DoD awards $22.7M R&D contract to Envisioneering Inc. for physical science research

Contract Overview

Contract Amount: $22,707,276 ($22.7M)

Contractor: Envisioneering Inc

Awarding Agency: Department of Defense

Start Date: 2011-03-17

End Date: 2016-12-15

Contract Duration: 2,100 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 57-5022-10, NEW AWARD

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22303

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to ENVISIONEERING INC for work described as: 57-5022-10, NEW AWARD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contract duration of 2100 days (approx. 5.75 years) indicates a long-term research objective. 5. The award value of $22.7 million over its term suggests significant investment in this R&D effort. 6. The contractor, Envisioneering Inc., has secured this award from the Department of Defense. 7. The specific NAICS code 541712 points to research in physical sciences, engineering, and life sciences, excluding biotechnology.

Value Assessment

Rating: fair

The contract value of $22.7 million over approximately 5.75 years averages to about $3.9 million per year. Benchmarking this against similar R&D contracts in physical sciences is challenging without more specific project details. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the contractor's costs plus a fixed fee, which can lead to cost overruns if not managed carefully. The fixed fee component aims to provide an incentive for efficiency, but the overall value-for-money depends heavily on the successful outcomes of the research and the reasonableness of the costs incurred.

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. The presence of two bidders suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition is generally preferred as it allows for the widest possible pool of offerors, potentially leading to better pricing and innovation.

Taxpayer Impact: For taxpayers, full and open competition increases the likelihood of receiving the best value by fostering a competitive environment that drives down prices and encourages innovative solutions.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the advancement of U.S. technological capabilities in physical sciences. The contract will deliver research and development services in the physical, engineering, and life sciences. The geographic impact is primarily tied to the contractor's location and the DoD's operational needs, likely within the United States. Workforce implications include employment for researchers, scientists, engineers, and support staff at Envisioneering Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not closely monitored.
Limited information on the specific R&D objectives makes it difficult to assess true value.
The number of bidders (2) might indicate limited competition for this specialized R&D area.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Long contract duration suggests a commitment to a significant research endeavor.
Focus on R&D in physical sciences aligns with critical national security needs.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is crucial for technological advancement and national security. Spending in this area by the Department of Defense is substantial, aimed at maintaining a technological edge. Comparable spending benchmarks would typically involve analyzing other DoD R&D contracts for similar scientific disciplines and contract types.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. The impact on the small business ecosystem is neutral in terms of direct set-aside requirements, though Envisioneering Inc. may engage small businesses as subcontractors at its discretion.

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. Accountability measures are inherent in the CPFF contract structure, requiring detailed cost reporting and adherence to research milestones. Transparency is facilitated through contract award databases, though specific project details and cost breakdowns 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
Physical Science Research Contracts
Engineering Research and Development
Life Sciences Research Contracts
Advanced Technology Development

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Indicator
R&D Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to ENVISIONEERING INC. 57-5022-10, NEW AWARD

Who is the contractor on this award?

The obligated recipient is ENVISIONEERING INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2011-03-17. End: 2016-12-15.

What is the track record of Envisioneering Inc. with Department of Defense contracts, particularly in R&D?

Information regarding Envisioneering Inc.'s specific track record with the Department of Defense (DoD) and in Research and Development (R&D) is not detailed in the provided data snippet. A comprehensive assessment would require examining past performance reviews, contract history, and any reported issues or successes on previous DoD awards. Generally, the DoD conducts thorough pre-award assessments of contractor capabilities and past performance. Without access to these specific records, it's difficult to definitively evaluate Envisioneering Inc.'s suitability beyond the fact that they were awarded this contract. Further investigation into contract databases and performance reports would be necessary to understand their historical performance, especially concerning R&D projects of similar scope and complexity.

How does the $22.7 million value compare to similar R&D contracts in physical sciences awarded by the DoD?

The $22.7 million contract value for Envisioneering Inc. over its 2100-day duration (approximately 5.75 years) equates to an average annual value of roughly $3.9 million. To benchmark this effectively against similar R&D contracts in physical sciences awarded by the DoD, one would need to analyze a portfolio of contracts with comparable NAICS codes (e.g., 541712), contract types (e.g., CPFF), and research objectives. Factors such as the specific scientific discipline, the maturity of the research, and the complexity of the required work significantly influence contract values. Without a detailed comparison set, it's challenging to definitively state whether $22.7 million represents a high, low, or average investment for this type of R&D. However, it suggests a substantial, long-term commitment to a specific research area.

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 Research and Development (R&D) revolve around cost control and potential for overruns. In a CPFF structure, the government reimburses the contractor for all allowable costs incurred while performing the contract, plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may not have a strong incentive to control costs rigorously, as their profit is fixed regardless of the final cost. If costs escalate significantly, the total expenditure can exceed initial estimates, impacting the overall budget. For R&D, where outcomes can be uncertain and unforeseen challenges are common, this risk is amplified. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What does the limited number of bidders (2) suggest about the competition for this specific R&D requirement?

The fact that only two bidders responded to this full and open competition for R&D services suggests that the market for this specific requirement may be specialized or limited. This could be due to the unique technical expertise, proprietary knowledge, or specific facilities required to perform the research. While two bidders still represent competition, it is less robust than if there were numerous responses. This limited competition could potentially impact price discovery, meaning the final price might be higher than if a larger pool of competitors were vying for the contract. However, it also indicates that Envisioneering Inc. and the other bidder possess the necessary qualifications deemed essential by the procuring agency for this particular R&D effort.

How does the duration of the contract (2100 days) align with typical R&D project lifecycles in the defense sector?

A contract duration of 2100 days, approximately 5.75 years, is quite substantial and aligns well with the typical lifecycles of many defense-related Research and Development (R&D) projects. R&D, particularly in areas critical to national security, often involves long-term investigations, iterative testing, and development phases that cannot be compressed into shorter timeframes. Such extended durations allow for in-depth exploration of scientific principles, development of prototypes, and rigorous evaluation of new technologies. This timeframe suggests that the Department of Defense anticipates a complex and potentially lengthy research effort, aiming for significant advancements rather than short-term deliverables. It also provides stability for the contractor to invest resources and personnel into the project.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0017310RJR03

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Envisioneering, Inc. (UEI: 842080921)

Address: 5904 RICHMOND HWY #310, ALEXANDRIA, VA, 22303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,939,849

Exercised Options: $23,939,849

Current Obligation: $22,707,276

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline