GSA's $15.5M R&D Contract with APTIMA INC Faces Limited Competition, Raising Oversight Concerns

Contract Overview

Contract Amount: $15,557,800 ($15.6M)

Contractor: Aptima Inc

Awarding Agency: General Services Administration

Start Date: 2022-05-13

End Date: 2026-05-12

Contract Duration: 1,460 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TO 07 SCARS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $15.6 million to APTIMA INC for work described as: TO 07 SCARS Key points: 1. The contract value is $15.5 million, awarded for R&D services. 2. Competition is limited, with the contract type noted as 'NOT AVAILABLE FOR COMPETITION'. 3. Potential risks include lack of competitive pricing and reduced value for taxpayer dollars. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed closely. Without competitive benchmarks, assessing the fairness of the fixed fee is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a sole-source or limited source justification. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Limited competition may result in taxpayers paying more than necessary for the R&D services provided.

Public Impact

Taxpayers may not be receiving the best value due to the lack of competitive bidding. The government's ability to innovate could be impacted if limited competition becomes a trend. Transparency in R&D spending is crucial, especially when competition is restricted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of transparency in award justification

Positive Signals

Supports critical R&D efforts
Long-term contract duration allows for sustained research

Sector Analysis

This contract falls under R&D in Physical, Engineering, and Life Sciences. Spending in this sector is vital for technological advancement but requires careful oversight to ensure efficiency and innovation.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if small business participation was considered.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants close oversight to ensure the justification is sound and that the government is still achieving value for money. Regular performance reviews are essential.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of justification for limited competition
Potential for inflated costs
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15.6 million to APTIMA INC. TO 07 SCARS

Who is the contractor on this award?

The obligated recipient is APTIMA INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2022-05-13. End: 2026-05-12.

What was the specific justification for not making this R&D contract available for competition?

The justification for limiting competition is not provided in the data. Typically, such decisions are based on factors like unique capabilities of a specific contractor, urgent needs, or specific research requirements that only one entity can fulfill. Without this information, it's difficult to assess if the limited competition was warranted or if it represents a missed opportunity for better pricing.

How does the Cost Plus Fixed Fee structure impact the risk of cost overruns in this R&D contract?

Cost Plus Fixed Fee (CPFF) contracts can pose a risk of cost overruns if the fixed fee is not adequately determined or if the contractor's costs escalate beyond initial projections. While the fee is fixed, the government bears the cost of performance. Robust oversight and clear performance metrics are crucial to mitigate the risk of inflated costs and ensure the contractor remains incentivized to control expenses.

What is the potential impact of this limited competition award on future R&D procurement strategies within the Federal Acquisition Service?

If this limited competition award is not well-justified or does not demonstrate exceptional value, it could set a precedent for similar R&D procurements, potentially discouraging broader competition. Conversely, if the R&D outcomes are highly successful and innovative, it might reinforce the value of specialized, non-competitive awards in specific niche areas. Transparency in the justification process is key to maintaining confidence.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA22Q0108

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Aptima, Inc.

Address: 8 CABOT RD, WOBURN, MA, 01801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,770,578

Exercised Options: $15,770,578

Current Obligation: $15,557,800

Actual Outlays: $-1,093

Subaward Activity

Number of Subawards: 125

Total Subaward Amount: $116,677,634

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA19D0012

IDV Type: IDC

Timeline