DoD's $18.9M R&D Contract for Joint Program Executive Services Awarded to Pragmatics, LLC
Contract Overview
Contract Amount: $18,882,741 ($18.9M)
Contractor: Pragmatics, LLC
Awarding Agency: Department of Defense
Start Date: 2010-09-01
End Date: 2014-10-10
Contract Duration: 1,500 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: JOINT PROGRAM EXECUTIVE SERVICES DEVELOPMENT AND SUSTAINMENT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to PRAGMATICS, LLC for work described as: JOINT PROGRAM EXECUTIVE SERVICES DEVELOPMENT AND SUSTAINMENT Key points: 1. Contract awarded to Pragmatics, LLC for R&D services. 2. Competition method was 'Full and Open Competition After Exclusion of Sources'. 3. Contract duration was 1500 days. 4. The NAICS code 541712 indicates Research and Development in Physical, Engineering, and Life Sciences. 5. The contract type is Cost Plus Incentive Fee.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The award amount of $18.9M for a 1500-day duration suggests a moderate per-day cost, but without specific deliverables or performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process but with specific exclusions. This method aims for fair competition while potentially limiting the pool of bidders. The pricing discovery is influenced by the incentive fee structure.
Taxpayer Impact: Taxpayer funds are utilized for research and development services. The effectiveness of the R&D and the efficiency of the contractor's performance will determine the ultimate value for taxpayers.
Public Impact
Supports research and development efforts within the Department of Defense. Contracting process aimed for competitive bidding, potentially leading to better value. The specific R&D focus impacts national security and technological advancement. Contract duration of 1500 days suggests a long-term project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can incentivize overspending.
- Exclusion of sources in competition may limit optimal pricing.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition was utilized.
- Contract supports critical R&D for the DoD.
- Awarded to a single entity, potentially allowing for focused development.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS 541712. Spending in this sector is crucial for technological advancement and national security. Benchmarks for R&D contracts vary widely based on scope and duration.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA). The effectiveness of oversight depends on clear performance metrics, regular reporting, and proactive management of the Cost Plus Incentive Fee structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Limited competition due to source exclusions.
- Lack of detailed performance metrics for value assessment.
- Long contract duration may increase risk of scope creep or obsolescence.
Tags
research-and-development-in-the-physical, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to PRAGMATICS, LLC. JOINT PROGRAM EXECUTIVE SERVICES DEVELOPMENT AND SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is PRAGMATICS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2010-09-01. End: 2014-10-10.
What specific research and development objectives were prioritized under this contract, and how do they align with current DoD strategic goals?
The contract focused on 'JOINT PROGRAM EXECUTIVE SERVICES DEVELOPMENT AND SUSTAINMENT.' While the specific objectives are not detailed, this likely pertains to developing and maintaining critical IT or communication systems for joint military operations. Alignment with DoD goals would depend on whether these services directly support modernization, interoperability, or readiness initiatives outlined in strategic documents.
How effectively did the 'Full and Open Competition After Exclusion of Sources' method ensure fair pricing and access to the best available R&D capabilities?
This method suggests a competitive process was initiated, but certain sources were excluded. While it aims for fairness, the exclusions could have limited the bidder pool, potentially impacting price discovery and access to all innovative solutions. The effectiveness hinges on the justification for exclusions and the competitiveness among the remaining bidders.
What mechanisms were in place to manage the Cost Plus Incentive Fee structure and ensure efficient use of taxpayer funds for R&D outcomes?
Managing a CPIF contract requires robust oversight, clear performance metrics tied to incentives, and regular financial reviews. Mechanisms would include detailed cost tracking, milestone verification, and performance evaluations by DISA. The success in ensuring efficient fund use depends on the rigor of these oversight activities and the contractor's ability to meet performance targets cost-effectively.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 1761 BUSINESS CENTER DR, RESTON, VA, 20190
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business
Financial Breakdown
Contract Ceiling: $18,912,612
Exercised Options: $18,912,612
Current Obligation: $18,882,741
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $4,219,596
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2010
IDV Type: IDC
Timeline
Start Date: 2010-09-01
Current End Date: 2014-10-10
Potential End Date: 2014-10-10 00:00:00
Last Modified: 2015-06-18
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