DoD's $40.7M R&D contract with Utah State University Space Dynamics Laboratory awarded without competition

Contract Overview

Contract Amount: $40,755,020 ($40.8M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2016-03-15

End Date: 2022-06-15

Contract Duration: 2,283 days

Daily Burn Rate: $17.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SSASD

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $40.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: IGF::OT::IGF SSASD Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to higher costs if not closely managed. 2. The contract's duration of over 6 years suggests a long-term need for the research services. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The lack of competition raises questions about whether the government secured the best possible value. 5. Performance is being conducted in Utah, potentially benefiting the local economy and workforce. 6. The contract's value is significant, indicating a substantial investment in specialized research capabilities.

Value Assessment

Rating: questionable

This contract was awarded on a Cost Plus Fixed Fee (CPFF) basis, which carries inherent risks of cost overruns if not meticulously managed. Without competitive bidding, it is difficult to benchmark the pricing against market rates or other similar contracts. The absence of competition means the government may not have achieved the most favorable pricing or terms. Further analysis would be needed to assess if the fixed fee component adequately incentivized efficiency and cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This typically occurs when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of multiple bidders means there was no direct price comparison or incentive for contractors to offer their most competitive rates. This approach can limit the government's ability to explore a wider range of solutions or achieve optimal price discovery.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price pressures inherent in a competitive bidding process.

Public Impact

The primary beneficiary is the Department of Defense, which receives specialized research and development services. The contract supports advancements in physical, engineering, and life sciences relevant to national security. The geographic impact is concentrated in Utah, where the contractor is located. The contract likely supports a specialized workforce of researchers and technical personnel at Utah State University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost-plus-fixed-fee contracts require stringent oversight to manage costs effectively.
Long contract duration increases the risk of scope creep or evolving requirements not being optimally addressed.

Positive Signals

Utah State University has a known track record in research and development.
The contract addresses critical R&D needs for the Department of Defense.
The fixed fee component, if set appropriately, can provide some cost certainty.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of new technologies and capabilities. The market for specialized R&D services is often characterized by a limited number of highly qualified institutions and firms. Benchmarking spending in this area is challenging due to the unique nature of R&D projects, but significant government investment is typical for advancing technological superiority.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. As this was a sole-source award to a university, the focus was likely on specialized research capabilities rather than broad small business participation. Further investigation would be needed to determine if any small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Given the cost-plus-fixed-fee structure, rigorous financial oversight and performance monitoring are crucial. The Inspector General's office for the Department of Defense may also conduct audits or investigations into the contract's execution and financial management to ensure accountability and prevent waste, fraud, and abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
University Research Partnerships with Government

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. IGF::OT::IGF SSASD

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

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 $40.8 million.

What is the period of performance?

Start: 2016-03-15. End: 2022-06-15.

What specific research areas does this contract cover for the Space Dynamics Laboratory?

The provided data indicates the contract falls under the North American Industry Classification System (NAICS) code 541712, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the specific sub-fields are not detailed, the contractor, Utah State University Space Dynamics Laboratory, is known for its expertise in areas such as space weather, satellite technology, sensor systems, and advanced materials. Therefore, this contract likely supports research and development activities within these or related domains, aimed at enhancing the Department of Defense's technological capabilities.

How does the $40.7 million value compare to similar R&D contracts awarded by the Department of Defense?

The $40.7 million value for a multi-year R&D contract is substantial but not uncommon within the Department of Defense, which invests heavily in scientific and technological advancement. However, without knowing the specific research scope and duration, direct comparisons are difficult. DoD awards numerous R&D contracts ranging from a few million to hundreds of millions of dollars annually. The 'not competed' status of this award means its value cannot be benchmarked against competitive bids, making a direct value-for-money assessment challenging without further context on the uniqueness of the services provided and the established relationship with the contractor.

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 size ($40.7M) and duration (over 6 years) include potential cost overruns and contractor inefficiency. While the 'fixed fee' provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If cost estimation is inaccurate or if the contractor does not manage expenses diligently, the total cost to the government can exceed initial projections. Furthermore, the CPFF structure can sometimes reduce the contractor's incentive to control costs aggressively compared to fixed-price contracts. Robust government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks.

What is the track record of Utah State University Space Dynamics Laboratory in performing government R&D contracts?

Utah State University's Space Dynamics Laboratory (SDL) has a long-standing reputation and extensive experience in performing research and development for various government agencies, including the Department of Defense and NASA. They specialize in areas critical to space and defense, such as space weather, satellite systems, sensor technology, and advanced materials. SDL has been involved in numerous high-profile projects and has a history of successful contract performance. Their established expertise and prior successful engagements suggest a strong capability to execute complex R&D tasks, which likely contributed to the sole-source award decision.

How does the lack of competition impact the government's ability to ensure fair pricing for these R&D services?

The lack of competition significantly limits the government's ability to ensure fair pricing. In a competitive environment, multiple bidders would submit proposals, allowing the government to compare prices, technical approaches, and overall value. The lowest price technically acceptable or best value determination would drive down costs. With a sole-source award, the government negotiates directly with one contractor. While negotiation aims for a fair price, the absence of competing offers means there is no market-driven pressure to achieve the most economical outcome. The government must rely heavily on its own cost analysis capabilities and negotiation skills, which can be challenging for highly specialized R&D services.

What are the potential implications of this contract for future R&D investments in this sector?

This contract, awarded without competition to a specific university lab, could signal a strategic reliance on Utah State University's Space Dynamics Laboratory for particular R&D capabilities deemed critical by the Department of Defense. It might also indicate a trend where specialized research needs are met through sole-source awards to established institutions with unique expertise, potentially limiting opportunities for other R&D providers, including newer or smaller firms, to enter the market. However, it also reinforces the importance of investing in university-based research centers that can serve long-term national security objectives.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Utah State University

Address: 1695 N RESEARCH PKWY, NORTH LOGAN, UT, 84341

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

Financial Breakdown

Contract Ceiling: $40,755,020

Exercised Options: $40,755,020

Current Obligation: $40,755,020

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,680,054

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945316D0004

IDV Type: IDC

Timeline