DoD's $19.7M R&D contract with Valiant Global Defense Services Inc. awarded in 2011 shows mixed value and competition signals

Contract Overview

Contract Amount: $19,757,322 ($19.8M)

Contractor: Valiant Global Defense Services Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-01

End Date: 2015-11-14

Contract Duration: 1,535 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: BASE SERVICES

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to VALIANT GLOBAL DEFENSE SERVICES INC for work described as: BASE SERVICES Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and comparable data. 2. Competition was robust initially, but the contract type and duration may have limited ongoing market pressure. 3. Risk indicators are moderate, with potential concerns around the contractor's track record and the project's evolving scope. 4. Performance context is limited, making it difficult to assess the effectiveness of the R&D services provided. 5. This contract falls within the broader R&D sector, specifically focusing on physical, engineering, and life sciences. 6. The contract's duration of over 4 years suggests a significant, long-term engagement for the services rendered.

Value Assessment

Rating: fair

Assessing the value for money on this definitive contract is challenging without specific performance outcomes or detailed cost breakdowns. The base award of $19.7 million over a 4-year period suggests a substantial investment. However, without benchmarks for similar R&D projects or insights into the specific deliverables, it's difficult to definitively state if this represented a good use of taxpayer funds. The firm fixed-price nature provides some cost certainty, but the overall value hinges on the success of the research and development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bidders suggests a reasonable level of competition at the outset. However, the definitive contract award type, while common for R&D, can sometimes lead to less dynamic pricing over its lifecycle compared to more frequently re-competed vehicles. The initial competition is a positive sign for price discovery.

Taxpayer Impact: A competitive initial award process helps ensure that taxpayer dollars are not unnecessarily inflated due to a lack of market interest.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, aiming to advance technological capabilities. Services delivered encompass research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily within Virginia, where the contractor is located, but the R&D outcomes could have national defense implications. Workforce implications include employment for researchers, scientists, and support staff at Valiant Global Defense Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge R&D success.
The long duration of a definitive contract could reduce competitive pressure over time.
Scope creep or changes in R&D direction could impact the original value proposition.

Positive Signals

Awarded under full and open competition, suggesting initial market interest.
Firm fixed-price contract type provides cost certainty for the base award.
Contractor is established, potentially bringing relevant expertise to R&D efforts.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically NAICS code 541712. This sector is critical for innovation and technological advancement across various industries, including defense. The market for R&D services is competitive, with significant government investment aimed at maintaining a technological edge. Comparable spending benchmarks in R&D can vary widely based on the complexity and duration of the research.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary focus was on securing the best offer through full and open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the contract's performance clauses and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Contracts
Engineering and Physical Sciences Research
Definitive Contracts
Firm Fixed Price Contracts

Risk Flags

Lack of detailed performance metrics
Limited post-award competition visibility
Potential for scope creep in R&D projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to VALIANT GLOBAL DEFENSE SERVICES INC. BASE SERVICES

Who is the contractor on this award?

The obligated recipient is VALIANT GLOBAL DEFENSE SERVICES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2011-09-01. End: 2015-11-14.

What was the specific nature of the R&D performed under this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. While the broad category is defined, the precise research objectives, methodologies, and expected outcomes are not detailed in the provided data. This level of specificity is common for R&D contracts where the exact path of discovery is often emergent. Further details would typically be found in the contract's statement of work (SOW) or technical exhibits, which are not publicly available in this dataset. Understanding the specific R&D focus is crucial for evaluating its alignment with DoD priorities and assessing the potential impact of the findings.

How does the $19.7 million base award compare to similar R&D contracts in the defense sector?

Comparing the $19.7 million base award requires context regarding the specific R&D domain, duration, and complexity. For long-term, complex R&D efforts in specialized areas like physical or engineering sciences for defense, this amount can be considered moderate. However, without knowing the specific technical challenges, the number of personnel involved, or the project's phase (e.g., basic research vs. applied research vs. development), a direct comparison is difficult. The defense R&D sector sees awards ranging from a few million for smaller projects to hundreds of millions for large-scale system development. This contract appears to be a significant, but not exceptionally large, investment for a multi-year R&D initiative.

What are the potential risks associated with a definitive contract awarded over four years?

Definitive contracts, especially those awarded for extended periods like this 4-year contract, carry certain risks. One primary risk is the potential for reduced competitive pressure over the contract's life. While initially competed, the fixed nature of the award might mean less incentive for the contractor to optimize costs or innovate aggressively if follow-on work is not actively re-competed. Scope creep is another risk; R&D projects can evolve, and managing changes to the original statement of work without adequate cost adjustments or re-competition can lead to cost overruns or diminished value. Furthermore, if the contractor's capabilities or market conditions change significantly during the contract period, the government might be locked into a less-than-optimal arrangement.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' classification imply for the contract's objectives?

This classification (NAICS 541712) indicates that the contract's objective is to conduct systematic study and experimentation to increase the knowledge and understanding of the physical and natural world and the engineering disciplines. This includes research in areas like materials science, aerospace engineering, civil engineering, electrical engineering, mechanical engineering, and various life sciences (excluding biotech). For the Department of Defense, such R&D is typically aimed at developing new technologies, improving existing systems, understanding adversary capabilities, or enhancing soldier performance. The exclusion of biotechnology suggests the focus is on non-biological scientific and engineering advancements.

How does the firm fixed-price (FFP) contract type influence the risk and value proposition?

A Firm Fixed-Price (FFP) contract type generally places the majority of the cost risk on the contractor. This means the contractor agrees to a set price for the defined scope of work, and any cost overruns are absorbed by them. For the government, this offers significant cost certainty, which is a major advantage. The value proposition is enhanced when the scope of work is well-defined and unlikely to change significantly. In R&D, where uncertainty is inherent, FFP can be more challenging if the scope is not precisely understood upfront. However, if the R&D objectives are clear and achievable within the defined parameters, FFP encourages the contractor to be efficient and manage their costs effectively to maximize profit, potentially leading to better value for the government.

What is the significance of the contract duration (1535 days)?

A duration of 1535 days, approximately 4.2 years, indicates a substantial, long-term commitment for a research and development project. This duration suggests that the R&D effort was expected to be complex, requiring sustained investigation, experimentation, and analysis. Such a timeframe allows for deeper exploration of scientific or engineering challenges and the potential development of more mature technologies or solutions. For the contractor, it provides a stable revenue stream and the opportunity to build expertise in a specific R&D area. For the government, it signifies a strategic investment in a particular technological domain, with the expectation of significant advancements upon completion.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911S011R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valiant Integrated Services LLC

Address: 2280 HISTORIC DECATUR RD STE 200, SAN DIEGO, CA, 92106

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

Financial Breakdown

Contract Ceiling: $22,406,803

Exercised Options: $19,893,096

Current Obligation: $19,757,322

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $1,534,779

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline