DoD's $19.4M R&D contract with Utah State University Space Dynamics Laboratory awarded non-competitively

Contract Overview

Contract Amount: $19,420,983 ($19.4M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2012-05-31

End Date: 2017-01-01

Contract Duration: 1,676 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 56-9661-12 - TASK ORDER 0001

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $19.4 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: 56-9661-12 - TASK ORDER 0001 Key points: 1. Contract awarded without competition, raising questions about potential cost savings and market alternatives. 2. Significant investment in research and development, focusing on physical, engineering, and life sciences. 3. Long performance period of nearly five years suggests a substantial and ongoing research effort. 4. The contract's cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 5. Geographic concentration in Utah for contract performance. 6. The specific NAICS code indicates a focus on advanced scientific research.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its non-competitive nature and specific R&D focus. Without comparable bids, it's difficult to assess if the $19.4 million represents a fair market price. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D, can lead to higher costs than fixed-price contracts if not managed diligently. Further analysis would require understanding the specific deliverables and the unique capabilities of the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' status, indicating a sole-source procurement. This means the Department of the Navy did not solicit bids from multiple offerors. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It suggests that Utah State University Space Dynamics Laboratory was identified as the only responsible source capable of meeting the government's requirements.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also bypasses opportunities to foster broader industry engagement and innovation.

Public Impact

The primary beneficiary is the Department of the Navy, which receives advanced research and development services. The contract supports scientific advancement in physical, engineering, and life sciences, potentially leading to new technologies or improved capabilities. Research activities are concentrated in Utah, potentially benefiting the local economy and research ecosystem. The contract supports specialized research personnel and facilities at Utah State University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential savings.
Cost-plus-fixed-fee structure carries inherent risk of cost escalation without rigorous oversight.
Long contract duration requires sustained monitoring to ensure continued relevance and efficiency.
Lack of transparency regarding the justification for sole-source award.

Positive Signals

Focus on critical R&D areas for national security.
Contract awarded to a university-affiliated research center with specialized expertise.
Long-term engagement allows for deep development and integration of research outcomes.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712, which covers R&D in the Physical, Engineering, and Life Sciences (except Biotechnology). This is a critical area for defense innovation. Spending in this sector is highly dependent on government priorities and technological advancements. Comparable spending benchmarks would involve analyzing other DoD R&D contracts awarded to academic institutions or specialized research labs for similar scientific pursuits.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of the R&D and the sole-source award to a university, it is unlikely that subcontracting opportunities for small businesses were a primary consideration or requirement within the contract terms. Further investigation would be needed to confirm any indirect small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain within budget and objectives are met. Transparency regarding the justification for the sole-source award and the specific research outcomes would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

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

Risk Flags

Sole-source award without clear justification.
Potential for cost overruns due to CPFF structure.
Risk of research obsolescence over long performance period.
Lack of competitive bidding limits price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.4 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. 56-9661-12 - TASK ORDER 0001

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 $19.4 million.

What is the period of performance?

Start: 2012-05-31. End: 2017-01-01.

What specific research objectives were outlined in this contract, and what were the key deliverables?

The contract, identified as TASK ORDER 0001 under a larger agreement, focused on Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), as indicated by NAICS code 541712. While the specific research objectives and deliverables are not detailed in the provided data, the nature of R&D contracts typically involves scientific investigation, experimentation, analysis, and the development of prototypes or new methodologies. Given the contractor is Utah State University Space Dynamics Laboratory, a known entity in space and defense research, the objectives likely pertained to advanced materials, sensor technology, propulsion systems, or other specialized areas relevant to naval operations and defense capabilities. The contract's duration of nearly five years suggests a project requiring significant developmental time and iterative progress.

Why was this contract awarded on a sole-source basis, and what was the justification provided?

The data explicitly states the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source procurement. The justification for such an award typically rests on specific criteria, such as the unique capabilities or specialized knowledge of the contractor that cannot be replicated by others, or in cases of urgent and compelling need where only one source can fulfill the requirement. For Utah State University Space Dynamics Laboratory, it's probable that their established expertise, proprietary technology, or unique research facilities in a niche area of physical, engineering, or life sciences R&D were deemed essential and unavailable elsewhere. The Department of the Navy would have had to formally document and approve this justification, often requiring public notice and a period for other potential sources to respond if they believed they could meet the need.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact the final cost and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is common for R&D where the scope of work can be uncertain and difficult to define precisely upfront. For the government, the primary risk is that actual costs could exceed initial estimates, leading to a higher total expenditure than anticipated. The fixed fee provides some incentive for the contractor to control costs, as their profit is capped. However, it may not be as strong an incentive as in a fixed-price contract, where the contractor bears more of the cost overrun risk. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract.

What is the historical spending pattern for similar R&D contracts awarded by the Department of the Navy?

Analyzing historical spending patterns for similar R&D contracts by the Department of the Navy requires access to extensive contract databases. However, generally, the Navy invests billions annually in R&D across various scientific and engineering disciplines to maintain technological superiority. Spending often fluctuates based on strategic priorities, emerging threats, and budget allocations. Contracts awarded to university research centers like Utah State University Space Dynamics Laboratory are common for fundamental and applied research. These contracts can range from small, targeted studies to large, multi-year programs. The trend is often towards increasing investment in areas like artificial intelligence, cybersecurity, advanced materials, and autonomous systems, reflecting evolving defense needs.

What are the potential risks associated with a long-duration R&D contract like this one?

Long-duration R&D contracts, such as this nearly five-year award, carry several potential risks. Firstly, the technological landscape can change rapidly; research objectives that were critical at the outset may become less relevant or even obsolete by the contract's end. This necessitates adaptive management and potential scope adjustments. Secondly, maintaining consistent oversight and engagement over an extended period can be challenging for government program managers. Thirdly, cost control becomes more complex as unforeseen issues or scope creep can significantly inflate expenses over time, especially with a CPFF structure. Finally, there's a risk of 'knowledge drain' if key personnel leave the project before completion, impacting the continuity and success of the research.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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, 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: $19,457,845

Exercised Options: $19,457,845

Current Obligation: $19,420,983

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,181,975

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017312D2004

IDV Type: IDC

Timeline