DoD Awards $50M Research Contract to J.F. Taylor, Inc. for Physical Sciences R&D

Contract Overview

Contract Amount: $49,999,950 ($50.0M)

Contractor: J.F. Taylor, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-22

End Date: 2024-09-07

Contract Duration: 1,843 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LABOR CEILING FOR CLINS 0002-0005

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $50.0 million to J.F. TAYLOR, INC. for work described as: LABOR CEILING FOR CLINS 0002-0005 Key points: 1. Contract value of $49.9M for R&D in physical sciences. 2. Competition method: Full and Open after exclusion of sources. 3. Risk: Cost Plus Fixed Fee contract type can lead to cost overruns. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can be less price-efficient than fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This suggests a competitive process, but the exclusion of specific sources may limit the breadth of competition and potentially impact price discovery.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development, with the potential for significant technological advancements. The cost-plus nature warrants close monitoring to ensure value for money.

Public Impact

Supports advanced research in physical sciences, potentially leading to new technologies. Contract duration of nearly 5 years indicates a long-term investment. Awarded by the Department of the Navy, suggesting alignment with defense priorities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be subject to cost uncertainties inherent in research projects.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The 'Cost Plus Fixed Fee' contract type necessitates robust oversight to manage costs and ensure the contractor is meeting performance objectives efficiently. The Department of the Navy's contracting office is responsible for this oversight.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.0 million to J.F. TAYLOR, INC.. LABOR CEILING FOR CLINS 0002-0005

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 $50.0 million.

What is the period of performance?

Start: 2019-08-22. End: 2024-09-07.

What specific research outcomes are expected from this $50M contract, and how will their value be measured?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences.' Specific outcomes are not detailed in the provided data. Measuring value will likely involve assessing the successful development of new technologies, prototypes, or scientific advancements that meet the Navy's operational or strategic requirements. Performance metrics and milestones within the contract's Statement of Work will be key to tracking progress and evaluating the ultimate value delivered.

What are the primary risks associated with the 'Cost Plus Fixed Fee' structure in this R&D contract?

The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the government bears the cost risk. If the contractor's actual costs exceed the estimated costs, the government pays the difference, plus the fixed fee. This can lead to cost overruns if the project scope is not well-defined or if unforeseen technical challenges arise. For R&D, where outcomes are uncertain, CPFF can incentivize less cost-consciousness from the contractor compared to fixed-price arrangements.

How does the 'Full and Open Competition after Exclusion of Sources' method impact the overall effectiveness and cost of this contract?

This competition method aims to balance broad market access with specific needs. While 'Full and Open' suggests an attempt at wide competition, the 'Exclusion of Sources' implies that certain potential bidders were deliberately not considered. This could be due to specific technical requirements, security concerns, or prior relationships. The effectiveness hinges on whether the excluded sources were critical for achieving the best price or most innovative solution. It may limit the competitive pressure on price discovery compared to a truly unrestricted full and open competition.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: N0042118R0035

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: $53,536,863

Exercised Options: $53,536,863

Current Obligation: $49,999,950

Subaward Activity

Number of Subawards: 118

Total Subaward Amount: $24,187,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042119D0074

IDV Type: IDC

Timeline

Start Date: 2019-08-22

Current End Date: 2024-09-07

Potential End Date: 2024-09-07 00:00:00

Last Modified: 2025-01-28

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