DoD's $30.9M MDA System Development Contract with SRI International Raises Questions on Value and Competition
Contract Overview
Contract Amount: $30,914,778 ($30.9M)
Contractor: SRI International
Awarding Agency: Department of Defense
Start Date: 2007-09-27
End Date: 2013-09-30
Contract Duration: 2,195 days
Daily Burn Rate: $14.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DEVELOPMENT OF MDA SYSTEM
Place of Performance
Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $30.9 million to SRI INTERNATIONAL for work described as: DEVELOPMENT OF MDA SYSTEM Key points: 1. The contract awarded to SRI International for $30.9M focuses on developing an MDA system. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns. 4. The sector is Research and Development, specifically within Physical, Engineering, and Life Sciences. 5. The award was made by the Department of Defense via the Defense Contract Management Agency.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while common in R&D, can incentivize cost escalation. Benchmarking against similar complex system development contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the specific nature of MDA system development might limit the number of truly capable bidders.
Taxpayer Impact: Taxpayer funds are being used for advanced defense system development. The effectiveness of the competition and cost controls will determine the ultimate value for taxpayers.
Public Impact
Development of a Missile Defense Agency (MDA) system impacts national security capabilities. The significant investment of over $30 million highlights the importance of this technology. The long duration (2195 days) suggests a complex and potentially evolving project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Specific R&D focus may limit competition despite 'full and open' award
Positive Signals
- Awarded under full and open competition
- Focus on critical defense technology (MDA)
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541710. Spending in this area is critical for technological advancement but often carries higher risk and less predictable outcomes compared to procurement of established goods.
Small Business Impact
The data indicates this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is not provided.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Oversight effectiveness will depend on DCMA's diligence throughout the contract lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases risk of scope creep and cost escalation.
- Specialized R&D may limit true competition despite 'full and open' award.
- Lack of detailed performance metrics in summary data.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.9 million to SRI INTERNATIONAL. DEVELOPMENT OF MDA SYSTEM
Who is the contractor on this award?
The obligated recipient is SRI INTERNATIONAL.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $30.9 million.
What is the period of performance?
Start: 2007-09-27. End: 2013-09-30.
What specific performance metrics or milestones were established to ensure the effective development of the MDA system within the allocated budget?
The provided data does not detail specific performance metrics or milestones. For a Cost Plus Fixed Fee contract in R&D, these are crucial for tracking progress and managing costs. Without them, assessing the contractor's adherence to the development plan and budget becomes challenging, potentially impacting the overall value realization for the DoD.
How did the 'full and open competition' process ensure a competitive price for such a specialized R&D effort, given the potential for limited qualified bidders?
While 'full and open competition' theoretically maximizes bidder numbers, the specialized nature of MDA system development might mean only a few entities possess the requisite expertise. The agency likely relied on the competitive process to solicit the best technical approach and pricing from those capable. However, the actual price achieved relative to a theoretical optimal price is difficult to ascertain without further analysis of the bidding landscape.
What is the projected long-term cost implication and operational readiness of the developed MDA system beyond this initial $30.9M development contract?
This contract covers the initial development phase. The long-term cost implications will include sustainment, upgrades, and potential integration with other systems. Operational readiness depends heavily on the success of this development phase and subsequent testing and validation, which are not detailed here. Future investments will be necessary to realize the full operational capability and value of the MDA system.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 333 RAVENSWOOD AVE, MENLO PARK, CA, 94025
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,513,373
Exercised Options: $36,513,373
Current Obligation: $30,914,778
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-09-27
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2015-10-15
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