GSA awards $7.3M R&D contract to Edaptive Computing Inc. for specialized research services

Contract Overview

Contract Amount: $7,297,950 ($7.3M)

Contractor: Edaptive Computing Inc

Awarding Agency: General Services Administration

Start Date: 2022-08-03

End Date: 2025-05-31

Contract Duration: 1,032 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: TAME SBIR PHASE III TO3

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $7.3 million to EDAPTIVE COMPUTING INC for work described as: TAME SBIR PHASE III TO3 Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant portion of contract value allocated to labor hours, indicating a focus on specialized expertise. 3. Contract duration extends over 1000 days, suggesting a long-term need for these R&D services. 4. Performance is in Ohio, potentially impacting regional economic development and workforce. 5. The contract's R&D focus aligns with federal priorities in scientific and technological advancement. 6. No small business set-aside, raising questions about opportunities for smaller firms in this sector.

Value Assessment

Rating: fair

The contract's value of $7.3 million over approximately 3 years for R&D services appears within a reasonable range for specialized technical support. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source R&D contracts would provide better context, but such data is not readily available. The time and materials pricing structure necessitates careful monitoring to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of multiple bidders means that the government did not benefit from a competitive bidding process to drive down prices or explore alternative solutions. This raises concerns about potential overpayment and the absence of innovative approaches that might have emerged from a broader competition.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not secure the most competitive pricing. It also limits opportunities for other businesses to secure federal contracts.

Public Impact

The primary beneficiary is likely the agency requiring specialized R&D services, enabling advancements in physical, engineering, or life sciences. The contract supports research and development activities, contributing to technological innovation and scientific discovery. Geographic impact is concentrated in Ohio, where the contractor is located and services are performed. Workforce implications include employment for specialized researchers and technical staff at Edaptive Computing Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Time and materials contract type can lead to cost overruns if not closely managed.
Lack of small business participation noted, potentially excluding smaller innovative firms.

Positive Signals

Contract supports critical R&D activities aligned with federal scientific goals.
Long contract duration suggests a sustained need for the specialized services provided.
Contractor is performing work in Ohio, potentially contributing to local economic activity.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for federal investment, driving innovation and technological advancement. The market for R&D services is highly specialized, often involving unique expertise and intellectual property. Comparable spending benchmarks are difficult to establish due to the bespoke nature of R&D projects, but federal agencies consistently invest billions annually in R&D across various scientific disciplines.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract are limited. While the prime contractor may engage small businesses as subcontractors, the absence of explicit set-asides or goals means there is no guarantee of their inclusion. This could represent a missed opportunity to foster innovation and growth within the small business ecosystem for specialized R&D services.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract's time and materials nature necessitates diligent oversight of labor hours and costs to ensure adherence to the contract's ceiling and fair pricing. Transparency is dependent on GSA's reporting practices and the contractor's compliance with invoicing and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

SBIR Program
Federal R&D Spending
Science and Technology Investment

Risk Flags

Sole-source award
Time and Materials contract type
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.3 million to EDAPTIVE COMPUTING INC. TAME SBIR PHASE III TO3

Who is the contractor on this award?

The obligated recipient is EDAPTIVE COMPUTING INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2022-08-03. End: 2025-05-31.

What is the specific nature of the R&D services being provided under this contract?

The contract, TAME SBIR PHASE III TO3, awarded to EDAPTIVE COMPUTING INC by the General Services Administration, is for Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology), classified under NAICS code 541715. While the specific project details are not elaborated in the provided data, SBIR Phase III contracts typically aim to commercialize technologies developed in earlier Small Business Innovation Research (SBIR) phases. This suggests the R&D likely involves further development, testing, and potential integration of a previously researched technology into a product or service, with the goal of market viability and broader application.

How does the contract's pricing structure (Time and Materials) compare to other R&D contracts of similar scope?

Time and Materials (T&M) contracts are common for R&D efforts where the scope of work can be uncertain or evolve. However, they carry inherent risks of cost overruns if not managed rigorously. Compared to fixed-price contracts, T&M can be less advantageous for the government in terms of cost certainty. For R&D, T&M is often chosen when the specific tasks and duration are difficult to define upfront. The benchmark for 'fairness' in T&M pricing relies heavily on the negotiated labor rates and the efficiency of the contractor. Without access to specific labor rates and the contractor's historical performance on similar T&M R&D contracts, it's challenging to definitively benchmark this contract's pricing against market rates or similar government procurements.

What are the potential risks associated with a sole-source award for this R&D contract?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or perform efficiently. Taxpayers may end up paying more than they would in a competitive environment. Furthermore, sole-source awards limit the government's exposure to a wider range of potential solutions and contractors, potentially missing out on more cost-effective or technologically superior alternatives. There's also a risk that the justification for sole-source procurement might be weak, indicating potential issues with acquisition planning or a lack of market research.

What is Edaptive Computing Inc.'s track record with federal R&D contracts, particularly SBIR Phase III awards?

Information regarding Edaptive Computing Inc.'s specific track record with federal R&D contracts, especially SBIR Phase III awards, is not detailed in the provided data. However, the fact that they received this contract suggests they have successfully navigated previous SBIR phases and demonstrated the potential for commercialization or further development of their technology. A comprehensive assessment would require reviewing their past performance evaluations, contract history, and any publicly available information on their technological advancements and commercial successes stemming from prior SBIR funding.

How does the $7.3 million contract value compare to overall federal spending on R&D in the physical, engineering, and life sciences?

The $7.3 million awarded to Edaptive Computing Inc. represents a small fraction of the total federal spending on Research and Development. Federal agencies collectively invest hundreds of billions of dollars annually in R&D across various scientific domains. For instance, agencies like the Department of Defense, National Science Foundation, National Institutes of Health, and Department of Energy are major R&D funders. While $7.3 million is a significant sum for a single contract, it is relatively modest within the vast landscape of federal R&D investment. This contract likely supports a specific, targeted research initiative rather than broad-scale R&D.

What are the implications of the contract's duration (over 1000 days) for program effectiveness and contractor performance?

A contract duration exceeding 1000 days (approximately 3 years) for an R&D project suggests a long-term commitment to the research objectives. This extended period can be beneficial for complex R&D endeavors that require sustained effort, iterative development, and thorough testing. It allows the contractor sufficient time to achieve milestones and potentially bring a technology closer to maturity. However, it also necessitates robust oversight to ensure continued progress, prevent complacency, and manage potential scope creep or cost escalation over the extended period. Regular performance reviews and clear deliverable checkpoints are crucial for maintaining program effectiveness and ensuring the contractor remains focused and accountable.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFLA22Q0048

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 210 E SPRING VALLEY PIKE STE C, DAYTON, OH, 45458

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $7,297,950

Exercised Options: $7,297,950

Current Obligation: $7,297,950

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QFLA20D0007

IDV Type: IDC

Timeline