DoD's $23M R&D contract for physical sciences research awarded to J.F. Taylor, Inc. after limited competition

Contract Overview

Contract Amount: $22,971,632 ($23.0M)

Contractor: J.F. Taylor, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-11-16

End Date: 2019-11-15

Contract Duration: 729 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FOLLOW-ON TASK ORDER REQUIREMENT FOR LABOR.

Place of Performance

Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to J.F. TAYLOR, INC. for work described as: FOLLOW-ON TASK ORDER REQUIREMENT FOR LABOR. Key points: 1. Contract value of $22.97M for research and development in physical sciences. 2. Awarded to J.F. Taylor, Inc. under a follow-on task order. 3. Competition was 'Full and Open Competition After Exclusion of Sources', indicating a specific justification for limiting bidders. 4. Contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. Performance period of 729 days (approximately 2 years). 6. The North American Industry Classification System (NAICS) code 541712 covers R&D in physical, engineering, and life sciences. 7. The contract was awarded by the Department of the Navy. 8. The contract is a Delivery Order, suggesting it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of approximately $23 million for a two-year R&D effort in physical sciences appears within a reasonable range for specialized research. However, without specific benchmarks for similar R&D projects within the Department of the Navy or comparable agencies, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces potential risks for cost escalation, necessitating robust oversight to ensure the government receives good value. The absence of detailed performance metrics in the provided data limits a thorough evaluation of the contractor's efficiency and effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition type 'Full and Open Competition After Exclusion of Sources' suggests that while the initial solicitation was open, specific sources were excluded, or a limited number of sources were solicited. This approach is typically used when there's a specific justification, such as the need for specialized capabilities or to leverage existing contractor knowledge. The limited nature of the competition may have restricted price discovery and potentially led to a higher price than under a truly open and full competition with multiple bidders.

Taxpayer Impact: For taxpayers, limited competition can mean less assurance of the lowest possible price being achieved. While justifications for exclusion exist, they should be rigorously reviewed to ensure they are in the government's best interest and do not unnecessarily inflate costs.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially broader Department of Defense (DoD) research initiatives. The contract supports research and development in physical sciences, which could lead to advancements in defense technologies or operational capabilities. The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the contractor is located. Workforce implications include employment for researchers, engineers, and support staff at J.F. Taylor, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor spending without direct cost savings.
Limited competition ('Full and Open Competition After Exclusion of Sources') may reduce price competitiveness.
Follow-on task order nature suggests potential for scope creep or reliance on incumbent knowledge without re-competition.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency and effectiveness.
Research and Development contracts inherently carry a risk of not achieving desired outcomes, regardless of contractor performance.

Positive Signals

Award to an established contractor (J.F. Taylor, Inc.) may indicate a track record of successful performance on similar tasks.
The contract is for R&D, which is crucial for technological advancement and maintaining a competitive edge.
The follow-on nature suggests continuity and potentially efficient knowledge transfer from previous work.
The contract is a Delivery Order, implying it's part of a potentially larger, pre-competed IDIQ vehicle, which can streamline acquisition.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers physical, engineering, and life sciences research. This sector is critical for innovation across various industries, including defense, technology, and manufacturing. Spending in this area is often characterized by long lead times, high upfront investment, and uncertain outcomes. Comparable spending benchmarks would typically involve analyzing other DoD R&D contracts for similar scientific disciplines and contract types, as well as looking at overall federal R&D investment trends.

Small Business Impact

The provided data indicates that small business participation (SB: false) and set-asides (SS: false) were not applicable to this contract. Therefore, this specific award does not directly contribute to small business contracting goals. There is no information on subcontracting plans or their impact on the small business ecosystem. The focus appears to be on larger, specialized R&D capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs, ensure compliance with the fixed fee, and prevent unnecessary expenditures. Transparency would be enhanced through regular progress reports from the contractor and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Initiatives
Physical Sciences Research Contracts
Follow-on Task Orders
Cost Plus Fixed Fee Contracts

Risk Flags

Limited competition may impact price competitiveness.
Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Follow-on nature requires careful monitoring to prevent scope creep.
Lack of detailed performance data hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to J.F. TAYLOR, INC.. FOLLOW-ON TASK ORDER REQUIREMENT FOR LABOR.

Who is the contractor on this award?

The obligated recipient is J.F. TAYLOR, 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 $23.0 million.

What is the period of performance?

Start: 2017-11-16. End: 2019-11-15.

What is the specific nature of the 'Research and Development in the Physical, Engineering, and Life Sciences' being conducted under this contract?

The provided data specifies the NAICS code 541712, which broadly covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. However, the exact nature of the R&D is not detailed. Typically, such contracts support advancements in areas like materials science, physics, chemistry, engineering disciplines, or other scientific fields relevant to the Department of the Navy's mission. This could range from fundamental research exploring new scientific principles to applied research developing specific technologies or solutions for naval applications. Further details would likely be found in the contract's statement of work (SOW) or technical exhibits, which are not included in the provided summary data.

How does the 'Full and Open Competition After Exclusion of Sources' process work, and what are its implications for cost?

This competition type is unusual. 'Full and Open Competition' generally means all responsible sources are permitted to submit offers. However, the addition of 'After Exclusion of Sources' implies that while the initial solicitation might have been broad, specific sources were later excluded, or the initial solicitation itself was limited to a pre-selected group of sources. This could occur if only a few entities possess the unique capabilities required, or if there's a justification for using specific contractors based on prior performance or proprietary knowledge. The implication for cost is that it likely reduces the number of potential bidders, thereby limiting price competition and potentially leading to higher prices than if a truly open competition had been conducted among all capable sources.

What are the typical risks associated with Cost Plus Fixed Fee (CPFF) contracts in R&D settings?

Cost Plus Fixed Fee (CPFF) contracts are common in R&D where the scope or cost is uncertain. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, regardless of the final cost incurred. If the contractor's costs are higher than anticipated, the government still pays the same fixed fee. This can incentivize contractors to incur higher costs if they believe it will lead to a successful outcome, potentially without the same cost-consciousness as in fixed-price contracts. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for money.

What does 'follow-on task order' signify in the context of this contract?

A 'follow-on task order' indicates that this contract is not a standalone award but is a subsequent order placed under a previously awarded contract, likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. This implies that the basic terms, conditions, and potentially the overall scope or ceiling of the parent contract have already been established and competed. A follow-on task order typically defines specific deliverables, timelines, and pricing for a particular segment of work within that larger framework. It suggests continuity of service or research, leveraging the established relationship and potentially the contractor's existing knowledge base from prior work under the parent contract.

How does the contractor's location in Maryland (ST: MD, SN: MARYLAND) impact this contract?

The contractor's location in Maryland is significant primarily from an operational and logistical standpoint. Maryland has a strong presence of defense contractors and federal research facilities, suggesting that J.F. Taylor, Inc. is situated within a hub conducive to supporting Department of the Navy requirements. This proximity can facilitate communication, site visits, collaboration, and potentially reduce travel costs associated with oversight and program management. It also aligns with the concentration of R&D activities often found in regions with significant government contracting presence. However, the specific impact on the contract's technical execution or cost-effectiveness is generally minimal unless specific local resources or infrastructure are critical.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: N0042115R0011

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 21610 SOUTH ESSEX DR, LEXINGTON PARK, MD, 20653

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

Financial Breakdown

Contract Ceiling: $25,222,759

Exercised Options: $25,222,759

Current Obligation: $22,971,632

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,534,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042117D0016

IDV Type: IDC

Timeline