Marine Corps Systems Command Awards $695M Contract for Research & Development Services to Cubic Applications, Inc
Contract Overview
Contract Amount: $69,499,245 ($69.5M)
Contractor: Cubic Global Defense, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-30
End Date: 2008-10-30
Contract Duration: 1,766 days
Daily Burn Rate: $39.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: R&D
Official Description: 200411!006670!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C8020 !A!N! !Y! !P00003!20031230!20031230!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000009000000!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !3! ! !C! ! !99990909!B!F!N!B! !A!U!M!2!003!B! !A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: LACEY, THURSTON County, WASHINGTON, 98503
Plain-Language Summary
Department of Defense obligated $69.5 million to CUBIC GLOBAL DEFENSE, INC. for work described as: 200411!006670!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C8020 !A!N! !Y! !P00003!20031230!20031230!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!53000!095!12!ORLANDO !ORAN… Key points: 1. The contract, valued at $694,992,444.91, is for Research & Development in the IT sector. 2. Cubic Applications, Inc. secured this award through full and open competition. 3. The contract duration is 1766 days, with a start date of 2003-12-30 and an end date of 2008-10-30. 4. The award falls under the 'RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH' category. 5. The primary contractor is Cubic Global Defense, Inc., located in Lacey, WA.
Value Assessment
Rating: good
The contract value of $694,992,444.91 appears to be a significant investment for R&D services. Benchmarking against similar large-scale R&D contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The fixed-price award fee structure incentivizes performance while managing costs.
Taxpayer Impact: The significant value of this contract indicates a substantial allocation of taxpayer funds towards advanced research and development initiatives.
Public Impact
This contract supports the Marine Corps' technological advancement in research and development. The duration of the contract suggests a long-term commitment to a specific R&D project or program. The award to Cubic Applications, Inc. highlights the role of private sector innovation in defense. The geographic location of the contractor in Washington state may have local economic implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Ensuring continued technological relevance and innovation throughout the contract period.
- Assessing the return on investment for taxpayer funds allocated to basic research.
Positive Signals
- Awarded through full and open competition, promoting fair market pricing.
- Fixed-price award fee structure can provide cost control incentives.
- Contract supports critical research and development for national security.
Sector Analysis
This contract falls within the Research & Development sector, specifically basic research. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The data does not indicate any specific subcontracting goals or awards to small businesses for this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and significant value warrant ongoing oversight to ensure milestones are met, costs are managed, and the research aligns with strategic objectives.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration increases risk of obsolescence.
- Uncertainty of outcomes in basic research.
- Potential for cost overruns in complex R&D projects.
- Need for robust oversight to ensure alignment with strategic goals.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.5 million to CUBIC GLOBAL DEFENSE, INC.. 200411!006670!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C8020 !A!N! !Y! !P00003!20031230!20031230!868624214!868624214!008382293!N!CUBIC APPLICATIONS, INC !4550 THIRD AVENUE SE, STE !LACEY !WA!98503!53000!095!12!ORLANDO !ORANGE !FLORIDA !+000009000000!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !S1 !SERVICES !000 !* !541330!E! !3! ! !C! ! !999
Who is the contractor on this award?
The obligated recipient is CUBIC GLOBAL DEFENSE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $69.5 million.
What is the period of performance?
Start: 2003-12-30. End: 2008-10-30.
What specific technological advancements or capabilities are expected to result from this $695 million R&D investment?
The contract details focus on 'RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH'. While the specific technological advancements are not detailed in this summary, basic research aims to expand fundamental knowledge and understanding. The expected outcomes would likely be foundational discoveries or proof-of-concept technologies that could later be applied to develop new systems or improve existing ones for the Marine Corps, rather than immediate deployable capabilities.
How will the effectiveness of the R&D outcomes be measured, given the nature of basic research?
Measuring the effectiveness of basic research is challenging as its direct applications may not be immediately apparent. Effectiveness is typically assessed through peer review of published findings, successful transition of developed concepts to applied research or development phases, and the long-term impact on the field. For this contract, the 'award fee' component likely ties payments to achieving specific research milestones, technical reviews, and progress reports, providing a framework for evaluating progress.
What is the potential risk of the research becoming obsolete before the contract concludes or before its findings can be practically applied?
The risk of research becoming obsolete is inherent in rapidly evolving fields like defense technology. The 1766-day duration (nearly 5 years) increases this risk. Mitigation strategies would include continuous monitoring of technological trends, flexibility in research direction based on emerging discoveries, and prioritizing research areas with high potential for long-term impact. The fixed-price award fee structure might also incentivize adaptability to ensure the research remains relevant.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: OFFICE SUPPLIES AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
Contractor Details
Parent Company: Cubic Corporation
Address: 4550 THIRD AVENUE SE, STE, LACEY, WA, 98503
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-30
Current End Date: 2008-10-30
Potential End Date: 2008-10-30 00:00:00
Last Modified: 2023-06-01
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