DHS awards $21.4M for specialized R&D, with a significant portion allocated to a 5-year contract

Contract Overview

Contract Amount: $21,357,677 ($21.4M)

Contractor: Virginia Innovation Partnership Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2019-10-01

End Date: 2025-01-24

Contract Duration: 1,942 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OBTAIN HIGHLY SPECIALIZED TECHNICAL RESEARCH, DEVELOPMENT AND DELIVERY CAPABILITIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.4 million to VIRGINIA INNOVATION PARTNERSHIP CORPORATION for work described as: OBTAIN HIGHLY SPECIALIZED TECHNICAL RESEARCH, DEVELOPMENT AND DELIVERY CAPABILITIES Key points: 1. Contract value of $21.4M over approximately 5 years suggests a substantial investment in specialized R&D. 2. The contract was awarded under full and open competition, indicating a broad search for qualified offerors. 3. A Cost Plus Fixed Fee (CPFF) pricing structure was utilized, which can incentivize cost control while ensuring contractor profit. 4. The North American Industry Classification System (NAICS) code 541715 points to research and development in physical, engineering, and life sciences. 5. The contract duration of 1942 days (approx. 5.3 years) allows for sustained effort on complex R&D objectives. 6. The awardee, Virginia Innovation Partnership Corporation, is a state-level entity, potentially indicating a focus on regional innovation ecosystems. 7. The contract's primary purpose is to obtain highly specialized technical research, development, and delivery capabilities.

Value Assessment

Rating: good

The contract value of $21.4 million over nearly five and a half years averages approximately $3.9 million annually. Benchmarking this against similar R&D contracts is challenging without more specific details on the 'highly specialized technical research, development and delivery capabilities' required. However, the CPFF structure suggests a need for flexibility in R&D where costs may be less predictable. The total value appears reasonable for acquiring specialized expertise over an extended period, assuming the delivered capabilities align with critical DHS needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit an offer. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The fact that it was competed broadly is a positive indicator for price discovery and ensuring the government receives optimal value for its investment in specialized R&D.

Taxpayer Impact: A full and open competition maximizes the pool of potential contractors, increasing the likelihood of receiving competitive bids and thus achieving better value for taxpayer dollars.

Public Impact

The Department of Homeland Security (DHS) benefits through the acquisition of critical, specialized technical capabilities essential for its mission. The contract supports advanced research and development activities, potentially leading to new technologies or improved processes for national security. The geographic impact is primarily centered in the District of Columbia, where the awardee is located, but the R&D outcomes could have national implications. The contract may indirectly impact the scientific and technical workforce by engaging specialized researchers and developers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely monitored, as the contractor is reimbursed for allowable costs plus a fixed fee.
The 'highly specialized' nature of the R&D may present inherent risks in achieving desired outcomes within budget and schedule.
Reliance on a single awardee for specialized capabilities could create a dependency risk for DHS.

Positive Signals

Awarded under full and open competition, which generally leads to better value and innovation.
The extended contract duration allows for sustained focus and development of complex R&D objectives.
The contract aims to secure 'highly specialized' capabilities, indicating a strategic investment in critical areas for DHS.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D excluding nanotechnology and biotechnology. This sector is characterized by innovation, long development cycles, and often high costs. The market involves specialized firms and academic institutions capable of conducting cutting-edge research. The $21.4 million award is a significant but not exceptionally large sum for a multi-year R&D effort within this domain, suggesting a focused scope of work.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans for small businesses. Without specific set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this particular contract appears limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. The CPFF structure necessitates robust oversight to monitor costs and ensure the fixed fee is justified by performance. Transparency is generally provided through contract awards databases, but detailed programmatic oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Research and Development Programs
Federal Science and Technology Research Contracts
Advanced Technology Development Contracts
National Security Research Initiatives

Risk Flags

Potential for cost overruns due to CPFF structure
Uncertainty of R&D outcomes
Dependency on a single awardee for specialized capabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 million to VIRGINIA INNOVATION PARTNERSHIP CORPORATION. OBTAIN HIGHLY SPECIALIZED TECHNICAL RESEARCH, DEVELOPMENT AND DELIVERY CAPABILITIES

Who is the contractor on this award?

The obligated recipient is VIRGINIA INNOVATION PARTNERSHIP CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2019-10-01. End: 2025-01-24.

What is the specific nature of the 'highly specialized technical research, development and delivery capabilities' being procured?

The provided data indicates the contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' However, the precise nature of the 'highly specialized technical research, development and delivery capabilities' is not detailed. This suggests the contract could encompass a wide range of advanced scientific and engineering work relevant to homeland security, such as materials science, cybersecurity research, sensor development, or advanced analytics. Without further details from the contract announcement or associated documents, the specific technical domain remains broad.

How does the annual spending on this contract compare to other DHS R&D investments?

The contract value is approximately $21.4 million over roughly 1942 days (about 5.3 years), equating to an average annual spend of around $4 million. To compare this to other DHS R&D investments, one would need access to DHS's broader R&D budget and portfolio. DHS invests billions annually in R&D across various components like CISA, TSA, and FEMA. A $4 million annual allocation for specialized R&D is a moderate investment within the context of a large agency's overall R&D spending. It suggests a focused effort on a specific technical need rather than a broad-spectrum R&D program.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee (CPFF) contract, especially one involving R&D, performance is typically measured against defined technical objectives, delivery schedules for prototypes or reports, and adherence to research plans. The fixed fee is earned upon successful completion of these milestones. Detailed KPIs would be outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the provided summary data.

What is the track record of the Virginia Innovation Partnership Corporation (VIPC) in performing similar federal R&D contracts?

The Virginia Innovation Partnership Corporation (VIPC) is a state-level entity that supports innovation and economic development in Virginia. While VIPC may not be a traditional large federal R&D contractor, it often acts as an intermediary or facilitator, managing and distributing funds for research and development projects, often in partnership with universities and private companies. Its track record in performing similar *direct* federal R&D contracts of this magnitude might be limited compared to established R&D firms. However, its role in fostering innovation ecosystems could be a strategic advantage for DHS in accessing specialized capabilities.

What are the potential risks associated with the CPFF contract type for this R&D effort?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D is the potential for cost overruns. While the contractor's profit (the 'fixed fee') is predetermined, they are reimbursed for all allowable costs incurred. If the R&D effort proves more complex or expensive than initially estimated, the total cost to the government could exceed projections. This necessitates strong government oversight to ensure costs are reasonable and allocable to the contract. For R&D, where outcomes can be uncertain, CPFF is often used to attract contractors for high-risk, high-reward projects, but it requires diligent cost management by the government.

How does the competition level (full and open) impact the value proposition for taxpayers?

Awarding this contract under 'full and open competition' is generally beneficial for taxpayers. It means that the Department of Homeland Security sought proposals from the widest possible range of qualified vendors, rather than restricting the field. This broad competition increases the likelihood of receiving innovative solutions and competitive pricing. By allowing all responsible sources to compete, DHS can better ensure it is obtaining the specialized R&D capabilities at a fair market price, thereby maximizing the value of taxpayer investment and minimizing the risk of paying inflated prices due to limited vendor options.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: 18-01 LRBAA

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2214 ROCK HILL RD STE 600, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $21,357,836

Exercised Options: $21,357,836

Current Obligation: $21,357,677

Actual Outlays: $11,995,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline