DoD's $12.4M R&D contract with LOCUST, USA, LLC awarded on a sole-source basis

Contract Overview

Contract Amount: $12,428,512 ($12.4M)

Contractor: Locust, USA, LLC

Awarding Agency: Department of Defense

Start Date: 2002-08-01

End Date: 2013-11-01

Contract Duration: 4,110 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: MEDLEY, MIAMI-DADE County, FLORIDA, 33166

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to LOCUST, USA, LLC for work described as: Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value. 2. Long contract duration of 4110 days suggests a sustained need for the R&D services. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for oversight. 5. The contractor, LOCUST, USA, LLC, has been awarded this contract for an extended period. 6. No small business set-aside was utilized, indicating a focus on specialized capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this $12.4 million contract is challenging due to its sole-source nature and long duration. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The Cost Plus Fixed Fee structure, while common for R&D, requires rigorous oversight to ensure costs remain reasonable and the fixed fee is appropriate for the scope. Comparing it to similar sole-source R&D contracts would be necessary for a more precise assessment, but such data is often proprietary.

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. This typically occurs when only one source is capable of meeting the agency's needs, often due to unique capabilities, proprietary technology, or urgent requirements. The lack of competition means there was no opportunity for multiple bidders to offer proposals, which can limit price negotiation and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced when only one vendor is considered.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially national security through advancements in physical, engineering, and life sciences. The contract supports research and development activities, the specific outcomes of which are not detailed but are expected to contribute to technological or scientific progress. The geographic impact is centered in Florida (ST, SN), where the contractor is located. Workforce implications would include employment for researchers, engineers, and support staff at LOCUST, USA, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential savings.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Long contract duration may indicate a lack of flexibility or difficulty in finding alternative solutions.
Lack of transparency in the justification for sole-source award.

Positive Signals

Contract supports critical R&D for the Department of Defense.
The contractor has been awarded this contract for an extended period, suggesting a consistent performance history.
The contract is for a specific NAICS code (541710), indicating a focus on specialized scientific and technical services.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. This sector is characterized by innovation, intellectual property, and often long development cycles. Government spending in this area is crucial for technological advancement and national security. Comparable spending benchmarks would typically involve analyzing other sole-source R&D contracts awarded by the DoD or other agencies for similar scientific disciplines.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The sole-source nature further suggests that the focus was on a specific, likely specialized, capability rather than broad market participation. This means small businesses were not directly targeted for this specific award, and their potential role would depend on the prime contractor's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management and inspection agencies. Given the Cost Plus Fixed Fee structure and sole-source award, rigorous financial and performance oversight is crucial. Transparency is limited by the sole-source nature, but the agency should have internal documentation justifying the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Research and Development Programs
Federal Scientific and Technical Services Contracts
Cost-Plus-Fixed-Fee Contracts
Sole-Source Contract Awards

Risk Flags

Sole-source award may indicate limited competition and potentially higher costs.
Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
Lack of detailed justification for sole-source award in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to LOCUST, USA, LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LOCUST, USA, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2002-08-01. End: 2013-11-01.

What is the specific nature of the research and development being conducted under this contract?

The provided data indicates the contract falls under NAICS code 541710: Research and Development in the Physical, Engineering, and Life Sciences. However, the specific research topic or project details are not included. This level of detail is often found in the contract's statement of work, which is not part of the summary data. Understanding the precise R&D focus is critical for assessing its strategic importance, potential risks, and the appropriateness of the sole-source award and contract type.

What was the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's requirements. Common reasons include unique technical expertise, proprietary technology, or urgent and compelling needs where competition is not feasible. For this DoD contract, the justification would likely detail why LOCUST, USA, LLC was the only entity able to perform the specific R&D services required. Without access to the Justification for Other Than Full and Open Competition (JOFOC) document, the precise reasons remain unknown.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control and contractor incentive?

The CPFF contract type reimburses the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility in R&D where costs can be uncertain, it can incentivize cost overruns as the contractor is guaranteed cost recovery. The fixed fee, however, provides a ceiling on profit. Effective oversight is crucial to scrutinize allowable costs and ensure the fixed fee remains appropriate for the effort. This structure requires diligent monitoring by the government to prevent excessive spending.

What is the historical spending pattern for this contractor with the Department of Defense?

The provided data shows a single contract awarded to LOCUST, USA, LLC by the Department of Defense with a value of $12,428,511.99, spanning from August 1, 2002, to November 1, 2013. This indicates a long-standing relationship for this specific R&D effort. To assess broader historical spending, one would need to query federal procurement databases for all contracts awarded to this entity across all agencies and contract types over a longer period.

Are there any performance concerns or positive performance indicators associated with LOCUST, USA, LLC for this contract?

The provided data does not include specific performance ratings or qualitative assessments of LOCUST, USA, LLC's performance on this contract. The long duration (over 11 years) and the sole-source award might indirectly suggest consistent performance or a lack of readily available alternatives. However, without formal performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), it is impossible to definitively state whether performance was excellent, satisfactory, or problematic.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8324 NW 74TH AVE, MIAMI, FL, 33166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline