DoD's $22.9M contract for professional services awarded to Dynamics Research Corporation shows potential for cost savings
Contract Overview
Contract Amount: $22,927,070 ($22.9M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Defense
Start Date: 2002-10-24
End Date: 2011-01-04
Contract Duration: 2,994 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200304!000003!5700!GV64 !ESC/DIBK !GS35F4775G !C!N! !N!F1962802F8232 !20021024!20030331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01375!037!24!ANDOVER ESTATES !ST. MARY S !MARYLAND !+000001165000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $22.9 million to DYNAMICS RESEARCH CORPORATION for work described as: 200304!000003!5700!GV64 !ESC/DIBK !GS35F4775G !C!N! !N!F1962802F8232 !20021024!20030331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01375!037!24!ANDOVER ESTATES !ST. M… Key points: 1. Contract value of $22.9M over its life suggests a significant investment in professional services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract's duration of nearly 8 years (2994 days) implies a long-term need for these services. 4. The primary service category is 'Other Professional Services', with a specific NAICS code for Custom Computer Programming Services. 5. The contract was awarded as a Delivery Order under a larger IDIQ contract (GS35F4775G). 6. The contractor, Dynamics Research Corporation, has a substantial presence in federal contracting. 7. The contract was awarded to a single entity, Dynamics Research Corporation. 8. The contract was awarded in Massachusetts, indicating a specific geographic focus for service delivery or contractor location.
Value Assessment
Rating: fair
The total award amount of $22.9 million for professional services over nearly 8 years requires careful benchmarking. Without specific details on the services rendered or the number of hours billed, it is difficult to assess value for money. Comparing this to similar contracts for custom computer programming or other professional services within the Department of Defense would be necessary to determine if the pricing is competitive. The firm fixed-price nature of the contract provides some cost certainty, but the overall value proposition depends heavily on the quality and impact of the services delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a delivery order under an existing IDIQ contract (GS35F4775G) implies that the initial IDIQ vehicle itself was competed. The number of bidders for this specific delivery order is not provided, but the initial competition for the IDIQ likely established a baseline for pricing and vendor capabilities. This competitive approach generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of vendors to compete, driving down prices and fostering innovation. This approach helps ensure that the government is receiving services at a fair market value.
Public Impact
The Department of Defense is the primary beneficiary, receiving professional services likely related to IT or specialized technical support. The contract supports the delivery of custom computer programming services, which are critical for modern defense operations. The geographic impact is centered in Massachusetts, where the contractor Dynamics Research Corporation is located. The contract likely supports a workforce within Dynamics Research Corporation, contributing to employment in the IT and professional services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed service descriptions makes it difficult to fully assess performance and value.
- The long contract duration could lead to potential cost overruns if not managed effectively.
- Reliance on a single contractor for a significant period may limit flexibility and access to newer technologies.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
- Firm fixed-price contract type provides cost certainty for the government.
- The contractor, Dynamics Research Corporation, is an established entity in federal contracting, suggesting experience and capability.
Sector Analysis
This contract falls within the professional services sector, specifically IT and custom computer programming. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and technical support. Contracts like this are common as agencies outsource specialized technical functions. Benchmarking would involve comparing the contract's value and duration against other similar IT service contracts awarded by the DoD or other federal agencies.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Dynamics Research Corporation, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Further investigation into the contractor's subcontracting history would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of Defense) and the relevant contracting activity (Defense Contract Management Agency). The firm fixed-price nature provides some cost control. Transparency is facilitated by the public availability of contract data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. The delivery order structure under an IDIQ may involve specific oversight mechanisms defined within the parent contract.
Related Government Programs
- Department of Defense IT Services
- Custom Computer Programming Services
- Professional Services Contracts
- IDIQ Contract Vehicles
- Federal IT Modernization
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Lack of detailed service description hinders performance evaluation.
- Potential for scope creep over the contract's extended period.
