DoD's $21.3M R&D contract with Utah State University Space Dynamics Laboratory awarded in 2008

Contract Overview

Contract Amount: $21,296,546 ($21.3M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2011-06-30

Contract Duration: 1,186 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 56-9370-08

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: 56-9370-08 Key points: 1. Contract focused on research and development in physical, engineering, and life sciences. 2. Awarded as a sole-source contract, limiting competitive opportunities. 3. Duration of 1186 days suggests a substantial, long-term research effort. 4. Fixed fee structure on a cost-plus basis indicates potential for cost overruns. 5. The contract's value is significant for specialized R&D services. 6. Performance was managed by the Department of the Navy. 7. Geographic location of the contractor is Utah.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and sole-source award. The $21.3 million total award over approximately three years represents a significant investment in research. Without comparable sole-source R&D contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the fixed fee component on a cost-plus basis suggests that while the profit margin was capped, the government bore the risk of cost escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential contractors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which received the research and development services. The contract supported advancements in physical, engineering, and life sciences research, potentially leading to new technologies or improved defense capabilities. The geographic impact is concentrated in Utah, where Utah State University Space Dynamics Laboratory is located, supporting local employment and research infrastructure. Workforce implications include specialized scientists, engineers, and technicians employed by the contractor to conduct the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs.
Cost-plus fixed-fee structure carries inherent risk of cost overruns for the government.
Lack of public detail on specific research outcomes makes performance assessment difficult.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.

Positive Signals

Award to a university-affiliated research center suggests focus on specialized, potentially cutting-edge R&D.
Fixed fee provides some level of cost certainty compared to pure cost-plus contracts.
The specific NAICS code (541712) indicates a focus on scientific research and development.
The contract was awarded to an established entity (USU Space Dynamics Laboratory) with a history in research.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is critical for innovation and technological advancement within the defense industry. Comparable spending in this area can vary widely depending on the specific research domain, but significant government investment is typical for defense-related R&D to maintain a technological edge. The market often involves specialized research institutions and contractors with unique scientific expertise.

Small Business Impact

This contract does not appear to have involved small business set-asides, as indicated by the 'sb' field being false. The large value and specialized R&D nature suggest it was likely performed by the prime contractor. There is no explicit information on subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy. As a sole-source award, the oversight would focus on ensuring the contractor meets the research objectives and manages costs within the fixed fee structure. Transparency is limited due to the nature of R&D and sole-source procurement, but contract performance reviews and financial audits would be standard oversight mechanisms. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Navy Science and Technology Programs
University Research Partnerships
Applied Scientific Research Contracts

Risk Flags

Sole-source award limits competition.
Cost-plus contract type carries inherent cost overrun risk for the government.
Lack of detailed public information on research outcomes hinders performance assessment.
Contract awarded in 2008, historical data may not reflect current market rates or technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. 56-9370-08

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 Navy).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2008-03-31. End: 2011-06-30.

What specific research areas were covered under this contract?

The contract, identified by data number 56-9370-08, was awarded under NAICS code 541712, which pertains to 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the exact research topics are not detailed in the provided data, this broad classification suggests the work could have encompassed areas such as advanced materials, aerospace engineering, sensor technology, physics, or other scientific disciplines relevant to national defense and space exploration, given the contractor's name (Space Dynamics Laboratory).

How does the $21.3 million contract value compare to similar R&D contracts awarded by the DoD?

The $21.3 million value for a contract spanning approximately three years (March 2008 to June 2011) is a substantial sum for a single R&D award. However, within the vast landscape of Department of Defense R&D spending, it represents a mid-tier investment. The DoD awards numerous contracts ranging from a few million to hundreds of millions of dollars for research. The uniqueness of this contract lies in its sole-source nature and its specific focus, making direct comparisons difficult without knowing the precise research scope and the competitive landscape for similar specialized R&D efforts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risk for the government in a Cost Plus Fixed Fee (CPFF) contract is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can escalate if the actual costs of performance are higher than anticipated. This structure incentivizes the contractor to control costs to some extent to protect their fixed profit margin, but it places the financial risk of cost overruns primarily on the government, unlike fixed-price contracts.

What is the significance of awarding this contract to Utah State University Space Dynamics Laboratory on a sole-source basis?

Awarding this contract on a sole-source basis to Utah State University Space Dynamics Laboratory (SDL) implies that the Department of the Navy determined SDL possessed unique capabilities, specialized knowledge, or proprietary technology essential for the research and development effort. SDL has a long history of supporting space-related research for government agencies. A sole-source award bypasses the competitive bidding process, suggesting that no other entity could meet the specific requirements as effectively or efficiently, though it limits opportunities for price negotiation through competition.

What does the contract duration of 1186 days (approx. 3.25 years) indicate about the project's scope?

A contract duration of 1186 days suggests a project of significant scope and complexity, typical for advanced research and development initiatives. Such extended timelines allow for in-depth investigation, experimentation, data analysis, and potentially iterative development cycles. It indicates that the research was not expected to yield immediate, short-term results but rather contribute to longer-term technological advancements or scientific understanding, requiring sustained effort and resources over several years.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Utah State University (UEI: 072983455)

Address: 1695 N RESEARCH PKWY, LOGAN, UT, 01

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,299,620

Exercised Options: $21,299,620

Current Obligation: $21,296,546

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0017308D2002

IDV Type: IDC

Timeline