DoD's $2.6M R&D contract with Utah State University Space Dynamics Laboratory shows fair value despite limited competition

Contract Overview

Contract Amount: $26,195,443 ($26.2M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2012-03-07

End Date: 2015-08-30

Contract Duration: 1,271 days

Daily Burn Rate: $20.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GENERAL RESEARCH AND DEVELOPMENT

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $26.2 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: GENERAL RESEARCH AND DEVELOPMENT Key points: 1. Contract awarded to a single entity, indicating potential for limited price discovery. 2. Pricing appears reasonable when benchmarked against similar R&D efforts. 3. Performance period of over three years suggests a sustained research focus. 4. The contract falls within the 'Research and Development in the Physical, Engineering, and Life Sciences' sector. 5. No small business set-aside was utilized for this procurement. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility in research but requires careful cost monitoring.

Value Assessment

Rating: fair

The contract's total value of $2.6 million for research and development appears to be within a reasonable range when compared to similar government-funded R&D projects. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility for research, necessitates diligent oversight to ensure costs remain controlled and aligned with the fixed fee. Benchmarking against other contracts in the 'Research and Development in the Physical, Engineering, and Life Sciences' category suggests that the pricing is not excessively high, but the lack of competition limits the ability to definitively assess optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a specific capability or technology is only available from a single source, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation among multiple offerors. This limits the ability to gauge market competitiveness and potentially leads to higher costs than if multiple bids were received.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from competitive pricing that could have potentially reduced the overall expenditure for this research.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the results of the research and development conducted. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved existing ones. The geographic impact is concentrated in Utah, where Utah State University Space Dynamics Laboratory is located. The contract supports specialized research personnel and facilities at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
Lack of transparency in the sole-source justification process.

Positive Signals

Utah State University Space Dynamics Laboratory is a known entity in R&D.
The contract duration suggests a commitment to a specific research objective.
The research area is critical for defense applications.

Sector Analysis

This contract falls under the broad category of Research and Development (R&D) in the physical, engineering, and life sciences. This sector is crucial for national security and technological advancement, with significant government investment. The market is characterized by specialized research institutions and companies, often competing for grants and contracts. Comparable spending benchmarks in this area are highly variable, depending on the specific scientific discipline and project scope, but government R&D spending in this domain is consistently in the billions annually.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to a large university research laboratory suggests that the focus was on specialized capabilities rather than broad small business participation. This means the direct economic impact on the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the technical points of contact within the Department of the Navy. The Cost Plus Fixed Fee structure necessitates rigorous financial and performance monitoring to ensure adherence to the contract's objectives and budget. Transparency is generally maintained through contract databases, though the specifics of the research and its outcomes may be subject to security or proprietary restrictions.

Related Government Programs

Department of Defense Research and Development
University Research Contracts
Space Dynamics Laboratory Research
Naval Research Programs

Risk Flags

Sole-source award
Cost-reimbursement contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. GENERAL RESEARCH AND DEVELOPMENT

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 $26.2 million.

What is the period of performance?

Start: 2012-03-07. End: 2015-08-30.

What is the track record of Utah State University Space Dynamics Laboratory in performing similar government R&D contracts?

Utah State University Space Dynamics Laboratory (SDL) has a well-established track record of performing research and development for various government agencies, including the Department of Defense. SDL specializes in areas such as space science, satellite technology, and advanced sensor systems. They have been involved in numerous projects, often contributing to critical national security and scientific endeavors. Their experience typically involves complex research, engineering, and testing, making them a frequent recipient of government R&D funding. While specific contract performance details are often sensitive, their continued engagement with agencies like the Department of the Navy suggests a history of successful project execution and technical capability.

How does the pricing of this $2.6 million contract compare to similar R&D efforts within the physical, engineering, and life sciences sector?

Benchmarking the pricing of this $2.6 million contract requires careful consideration of the specific research scope, duration, and complexity. Given that it is a sole-source award for R&D in physical, engineering, and life sciences, direct comparisons are challenging without more granular data on the project's objectives and deliverables. However, R&D contracts of this magnitude, especially those involving specialized university laboratories, are generally within the expected range for exploratory or developmental work. The Cost Plus Fixed Fee structure means that the 'value' is tied to the successful completion of research objectives within the negotiated fee. Without competitive bids, it's difficult to ascertain if this represents the absolute best market price, but it does not appear to be an outlier based on general R&D spending patterns.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee R&D contract?

A sole-source Cost Plus Fixed Fee (CPFF) Research and Development (R&D) contract presents several inherent risks. The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated costs and potentially less innovation compared to a competed contract. For CPFF contracts, the risk lies in cost overruns; the contractor is reimbursed for allowable costs plus a fixed fee, creating less incentive to control expenses compared to fixed-price contracts. If the scope of work is not well-defined or if unforeseen research challenges arise, costs can escalate significantly. Effective oversight by the government is crucial to monitor expenditures, ensure the allowability of costs, and verify that the research is progressing towards its objectives within the established fee.

What is the expected program effectiveness or outcome of this contract?

The expected program effectiveness and outcomes of this contract are centered on advancing research within the physical, engineering, and life sciences, as conducted by the Utah State University Space Dynamics Laboratory for the Department of the Navy. While the specific scientific or technological advancements are not detailed in the provided data, R&D contracts of this nature typically aim to generate new knowledge, develop prototypes, test theories, or improve existing technologies relevant to the Navy's mission. The effectiveness will be measured by the successful completion of research milestones, the quality of the scientific findings, and the potential applicability of the research outcomes to future defense systems or operational capabilities. The CPFF structure implies that the focus is on achieving research goals rather than strict adherence to a fixed budget, making successful knowledge generation the key metric.

How does this $2.6 million contract fit into the broader historical spending patterns for R&D by the Department of the Navy?

This $2.6 million contract represents a small fraction of the Department of the Navy's overall Research and Development (R&D) budget, which typically runs into billions of dollars annually. The Navy, like other branches of the Department of Defense, invests heavily in R&D to maintain technological superiority. Spending in this sector covers a vast array of activities, from basic scientific research to applied engineering and prototype development. Contracts awarded to universities like Utah State University Space Dynamics Laboratory are common for specialized research needs. While this specific contract's value is modest in the grand scheme, it aligns with historical patterns of the Navy outsourcing specific R&D tasks to academic and research institutions to leverage their expertise and facilities.

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 PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Utah State University

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: $26,195,443

Exercised Options: $26,195,443

Current Obligation: $26,195,443

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ014711D0052

IDV Type: IDC

Timeline