Dod's $10.7M R&D Contract for Roro Systems Awarded to Kuchera Defense Systems, Inc

Contract Overview

Contract Amount: $10,747,612 ($10.7M)

Contractor: Kuchera Defense Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-26

End Date: 2012-03-30

Contract Duration: 1,647 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RESEARCH AND DEVELOPMENT - RORO SYSTEM

Place of Performance

Location: WINDBER, SOMERSET County, PENNSYLVANIA, 15963

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to KUCHERA DEFENSE SYSTEMS, INC for work described as: RESEARCH AND DEVELOPMENT - RORO SYSTEM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Performance period spans over 4 years, indicating a significant project duration. 4. The North American Industry Classification System (NAICS) code 334511 points to a specialized manufacturing sector. 5. Awarded by the Department of the Navy, a major component of the Department of Defense. 6. The contract was awarded in 2007, providing historical context for current spending.

Value Assessment

Rating: fair

The contract value of $10.7 million for R&D in search, detection, navigation, guidance, aeronautical, and nautical systems is difficult to benchmark without more specific details on the RORO system's capabilities and deliverables. Cost Plus Fixed Fee contracts inherently carry a risk of exceeding initial estimates, as the contractor is reimbursed for all allowable costs plus a fixed fee. This structure can sometimes disincentivize cost control compared to fixed-price contracts. Without comparable contract data for similar R&D projects in this niche, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment where multiple companies likely had the opportunity to compete. The presence of full and open competition is generally a positive sign for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense, specifically the Department of the Navy, through the development of advanced RORO systems. The services delivered involve research and development in sophisticated navigation and guidance systems. The geographic impact is primarily within the defense sector, potentially affecting naval operations. Workforce implications may include specialized engineers, technicians, and researchers involved in advanced systems development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize higher spending if not closely monitored.
The R&D nature of the contract introduces inherent uncertainty in project outcomes and final costs.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
The contract's age (awarded 2007) may mean the technology or its application is now outdated.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract duration of over 4 years allowed for substantial development and testing.
The specialized nature of the R&D suggests a focus on critical defense capabilities.

Sector Analysis

This contract falls within the broader defense manufacturing and R&D sector, specifically focusing on advanced navigation and guidance systems. The NAICS code 334511 covers companies engaged in manufacturing instruments for measuring, displaying, and controlling industrial process variables, as well as aircraft and nautical system and instrument manufacturing. The defense sector is characterized by high R&D investment and specialized technological requirements. Comparable spending benchmarks would require analysis of other DoD contracts for similar advanced system development.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, KUCHERA DEFENSE SYSTEMS, INC., would have been responsible for fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous oversight of allowable costs and contractor performance would be crucial to ensure value for money and prevent cost overruns. Transparency would depend on the reporting requirements stipulated in the contract and the DoD's internal review processes. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Naval Systems Development
Navigation and Guidance Systems Manufacturing
Search and Detection Systems

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
R&D contracts have uncertain outcomes and potential for scope creep.
Contract awarded in 2007; technology may be outdated.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to KUCHERA DEFENSE SYSTEMS, INC. RESEARCH AND DEVELOPMENT - RORO SYSTEM

Who is the contractor on this award?

The obligated recipient is KUCHERA DEFENSE SYSTEMS, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2007-09-26. End: 2012-03-30.

What specific RORO system capabilities were developed under this contract, and how do they align with current naval operational needs?

The contract details describe the R&D focus as 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' The 'RORO system' likely refers to a specific application within this broad category, potentially related to Roll-on/Roll-off (RORO) logistics or a specialized navigation/detection system. Without access to the detailed SOW, technical reports, or final deliverables, it's impossible to ascertain the precise capabilities developed. Given the contract's award date of 2007 and end date of 2012, the developed technology might be considered mature or potentially superseded by newer advancements in naval technology. Assessing alignment with current needs would require comparing the system's specifications against contemporary naval requirements for situational awareness, navigation, and detection.

How did the final costs compare to the initial estimates for this Cost Plus Fixed Fee contract?

The contract was awarded with an estimated value of $10,747,612.40. For a Cost Plus Fixed Fee (CPFF) contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. The total expenditure would be the sum of the actual allowable costs and the fixed fee. To determine if final costs exceeded initial estimates, one would need to compare the total incurred costs (allowable costs + fixed fee) against the government's initial budget or target cost for the project. Without access to the contract's final expenditure reports or a breakdown of incurred costs versus the target cost, it is not possible to definitively state whether the final costs exceeded initial estimates. CPFF contracts inherently carry the risk of cost growth if not managed diligently.

What was the track record of KUCHERA DEFENSE SYSTEMS, INC. with similar DoD R&D contracts prior to or during this period?

Assessing KUCHERA DEFENSE SYSTEMS, INC.'s track record requires examining their contract history with the Department of Defense, particularly for Research and Development (R&D) projects in navigation, guidance, and detection systems. Information on past performance, including successful project completion, adherence to budget, and quality of deliverables, would be crucial. A review of federal procurement databases (like FPDS or SAM.gov) and any available performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights. Without this specific historical data, it's difficult to gauge their expertise and reliability in managing complex R&D efforts like the RORO system contract.

Were there any significant performance issues or contract modifications during the life of this contract?

The provided data indicates the contract duration was from September 26, 2007, to March 30, 2012, spanning approximately 4.5 years. Significant performance issues or extensive modifications would typically be reflected in contract modification records, performance reports, or potential disputes. Without access to the contract's official modification history or performance reviews, it's impossible to determine if there were major problems. However, the completion of the contract within its timeframe (albeit with a slight extension from the initial duration implied by the award date) might suggest that performance was generally adequate, or any issues were resolved through standard contract management processes.

How does the $10.7 million R&D spending on this RORO system compare to overall DoD spending in similar technology areas during that period?

Comparing the $10.7 million spent on this specific RORO system R&D contract to overall DoD spending in similar technology areas requires broader data analysis. The DoD invests billions annually in R&D across various domains, including C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), which encompasses navigation, detection, and guidance systems. This $10.7 million represents a relatively small fraction of the total DoD R&D budget for the period (roughly 2007-2012). To provide context, one would need to aggregate spending data for NAICS code 334511 and related defense R&D categories across the DoD during those fiscal years. This contract likely supported a niche capability within a larger technological ecosystem.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: API Technologies Corp (UEI: 790065564)

Address: 345 HILLSIDE DR, WINDBER, PA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $10,997,613

Exercised Options: $10,997,613

Current Obligation: $10,747,612

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0042104D0088

IDV Type: IDC

Timeline