DoD's $25.3M MDACE contract to SRC Inc. for R&D shows strong competition and long-term engagement

Contract Overview

Contract Amount: $25,273,454 ($25.3M)

Contractor: SRC Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-08

End Date: 2026-10-08

Contract Duration: 1,826 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS (MDACE)

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13212

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to SRC INC for work described as: MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS (MDACE) Key points: 1. The contract's value of $25.3 million over its 5-year duration suggests a significant investment in advanced research and development. 2. SRC Inc. has been awarded this contract through full and open competition, indicating a robust selection process. 3. The contract type, Cost Plus Fixed Fee, implies that SRC Inc. will be reimbursed for allowable costs plus a fixed fee, which can incentivize cost control. 4. The research and development focus (NAICS 541715) positions this contract within a critical sector for technological advancement. 5. The contract's duration of 1826 days (approximately 5 years) suggests a need for sustained effort and development. 6. The award to SRC Inc. for 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS' points to a specific, complex project within the defense sector.

Value Assessment

Rating: good

The total contract value of $25.3 million over five years averages to approximately $5 million per year. Without specific benchmarks for 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS', it's difficult to definitively assess value for money. However, the Cost Plus Fixed Fee structure, while common for R&D, requires careful oversight to ensure costs remain reasonable. The competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The fact that it was competed suggests that the Department of Defense sought the best possible solution and price. The number of bids received (2) is not explicitly stated in the provided data, but the 'full and open' designation implies a competitive environment was established.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiary is the Department of Defense, which will receive enhanced capabilities through the research and development conducted under this contract. The services delivered are focused on research and development, likely leading to advancements in defense technologies and systems. The geographic impact is centered in New York (ST: NY, SN: NEW YORK), where SRC Inc. is located, suggesting potential local economic benefits. The contract may have implications for the specialized scientific and engineering workforce, requiring skilled personnel for research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The relatively long duration of the contract requires sustained oversight to ensure progress and adherence to objectives.
Limited information on the specific nature of 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS' makes it challenging to assess potential risks associated with the technology itself.

Positive Signals

Awarded through full and open competition, indicating a robust and fair selection process.
The Cost Plus Fixed Fee structure, when managed effectively, can provide a balance between contractor incentive and cost control for R&D.
The contract's focus on R&D aligns with the DoD's strategic goals for technological superiority.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector (NAICS 541715). This is a critical area for defense modernization, involving innovation in areas like advanced materials, artificial intelligence, and complex systems integration. The market for defense R&D is highly specialized, with a mix of large prime contractors and niche technology firms like SRC Inc. The total federal spending in this sector is substantial, reflecting its importance to national security.

Small Business Impact

The provided data indicates that small business set-aside (ss) is false and subcontracting (sb) is false. This suggests that the primary contract was not specifically set aside for small businesses, nor is there an explicit requirement for subcontracting with small businesses mentioned in this data. Therefore, the direct impact on the small business ecosystem through this specific contract award appears limited, though SRC Inc. may engage small businesses as part of its broader operations.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contract compliance, monitoring performance, and verifying costs. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that allowable costs are reasonable and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting requirements and potential audits.

Related Government Programs

Advanced Research Projects Agency (ARPA) Contracts
Department of Defense Research and Development Programs
Agile Development Contracts
Multi-Domain Operations Initiatives

Risk Flags

Long contract duration requires sustained oversight.
Cost Plus Fixed Fee structure necessitates careful cost management.
R&D projects inherently carry technical and schedule risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to SRC INC. MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS (MDACE)

Who is the contractor on this award?

The obligated recipient is SRC INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2021-10-08. End: 2026-10-08.

What is the specific nature of the 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS' and its intended application within the Department of Defense?

The provided data does not detail the specific functionalities or intended applications of 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS'. However, the name suggests a focus on enhancing capabilities across multiple operational domains (e.g., land, sea, air, space, cyber) using agile development methodologies. 'Condor' could refer to a specific program, system, or a codename for the technology being developed. Given the R&D nature and the DoD context, these enhancements likely aim to improve situational awareness, command and control, or the integration of diverse military assets in complex, contested environments. Further details would require access to the contract's SOW (Statement of Work) or related program documentation.

How does the $25.3 million contract value compare to similar R&D contracts within the defense sector for fiscal years 2021-2026?

Comparing the $25.3 million contract value requires context on the scope and duration of similar R&D efforts. Defense R&D contracts can range from tens of millions to billions of dollars, depending on the technological maturity, complexity, and strategic importance. For a 5-year contract focused on specific enhancements, $25.3 million is a substantial but not exceptionally large sum. It suggests a focused research effort rather than a broad, system-wide development program. Benchmarking against contracts for similar technologies (e.g., AI integration, sensor development, network enhancements) awarded during the same period would provide a more precise comparison of its relative scale and investment level.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how is SRC Inc.'s performance being measured?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. However, for a Cost Plus Fixed Fee R&D contract, performance is typically measured against the achievement of defined research objectives, technical milestones, delivery of prototypes or reports, and adherence to project schedules. The fixed fee component is contingent upon SRC Inc. meeting these performance expectations. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring progress against the Statement of Work (SOW) and ensuring that SRC Inc. is meeting its contractual obligations. Regular progress reports and technical reviews would be standard mechanisms for performance assessment.

What is SRC Inc.'s track record with the Department of Defense, particularly in R&D contracts of similar scope and value?

SRC Inc. has a history of contracting with the Department of Defense, particularly in areas related to defense electronics, radar, and C4ISR systems. While the provided data doesn't offer a comprehensive history, their award of this $25.3 million R&D contract suggests a demonstrated capability and past performance that aligns with DoD requirements. To fully assess their track record, one would need to examine their portfolio of previous DoD contracts, including their performance ratings, any past issues or successes, and their experience with Cost Plus Fixed Fee R&D efforts. Their continued engagement with the DoD indicates a level of trust and competence in delivering complex technological solutions.

What are the potential risks associated with the 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS' project, and what mitigation strategies are in place?

Potential risks for an R&D project like 'MULTI-DOMAIN AGILE CONDOR ENHANCEMENTS' include technological feasibility challenges, integration issues with existing systems, evolving threat landscapes requiring design changes, and potential cost overruns inherent in R&D. Mitigation strategies would typically involve rigorous technical reviews, phased development with clear go/no-go decision points, robust testing and validation protocols, and proactive risk management planning by both the contractor (SRC Inc.) and the government oversight agency (DCMA). The agile methodology itself can serve as a risk mitigation tool by allowing for iterative development and adaptation to changing requirements or discoveries.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875019S7010

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7502 ROUND POND RD, NORTH SYRACUSE, NY, 13212

Business Categories: Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,852,294

Exercised Options: $26,852,294

Current Obligation: $25,273,454

Actual Outlays: $1,810,487

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $2,904,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline