DoD's $94M R&D contract with Concurrent Technologies Corp. for physical sciences research shows long-term engagement

Contract Overview

Contract Amount: $94,029,601 ($94.0M)

Contractor: Concurrent Technologies Corp

Awarding Agency: Department of Defense

Start Date: 2000-08-30

End Date: 2007-11-30

Contract Duration: 2,648 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: JOHNSTOWN, CAMBRIA County, PENNSYLVANIA, 15904

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $94.0 million to CONCURRENT TECHNOLOGIES CORP for work described as: Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences, indicating a focus on foundational research. 2. The contract's duration of over 2000 days suggests a sustained investment in specific research areas. 3. Awarded under full and open competition, implying a broad search for qualified contractors. 4. The cost-plus-fixed-fee (CPFF) structure incentivizes cost control while allowing for flexibility in research scope. 5. Performance was managed by the Defense Contract Management Agency, a standard oversight body for DoD contracts. 6. The contract's completion in 2007 suggests that the research outcomes may be historical or have led to subsequent developments.

Value Assessment

Rating: fair

Benchmarking the value of this $94 million R&D contract is challenging without specific deliverables or comparable projects. The cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly. However, the long duration suggests a potentially deep and valuable research output, justifying the investment over time. Without more granular data on the research outcomes and their impact, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. This approach typically fosters a competitive environment, potentially leading to better pricing and innovation. The fact that it was a single award suggests that Concurrent Technologies Corp. was deemed the most qualified or offered the best value among the bidders.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government explores a wide range of options, potentially securing more cost-effective solutions and driving innovation.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring advancements in physical sciences. The contract supported research and development activities, the specific outcomes of which are not detailed but would contribute to technological advancements. The geographic impact is centered around the contractor's operations in Pennsylvania. Workforce implications would include employment for scientists, engineers, and support staff involved in the R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to higher final costs than fixed-price contracts if not meticulously managed.
The long duration of the contract might indicate potential scope creep or evolving research objectives, which can impact overall cost-effectiveness.
Lack of specific performance metrics or outcome data makes it difficult to fully assess the return on investment.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The sustained funding over a long period indicates a recognized need and potential for significant R&D contributions.
The contract was managed by the Defense Contract Management Agency, implying adherence to standard oversight and reporting procedures.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and materials. The market for R&D services is highly specialized, with a mix of large corporations and smaller research firms competing for government contracts. Spending in this area is often characterized by long-term investments and a focus on scientific advancement rather than immediate product delivery.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a large R&D contract, it is likely that the prime contractor, Concurrent Technologies Corp., would be responsible for managing any subcontracting opportunities, potentially including those for small businesses, though this is not explicitly stated.

Oversight & Accountability

Oversight for this contract was likely provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with terms and conditions. Accountability measures would be embedded in the contract's reporting requirements and performance evaluations. Transparency is generally facilitated through contract databases, though specific research outcomes may be classified or proprietary.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Materials Research Contracts
Engineering and Physical Sciences Research Grants

Risk Flags

Long contract duration may indicate potential for cost overruns or scope creep.
Cost-plus-fixed-fee structure requires diligent oversight to ensure value for money.
Lack of specific deliverable details makes post-award assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.0 million to CONCURRENT TECHNOLOGIES CORP. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CONCURRENT TECHNOLOGIES CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $94.0 million.

What is the period of performance?

Start: 2000-08-30. End: 2007-11-30.

What were the specific research objectives and key deliverables of this contract?

The provided data does not specify the exact research objectives or key deliverables for this $94 million contract awarded to Concurrent Technologies Corp. The North American Industry Classification System (NAICS) code 541710 indicates 'Research and Development in the Physical, Engineering, and Life Sciences,' which is a broad category. Typically, R&D contracts of this magnitude would involve detailed statements of work outlining specific scientific inquiries, experimental procedures, and expected outcomes such as reports, prototypes, or new methodologies. Without access to the contract's statement of work or final reports, the precise nature and impact of the research remain undefined.

How does the $94 million cost compare to similar R&D contracts in the physical sciences sector?

Comparing the $94 million cost of this contract requires context regarding the specific R&D area within physical sciences and the contract's duration. R&D spending can vary significantly based on the complexity of the research, the personnel involved, and the required equipment. For long-term, foundational research projects, a $94 million investment over several years (this contract ran for approximately 8 years) is not uncommon for major defense or technology initiatives. However, without knowing the specific scientific domain (e.g., materials science, physics, aerospace engineering) and the scope of work, a direct comparison to other contracts is difficult. Benchmarking would ideally involve looking at contracts with similar NAICS codes, agencies, and project durations.

What were the primary risks associated with this cost-plus-fixed-fee R&D contract?

Cost-plus-fixed-fee (CPFF) contracts, especially in R&D, carry inherent risks. For the government, the primary risk is cost overrun, as the contractor is reimbursed for all allowable costs plus a fixed fee. If research proves more complex or time-consuming than initially estimated, the total cost can exceed projections. Another risk is 'scope creep,' where the research objectives expand beyond the original intent, leading to increased costs and potentially delaying outcomes. For the contractor, the risk lies in accurately estimating the effort required to achieve the fixed fee, potentially underestimating costs and reducing profit margins. Effective oversight and clear definition of milestones are crucial to mitigate these risks.

What was Concurrent Technologies Corp.'s track record prior to and during this contract?

The provided data indicates Concurrent Technologies Corp. (CTC) was awarded this significant R&D contract. To assess their track record, one would need to examine their history of government contract performance, including past awards, past performance evaluations, and any instances of contract disputes or terminations. For a contract of this duration (over 7 years), their ability to manage complex R&D projects, adhere to budgets, and deliver on scientific objectives would be key indicators. A review of their portfolio of work, particularly with the Department of Defense, would provide further insight into their capabilities and reliability as a research partner.

How did the completion of this contract in 2007 impact subsequent defense R&D efforts?

The impact of this contract's completion in 2007 on subsequent defense R&D efforts would depend entirely on the nature and success of the research conducted. If the contract yielded significant technological advancements, new materials, or innovative methodologies in physical sciences, these outcomes could have directly informed or enabled subsequent research programs, product development, or strategic defense initiatives. For example, breakthroughs in materials science could lead to lighter, stronger components for aircraft, or advancements in physics could underpin new sensor technologies. Without specific details on the research findings, it's impossible to quantify this impact, but R&D contracts are fundamentally designed to feed future technological capabilities.

What is the significance of the NAICS code 541710 for understanding this contract's scope?

The NAICS code 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' is crucial for understanding the broad scope of this contract. It signifies that the work performed by Concurrent Technologies Corp. was focused on scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or theories that could be applied to practical applications in these fields. This code encompasses a vast array of disciplines, from fundamental physics and chemistry to advanced engineering and biotechnology. It suggests the contract was not for manufacturing or services but for the generation of new knowledge and technological capabilities, often a precursor to later development and procurement phases.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › ECONOMIC GROWTH/PRODUCTIVITY R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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, Nonprofit Organization, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline