DoD awards $78.3M for Science & Engineering Services, with a significant portion for R&D

Contract Overview

Contract Amount: $40,787,469 ($40.8M)

Contractor: Science and Engineering Services LLC

Awarding Agency: Department of Defense

Start Date: 2004-05-04

End Date: 2012-06-15

Contract Duration: 2,964 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200409!000601!2100!W911SR!USA MATERIEL COMMAND ACQUISITION!W911SR04C0020 !A!N! !N! ! !20040504!20060530!783196348!783196348!783196348!N!SCIENCE&ENGINEERING SERVICES!6992 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000009354732!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333314!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!002!B! !A!N!Z! ! !N!A!N!N!B! ! ! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to SCIENCE AND ENGINEERING SERVICES LLC for work described as: 200409!000601!2100!W911SR!USA MATERIEL COMMAND ACQUISITION!W911SR04C0020 !A!N! !N! ! !20040504!20060530!783196348!783196348!783196348!N!SCIENCE&ENGINEERING SERVICES!6992 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD… Key points: 1. Contract awarded for science and engineering services, with a substantial allocation for advanced technology development. 2. The contract spans over 8 years, indicating a long-term need for these specialized services. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The contractor, SCIENCE AND ENGINEERING SERVICES LLC, has a track record in this domain. 5. The contract's value is substantial, requiring careful monitoring of performance and cost. 6. Geographic focus appears to be Maryland, based on the contractor's address.

Value Assessment

Rating: fair

The total award of $78.3 million over approximately 8 years averages to about $9.8 million annually. Benchmarking this against similar contracts for science and engineering services is challenging without more specific service details. However, the contract type (Cost Plus Fixed Fee) can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for expenses plus a fixed fee. The initial award amount of $78.3M is a ceiling, and actual spending may be lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data shows two bids were received. While two bidders suggest some level of competition, it is on the lower end and may not represent the full market potential. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs. However, with only two bids, the cost savings might be less significant than in a more robustly competed scenario.

Public Impact

The Department of Defense benefits from specialized science and engineering expertise. Services likely support research and development initiatives, particularly in advanced technology. The contract's duration suggests ongoing support for critical defense programs. Workforce implications may include specialized technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Limited competition (2 bidders) may have resulted in a less competitive price than a broader competition.
The long duration of the contract increases the risk of scope creep or evolving requirements not being optimally managed.

Positive Signals

Awarded through full and open competition, which is a positive sign for market engagement.
The contractor has a specific NAICS code associated with Optical Instrument and Lens Manufacturing, suggesting relevant expertise.
The contract has a defined period of performance, allowing for structured oversight.

Sector Analysis

This contract falls under the 'Research and Development' sector, specifically 'RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV'. The market for specialized science and engineering services supporting defense R&D is significant, driven by the need for technological superiority. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the R&D, but contracts in this category often involve high-value, specialized expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). There is no explicit information regarding subcontracting plans for small businesses. Without set-aside provisions or clear subcontracting goals, the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses as part of their supply chain.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. The contract type (Cost Plus Fixed Fee) necessitates robust oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is dependent on the agency's reporting practices and the contract's specific clauses regarding reporting requirements.

Related Government Programs

Defense Research and Development Programs
Advanced Technology Development Contracts
Science and Engineering Support Services
Optical Instrument and Lens Manufacturing Support

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may impact price competitiveness.
Long contract duration increases risk of scope management issues.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to SCIENCE AND ENGINEERING SERVICES LLC. 200409!000601!2100!W911SR!USA MATERIEL COMMAND ACQUISITION!W911SR04C0020 !A!N! !N! ! !20040504!20060530!783196348!783196348!783196348!N!SCIENCE&ENGINEERING SERVICES!6992 COLUMBIA GATEWAY DRIV!COLUMBIA !MD!21046!19125!027!24!COLUMBIA !HOWARD !MARYLAND !+000009354732!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !333314!E! !3! ! ! ! ! !9999090

Who is the contractor on this award?

The obligated recipient is SCIENCE AND ENGINEERING SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $40.8 million.

What is the period of performance?

Start: 2004-05-04. End: 2012-06-15.

What specific science and engineering services are being procured under this contract?

The provided data indicates the contract is for 'SCIENCE AND ENGINEERING SERVICES' and falls under the 'RDTE/OTHER RESEARCH&DEVELOPMENT-ADV TECH DEV' category. The NAICS code '333314' points to 'Optical Instrument and Lens Manufacturing'. This suggests the services likely involve research, development, testing, and evaluation related to advanced optical technologies, instruments, or lenses for defense applications. Specific details on the exact nature of the R&D, such as the development of new sensor technologies, advanced imaging systems, or specialized optical components, would require access to the contract's statement of work.

How does the $78.3M award compare to typical spending for similar science and engineering services within the Department of Defense?

Direct comparison of the $78.3 million award for 'SCIENCE AND ENGINEERING SERVICES' is challenging without more granular data on the specific services rendered and the duration. However, the contract spans over 8 years (from May 2004 to June 2012), averaging approximately $9.8 million per year. Large-scale R&D contracts within the DoD can range from tens of millions to billions of dollars, depending on the program's scope and technological complexity. Given the 'ADV TECH DEV' classification, this award appears to be a significant investment, but its relative size depends heavily on the specific technological domain and the number of similar contracts active concurrently.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks with a CPFF contract of this magnitude ($78.3M) and duration (over 8 years) include potential cost overruns and contractor inefficiency. In a CPFF structure, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. If cost controls are weak or the scope of work is not tightly managed, costs can escalate beyond initial projections. The contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is guaranteed regardless of the final cost. For the government, this necessitates rigorous oversight, detailed cost auditing, and clear performance metrics to ensure value for money and prevent unnecessary expenditures.

What does the limited competition (2 bidders) imply for the effectiveness of the procurement process?

The fact that this contract was awarded under 'FULL AND OPEN COMPETITION' but only received two bids suggests that while the process was open, the market for these specific science and engineering services might be limited, or perhaps the solicitation requirements were highly specialized, deterring broader participation. Limited competition can potentially lead to higher prices than if more bidders had competed, as the incentive for aggressive pricing is reduced. It also raises questions about whether the government truly received the best possible value. While the agency followed the full and open process, the outcome suggests a need to analyze if future solicitations could be structured to attract more bidders or if the market itself is inherently constrained for this type of specialized R&D support.

What is the significance of the contractor's NAICS code (333314 - Optical Instrument and Lens Manufacturing)?

The contractor's North American Industry Classification System (NAICS) code, 333314, signifies that SCIENCE AND ENGINEERING SERVICES LLC is primarily engaged in the manufacturing of optical instruments and lenses. This is significant because it suggests the company possesses specialized manufacturing capabilities and expertise directly relevant to the contract's likely focus on advanced optical technologies within defense R&D. This alignment between the contractor's core business and the contract's apparent objectives increases the likelihood of successful project execution and the delivery of high-quality, specialized products or services related to optics.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6992 COLUMBIA GATEWAY DRIV, COLUMBIA, MD, 21046

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $282,181

Exercised Options: $282,181

Current Obligation: $40,787,469

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline