DoD's $105M CMU-SEI Task Order for R&D: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $104,894,071 ($104.9M)
Contractor: Carnegie Mellon University
Awarding Agency: Department of Defense
Start Date: 2015-09-29
End Date: 2023-06-30
Contract Duration: 2,831 days
Daily Burn Rate: $37.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: R&D
Official Description: IGF::CT::IGF TASK ORDER 0002 FOR CMU-SEI SEVERABLE PROJECT 6-520D1
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15213
Plain-Language Summary
Department of Defense obligated $104.9 million to CARNEGIE MELLON UNIVERSITY for work described as: IGF::CT::IGF TASK ORDER 0002 FOR CMU-SEI SEVERABLE PROJECT 6-520D1 Key points: 1. Significant investment in R&D, focused on specialized research. 2. Sole-source award raises questions about price discovery and competition. 3. Long duration suggests a complex, evolving project. 4. Potential for high impact given the R&D nature, but value needs scrutiny.
Value Assessment
Rating: questionable
The contract's cost-plus-no-fee structure for R&D makes direct pricing comparisons difficult. Without competitive bidding, it's hard to ascertain if the $105M represents optimal value for the research conducted.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Carnegie Mellon University. This limits price discovery mechanisms and may result in higher costs than if competition were present.
Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for the research services rendered.
Public Impact
Advanced research and development funded by the Department of Defense. Potential for breakthroughs in physical, engineering, and life sciences. Long-term commitment to a single research institution. Impact on national security and technological advancement is a key consideration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus-no-fee structure
- Long contract duration
Positive Signals
- Focus on critical R&D
- Award to a reputable institution
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but often involves unique, non-standardized services, making benchmarking challenging.
Small Business Impact
The contract was awarded directly to Carnegie Mellon University and does not indicate any subcontracting opportunities for small businesses. The focus is on specialized research capabilities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the research objectives are met efficiently and effectively, and that costs are reasonable given the lack of competitive pressure.
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
- Sole-source award limits competition.
- Cost-plus-no-fee structure can be prone to cost growth.
- Long contract duration may indicate scope creep or slow progress.
- Lack of small business participation.
- Difficulty in benchmarking R&D costs.
Tags
research-and-development-in-the-physical, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $104.9 million to CARNEGIE MELLON UNIVERSITY. IGF::CT::IGF TASK ORDER 0002 FOR CMU-SEI SEVERABLE PROJECT 6-520D1
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 $104.9 million.
What is the period of performance?
Start: 2015-09-29. End: 2023-06-30.
What specific research outcomes were achieved, and how do they align with the initial objectives and the significant investment?
Detailed analysis of the research deliverables against the contract's statement of work is necessary. Given the cost-plus-no-fee structure and sole-source award, a thorough review of the achieved milestones and their scientific or technological merit is crucial to justify the $105M expenditure and confirm value for money.
Were there any opportunities missed to foster competition or explore alternative research providers?
The sole-source award suggests that either CMU was uniquely qualified or the need was deemed urgent and specific. However, a review should confirm if market research was adequately conducted to identify potential competitors or if a phased approach allowing for competition on subsequent task orders was considered.
How does the long duration and cost structure impact the agility and cost-effectiveness of the R&D process?
A long duration (2831 days) for a cost-plus-no-fee contract can lead to cost overruns if not managed tightly. The absence of a fee might incentivize completion over innovation. Continuous monitoring of progress and adherence to budget is essential to ensure effectiveness and prevent inefficiencies.
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 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: $150,580,043
Exercised Options: $145,950,043
Current Obligation: $104,894,071
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA870215D0002
IDV Type: IDC
Timeline
Start Date: 2015-09-29
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2024-01-30
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