Tags
department-of-defense, it-services, custom-computer-programming, professional-services, firm-fixed-price, full-and-open-competition, delivery-order, dynamics-research-corporation, massachusetts, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.9 million to DYNAMICS RESEARCH CORPORATION. 200304!000003!5700!GV64 !ESC/DIBK !GS35F4775G !C!N! !N!F1962802F8232 !20021024!20030331!001014182!001014182!001014182!N!DYNAMICS RESEARCH CORPORATION !60 FRONTAGE ROAD !ANDOVER !MA!01810!01375!037!24!ANDOVER ESTATES !ST. MARY S !MARYLAND !+000001165000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541990!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.9 million.
What is the period of performance?
Start: 2002-10-24. End: 2011-01-04.
What specific services were provided under this $22.9M contract to Dynamics Research Corporation?
The provided data indicates the contract falls under NAICS code 541511, 'Custom Computer Programming Services,' and the PSC code R499, 'Other Professional Services.' While this gives a general category, the exact nature of the services is not detailed. This could range from software development and maintenance to system integration, cybersecurity support, or specialized IT consulting. Without more granular information, it's challenging to pinpoint the precise deliverables. Understanding the specific tasks performed is crucial for evaluating the contract's effectiveness and ensuring it met the DoD's evolving technological needs throughout its nearly eight-year duration.
How does the $22.9M contract value compare to similar custom computer programming services contracts within the DoD?
Benchmarking this $22.9 million contract requires comparing it to similar custom computer programming services contracts awarded by the Department of Defense over comparable timeframes. Given the contract's duration of approximately 8 years (2994 days), a direct comparison would ideally involve contracts with similar lifespans and scopes of work. The average annual value of this contract is roughly $2.9 million ($22.9M / 8 years). However, without knowing the specific tasks, complexity, and number of personnel involved, this is a very high-level comparison. A more robust analysis would involve looking at the average cost per hour or per full-time equivalent for similar roles within the DoD IT services landscape to determine if this contract represents a fair market price.
What are the key risks associated with a nearly 8-year firm fixed-price contract for custom computer programming?
A significant risk with a long-duration firm fixed-price contract like this is scope creep and technological obsolescence. Over nearly eight years, the technological landscape can change dramatically, potentially rendering the original software or systems outdated or inefficient. If the contract doesn't have robust mechanisms for adapting to new requirements or technologies, the DoD might be locked into using suboptimal solutions. Another risk is that the fixed price, if not carefully estimated, could lead to the contractor either overcharging for the work or, conversely, cutting corners on quality to maintain profitability if costs escalate unexpectedly. Effective contract management and clear performance metrics are essential to mitigate these risks.
What was the historical spending pattern for Dynamics Research Corporation with the Department of Defense prior to this contract?
To assess Dynamics Research Corporation's track record, examining their historical spending with the Department of Defense prior to this contract is essential. This involves reviewing past awards, contract types, and performance evaluations. If DRC has a history of successfully delivering complex IT services on time and within budget for the DoD, it suggests a lower risk profile for this new contract. Conversely, a history of cost overruns, missed deadlines, or poor performance would raise concerns. Analyzing their portfolio of previous contracts can reveal their core competencies and their ability to manage large, long-term engagements, providing valuable context for the $22.9 million award.
How does the 'full and open competition' award mechanism impact the potential for cost savings for the taxpayer?
Awarding a contract under 'full and open competition' is generally beneficial for taxpayers as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing. When multiple qualified vendors vie for a contract, they are incentivized to offer their best prices and most innovative solutions to win the award. This competitive pressure helps drive down costs compared to sole-source or limited competition scenarios where the government may have fewer options. For this $22.9 million contract, the competitive process likely ensured that Dynamics Research Corporation's pricing was aligned with market rates, preventing potential overpayment and maximizing the value derived from taxpayer funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: TWO TECHNOLOGY DR, ANDOVER, MA, 01810
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4775G
IDV Type: FSS
Timeline
Start Date: 2002-10-24
Current End Date: 2011-01-04
Potential End Date: 2011-01-04 00:00:00
Last Modified: 2021-12-07
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