DoD's $28.2M High-Performance Computing Support Contract Awarded to ICF Incorporated

Contract Overview

Contract Amount: $28,202,620 ($28.2M)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2021-01-18

End Date: 2026-01-17

Contract Duration: 1,825 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT SERVICES

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to ICF INCORPORATED, L.L.C. for work described as: C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT SERVICES Key points: 1. Contract focuses on scientific, engineering, and analysis support for C5ISR operations. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Duration of 1825 days indicates a long-term need for these specialized services. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D activities. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 7. The base award amount is $28.2 million, with potential for growth through task orders.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts inherently carry a risk of cost escalation as the contractor is reimbursed for all allowable costs plus a fixed fee. Comparing this to similar R&D support services contracts within the DoD would require access to proprietary pricing data. However, the fixed fee component aims to provide some cost control, and the $28.2 million award over five years suggests a substantial investment in specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding process with multiple interested parties. The number of bidders is not specified, but the competitive nature should theoretically drive more favorable pricing and service offerings for the government. The agency's commitment to full and open competition is a positive indicator for price discovery and value.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by fostering a market-driven price. This approach minimizes the risk of overpayment compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Department of the Army) and its C5ISR operations, which will receive enhanced scientific, engineering, and analysis support. The services delivered are critical for high-performance computing, enabling advanced research and development in physical, engineering, and life sciences. The geographic impact is likely concentrated around the Army's research and development facilities, primarily in Maryland, where the contract is managed. Workforce implications include the employment of highly skilled scientists, engineers, and analysts, both within the contractor organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure can incentivize cost overruns if not rigorously monitored.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The contract is a delivery order, meaning its full scope and ultimate cost may exceed the initial award amount.
The specialized nature of high-performance computing support may limit the pool of qualified contractors, potentially impacting future competition.
Reliance on external contractors for critical R&D functions could pose long-term strategic risks.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The fixed fee component in the CPFF contract provides a degree of cost predictability.
The contract supports critical C5ISR operations, aligning with national defense priorities.
The duration suggests a stable, long-term requirement for these specialized services.
ICF Incorporated is a known entity in government contracting, suggesting a degree of established capability.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding niche areas like nanotechnology and biotechnology. The North American Industry Classification System (NAICS) code 541715 categorizes firms primarily engaged in conducting research and experimental development in these fields. The market for such specialized scientific and engineering support services is substantial within the federal government, particularly for defense agencies requiring advanced computational capabilities for intelligence, surveillance, reconnaissance, and command and control (C5ISR) operations. Comparable spending benchmarks would involve analyzing other large R&D support contracts awarded by DoD and other science-focused agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to ICF Incorporated, particularly if the contract requires specialized expertise or services that ICF does not provide in-house. The extent of small business subcontracting will depend on ICF's strategy and the specific needs of the task orders issued under this contract.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are allowable, reasonable, and allocable, and that the fixed fee is earned. Transparency is facilitated through contract reporting mechanisms, though detailed cost breakdowns are typically not public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD High Performance Computing Modernization Program (HPCMP)
Army Research Laboratory Contracts
C5ISR Systems Development Contracts
Scientific and Engineering Support Services Contracts
Federal R&D Spending

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for scope creep in R&D projects.
Need for stringent oversight to manage contractor costs and performance.
Dependence on contractor expertise for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to ICF INCORPORATED, L.L.C.. C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2021-01-18. End: 2026-01-17.

What is ICF Incorporated's track record with similar government contracts, particularly within the DoD and for R&D support?

ICF Incorporated has a significant history of performing government contracts, including those with the Department of Defense and other federal agencies. Their portfolio often includes work in areas such as IT modernization, program management, and scientific and technical support. For R&D support, ICF has been involved in various capacities, providing analytical services, research assistance, and technical expertise. While specific details on past performance for contracts directly analogous to this high-performance computing support task order would require deeper analysis of contract databases and performance reports, ICF's established presence suggests they possess the necessary infrastructure and experience to manage such engagements. Their ability to secure this contract under full and open competition further implies a competitive track record.

How does the $28.2 million award compare to other R&D support contracts for C5ISR operations within the DoD?

The $28.2 million award for C5ISR Integrated Operations and Scientific, Engineering, and Analysis Support Services is a substantial but not unprecedented figure for specialized R&D support within the Department of Defense. Large-scale R&D initiatives, particularly those involving high-performance computing and complex systems like C5ISR, often command significant funding over multi-year periods. Contracts for similar services can range from tens to hundreds of millions of dollars, depending on the scope, duration, and specific technological requirements. This particular contract's value appears to be in the mid-to-upper range for a single task order or delivery order, reflecting the critical nature and advanced technical demands of supporting modern defense intelligence and operational capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of R&D service?

The primary risk with a CPFF contract structure for R&D services like this is the potential for cost escalation. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost-plus' element means the government reimburses all allowable costs incurred by the contractor. If the project scope expands, unforeseen technical challenges arise, or project management is inefficient, the total cost to the government can significantly exceed initial estimates. This necessitates robust government oversight to scrutinize all claimed costs and ensure they are reasonable, allocable, and necessary. For R&D, where outcomes can be uncertain, the risk of cost overruns is inherently higher than in fixed-price contracts.

What is the expected impact of this contract on the advancement of high-performance computing capabilities within the DoD?

This contract is expected to significantly enhance the DoD's high-performance computing (HPC) capabilities by providing essential scientific, engineering, and analysis support. HPC is crucial for complex simulations, data analysis, modeling, and artificial intelligence development, all of which are vital for modern C5ISR operations. By engaging ICF Incorporated, the DoD aims to leverage specialized expertise to optimize HPC resource utilization, develop advanced algorithms, interpret large datasets, and accelerate research and development cycles. This support is critical for maintaining a technological edge in areas such as threat analysis, strategic planning, and operational effectiveness, ultimately contributing to national security.

How has federal spending in R&D support services for defense agencies evolved over the past five years?

Federal spending in R&D support services for defense agencies has generally seen a consistent or increasing trend over the past five years, driven by evolving geopolitical landscapes and the need for technological superiority. Agencies like the Department of Defense continually invest in advanced research to maintain a strategic advantage. This includes funding for areas such as artificial intelligence, cybersecurity, advanced materials, and sophisticated command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) systems. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the overall demand for specialized scientific, engineering, and analytical support services from both government personnel and external contractors remains robust, reflecting the ongoing commitment to defense innovation.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX17R0008

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 1902 RESTON METRO PLZ, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,990,429

Exercised Options: $40,912,000

Current Obligation: $28,202,620

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $895,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W911QX18D0002

IDV Type: IDC

Timeline