
R&D projects inherently carry technical and schedule risks.
Contract duration may be short for comprehensive R&D.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.5 million to SCIENTIFIC SYSTEMS COMPANY, INC.. SCIENTIFIC SYSTEMS COMPANY INC., RAID-T - RAPID AUTONOMOUS INSTIGATED DISCOVERY OF THREATS

Who is the contractor on this award?

The obligated recipient is SCIENTIFIC SYSTEMS COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2019-01-22. End: 2020-08-31.

What is the track record of SCIENTIFIC SYSTEMS COMPANY, INC. in performing R&D contracts for the federal government?

SCIENTIFIC SYSTEMS COMPANY, INC. has a history of performing R&D contracts. While this specific contract was for $5.5 million, their broader portfolio and experience in areas like autonomous systems and threat detection would be key indicators of their capability. A deeper dive into their past performance ratings, any past performance issues, and the types of agencies they have served would provide a more comprehensive understanding of their track record. Analyzing the successful completion of similar projects, adherence to timelines, and budget management on prior government contracts would offer further insight into their reliability and expertise in executing complex R&D initiatives.

How does the $5.5 million contract value compare to similar R&D projects for threat detection?

Benchmarking the $5.5 million contract value against similar R&D projects for threat detection is challenging without access to a comprehensive database of comparable contracts. However, for a project focused on 'Rapid Autonomous Instigated Discovery of Threats,' this value appears moderate. Larger, more complex R&D initiatives in advanced defense or intelligence sectors could easily run into tens or hundreds of millions of dollars. Conversely, smaller, more focused feasibility studies or prototype developments might be in the lower millions. The specific scope, technological maturity, and duration of the 'RAID-T' project would be critical factors in determining if $5.5 million represents optimal value. The Cost Plus Fixed Fee structure also means the final cost could vary.

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, like the 'RAID-T' contract, revolve around cost control and potential for scope creep. While the fixed fee provides an incentive for the contractor to manage costs efficiently to maximize their profit, the government bears the risk of cost overruns if actual allowable costs exceed estimates. If the R&D is highly exploratory, unforeseen technical challenges can significantly increase costs. There's also a risk that the contractor might not be sufficiently motivated to control costs if they believe the fixed fee is too low, or conversely, that the government might not receive the full benefit of cost savings if the fee is structured poorly. Robust oversight and clear definition of 'allowable costs' are crucial to mitigate these risks.

How effective is the 'full and open competition' approach in ensuring value for taxpayer money in R&D contracts?

Full and open competition is generally considered the most effective approach for ensuring value for taxpayer money in R&D contracts. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competition drives innovation and encourages contractors to offer their best technical solutions at the most favorable prices. The presence of 5 bids in this specific contract suggests a healthy level of competition. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to properly assess the technical merit and cost proposals to select the best overall value, not just the lowest price.

What is the typical duration for R&D contracts of this nature, and does the 587-day period pose any concerns?

The typical duration for R&D contracts can vary significantly based on the complexity, scope, and maturity of the technology being developed. A 587-day period (approximately 1.6 years) for a project focused on 'Rapid Autonomous Instigated Discovery of Threats' might be considered relatively short for groundbreaking R&D, especially if it involves significant fundamental research or complex system integration. Shorter durations can sometimes indicate a focus on specific milestones, prototypes, or feasibility studies rather than long-term development. If the project aimed for a fully mature, deployable system, this duration could be a concern, potentially leading to rushed development or incomplete research. However, if it was intended for a specific phase or proof-of-concept, the duration might be appropriate.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001118S0036

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 500 W CUMMINGS PARK STE 3000, WOBURN, MA, 01801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,898,899

Exercised Options: $5,482,783

Current Obligation: $5,482,783

Actual Outlays: $4,200,578

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline