DoD's $179M R&D contract with SIVUNIQ, INC. awarded in 2003, ending in 2014

Contract Overview

Contract Amount: $178,942,919 ($178.9M)

Contractor: Sivuniq, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-04

End Date: 2014-03-31

Contract Duration: 3,861 days

Daily Burn Rate: $46.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $178.9 million to SIVUNIQ, INC. for work described as: Key points: 1. Contract awarded for R&D services, indicating investment in innovation. 2. Long contract duration (over 10 years) suggests a sustained need for the services. 3. Awarded as a definitive contract, implying a clear scope of work. 4. The contract was not competed, raising questions about potential cost efficiencies. 5. The contract was awarded to a single vendor, limiting market price discovery. 6. The contract was a Cost Plus Fixed Fee type, which can incentivize cost overruns.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competition and the specific nature of R&D services. The Cost Plus Fixed Fee structure, while common for R&D, carries inherent risks of cost escalation. Without comparable contract data or detailed performance metrics, assessing true value-for-money is difficult. The extended duration suggests a potentially stable but not necessarily optimized cost structure over time.

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 only one vendor possesses the unique capabilities or technology required for the project. However, the lack of competition means there was no opportunity to solicit bids from multiple providers, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium for this contract due to the absence of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, advancing technological capabilities. Services delivered fall under Research and Development in Physical, Engineering, and Life Sciences, contributing to scientific advancement. The contract was awarded in New Mexico, potentially impacting the local economy and workforce in that region. The contract supported specialized R&D roles, likely requiring highly skilled scientists and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and may result in higher costs.
Cost Plus Fixed Fee contract type can incentivize higher spending without strict cost controls.
Long contract duration may indicate a lack of market alternatives or potential for vendor lock-in.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the R&D investment.

Positive Signals

Sustained R&D investment indicates a commitment to technological advancement.
Definitive contract award suggests a defined scope, providing some level of project clarity.
Award to a single vendor might reflect unique, specialized expertise crucial for the R&D objective.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and often requires specialized expertise. Government spending in R&D is crucial for national security, technological advancement, and economic competitiveness. Comparable spending benchmarks are difficult to establish without knowing the specific R&D area, but R&D contracts can range from millions to billions of dollars depending on the scope and complexity.

Small Business Impact

Information regarding small business set-asides or subcontracting is not available for this contract. As a sole-source award, it is less likely to have included specific provisions for small business participation unless the sole-source contractor itself is a small business or has a subcontracting plan. Further investigation would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and program managers. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee agreement and any defined milestones or deliverables. Transparency is limited due to the sole-source nature and the proprietary aspects often associated with R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Scientific and Technical Services Contracts

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Long contract duration may indicate lack of market alternatives.
Lack of public performance data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $178.9 million to SIVUNIQ, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is SIVUNIQ, 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 $178.9 million.

What is the period of performance?

Start: 2003-09-04. End: 2014-03-31.

What was the specific research and development objective of this contract?

The provided data does not specify the exact research and development objective. The North American Industry Classification System (NAICS) code 541710 indicates 'Research and Development in the Physical, Engineering, and Life Sciences.' This broad category encompasses a wide range of scientific inquiry, from materials science and aerospace engineering to biotechnology and environmental research. Without further documentation, the precise nature of SIVUNIQ, INC.'s work under this contract remains unknown. Typically, such contracts are awarded to address specific technological gaps, explore novel concepts, or develop advanced capabilities critical to the agency's mission, in this case, the Department of Defense.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of risk and reward?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work is uncertain or subject to change. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure shifts some of the cost risk to the government, as the final cost is not predetermined. While it allows for flexibility in R&D, it can incentivize contractors to incur higher costs to maximize their fee base if not carefully managed. Other R&D contract types include Cost Plus Incentive Fee (CPIF), which ties profit to performance targets, and Fixed-Price contracts (less common for early-stage R&D), which offer greater cost certainty but less flexibility. The CPFF structure here suggests a need for flexibility but also highlights the government's assumption of cost risk.

What are the potential implications of a sole-source award for a contract of this magnitude and duration?

A sole-source award for a contract valued at approximately $179 million and spanning over 10 years carries significant implications. Primarily, it suggests that the Department of Defense identified SIVUNIQ, INC. as the only entity capable of fulfilling the specific R&D requirements, possibly due to proprietary technology, unique expertise, or critical intellectual property. However, the absence of competition removes the downward price pressure that typically arises from multiple bids. This can lead to higher costs for the government compared to a competed contract. Furthermore, long-term sole-source awards can create vendor lock-in, making it difficult to transition to alternative solutions or leverage market competition in the future. It also raises questions about the initial market research conducted to ensure no viable competitive alternatives existed.

Are there any publicly available performance metrics or outcomes associated with this contract?

The provided data does not include any specific performance metrics or outcomes for this contract. Research and Development contracts, especially those awarded on a sole-source basis, often have performance details that are considered sensitive or proprietary, particularly within the defense sector. Publicly available information typically focuses on the award itself, its value, duration, and the contracting parties. To assess the effectiveness of this $179 million investment, one would need access to internal DoD reports, program reviews, or specific deliverables that are not generally released to the public. The success of R&D is also often measured over longer time horizons, with outcomes potentially realized in future technologies or capabilities.

How does the contract's end date (2014) relate to current technological needs in the R&D sector?

The contract's end date of March 31, 2014, places its completion over a decade ago. In the fast-paced R&D sector, particularly within defense, technological advancements can be rapid. Research initiated or conducted during the contract period (2003-2014) may have already yielded mature technologies, been superseded by newer innovations, or formed the basis for subsequent research efforts. Understanding the contract's relevance today would require examining the specific R&D area and whether the outcomes have been integrated into current systems or if the knowledge gained remains foundational. It's possible the work contributed to capabilities that are still relevant, or it may represent foundational research for technologies that have since evolved significantly.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 6501 AMERICAS PARKWAY NE,, ALBUQUERQUE, NM, 87110

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline