DoD's $377M contract with Computer Sciences Corporation for R&D management support shows long-term engagement

Contract Overview

Contract Amount: $377,034,206 ($377.0M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Defense

Start Date: 1999-10-01

End Date: 2003-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $258.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: 200004!5700!000001!GY04 !AEDC/PKO OPER CONTRACT DIVISION !F4060095C0016 !A!*!P00201 !19991001!20000930!122430226!009581091!009581091!N!5N967!COMPUTER SCIENCES CORPORATION !6565 ARLINGTON BLVD !FALLS CHURCH !VA!22042!01880!031!47!ARNOLD AFB !COFFEE !TENNESSEE !0001!+000007561500!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!C!B!A!*!A !U!R!2!004!B!* !C!N!Z!* !* !N!C!*!C!C!A!A!A!A!* !*!N!A!D!N!*!*!*!*!*!

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $377.0 million to COMPUTER SCIENCES CORPORATION for work described as: 200004!5700!000001!GY04 !AEDC/PKO OPER CONTRACT DIVISION !F4060095C0016 !A!*!P00201 !19991001!20000930!122430226!009581091!009581091!N!5N967!COMPUTER SCIENCES CORPORATION !6565 ARLINGTON BLVD !FALLS CHURCH !VA!22042!01880!031!47!ARNOLD AFB !COF… Key points: 1. Contract value of $377M over 4 years indicates significant investment in R&D management support. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract's duration and value may signal a stable, long-term need for these services. 4. Performance context is R&D management support, a critical function for technological advancement. 5. Sector positioning is within Defense R&D, a high-stakes area requiring specialized expertise.

Value Assessment

Rating: good

The contract's total value of $377M over four years averages to approximately $94M annually. While specific benchmarks for R&D management support are difficult to ascertain without more granular data, the duration and scale suggest a competitive pricing strategy was likely employed given the full and open competition. The cost-plus award fee structure allows for flexibility while incentivizing performance, which can be a good value if managed effectively.

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 a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which is conducive to price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving better value for money.

Public Impact

The primary beneficiaries are the Department of Defense and its research and development initiatives, ensuring critical support functions are met. Services delivered include management support for research and development activities, crucial for advancing military technology. Geographic impact is centered around Arnold AFB, Tennessee, a key location for Air Force research and development. Workforce implications include employment opportunities for individuals with expertise in R&D management and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract might reduce flexibility to adapt to changing technological needs.
Reliance on a single large contractor could create vendor lock-in.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The contract's length indicates a stable and predictable need, allowing for efficient resource planning.
The award fee structure incentivizes contractor performance, potentially leading to higher quality service delivery.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting Research, Development, Test, and Evaluation (RDT&E) management. The Defense sector's R&D spending is substantial, with significant portions allocated to acquiring specialized support services to manage complex projects. Comparable spending benchmarks are difficult to isolate without more specific service details, but the scale of this contract suggests it is a significant award within its niche.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Computer Sciences Corporation, may engage small businesses as subcontractors depending on their own procurement strategies and the specific needs of the R&D management support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. The cost-plus award fee structure necessitates close monitoring of costs and performance against defined award criteria. Transparency is generally maintained through contract reporting requirements, though specific details of performance and cost breakdowns may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
Engineering and Management Support Services
Air Force Research Laboratory Contracts
Information Technology Support Services

Risk Flags

Contract duration may exceed the pace of technological change in R&D.
Cost-plus award fee requires diligent government oversight to manage costs and ensure value.
Potential for vendor lock-in due to the scale and duration of the contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $377.0 million to COMPUTER SCIENCES CORPORATION. 200004!5700!000001!GY04 !AEDC/PKO OPER CONTRACT DIVISION !F4060095C0016 !A!*!P00201 !19991001!20000930!122430226!009581091!009581091!N!5N967!COMPUTER SCIENCES CORPORATION !6565 ARLINGTON BLVD !FALLS CHURCH !VA!22042!01880!031!47!ARNOLD AFB !COFFEE !TENNESSEE !0001!+000007561500!N!N!000000000000!AZ16!RDTE/OTHER RESEARCH & DEVELOPMENT-MGMT SUPPORT !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!C!B!A!*!A !U!R!

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $377.0 million.

What is the period of performance?

Start: 1999-10-01. End: 2003-09-30.

What is the historical spending trend for R&D management support services by the Department of Defense?

Historical spending on R&D management support services by the Department of Defense has generally trended upwards, reflecting the increasing complexity and strategic importance of technological advancement in national security. While specific figures for 'R&D management support' as a distinct category can be challenging to isolate due to varied classification, overall RDT&E spending has seen significant fluctuations tied to geopolitical events and budget cycles. For instance, periods of heightened global competition or emerging threats often correlate with increased investment in research and development, including the necessary management and support infrastructure. Analyzing broader RDT&E contract data reveals a consistent demand for specialized services that facilitate innovation, project oversight, and the transition of research into operational capabilities. The $377M awarded to Computer Sciences Corporation in this context represents a substantial, albeit singular, data point within this broader spending landscape.

How does the cost-plus award fee (CPAF) structure compare to other contract types for similar R&D services?

The Cost-Plus Award Fee (CPAF) structure used for this contract is a hybrid type designed to provide flexibility in cost reimbursement while incentivizing contractor performance. Unlike Firm-Fixed-Price (FFP) contracts, which offer the most price certainty but can be inflexible for evolving R&D needs, CPAF allows the government to reimburse the contractor's allowable costs plus a fee that is composed of a base amount and an award amount. The award amount is determined by the government based on the contractor's performance against pre-defined criteria. This contrasts with Cost-Plus-Fixed-Fee (CPFF) contracts, where the fee is fixed regardless of performance, or Cost-Plus-Incentive-Fee (CPIF) contracts, which have a target cost and fee, with adjustments based on cost savings or overruns. CPAF is often favored for complex R&D efforts where scope may not be fully defined at the outset, aiming to balance cost control with quality and innovation.

What is Computer Sciences Corporation's track record with large federal R&D contracts?

Computer Sciences Corporation (CSC), prior to its merger with The Enterprise Solutions division of HP to form DXC Technology, had a significant track record with large federal R&D contracts across various agencies, including the Department of Defense. CSC was a major IT services provider, often handling complex system integration, software development, and management support for defense and intelligence programs. Their portfolio included contracts for areas like simulation, training, logistics, and scientific research support. While specific details of past performance on R&D management support contracts would require deeper analysis of historical contract databases, CSC's general profile indicates substantial experience in managing large-scale, technically complex government programs. Their ability to secure a $377M contract from the Air Force suggests a demonstrated capability and a positive performance history relevant to the requirements of this award.

What are the potential risks associated with a 4-year contract for R&D management support?

A significant risk associated with a 4-year contract for R&D management support is the potential for technological obsolescence or shifts in strategic priorities. R&D is a rapidly evolving field, and a long-term contract might lock the government into specific methodologies or technologies that become outdated before the contract term ends. Another risk is contractor performance degradation over time, especially if the award fee structure is not sufficiently robust or if oversight weakens. Furthermore, the long duration could limit the government's flexibility to pivot to new approaches or contractors if unforeseen challenges arise or if a better solution becomes available in the market. Ensuring clear performance metrics, regular reviews, and mechanisms for contract modification or termination are crucial to mitigate these risks.

How does the geographic location (Arnold AFB, TN) influence the contract's execution and oversight?

The geographic location of Arnold Air Force Base (AFB) in Tennessee places the contract's execution and oversight within a key hub for Air Force research, development, and testing. This proximity likely facilitates closer collaboration between the contractor (Computer Sciences Corporation) and the government program managers and technical staff located at the base. On-site presence can improve communication, allow for more direct supervision of activities, and expedite problem-solving. Oversight can be more hands-on, with government personnel potentially having easier access to contractor personnel and facilities for reviews, inspections, and meetings. However, it also concentrates the contract's impact and oversight within a specific region, potentially limiting broader geographic distribution of work unless the contractor has other facilities or utilizes remote support extensively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6565 ARLINGTON BLVD, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline