Department of Defense awarded $60.2M R&D contract to Frontier Technology Inc. for specialized research

Contract Overview

Contract Amount: $60,220,680 ($60.2M)

Contractor: Frontier Technology Inc

Awarding Agency: Department of Defense

Start Date: 2016-09-27

End Date: 2019-12-29

Contract Duration: 1,188 days

Daily Burn Rate: $50.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF SATISFIES THE MINIMUM GUARANTEE.

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $60.2 million to FRONTIER TECHNOLOGY INC for work described as: IGF::OT::IGF SATISFIES THE MINIMUM GUARANTEE. Key points: 1. Contract value represents a significant investment in advanced research capabilities. 2. Frontier Technology Inc. secured this award through full and open competition. 3. The contract duration of nearly three years suggests a complex and ongoing research effort. 4. The specific NAICS code indicates a focus on physical, engineering, and life sciences research. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility in research scope while managing costs. 6. This award falls within the broader category of Defense research and development spending.

Value Assessment

Rating: good

The contract value of $60.2 million for a nearly three-year research and development effort appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts within the Department of Defense for advanced physical and engineering sciences would provide a more precise value-for-money assessment. However, the fixed fee component suggests a degree of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is expected to drive better pricing and innovation. The number of bidders is not specified, but the open nature of the competition suggests a robust market response.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, seeking advancements in physical, engineering, and life sciences. The services delivered involve specialized research and development, contributing to national security and technological superiority. The geographic impact is centered in California, where Frontier Technology Inc. is located, potentially creating local economic benefits. Workforce implications include the employment of scientists, engineers, and support staff involved in the research activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
The specialized nature of the research may limit the number of truly competitive bidders in future solicitations.
Dependence on a single contractor for a specific research area could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and fair pricing.
The fixed fee component provides a level of cost certainty for the government.
The contract duration indicates a commitment to a specific research objective, allowing for sustained progress.

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 modernization, involving innovation in materials, systems, and technologies. Comparable spending benchmarks would involve looking at other DoD R&D contracts awarded to private firms for similar scientific disciplines.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary focus is on the capabilities of the prime contractor, Frontier Technology Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is facilitated through contract award databases, though specific research details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Physical Sciences Research
Engineering Research Services
Life Sciences Research Contracts

Risk Flags

Cost Overrun Risk (CPFF Contract)
Performance Dependency
Limited Competition in Future Solicitations (due to specialization)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.2 million to FRONTIER TECHNOLOGY INC. IGF::OT::IGF SATISFIES THE MINIMUM GUARANTEE.

Who is the contractor on this award?

The obligated recipient is FRONTIER TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $60.2 million.

What is the period of performance?

Start: 2016-09-27. End: 2019-12-29.

What is Frontier Technology Inc.'s track record with the Department of Defense, particularly on similar R&D contracts?

Frontier Technology Inc. has a history of performing work for the Department of Defense. While specific details on past R&D contracts are not provided in this data snippet, their ability to secure a $60.2 million award through full and open competition suggests a demonstrated capability and a positive performance history. Further analysis would involve reviewing their contract award history, past performance evaluations, and any documented successes or challenges on previous DoD engagements to fully assess their reliability and expertise in the specified research domain.

How does the $60.2 million contract value compare to similar R&D efforts within the Department of Defense?

The $60.2 million contract value for a nearly three-year R&D effort in physical, engineering, and life sciences is substantial. To benchmark this value, one would compare it against other contracts awarded by the DoD for similar research areas, such as advanced materials, propulsion systems, or sensor development. Factors like the novelty of the research, the required expertise, and the project's scope significantly influence R&D contract values. Without specific comparable contract data, it's difficult to definitively state if this represents a premium or a standard rate, but the full and open competition suggests the pricing was deemed fair in the market.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for the government?

The primary risk for the government with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' component provides a ceiling on the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the research proves more complex or expensive than initially anticipated, the total cost to the government could exceed initial projections. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value.

How effective is the 'full and open competition' approach likely to be in ensuring optimal outcomes for this R&D contract?

Full and open competition is generally considered the most effective method for ensuring optimal outcomes in government contracting, including R&D. It maximizes the pool of potential bidders, fostering a competitive environment that can drive innovation, improve quality, and secure competitive pricing. For this R&D contract, it means the Department of Defense likely received proposals from multiple highly qualified firms, allowing them to select the one offering the best combination of technical approach, past performance, and price. This approach increases the likelihood of achieving the research objectives efficiently and effectively.

What is the historical spending pattern for NAICS code 541712 within the Department of Defense over the last five years?

Analyzing the historical spending patterns for NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) within the Department of Defense over the last five years would reveal trends in investment in these critical research areas. This data would show whether spending has been increasing, decreasing, or remaining stable, and identify major agencies or branches within the DoD that are the largest purchasers of these services. Understanding these patterns can help contextualize the $60.2 million award to Frontier Technology Inc. and indicate the overall strategic importance the DoD places on this type of R&D.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 55 CASTILIAN DR STE 123, GOLETA, CA, 93117

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,220,680

Exercised Options: $60,220,680

Current Obligation: $60,220,680

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15QKN16D0109

IDV Type: IDC

Timeline