DoD's $933M Aviation R&D Contract with Simula Safety Systems Inc. Awarded in 1998

Contract Overview

Contract Amount: $15,379,425 ($15.4M)

Contractor: Simula Safety Systems Inc

Awarding Agency: Department of Defense

Start Date: 1998-05-29

End Date: 2005-04-29

Contract Duration: 2,527 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COMBINATION (TWO OR MORE)

Sector: R&D

Official Description: 199809!2100!0070!AH10 !AVIATION APPLIED TECHNOLOGY !DAAH1098C0016 !A!*!* !19980529!19990829!933650871!807545538!079004032!N!54786!SIMULA SAFETY SYSTEMS INC !10016 S 51ST ST !PHOENIX !AZ!85044!55000!013!04!PHOENIX !MARICOPA !ARIZONA !0001!+000005400000!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH & DEVELOPMENT-ADV TECH DEV !A1C!OTHER AIRCRAFT EQUIPMENT !1000!NOT DISCERNABLE OR CLASSIFIED !3728!3!*!*!*!B!N!Z!A !N!U!2!002!K!* !A!Y!Z!* !* !N!B!*!A!*!B!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85044

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $15.4 million to SIMULA SAFETY SYSTEMS INC for work described as: 199809!2100!0070!AH10 !AVIATION APPLIED TECHNOLOGY !DAAH1098C0016 !A!*!* !19980529!19990829!933650871!807545538!079004032!N!54786!SIMULA SAFETY SYSTEMS INC !10016 S 51ST ST !PHOENIX !AZ!85044!55000!013!04!PHOENIX !MARICO… Key points: 1. The contract value of $933.65M for aviation applied technology is substantial. 2. Competition was full and open after exclusion of sources, indicating some market research. 3. The risk appears moderate given the R&D nature and long performance period. 4. Spending is within the Research and Development sector, specifically advanced technology development.

Value Assessment

Rating: fair

The contract value of $933.65M over 2527 days suggests a significant investment. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns, but the per-day cost is approximately $370k.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, specific sources were identified and potentially excluded, which could impact price discovery.

Taxpayer Impact: The significant investment in R&D aims to advance aviation technology, with potential long-term benefits for national security and technological superiority, justifying the taxpayer expenditure.

Public Impact

Advancement of aviation technology could lead to improved military capabilities. Investment in R&D stimulates innovation within the aerospace sector. Long-term contract duration may provide stable funding for the contractor. Potential for spin-off technologies benefiting civilian aviation or other industries.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Long contract duration (over 6 years) increases risk of cost overruns or scope creep.
R&D contracts inherently carry risk of technical failure or unmet objectives.
Limited information on specific deliverables makes assessing value challenging.

Positive Signals

Significant investment in a critical technology area.
Competition was sought, even with source exclusions.
Contractor is a specialized safety systems provider.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on advanced technology development for aviation. The value of $933.65M is substantial for an R&D project, suggesting a high-priority initiative within the Department of Defense.

Small Business Impact

The contract was awarded to SIMULA SAFETY SYSTEMS INC. There is no indication from the provided data whether this is a small business or if small business subcontracting was a significant factor.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve program managers and contracting officers ensuring adherence to contract terms, milestones, and technical objectives throughout the R&D lifecycle.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long contract duration increases risk.
R&D inherently involves technical uncertainty.
Potential for limited competition due to source exclusion.
Lack of specific deliverable details hinders value assessment.
Contract awarded in 1998, technology may be outdated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to SIMULA SAFETY SYSTEMS INC. 199809!2100!0070!AH10 !AVIATION APPLIED TECHNOLOGY !DAAH1098C0016 !A!*!* !19980529!19990829!933650871!807545538!079004032!N!54786!SIMULA SAFETY SYSTEMS INC !10016 S 51ST ST !PHOENIX !AZ!85044!55000!013!04!PHOENIX !MARICOPA !ARIZONA !0001!+000005400000!N!N!000000000000!AZ13!RDTE/OTHER RESEARCH & DEVELOPMENT-ADV TECH DEV !A1C!OTHER AIRCRAFT EQUIPMENT !1000!NOT DISCERNABLE OR CLASSIFIED !3728!3!*!*!*!B!N!Z!A !N!U!2!0

Who is the contractor on this award?

The obligated recipient is SIMULA SAFETY SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $15.4 million.

What is the period of performance?

Start: 1998-05-29. End: 2005-04-29.

What were the specific technological advancements sought by this contract, and how were they measured?

The contract aimed at 'AVIATION APPLIED TECHNOLOGY' and 'ADVANCED TECH DEV.' Specific metrics for success would likely be defined in detailed technical exhibits and performance work statements not provided. These would typically include performance improvements, new capabilities, or successful prototype demonstrations relevant to aviation safety and performance.

What is the rationale behind the 'exclusion of sources' in the competition method, and did it impact the final price?

Exclusion of sources often occurs when only a limited number of contractors possess the specialized knowledge, technology, or security clearances required for a project. While it aims for efficiency, it can limit price competition. The impact on the final price is difficult to ascertain without comparing it to what might have been achieved under a fully open competition.

How does the long performance period (over 6 years) affect the risk profile and potential for innovation in this R&D contract?

A long performance period can be beneficial for complex R&D, allowing for iterative development and adaptation. However, it also increases risks of technological obsolescence, shifting requirements, and cost overruns. Effective oversight and flexible contract management are crucial to mitigate these risks and ensure continued innovation.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 10016 S 51ST ST, PHOENIX, AZ, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline