NASA's $115M IT R&D Contract with QSS Group Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $115,412,345 ($115.4M)

Contractor: QSS Group, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2000-03-15

End Date: 2005-08-31

Contract Duration: 1,995 days

Daily Burn Rate: $57.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: R & D OF INFORMATION TECHNOLOGY

Place of Performance

Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035

State: California Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $115.4 million to QSS GROUP, INC. for work described as: R & D OF INFORMATION TECHNOLOGY Key points: 1. Significant R&D investment in IT services. 2. Sole provider QSS Group, Inc. raises competition concerns. 3. Contract duration spans over 5 years. 4. Potential for cost overruns given the contract type.

Value Assessment

Rating: questionable

The Cost Plus Award Fee structure can incentivize performance but also carries a risk of inflated costs if not tightly managed. Benchmarking against similar IT R&D contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

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

Taxpayer Impact: The lack of competition may have resulted in higher spending than if multiple vendors had vied for the contract.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long contract duration could lock the agency into potentially suboptimal solutions. NASA's reliance on a single vendor for critical IT R&D warrants further investigation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. IT R&D spending can vary widely, but a $115M contract over 5 years for a single entity suggests a substantial investment.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting large prime contractors dominated this procurement.

Oversight & Accountability

The 'CA' (California) designation and the 'DCA' award type might indicate specific oversight mechanisms or award conditions, but further details are needed to assess accountability.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, national-aeronautics-and-space-administr, ca, dca, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $115.4 million to QSS GROUP, INC.. R & D OF INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is QSS GROUP, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $115.4 million.

What is the period of performance?

Start: 2000-03-15. End: 2005-08-31.

What was the justification for limiting competition on this significant IT R&D contract?

The justification for limiting competition is not provided in the data. Typically, such decisions are made when only one vendor possesses the unique capabilities, technology, or intellectual property required for the project, or in cases of urgent need. Without this information, it's difficult to assess if the limited competition was warranted or if it represented a missed opportunity for cost savings through bidding.

What are the primary risks associated with a Cost Plus Award Fee contract for R&D?

The primary risks of a Cost Plus Award Fee (CPAF) contract for R&D include potential cost overruns, as the contractor is reimbursed for allowable costs plus a fee that is contingent on meeting performance targets. This can incentivize contractors to incur higher costs to achieve higher fees if performance metrics are not strictly defined and monitored. There's also a risk of scope creep and difficulty in accurately estimating final costs.

How effective was QSS Group, Inc. in delivering the IT R&D services under this contract?

The provided data does not include performance metrics or effectiveness ratings for QSS Group, Inc. The 'Award Fee' component suggests performance was evaluated, but the outcomes of those evaluations and the overall success of the R&D efforts are not detailed. Assessing effectiveness would require access to contract performance reports, deliverables, and agency satisfaction assessments.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Dell Computer Corporation (UEI: 114315195)

Address: 4500 FORBES BLVD STE 200, LANHAM, MD, 04

Business Categories: Category Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,843,126

Exercised Options: $120,869,054

Current Obligation: $115,412,345

Timeline

Start Date: 2000-03-15

Current End Date: 2005-08-31

Potential End Date: 2005-08-31 00:00:00

Last Modified: 2012-10-11

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