Treasury's Bureau of Engraving and Printing awards $4.17M R&D contract to Solstice Advanced Materials for materials research

Contract Overview

Contract Amount: $4,167,363 ($4.2M)

Contractor: Solstice Advanced Materials US, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2024-04-16

End Date: 2026-10-15

Contract Duration: 912 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: FPLOE R&D SERVICES CONTRACT

Place of Performance

Location: MORRIS PLAINS, MORRIS County, NEW JERSEY, 07950

State: New Jersey Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.2 million to SOLSTICE ADVANCED MATERIALS US, INC. for work described as: FPLOE R&D SERVICES CONTRACT Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Sole-source award raises questions about competition and potential value for money. 3. Contract duration of 912 days suggests a significant, multi-year research effort. 4. Fixed Price Level of Effort contract type aims to control costs while ensuring task completion. 5. Awarded to a single vendor, Solstice Advanced Materials, indicating specialized capabilities or limited market research. 6. Geographic location in New Jersey may point to specific regional expertise or facilities.

Value Assessment

Rating: questionable

Benchmarking the value of this $4.17 million contract is challenging due to its sole-source nature and specific R&D focus. Without competitive bids, it's difficult to assess if the pricing reflects market rates or if alternative solutions could have been procured at a lower cost. The 'Level of Effort' pricing structure suggests payment for time and resources, which can sometimes lead to cost overruns if not meticulously managed. Further analysis would require understanding the specific deliverables and the complexity of the research involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency precludes a full and open competition. The lack of competition means taxpayers did not benefit from potential price reductions or innovative solutions that might have emerged from a bidding process. The Bureau of Engraving and Printing would need to justify why only Solstice Advanced Materials could fulfill this requirement.

Taxpayer Impact: The absence of competition for this $4.17 million contract means taxpayers may not have received the best possible price. Without multiple bids, there's a reduced incentive for the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiary is the Bureau of Engraving and Printing, which will receive advanced materials research services. The contract aims to advance R&D in physical, engineering, and life sciences, potentially leading to new technologies or improved processes. The geographic impact is localized to New Jersey, where Solstice Advanced Materials is based, potentially supporting local economic activity. Workforce implications may include specialized R&D roles within Solstice Advanced Materials, contributing to the high-skill job market in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings through competition.
Lack of clear performance metrics in the provided data makes assessing contractor success difficult.
The 'Level of Effort' contract type can sometimes lead to scope creep or inefficient resource allocation if not tightly managed.

Positive Signals

Focus on R&D suggests investment in innovation and future capabilities for the Bureau of Engraving and Printing.
Fixed Price contract type provides some cost certainty for the government.
Award to a specialized materials company indicates access to potentially unique expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The R&D market is characterized by innovation, specialized expertise, and often long development cycles. Comparable spending in this area can vary widely depending on the specific scientific field and the agency's objectives. The Bureau of Engraving and Printing's investment in R&D suggests a strategic approach to enhancing its operational capabilities or exploring new material applications.

Small Business Impact

This contract does not appear to involve a small business set-aside, as indicated by the 'ss' and 'sb' fields being false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Solstice Advanced Materials voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Bureau of Engraving and Printing's contracting and program management offices. As a sole-source award, scrutiny might be higher to ensure the necessity and justification for not competing. Transparency is limited by the lack of public competition details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal R&D Spending
Materials Science Research
Bureau of Engraving and Printing Operations
Advanced Manufacturing Technologies

Risk Flags

Sole-source award
Limited competition
Potential for cost overruns in Level of Effort contracts
Lack of detailed performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.2 million to SOLSTICE ADVANCED MATERIALS US, INC.. FPLOE R&D SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is SOLSTICE ADVANCED MATERIALS US, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2024-04-16. End: 2026-10-15.

What specific R&D objectives does the Bureau of Engraving and Printing aim to achieve with this contract?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. However, the specific objectives are not detailed. Typically, such R&D contracts for the Bureau of Engraving and Printing might focus on developing new security features for currency, improving ink or paper durability, exploring advanced anti-counterfeiting technologies, or researching novel materials for production processes. The 'Level of Effort' contract type suggests the agency is paying for the contractor's time and resources to explore these areas, rather than for a precisely defined end-product, allowing for flexibility in the research path.

What is the track record of Solstice Advanced Materials, Inc. with federal contracts, particularly sole-source awards?

Information on Solstice Advanced Materials, Inc.'s federal contract history, especially regarding sole-source awards, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS. Generally, sole-source awards are exceptions to the rule and require strong justification. If Solstice Advanced Materials has a history of successful sole-source contracts, it might indicate a recognized expertise in niche areas. Conversely, a pattern of sole-source awards without clear justification could raise concerns about market engagement and competition.

How does the $4.17 million contract value compare to similar R&D efforts in materials science within the federal government?

Comparing this $4.17 million contract value to similar federal R&D efforts in materials science requires context on the scope and duration. Federal R&D spending is vast, with agencies like DoD, DoE, and NSF awarding billions annually. However, for a specific R&D services contract focused on physical and engineering sciences, $4.17 million over approximately three years (912 days) appears to be a moderate investment. Benchmarking would ideally involve looking at contracts with similar North American Industry Classification System (NAICS) codes (541715) and similar objectives. Without more specific details on deliverables, a precise comparison is difficult, but it suggests a focused research initiative rather than a large-scale program.

What are the potential risks associated with a sole-source, fixed-price level-of-effort contract for R&D?

Sole-source contracts carry inherent risks, primarily the lack of competitive pressure, which can lead to higher prices and potentially less innovation. A Fixed Price Level of Effort (FPLE) contract, while providing cost certainty up to a defined effort level, can also pose risks. If the 'level of effort' is underestimated, the contractor may not be able to complete the work adequately within the allocated budget, or conversely, if it's overestimated, the government might pay for unused resources. For R&D, where outcomes are uncertain, FPLE contracts require careful monitoring to ensure the effort remains aligned with evolving research goals and that the contractor is efficiently utilizing resources. Scope creep is also a risk if the research direction shifts significantly without proper contract modification.

What historical spending patterns exist for R&D services at the Bureau of Engraving and Printing?

Historical spending patterns for R&D services at the Bureau of Engraving and Printing (BEP) are not detailed in the provided data. However, the BEP's mission involves the production of U.S. currency, which necessitates continuous innovation in security features, materials, and production processes. It is reasonable to assume the BEP engages in R&D activities, potentially through contracts, to maintain the integrity and security of currency. Analyzing past contracts, particularly those related to materials science, security printing technologies, or advanced manufacturing, would reveal trends in their R&D investment, vendor relationships, and procurement strategies, including the frequency of sole-source awards versus competitive bids.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Address: 115 TABOR ROAD, MORRIS PLAINS, NJ, 07950

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,167,363

Exercised Options: $4,167,363

Current Obligation: $4,167,363

Actual Outlays: $2,700,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline