DoD's $255M CMU-SEI Task Order for R&D: Research & Development in Physical, Engineering, and Life Sciences

Contract Overview

Contract Amount: $255,738,052 ($255.7M)

Contractor: Carnegie Mellon University

Awarding Agency: Department of Defense

Start Date: 2015-07-27

End Date: 2022-09-30

Contract Duration: 2,622 days

Daily Burn Rate: $97.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: IGF::CT::IGF TASK ORDER 0001 FOR CMU-SEI NON-SEVERABLE PROJECTS

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15213

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $255.7 million to CARNEGIE MELLON UNIVERSITY for work described as: IGF::CT::IGF TASK ORDER 0001 FOR CMU-SEI NON-SEVERABLE PROJECTS Key points: 1. Significant investment in specialized R&D services provided by Carnegie Mellon University. 2. Lack of competition raises questions about price discovery and potential value. 3. Long contract duration (2015-2022) suggests ongoing, potentially critical research needs. 4. Focus on R&D in Physical, Engineering, and Life Sciences aligns with defense innovation goals.

Value Assessment

Rating: questionable

The contract's cost-plus-no-fee structure, combined with a lack of competition, makes a direct pricing assessment difficult. Benchmarking is challenging without comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a limited source selection. The absence of a competitive bidding process may have impacted price discovery and potentially led to higher costs.

Taxpayer Impact: Without competitive pricing, taxpayers may have paid more than necessary for the research and development services provided.

Public Impact

Supports advanced research and development critical for national security and technological advancement. Invests in specialized scientific expertise housed within a leading academic institution. Long-term funding ensures continuity for complex, multi-year research projects. Potential for groundbreaking discoveries and innovations stemming from the contracted R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-no-fee contract type
Long contract duration without clear competition

Positive Signals

Supports critical R&D for the Department of Defense
Leverages expertise from a renowned research institution
Long-term commitment to complex research projects

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but requires careful oversight to ensure value for money, especially when competed.

Small Business Impact

The contract was awarded to Carnegie Mellon University, a large research institution, and there is no indication of small business involvement. This suggests a focus on specialized, large-scale research capabilities rather than small business set-asides.

Oversight & Accountability

The 'not competed' status warrants further review by oversight bodies to ensure the justification for limited competition was sound and that the pricing reflects fair value, despite the lack of bidding.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns due to cost-plus structure
Difficulty in benchmarking pricing
Long-term commitment without clear competitive pressure
Limited transparency on price reasonableness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $255.7 million to CARNEGIE MELLON UNIVERSITY. IGF::CT::IGF TASK ORDER 0001 FOR CMU-SEI NON-SEVERABLE PROJECTS

Who is the contractor on this award?

The obligated recipient is CARNEGIE MELLON UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $255.7 million.

What is the period of performance?

Start: 2015-07-27. End: 2022-09-30.

What was the specific justification for not competing this significant R&D task order, and how was the price determined to be fair and reasonable in the absence of competitive bids?

The justification for not competing this task order is crucial for understanding the acquisition strategy. Typically, non-competitive awards are based on factors like unique capabilities, urgent needs, or specific research requirements that only one entity can fulfill. The price determination would likely involve detailed cost analysis by the contracting officer, comparing proposed costs against historical data, independent cost estimates, or established rates for similar services, even if not from direct competitors.

Given the cost-plus-no-fee structure and lack of competition, what mechanisms were in place to ensure the contractor remained efficient and delivered maximum value to the government?

In cost-plus-no-fee contracts without competition, value realization heavily relies on robust government oversight and performance management. Mechanisms would include detailed monitoring of costs, regular progress reviews, clearly defined milestones and deliverables, and strong technical direction from the government's contracting officer's representative. The absence of a fee might incentivize cost control, but the primary driver for efficiency and value would be the government's active management and evaluation of the contractor's performance against the SOW.

How does the research conducted under this task order align with current and future Department of Defense technological priorities, and what is the expected return on investment for the $255 million e

The alignment of this R&D with DoD priorities would be detailed in the initial requirements and subsequent tasking documents. Given the long duration and significant funding, it likely addresses foundational or advanced research areas critical for future capabilities. The return on investment is often measured not just in direct financial terms but in enhanced national security, technological superiority, and the development of solutions to complex defense challenges, which are inherently difficult to quantify financially.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 4500 5TH AVE, PITTSBURGH, PA, 15213

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $411,374,781

Exercised Options: $411,374,781

Current Obligation: $255,738,052

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $35,901,320

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA870215D0002

IDV Type: IDC

Timeline