Interior Department awards $2.3M R&D contract for Boron Nitride Nanotubes to BNNT LLC

Contract Overview

Contract Amount: $2,299,748 ($2.3M)

Contractor: Bnnt LLC

Awarding Agency: Department of the Interior

Start Date: 2025-08-25

End Date: 2027-08-24

Contract Duration: 729 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: R&D FOR DEVELOPMENT OF BORON NITRIDE NANOTUBES (BNNTS)

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $2.3 million to BNNT LLC for work described as: R&D FOR DEVELOPMENT OF BORON NITRIDE NANOTUBES (BNNTS) Key points: 1. The contract focuses on R&D for Boron Nitride Nanotubes (BNNTs), a material with potential applications in advanced manufacturing and electronics. 2. BNNT LLC is the sole awardee, raising questions about the extent of competition. 3. The contract is for Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The sector is R&D, specifically in physical, engineering, and life sciences, indicating investment in cutting-edge technology.

Value Assessment

Rating: questionable

The contract value of $2.3M for a 2-year R&D effort is difficult to benchmark without more specific details on the research scope and deliverables. The Cost Plus Fixed Fee structure introduces potential for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where other sources were considered but ultimately excluded. This method can impact price discovery and potentially lead to higher costs compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for advanced materials research. The value for money depends on the successful development and future applications of BNNTs.

Public Impact

Investment in advanced materials like BNNTs could lead to technological breakthroughs with broad economic and societal benefits. The research may contribute to U.S. competitiveness in high-tech manufacturing and defense applications. Transparency in the 'exclusion of sources' process is crucial for public trust and ensuring fair use of taxpayer money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing and lack of innovation.
Cost Plus Fixed Fee contracts can incentivize spending rather than cost efficiency.
The specific R&D objectives and success metrics are not detailed, making oversight challenging.

Positive Signals

Focus on cutting-edge BNNT technology aligns with national strategic interests.
The contract duration of 2 years allows for focused research and development.
Department of the Interior's investment in R&D supports future technological advancements.

Sector Analysis

The R&D sector, particularly in advanced materials like BNNTs, is characterized by high innovation potential but also significant technical and market risks. Spending benchmarks are highly variable depending on the specific research area and maturity.

Small Business Impact

The awardee, BNNT LLC, is not specified as a small business. The contract's structure and limited competition may not provide opportunities for small businesses to participate or subcontract.

Oversight & Accountability

Oversight will be critical to ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs and that the research objectives are met within the defined scope and timeline. The 'exclusion of sources' justification needs thorough review.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Cost Plus Fixed Fee structure can lead to cost overruns.
Lack of detailed R&D objectives hinders performance assessment.
Potential for contractor lock-in due to specialized technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.3 million to BNNT LLC. R&D FOR DEVELOPMENT OF BORON NITRIDE NANOTUBES (BNNTS)

Who is the contractor on this award?

The obligated recipient is BNNT LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2025-08-25. End: 2027-08-24.

What is the specific technical objective of this BNNT R&D, and how does it align with the Department of the Interior's mission or broader government priorities?

The specific technical objective is not detailed in the provided data. However, BNNTs have potential applications in areas like advanced composites, thermal management, and electronics, which could indirectly support DOI's infrastructure, energy, or environmental monitoring goals. Broader government priorities often include fostering domestic advanced materials manufacturing and enhancing national security through technological superiority.

What was the justification for excluding other potential sources, and how was the pricing determined to be fair and reasonable under these conditions?

The justification for excluding other sources is not provided. Typically, this occurs when a specific technology or capability is unique to a single source. The pricing determination would rely on cost analysis of BNNT LLC's proposed costs, including labor, materials, and overhead, adjusted by the fixed fee, and compared against any available benchmarks or historical data for similar R&D efforts.

What are the key performance indicators and deliverables for this contract, and how will their achievement be measured to ensure effective use of funds?

Key performance indicators and deliverables are not specified in the provided data. Effective oversight would require clearly defined milestones, technical reports, material samples, and potentially prototypes. Measuring achievement would involve technical reviews by government experts to assess progress against the research plan and the quality of the outcomes relative to the contract's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N221-043

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 ED WRIGHT LN, NEWPORT NEWS, VA, 23606

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

Financial Breakdown

Contract Ceiling: $2,299,748

Exercised Options: $2,299,748

Current Obligation: $2,299,748

Actual Outlays: $396,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline