DoD's $24M Contract for Sensor Tech Development Raises Questions on Competition and Value

Contract Overview

Contract Amount: $24,045,200 ($24.0M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2013-08-28

End Date: 2018-07-25

Contract Duration: 1,792 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF PR 56-9680-13 THE SECOND TASK ORDER FOR THIS CONTRACT IS FOR AN EIGHTEEN (18) MONTH EFFORT IN DEVELOPMENT AND DEMONSTRATION OF EXPLOITATION SOFTWARE AND ADVANCED SENSOR AND PROCESSING TECHNOLOGIES INCLUDING DIGITAL CAMERAS, PROCESSING, COMPRESSION, AND CONTROL, ANALOG SYSTEMS, POWER, COMMUNICATIONS, COMMAND AND TELEMETRY, RADIO FREQUENCY/OPTICAL SENSOR PAYLOADS AND ELECTROMECHANICAL SYSTEMS/SUPPORT.

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: IGF::OT::IGF PR 56-9680-13 THE SECOND TASK ORDER FOR THIS CONTRACT IS FOR AN EIGHTEEN (18) MONTH EFFORT IN DEVELOPMENT AND DEMONSTRATION OF EXPLOITATION SOFTWARE AND ADVANCED SENSOR AND PROCESSING TECHNOLOGIES INCLUDING DIGITAL CAMERAS, PROCESSING, COMPRESSION, AND CONTROL, ANAL… Key points: 1. Significant investment in advanced sensor and exploitation software development. 2. Limited competition raises concerns about price discovery and potential overpayment. 3. Contract duration of nearly 5 years suggests a complex, long-term project. 4. Focus on R&D in physical and engineering sciences, a critical but often costly sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with limited competition, makes a direct pricing assessment difficult. Without comparable contracts or detailed cost breakdowns, it's challenging to determine if the $24 million price reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited source justification. This lack of competitive bidding likely hindered robust price discovery, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of full and open competition may have resulted in a higher overall cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Development of advanced sensor and exploitation software could lead to significant technological advancements for national security. The long contract duration suggests a substantial commitment to research and development in a specialized field. Taxpayers are funding cutting-edge research, with the ultimate benefits and applications yet to be fully realized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition
  • Cost-plus contract type
  • Lack of clear performance metrics (implied by R&D focus)

Positive Signals

  • Focus on critical R&D
  • Potential for technological innovation

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for innovation but often involves higher risk and less predictable outcomes compared to established service contracts.

Small Business Impact

The data does not indicate any specific provisions or participation by small businesses in this contract. The focus on specialized R&D may inherently limit small business involvement unless they are prime contractors or key subcontractors in niche areas.

Oversight & Accountability

The limited competition and cost-plus nature of the contract warrant close oversight to ensure funds are used efficiently and effectively towards the stated development goals. Audits and regular progress reviews are essential.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns due to Cost Plus Fixed Fee structure.
  • Lack of competitive pressure may lead to suboptimal pricing.
  • Difficulty in defining and measuring success for advanced R&D.
  • Long contract duration increases exposure to changing technological landscapes.

Tags

research-and-development-in-the-physical, department-of-defense, ut, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. IGF::OT::IGF PR 56-9680-13 THE SECOND TASK ORDER FOR THIS CONTRACT IS FOR AN EIGHTEEN (18) MONTH EFFORT IN DEVELOPMENT AND DEMONSTRATION OF EXPLOITATION SOFTWARE AND ADVANCED SENSOR AND PROCESSING TECHNOLOGIES INCLUDING DIGITAL CAMERAS, PROCESSING, COMPRESSION, AND CONTROL, ANALOG SYSTEMS, POWER, COMMUNICATIONS, COMMAND AND TELEMETRY, RADIO FREQUENCY/OPTICAL SENSOR PAYLOADS AND ELECTROMECHANICAL SYSTEMS/SUPPORT.

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 $24.0 million.

What is the period of performance?

Start: 2013-08-28. End: 2018-07-25.

What specific technological advancements are expected from this $24 million investment in exploitation software and sensor technologies?

The contract aims for development and demonstration of exploitation software and advanced sensor technologies. This includes digital cameras, processing, compression, control, analog systems, power, communications, command and telemetry, RF/optical sensor payloads, and electromechanical systems. The specific advancements would likely relate to improved data collection, analysis capabilities, and potentially new hardware for intelligence gathering or surveillance.

Given the limited competition, what measures were in place to ensure the fixed fee was reasonable and reflected fair market value?

Without full and open competition, ensuring a reasonable fixed fee is challenging. The contracting agency should have conducted thorough market research and used independent cost estimates to validate the proposed fee. However, the absence of competing bids inherently reduces the pressure to offer the most competitive pricing.

How will the effectiveness of the developed exploitation software and sensor technologies be measured and validated, especially given the R&D nature of the contract?

Effectiveness measurement in R&D contracts often relies on achieving specific technical milestones and demonstration objectives outlined in the contract. This could include successful integration of components, meeting performance specifications for data processing or sensor resolution, and demonstrating the functionality of the exploitation software in simulated or controlled environments.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTGeneral 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: $24,045,533

Exercised Options: $24,045,533

Current Obligation: $24,045,200

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017312D2004

IDV Type: IDC

Timeline

Start Date: 2013-08-28

Current End Date: 2018-07-25

Potential End Date: 2018-07-25 00:00:00

Last Modified: 2020-03-23

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