DoD's $112M R&D Contract with Opticomp Corporation: A Decade of Research and Development
Contract Overview
Contract Amount: $11,232,640 ($11.2M)
Contractor: Opticomp Corporation
Awarding Agency: Department of Defense
Start Date: 2003-07-02
End Date: 2014-07-11
Contract Duration: 4,027 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: ZEPHYR COVE, DOUGLAS County, NEVADA, 89448
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $11.2 million to OPTICOMP CORPORATION for work described as: Key points: 1. The contract awarded to OPTICOMP CORPORATION for Research and Development in Physical, Engineering, and Life Sciences represents a significant investment. 2. Full and open competition after exclusion of sources suggests a deliberate selection process, but the rationale for exclusion needs scrutiny. 3. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns, posing a potential risk to taxpayer funds. 4. The long duration of over 10 years (4027 days) for a research and development contract warrants an assessment of project evolution and continued relevance.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common in R&D, can lead to higher costs compared to fixed-price contracts if not managed tightly. Without specific performance metrics and cost benchmarks for similar R&D efforts, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can limit the pool of potential offerors and may impact price discovery if the exclusion criteria were not fully justified.
Taxpayer Impact: The CPFF structure and potential limitations in competition raise concerns about maximizing taxpayer value. The long duration also means sustained expenditure that needs to be justified by ongoing project success.
Public Impact
Taxpayers funded over $112 million for research and development over a 10-year period. The contract's focus on physical, engineering, and life sciences R&D could lead to advancements with broad societal or defense applications. The long contract term suggests a sustained commitment to a specific research area, potentially yielding significant breakthroughs or incremental progress.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Limited competition justification
Positive Signals
- Significant investment in R&D
- Potential for technological advancement
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541710. Spending in this sector is crucial for innovation and national security, but often involves higher risk due to the inherent uncertainties of research. Benchmarks for R&D contracts vary widely based on the specific field and project scope.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure costs are reasonable and performance objectives are met. Regular reviews and audits are critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited competition may have reduced price discovery
- Long contract duration raises questions about sustained relevance and adaptability
- Lack of transparency regarding source exclusion justification
Tags
research-and-development-in-the-physical, department-of-defense, nv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to OPTICOMP CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is OPTICOMP CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $11.2 million.
What is the period of performance?
Start: 2003-07-02. End: 2014-07-11.
What was the specific justification for excluding other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?
The justification for excluding other sources is critical for understanding the competitive landscape and ensuring fair market value. Without this information, it's difficult to ascertain if the exclusion limited innovation or led to suboptimal pricing. A thorough review of the exclusion rationale is necessary to confirm it was based on legitimate technical or programmatic requirements and not on arbitrary criteria.
How effectively did the Cost Plus Fixed Fee structure manage costs and incentivize performance over the contract's 10-year duration?
The CPFF structure allows for cost reimbursement plus a fixed fee, which can be beneficial for R&D where costs are uncertain. However, it can also reduce the contractor's incentive to control costs. Over a decade, rigorous oversight, milestone tracking, and performance reviews by the Department of Defense would be essential to ensure the fixed fee remained appropriate and that the contractor was motivated to achieve project goals efficiently.
What were the key research outcomes and their impact, justifying the $112 million investment over 10 years?
The ultimate value of this contract hinges on the tangible outcomes of the R&D conducted. Assessing the impact requires examining the project's deliverables, such as patents, prototypes, scientific publications, or technological advancements adopted by the DoD or industry. Without clear evidence of significant, impactful results, the substantial investment over a decade may be questioned.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 215 ELKS POINT RD, ZEPHYR COVE, NV, 89448
Business Categories: Category Business, Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-07-02
Current End Date: 2014-07-11
Potential End Date: 2014-07-11 00:00:00
Last Modified: 2019-04-15
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