DoD's $22.1M R&D contract with Marsh Creek, LLC awarded under full and open competition
Contract Overview
Contract Amount: $22,100,271 ($22.1M)
Contractor: Marsh Creek, LLC
Awarding Agency: Department of Defense
Start Date: 2008-06-17
End Date: 2012-11-17
Contract Duration: 1,614 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Place of Performance
Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99507
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $22.1 million to MARSH CREEK, LLC for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Demonstrates a commitment to advancing scientific and technological capabilities. 3. Long contract duration of over 1600 days suggests a complex, multi-phase project. 4. Awarded by the Department of Defense, indicating a focus on national security or defense-related innovation. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost monitoring. 6. The North American Industry Classification System (NAICS) code 541712 points to specialized scientific research services.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging without detailed project scope and deliverables. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. However, for R&D where the scope can evolve, CPFF offers necessary flexibility. The total award amount of $22.1 million over approximately 4.5 years suggests a moderate investment for research activities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, potentially leading to better pricing and innovation. The number of bids received (999) is exceptionally high, suggesting significant market interest and a robust competition.
Taxpayer Impact: A high level of competition generally benefits taxpayers by driving down costs and encouraging contractors to offer their best value solutions.
Public Impact
Benefits the Department of Defense by funding critical research and development efforts. Services delivered include advanced research in physical, engineering, and life sciences. Geographic impact is primarily in Alaska (ST: AK, SN: ALASKA), potentially fostering local scientific expertise. Workforce implications include employment for scientists, engineers, and support staff involved in the research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
- The long duration of the contract increases the risk of scope creep or changing technological landscapes.
- Limited information on specific performance metrics makes it difficult to assess the true value for money.
- The high number of bids (999) could indicate a highly sought-after contract, but also potential for administrative burden in evaluation.
Positive Signals
- Awarded through full and open competition, suggesting a fair and competitive process.
- The significant number of bids received indicates strong market interest and potential for high-quality proposals.
- The contract supports critical R&D, aligning with strategic government objectives.
- The specific NAICS code indicates a focus on specialized, high-value scientific research.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. This is a critical area for innovation and technological advancement, often driven by government funding to address complex challenges. The market for such specialized R&D services is competitive, with a mix of large corporations and smaller, specialized firms. Government spending in this area is a significant driver of scientific progress and economic activity.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large-scale R&D capabilities. There is no explicit information on subcontracting plans for small businesses. This contract likely does not directly benefit the small business ecosystem unless Marsh Creek, LLC voluntarily engages them as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates robust financial oversight to prevent cost overruns. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- National Science Foundation (NSF) Research Grants
- National Institutes of Health (NIH) Research Contracts
- Basic and Applied Scientific Research
Risk Flags
- Cost Overrun Risk (CPFF)
- Scope Creep Potential (Long Duration)
- Performance Measurement Difficulty (R&D)
- Logistical Challenges (Alaska Location)
Tags
research-and-development, department-of-defense, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, engineering, life-sciences, alaska, definitive-contract, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.1 million to MARSH CREEK, LLC. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)
Who is the contractor on this award?
The obligated recipient is MARSH CREEK, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $22.1 million.
What is the period of performance?
Start: 2008-06-17. End: 2012-11-17.
What is the track record of Marsh Creek, LLC in performing similar R&D contracts for the Department of Defense?
Assessing Marsh Creek, LLC's track record requires a deeper dive into their contract history beyond this single award. While this contract is for $22.1 million and spans over 1600 days, its success hinges on the contractor's ability to deliver on complex R&D objectives. Information on past performance, including adherence to schedule, budget, and technical requirements on previous DoD contracts, would be crucial. A review of past performance evaluations, if publicly available, or any documented issues or commendations would provide a clearer picture of their reliability and expertise in the R&D domain. Without this additional context, it's difficult to definitively assess their capability based solely on this award.
How does the $22.1 million award compare to typical R&D contract values in the physical, engineering, and life sciences sector?
The $22.1 million award for R&D in physical, engineering, and life sciences (excluding biotechnology) is a moderate-sized contract. R&D contracts can vary significantly in value, ranging from small, specialized grants to multi-billion dollar programs for major defense systems or scientific initiatives. For research focused on specific scientific advancements rather than large-scale development, $22.1 million over approximately 4.5 years represents a substantial but not extraordinary investment. Comparable contracts in this sector often involve academic institutions or specialized research firms, and their values are heavily influenced by the scope, duration, and technological complexity of the research undertaken.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not have a strong incentive to control costs, as the fee is fixed regardless of the actual expenses incurred (within the cost ceiling). This can lead to cost overruns if the contractor is inefficient or if unforeseen technical challenges significantly increase expenses. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is profitable, especially in R&D where outcomes can be uncertain. Effective oversight and detailed cost accounting are critical to mitigate these risks.
What does the high number of bidders (999) suggest about the market for this type of R&D service?
The exceptionally high number of bidders (999) for this R&D contract suggests a highly competitive and attractive market for specialized research services in the physical, engineering, and life sciences. This indicates that many firms possess the capabilities and interest to pursue government R&D opportunities. From a taxpayer perspective, this level of competition is generally positive, as it increases the likelihood of receiving competitive proposals and potentially better value. However, it also implies a significant administrative effort for the awarding agency to evaluate such a large pool of offers, potentially extending the procurement timeline.
How does the contract's location in Alaska (ST: AK) impact its execution and potential benefits?
The contract's performance location in Alaska (ST: AK) may present unique logistical and operational considerations for Marsh Creek, LLC. Access to specialized facilities, workforce availability, and the cost of doing business in remote or challenging environments could influence project execution. Potential benefits include fostering scientific and technical expertise within Alaska, contributing to the local economy through job creation and spending, and potentially leveraging unique Alaskan research environments or resources. The DoD's decision to award here might also reflect a strategic interest in developing capabilities or partnerships within the region.
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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 999
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kaktovik Inupiat Corporation (UEI: 127159911)
Address: 2000 E 88TH AVE, ANCHORAGE, AK, 99507
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,146,496
Exercised Options: $25,416,808
Current Obligation: $22,100,271
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-17
Current End Date: 2012-11-17
Potential End Date: 2012-11-17 00:00:00
Last Modified: 2017-06-29
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