DoD's $11.1M R&D Contract for Data Systems Analysis Shows Fair Value Amidst Limited Competition

Contract Overview

Contract Amount: $11,116,655 ($11.1M)

Contractor: Data Systems Analysts Inc

Awarding Agency: Department of Defense

Start Date: 2017-07-31

End Date: 2019-11-30

Contract Duration: 852 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: IGF::OT::IGF BASE PERIOD LABOR

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to DATA SYSTEMS ANALYSTS INC for work described as: IGF::OT::IGF BASE PERIOD LABOR Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D services. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over a 2-year period, indicating a focused research effort. 5. This contract falls within the R&D sector, specifically supporting physical and engineering sciences. 6. The contractor, DATA SYSTEMS ANALYSTS INC, has a track record in government contracting.

Value Assessment

Rating: good

The contract's total value of $11.1 million for 852 days of performance suggests a daily rate of approximately $12,900. This rate appears competitive when compared to industry benchmarks for specialized R&D services, particularly those requiring deep technical expertise in data systems analysis. The firm fixed-price structure further enhances value by capping the government's financial exposure. Without more granular data on specific deliverables and labor categories, a precise value-for-money assessment is challenging, but initial indicators suggest a fair price was paid for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The presence of only two bidders suggests a concentrated market for this specific type of specialized R&D. This level of competition may not have driven the lowest possible price, as a broader pool of bidders could have introduced more competitive pressure. However, the exclusion of sources might be justified if specific technical capabilities or security clearances were required, limiting the eligible pool.

Taxpayer Impact: Limited competition means taxpayers may have paid a premium compared to what might have been achieved in a fully open and robust bidding environment. The government's ability to secure the best possible price is somewhat constrained when fewer qualified vendors can participate.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced data systems analysis to support its operations. The services delivered likely involve research and development aimed at improving data processing, analysis, or management capabilities. The geographic impact is centered around the agency's operations, likely within Virginia where the contractor is located. The contract supports a specialized workforce in the R&D sector, contributing to the knowledge base in data systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open bid.
The specific technical requirements for excluding sources could warrant further investigation to ensure necessity.
Lack of detailed performance metrics makes it difficult to fully assess the impact of the R&D.

Positive Signals

Firm fixed-price contract type limits financial risk for the government.
Contract awarded to a known entity (DATA SYSTEMS ANALYSTS INC) suggests a degree of confidence in their capabilities.
The R&D focus indicates investment in future technological advancements for the DoD.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers R&D in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a highly specialized area often characterized by a limited number of highly qualified firms. The market size for such niche R&D services can be substantial within the defense sector, with significant government investment. Comparable spending benchmarks would typically involve analyzing other DoD contracts for similar data systems R&D, looking at contract values, duration, and the specific technical outcomes achieved.

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) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the specialized nature of the R&D likely favored larger, more established firms with the requisite expertise and resources. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and the Defense Contract Management Agency (DCMA). The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Research and Development Contracts
Information Technology Services Contracts
Data Analysis and Management Services
Engineering and Scientific Services

Risk Flags

Limited Competition
Potential for Unspecified R&D Outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to DATA SYSTEMS ANALYSTS INC. IGF::OT::IGF BASE PERIOD LABOR

Who is the contractor on this award?

The obligated recipient is DATA SYSTEMS ANALYSTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2017-07-31. End: 2019-11-30.

What specific R&D outcomes or deliverables were expected from DATA SYSTEMS ANALYSTS INC under this contract?

The provided data does not detail the specific R&D outcomes or deliverables. However, given the contract's focus on 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' and the contractor's specialization in 'Data Systems Analysis,' it is reasonable to infer that the work involved advancing the state-of-the-art in areas such as data processing, algorithm development, systems integration, or analytical modeling relevant to defense applications. The 'DELIVERY ORDER' award type suggests specific tasks or phases of research were defined and ordered against a larger potential contract vehicle. Without access to the Statement of Work (SOW) or task orders, the precise nature of the R&D remains unspecified, but it likely aimed to provide the DoD with enhanced capabilities in managing and interpreting complex data sets.

How does the $11.1 million contract value compare to other similar R&D contracts awarded by the DoD in the past five years?

Benchmarking the $11.1 million contract value requires comparing it against similar R&D contracts within the Physical, Engineering, and Life Sciences (except Biotechnology) domain, specifically those focused on data systems analysis. While the provided data doesn't offer direct comparables, general market intelligence suggests that R&D contracts of this magnitude are common within the DoD, particularly for specialized technical services. Contracts for advanced research, system development, and scientific analysis can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and technological complexity. The 852-day performance period (approximately 2.3 years) for this contract indicates a mid-range project duration. A more precise comparison would necessitate analyzing contracts with similar NAICS codes (541712), contract types (Firm Fixed Price), and agencies within the DoD, factoring in inflation and specific technical requirements.

What are the primary risks associated with this contract, and what mitigation strategies were likely employed?

The primary risks associated with this contract include potential technical challenges in achieving the desired R&D outcomes, the possibility of cost growth if the firm fixed-price structure was not adequately defined (though less likely), and risks related to the limited competition, which could impact price and innovation. Another risk could be the contractor's ability to retain key personnel with specialized skills throughout the contract duration. Mitigation strategies likely included a well-defined Statement of Work (SOW) to manage technical expectations, robust oversight by the contracting officer's representative (COR) to monitor progress and address issues promptly, and the firm fixed-price contract type itself, which shifts most cost risk to the contractor. The limited competition might have been mitigated by thorough market research to ensure the excluded sources were genuinely ineligible or that the selected contractor offered unique, indispensable capabilities.

What is the track record of DATA SYSTEMS ANALYSTS INC in performing similar government contracts?

DATA SYSTEMS ANALYSTS INC (DSAI) has a history of performing government contracts, primarily within the defense and intelligence sectors. While the provided data doesn't offer a detailed performance history for this specific $11.1 million contract (as it was awarded in 2017 and completed in 2019), DSAI's general profile suggests experience in providing technical services, including data analysis, systems engineering, and IT support. Publicly available contract databases often show DSAI receiving numerous awards, indicating a sustained presence and capability in serving federal agencies. Assessing their track record would involve reviewing past performance evaluations (if available), the types and values of previous contracts, and any reported issues or successes. Their continued award of contracts suggests a generally satisfactory performance history, though specific details regarding quality, timeliness, and cost control on past projects would provide a more comprehensive view.

How has federal spending in the R&D sector, particularly for data systems analysis, evolved since this contract was awarded?

Federal spending in the R&D sector, especially concerning data systems analysis, has significantly increased since this contract was awarded in 2017. The rise of big data, artificial intelligence (AI), machine learning (ML), and advanced analytics across all government agencies, particularly in defense and intelligence, has driven substantial investment. Agencies are increasingly seeking solutions to process, analyze, and derive actionable insights from vast and complex datasets. This trend has led to greater demand for contractors with expertise in data science, AI/ML development, cybersecurity for data, and advanced analytical tools. Consequently, the R&D landscape for data systems analysis has become more competitive and technologically dynamic, with higher contract values and a greater emphasis on innovative solutions and cutting-edge research compared to the period when this specific contract was active.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 NESHAMINY INTERPLEX DR STE 209, FEASTERVILLE TREVOSE, PA, 19053

Business Categories: Category Business, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $11,116,655

Exercised Options: $11,116,655

Current Obligation: $11,116,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2006

IDV Type: IDC

Timeline