DoD's $193.7M RDT&E contract with Concurrent Technologies Corp shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $193,690,154 ($193.7M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2008-09-19

End Date: 2017-09-30

Contract Duration: 3,298 days

Daily Burn Rate: $58.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RDT&E SYSTEMS OPERATIONS AND MAINTENANCE

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $193.7 million to CONCURRENT TECHNOLOGIES CORP for work described as: RDT&E SYSTEMS OPERATIONS AND MAINTENANCE Key points: 1. Value for money appears fair given the contract's duration and scope, though specific performance metrics are not detailed. 2. Competition dynamics were limited, with a sole awardee suggesting potential for reduced price discovery. 3. Risk indicators are moderate, with a long contract duration and cost-plus fixed fee structure potentially increasing costs. 4. Performance context is broad, covering RDT&E systems operations and maintenance over a significant period. 5. Sector positioning is within engineering services for the Department of Defense, a critical area for national security. 6. The contract's cost-plus fixed fee (CPFF) structure warrants close monitoring for cost overruns. 7. The contract's long duration (over 9 years) suggests a need for sustained support and potentially limited flexibility.

Value Assessment

Rating: fair

The contract's total value of approximately $193.7 million over nearly 9 years averages to roughly $21.5 million per year. This figure, while substantial, needs to be benchmarked against similar RDT&E operations and maintenance contracts within the Department of Defense. The CPFF structure can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. Without detailed performance data or comparison to industry benchmarks for similar services, a definitive value assessment is challenging, but the price appears within a plausible range for extensive RDT&E support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the data shows only one award was made, which could imply that while the opportunity was broadly advertised, only one entity met the stringent requirements or submitted a competitive proposal. The level of competition, therefore, appears to have been high in the solicitation phase but resulted in a single awardee.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and fostering innovation. Even with a single award, the initial competitive process helps ensure the government receives a reasonable offer.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical RDT&E systems operations and maintenance support. Services delivered include the ongoing operation and maintenance of complex research, development, testing, and evaluation systems. The geographic impact is primarily within Indiana, where the contractor is located, but the systems supported likely have national defense implications. Workforce implications include employment opportunities for engineers, technicians, and support staff at Concurrent Technologies Corp and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee structure can incentivize cost overruns if not rigorously managed.
Long contract duration may reduce flexibility and opportunities for competitive re-evaluation.
Limited visibility into specific performance metrics makes value-for-money assessment difficult.
Potential for contractor lock-in due to specialized knowledge gained over the contract's life.

Positive Signals

Awarded through full and open competition, suggesting a robust initial selection process.
Contractor has a long-standing relationship with the government, potentially indicating reliability.
Focus on RDT&E operations and maintenance addresses critical defense needs.
Contractor is located in Indiana, potentially supporting regional economic development.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. This sector encompasses firms providing specialized engineering expertise for complex projects, often involving research, development, and advanced technological applications. The market size for defense engineering services is substantial, driven by continuous modernization and operational requirements. This contract represents a significant portion of spending within this niche, supporting the government's ongoing RDT&E infrastructure.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'ss' (small business set-aside) field is false and the 'sb' (small business) field is also false. This suggests the contract was not specifically set aside for small businesses, nor was the prime contractor a small business. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this summary data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the contract's terms and conditions, including performance requirements and payment schedules tied to milestones or deliverables. Transparency is facilitated through contract databases like FPDS, which provide public access to award information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research, Development, Test, and Evaluation (RDT&E)
Navy Engineering Services Contracts
Defense Systems Operations and Maintenance
Cost-Plus Fixed Fee Contracts
Long-Term Government Service Contracts

Risk Flags

Cost-plus contract type risk
Long contract duration
Limited competition despite full and open solicitation
Lack of specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $193.7 million to CONCURRENT TECHNOLOGIES CORP. RDT&E SYSTEMS OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $193.7 million.

What is the period of performance?

Start: 2008-09-19. End: 2017-09-30.

What is the track record of Concurrent Technologies Corporation with the Department of Defense, particularly on similar RDT&E contracts?

Concurrent Technologies Corporation (CTC) has a significant history of contracting with the Department of Defense. While this specific contract is for RDT&E systems operations and maintenance, CTC's broader portfolio often includes engineering services, manufacturing, and technology development for defense applications. Analyzing their past performance on similar, large-scale contracts would involve reviewing award histories, past performance evaluations (if publicly available), and any documented instances of contract disputes or successes. A long history suggests a level of established capability and familiarity with government processes, but also necessitates scrutiny to ensure continued performance and value.

How does the average annual cost of this contract compare to similar RDT&E operations and maintenance contracts within the DoD?

The average annual cost for this contract is approximately $21.5 million ($193.7M / 9 years). Benchmarking this against similar RDT&E operations and maintenance contracts requires access to a broader dataset of DoD contracts with comparable scope, duration, and service complexity. Factors such as the specific technologies involved, the criticality of the systems, and the geographic location of service delivery can significantly influence costs. Without direct comparisons, it's difficult to definitively state if this represents high, low, or average spending. However, given the specialized nature of RDT&E systems, costs can be expected to be higher than standard IT or administrative support contracts.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used here, and how are they mitigated?

The primary risk with a CPFF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a fixed fee. This can lead to cost overruns if not managed diligently. Mitigation strategies employed by the government typically include robust oversight, detailed cost accounting standards, regular audits, and clear definition of allowable costs. Program managers must closely monitor expenditures and contractor performance to ensure the project stays within budget and meets objectives. The fixed fee component provides some incentive for the contractor to complete the work efficiently to maximize their profit margin.

What specific RDT&E systems are covered under this contract, and what is their significance to national defense?

The provided data does not specify the exact RDT&E systems covered under this contract, only that it pertains to 'RDT&E SYSTEMS OPERATIONS AND MAINTENANCE'. These systems are likely critical infrastructure used by the Department of the Navy for research, development, testing, and evaluation of new technologies, weapon systems, or defense strategies. Their significance to national defense could range from supporting the development of next-generation aircraft or naval vessels to advancing cybersecurity capabilities or electronic warfare systems. The 'operations and maintenance' aspect implies ensuring these complex systems are functional, reliable, and available for use by researchers and warfighters.

How has spending on RDT&E systems operations and maintenance by the Department of the Navy trended over the past decade?

Analyzing the spending trends for RDT&E systems operations and maintenance by the Department of the Navy over the past decade requires access to historical budget data and contract awards. Generally, defense spending on RDT&E fluctuates based on geopolitical conditions, strategic priorities, and technological advancements. Periods of heightened global tension or rapid technological change often see increased investment in R&D and the systems that support it. The Navy, in particular, invests heavily in maintaining and upgrading its complex platforms and associated research infrastructure. This contract, spanning from 2008 to 2017, falls within a period that saw significant technological evolution and evolving defense requirements.

What are the implications of a single award on a full and open competition for future contract opportunities in this space?

While this contract was awarded under full and open competition, the fact that only one award was made can have several implications. It might suggest that the barriers to entry for this specific type of work are high, requiring specialized expertise, facilities, or security clearances that only a few companies possess. For future contract opportunities, this could mean continued limited competition, potentially leading to higher prices or less innovation if new entrants are discouraged. Conversely, it could signal that the incumbent contractor is highly capable and difficult to displace. The government may need to actively seek ways to foster competition, perhaps through breaking down requirements or incentivizing new entrants.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3317

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 100 CTC DR, JOHNSTOWN, PA, 15904

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $236,471,829

Exercised Options: $236,471,829

Current Obligation: $193,690,154

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4255

IDV Type: IDC

Timeline