DoD's $35.7M contract for operational research and program support awarded to Concurrent Technologies Corp

Contract Overview

Contract Amount: $35,754,258 ($35.8M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2010-05-21

End Date: 2013-11-30

Contract Duration: 1,289 days

Daily Burn Rate: $27.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OPERATIONAL RESEARCH AND PROGRAM SUPPORT

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to CONCURRENT TECHNOLOGIES CORP for work described as: OPERATIONAL RESEARCH AND PROGRAM SUPPORT Key points: 1. Contract value represents a significant investment in specialized research and support services. 2. Competition dynamics suggest a robust market for these types of engineering services. 3. Contract duration of over three years indicates a sustained need for the services. 4. The award was made under full and open competition, implying broad market access. 5. The cost-plus-fixed-fee structure requires careful monitoring of contractor expenses. 6. This contract falls within the broader category of engineering services, a key sector for government support.

Value Assessment

Rating: good

The contract's total value of $35.7 million over approximately 3.5 years suggests a moderate annual spend. Benchmarking against similar operational research and program support contracts would be necessary for a precise value-for-money assessment. However, the fixed-fee component within the cost-plus structure aims to provide some cost control. The number of bids received (3) is a positive indicator of market interest, but a deeper analysis of the bid pricing against independent government cost estimates would reveal more about pricing fairness.

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 bids. Three bids were received, suggesting a reasonable level of competition for this specialized service. While three bidders is not an exceptionally high number, it demonstrates that multiple firms were interested and capable of performing the work. This level of competition generally supports price discovery and encourages competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially leading to cost savings.

Public Impact

The Department of the Navy benefits from enhanced operational research and program support capabilities. Services delivered likely contribute to improved decision-making and program execution within the defense sector. The geographic impact is primarily centered around the contractor's location in Pennsylvania, but the services support national defense objectives. Workforce implications include employment opportunities for researchers, analysts, and support staff at Concurrent Technologies Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed diligently.
Limited competition (3 bidders) might indicate a niche market or high barriers to entry.
The specific nature of 'operational research and program support' can be broad, requiring clear performance metrics.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Contract duration suggests a stable, ongoing need for these critical services.
Concurrent Technologies Corp. likely possesses specialized expertise required for this role.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), a critical area for government operations, particularly in defense. This sector encompasses a wide range of services, including research, design, and consulting. The market for these services is substantial, driven by ongoing government needs for technical expertise and program management. Comparable spending benchmarks would involve analyzing other contracts for similar research and support services awarded by the Department of Defense and other federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, Concurrent Technologies Corp., is a mid-sized business. There is no explicit information regarding subcontracting plans for small businesses. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is likely minimal, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. Performance reviews, milestone tracking, and financial audits are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Research and Development
Program Management Support Services
Engineering and Technical Services
Operational Analysis
Department of Defense IT Support

Risk Flags

Cost-plus contract type requires diligent oversight to manage potential cost escalations.
Limited number of bidders may indicate a specialized niche or barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to CONCURRENT TECHNOLOGIES CORP. OPERATIONAL RESEARCH AND PROGRAM SUPPORT

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 $35.8 million.

What is the period of performance?

Start: 2010-05-21. End: 2013-11-30.

What is Concurrent Technologies Corp.'s track record with the Department of Defense?

Concurrent Technologies Corporation (CTC) has a long-standing relationship with the Department of Defense (DoD), having received numerous contracts over the years. Their primary focus is on providing research, development, and engineering services. CTC is known for its work in areas such as advanced manufacturing, cybersecurity, and program management support. A review of their contract history would likely show a pattern of successful performance on complex technical projects. Their sustained engagement with the DoD suggests a level of trust and proven capability in delivering specialized services critical to national defense objectives. Specific performance metrics on past contracts would provide a more granular understanding of their reliability and effectiveness.

How does the value of this contract compare to similar operational research and program support contracts?

The $35.7 million contract value for operational research and program support is a substantial award. To benchmark its value effectively, one would need to compare it against similar contracts awarded by the Department of Defense or other federal agencies for comparable services over similar timeframes. Factors such as the specific scope of work, the level of expertise required, and the duration of the contract are crucial for a fair comparison. For instance, contracts for basic research might be valued differently than those involving complex systems integration or long-term program management. Without access to a detailed database of comparable contracts and their specific terms, it is difficult to definitively state whether this contract represents excellent, fair, or questionable value for money. However, the fact that it was competed suggests that the pricing was deemed acceptable within the market.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one awarded to Concurrent Technologies Corp., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. While the fixed fee provides an incentive for the contractor to control costs to maximize their profit margin, it does not place a ceiling on the total cost of the contract. If costs escalate beyond initial projections, the government is obligated to pay these higher costs, potentially leading to a contract value significantly exceeding initial estimates. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

How effective is the 'full and open competition' process in ensuring competitive pricing for specialized engineering services?

The 'full and open competition' process is generally considered the most effective method for ensuring competitive pricing, especially for specialized engineering services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This broad competition drives down prices as contractors vie for the award. For specialized services, it ensures that the government can identify and select the most capable and cost-effective provider from the available market. While the number of bids received (3 in this case) can vary, the principle of open competition inherently fosters price discovery and encourages contractors to offer their best pricing to win the contract.

What is the historical spending pattern for operational research and program support within the Department of the Navy?

Historical spending patterns for operational research and program support within the Department of the Navy (DoN) typically show a consistent and significant investment in these areas. The DoN relies heavily on research and analysis to maintain its technological edge and ensure the effectiveness of its vast array of programs and platforms. Spending in this category often fluctuates based on strategic priorities, emerging threats, and the lifecycle of major defense programs. Analyzing historical data would reveal trends in contract awards, average contract values, and the types of services most frequently procured. This contract, valued at $35.7 million over approximately 3.5 years, aligns with the DoN's ongoing commitment to leveraging advanced research and expert support to meet its complex operational requirements.

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: N0002409R3361

Offers Received: 3

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: $39,440,725

Exercised Options: $39,440,725

Current Obligation: $35,754,258

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4255

IDV Type: IDC

Timeline