DHS awards $5.2M R&D contract to Zeteo Tech Inc. for biodetection systems

Contract Overview

Contract Amount: $5,247,419 ($5.2M)

Contractor: Zeteo Tech, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-29

End Date: 2027-01-31

Contract Duration: 1,220 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: OPEN BROAD AGENCY ANNOUNCEMENT 70RDND19R00000003, TOPIC SOLICITATION NO. 15 70RWMD23R00000007 AGENT-AGNOSTIC BIODETECTION SYSTEM FFP CONTRACT AWARD FOR RESEARCH AND DEVELOPMENT SERVICES TO ZETEO TECH INC.

Place of Performance

Location: SYKESVILLE, CARROLL County, MARYLAND, 21784

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.2 million to ZETEO TECH, INC. for work described as: OPEN BROAD AGENCY ANNOUNCEMENT 70RDND19R00000003, TOPIC SOLICITATION NO. 15 70RWMD23R00000007 AGENT-AGNOSTIC BIODETECTION SYSTEM FFP CONTRACT AWARD FOR RESEARCH AND DEVELOPMENT SERVICES TO ZETEO TECH INC. Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded through full and open competition, indicating broad market engagement. 3. Firm Fixed Price contract type suggests defined scope and cost control. 4. Performance period spans over three years, allowing for substantial project development. 5. The contract is not set aside for small businesses. 6. The North American Industry Classification System (NAICS) code is 541715.

Value Assessment

Rating: good

The contract value of $5.2 million for R&D services appears reasonable given the scope and duration. Benchmarking against similar contracts for biodetection system development would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost risks for the government. However, without specific deliverables or performance metrics, a detailed value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors were likely aware of and had the opportunity to bid. The solicitation was an Open Broad Agency Announcement (BAA), which typically encourages a wide range of innovative proposals. The presence of 7 proposals indicates a healthy level of interest and competition for this requirement.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by allowing the government to select from the most capable and cost-effective solutions available in the market.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, seeking advancements in biodetection capabilities. The contract supports research and development services, aiming to enhance national security through improved threat detection. The geographic impact is national, focusing on improving homeland security infrastructure. Workforce implications may include specialized R&D roles within Zeteo Tech Inc. and potentially related scientific fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific technical capabilities and past performance of Zeteo Tech Inc. in biodetection R&D require further scrutiny to ensure successful project outcomes.
The long-term effectiveness and operational integration of the developed biodetection systems are not yet determined.
Potential for scope creep in R&D contracts if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract duration allows for thorough research and development.
Zeteo Tech Inc. is selected for R&D services, indicating specialized expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for biodetection systems is critical for national security and public health, encompassing government agencies, defense contractors, and specialized technology firms. Spending in this area is driven by evolving threats and the need for advanced surveillance and response capabilities. Comparable spending benchmarks would involve analyzing other DHS or DoD contracts for similar R&D efforts in sensor technology and threat detection.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. Therefore, there are no direct subcontracting requirements mandated for small businesses under this specific award. The focus is on a full and open competition, likely favoring larger or more specialized firms capable of undertaking complex R&D. This means small businesses may not directly benefit from this particular contract, but could potentially be involved as subcontractors if Zeteo Tech Inc. chooses to engage them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms, requiring Zeteo Tech Inc. to deliver specific R&D outcomes within the agreed budget and timeline. Transparency is facilitated through contract award databases, though detailed project progress reports may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Research and Development Programs
National Biodefense Strategy and Implementation Roadmap
Advanced Biodetection Technologies
Homeland Security Advanced Research Projects Agency (HSARPA) Initiatives

Risk Flags

Research and Development Scope Definition
Contractor Performance Risk
Technological Obsolescence
Integration with Existing Systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.2 million to ZETEO TECH, INC.. OPEN BROAD AGENCY ANNOUNCEMENT 70RDND19R00000003, TOPIC SOLICITATION NO. 15 70RWMD23R00000007 AGENT-AGNOSTIC BIODETECTION SYSTEM FFP CONTRACT AWARD FOR RESEARCH AND DEVELOPMENT SERVICES TO ZETEO TECH INC.

Who is the contractor on this award?

The obligated recipient is ZETEO TECH, INC..

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 $5.2 million.

What is the period of performance?

Start: 2023-09-29. End: 2027-01-31.

What is Zeteo Tech Inc.'s track record in biodetection R&D?

Information regarding Zeteo Tech Inc.'s specific track record in biodetection R&D is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, publications, patents, and any prior experience with developing or enhancing biodetection systems. Understanding their technical expertise, project management capabilities, and history of successful delivery on complex R&D initiatives is crucial for evaluating their suitability for this DHS contract. Further due diligence would involve examining any prior DHS or other agency performance evaluations or CPARS (Contractor Performance Assessment Reporting System) reports, if available, to gauge their reliability and effectiveness in delivering R&D services.

How does the $5.2 million contract value compare to similar biodetection R&D efforts?

The $5.2 million contract value for R&D services in biodetection systems over approximately three years appears to be within a reasonable range for specialized research. However, a precise comparison requires access to data on similar contracts awarded by DHS or other agencies like the Department of Defense (DoD) or National Institutes of Health (NIH) for comparable biodetection R&D. Factors such as the specific technological focus (e.g., chemical, biological, radiological, nuclear threats), the maturity of the technology being developed, the scope of research, and the duration of the contract significantly influence cost. Without specific benchmarks, it's difficult to definitively state if this represents exceptional value, but the firm fixed-price nature suggests a defined cost expectation.

What are the primary risks associated with this biodetection R&D contract?

Key risks for this biodetection R&D contract include technical challenges inherent in developing novel detection systems, potential for unforeseen scientific hurdles, and the possibility of the developed technology not meeting operational requirements or performance benchmarks. Schedule delays are also a risk, particularly in R&D where innovation timelines can be unpredictable. Cost overruns, although mitigated by the Firm Fixed Price (FFP) structure, could still occur if the scope is not tightly managed or if unforeseen issues arise that necessitate contract modifications. Contractor performance risk, related to Zeteo Tech Inc.'s ability to execute the R&D effectively, is another consideration, necessitating robust oversight.

How effective is the 'full and open competition' approach for acquiring advanced biodetection capabilities?

The 'full and open competition' approach is generally considered highly effective for acquiring advanced capabilities like biodetection systems. It maximizes the pool of potential offerors, encouraging a wide range of innovative solutions and technical approaches from both established and emerging companies. This broad competition drives down prices through market forces and allows the government to select the best value solution based on technical merit, past performance, and cost. For R&D, it can uncover novel approaches that might not be solicited through more restrictive methods. The fact that 7 proposals were received suggests this method successfully attracted significant industry interest.

What is the historical spending trend for biodetection R&D within DHS?

Historical spending trends for biodetection R&D within DHS are not provided in the current data. To analyze this, one would need to examine multi-year contract awards and budget allocations specifically for biodetection research and development across various DHS components (e.g., Science and Technology Directorate, Countering Weapons of Mass Destruction Office). Trends might indicate increasing or decreasing investment based on perceived threats, technological advancements, and strategic priorities. Understanding this historical context would help assess whether the current $5.2 million award represents a typical, increased, or decreased level of investment in this critical R&D area.

What are the implications of the Firm Fixed Price (FFP) contract type for this R&D effort?

The Firm Fixed Price (FFP) contract type for this R&D effort implies that Zeteo Tech Inc. assumes most of the cost risk. The contractor agrees to a set price for the defined scope of work, meaning they are responsible for any cost overruns incurred during performance. This provides the government with significant cost certainty and predictability. For the government, it incentivizes the contractor to manage costs efficiently and deliver the R&D outcomes within the agreed budget. However, FFP contracts can sometimes lead to less flexibility in scope adjustments, and careful initial definition of requirements is crucial to avoid disputes or the need for costly contract modifications.

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

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: 70RWMD23R00000007

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6935 WARFIELD AVE, SYKESVILLE, MD, 21784

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

Financial Breakdown

Contract Ceiling: $6,246,736

Exercised Options: $5,247,419

Current Obligation: $5,247,419

Actual Outlays: $2,688,060

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline