DoD awards $12.4M contract for modular autonomy kit development to Episy Science Inc

Contract Overview

Contract Amount: $12,434,000 ($12.4M)

Contractor: Episys Science Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-13

End Date: 2026-06-13

Contract Duration: 547 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: CONTINUED ITERATIVE DEVELOPMENT AND IMPROVEMENT OF MODULAR AUTONOMY KIT SMALL BUSINESS INNOVATION RESEARCH PHASE II STRATEGIC FUNDING INCREASE

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to EPISYS SCIENCE INC for work described as: CONTINUED ITERATIVE DEVELOPMENT AND IMPROVEMENT OF MODULAR AUTONOMY KIT SMALL BUSINESS INNOVATION RESEARCH PHASE II STRATEGIC FUNDING INCREASE Key points: 1. Contract focuses on iterative development and improvement of autonomy kits. 2. Awarded under Small Business Innovation Research (SBIR) program, indicating a focus on innovative solutions. 3. The contract duration of 547 days suggests a phased approach to development. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The specific NAICS code (541715) points to R&D in physical, engineering, and life sciences. 6. This award represents a strategic funding increase for the project.

Value Assessment

Rating: good

The contract value of $12.4 million for a 547-day R&D effort appears reasonable given the scope of developing modular autonomy kits. Benchmarking against similar SBIR Phase II contracts would provide a more precise value-for-money assessment. The firm fixed price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were initially excluded. The specific reasons for exclusion are not detailed but could relate to prior performance, specific technological capabilities, or program requirements. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The limited competition aspect means taxpayers may not have benefited from the lowest possible price that a broader, unrestricted competition might have yielded.

Public Impact

The primary beneficiaries are the Department of the Air Force and potentially broader Department of Defense applications requiring advanced autonomy. The contract will deliver improved modular autonomy kits, enhancing unmanned system capabilities. The geographic impact is centered in California, where Episy Science Inc. is located. Workforce implications include specialized R&D roles in engineering and software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if iterative development is not tightly managed.
Dependence on a single contractor for continued iterative improvement could limit future options.

Positive Signals

SBIR program focus encourages innovation and technology maturation.
Firm Fixed Price contract provides cost certainty.
Iterative development allows for adaptation to evolving requirements.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced engineering and physical sciences. The market for autonomy solutions, particularly for defense applications, is growing rapidly. This award aligns with the DoD's strategic push towards leveraging AI and autonomous systems to maintain technological superiority. Comparable spending benchmarks would likely be found in other advanced technology R&D contracts within the defense industrial base.

Small Business Impact

Although the contract is not explicitly a small business set-aside (ss: false, sb: false), it was awarded to Episy Science Inc., which may be a small business. The SBIR program itself is designed to foster small business innovation. Further analysis would be needed to confirm the size status of Episy Science Inc. and its implications for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm fixed price contract type, requiring delivery of specified milestones. Transparency is generally maintained through contract award announcements and reporting requirements, though detailed technical progress is often proprietary.

Related Government Programs

Small Business Innovation Research (SBIR) Program
Unmanned Systems Development
Artificial Intelligence in Defense
Modular Autonomy Systems

Risk Flags

Limited competition may impact price.
SBIR Phase II augmentation requires justification for increased funding.
Success depends on effective iterative development management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to EPISYS SCIENCE INC. CONTINUED ITERATIVE DEVELOPMENT AND IMPROVEMENT OF MODULAR AUTONOMY KIT SMALL BUSINESS INNOVATION RESEARCH PHASE II STRATEGIC FUNDING INCREASE

Who is the contractor on this award?

The obligated recipient is EPISYS SCIENCE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2024-12-13. End: 2026-06-13.

What is the track record of Episy Science Inc. in delivering on previous DoD contracts, particularly those involving R&D and autonomy?

A review of Episy Science Inc.'s contract history with the Department of Defense would be necessary to assess their track record. Specifically, examining past performance on SBIR Phase II contracts or similar R&D efforts would provide insight into their ability to meet technical requirements, manage budgets, and adhere to schedules. Information on past performance is often available through government databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS), though detailed qualitative assessments may be limited to authorized government personnel. Understanding their success in transitioning SBIR-funded technologies to larger production contracts would also be a key indicator of their capabilities.

How does the awarded amount of $12.4 million compare to typical SBIR Phase II contracts for similar R&D efforts in autonomy?

SBIR Phase II contracts typically range from $750,000 to $1.5 million over a two-year period, with the goal of exploring the research and development potential of an invention. However, 'Strategic Funding Increases' (ST) can significantly augment these base amounts. The $12.4 million awarded to Episy Science Inc. is substantially higher than the standard Phase II ceiling, suggesting this is a particularly critical or complex development effort, or that it represents multiple phases or extended development beyond a typical Phase II. Benchmarking against other ST-augmented SBIR contracts or larger, non-SBIR R&D contracts for autonomy systems would be required for a precise comparison. The extended duration (547 days) also suggests a more extensive scope than a standard Phase II.

What are the primary technical risks associated with the iterative development of modular autonomy kits, and how are they being mitigated?

Key technical risks in developing modular autonomy kits include integration challenges between different modules, ensuring robust performance in diverse and unpredictable environments, cybersecurity vulnerabilities, and the complexity of AI algorithms. Iterative development aims to mitigate these risks by allowing for continuous testing, feedback, and refinement of individual modules and the overall system. The firm fixed price contract structure incentivizes the contractor to manage these risks effectively to avoid cost overruns. Specific mitigation strategies would likely involve rigorous testing protocols, modular design principles that allow for easier updates and replacements, and potentially incorporating security-by-design principles throughout the development lifecycle. The success of these mitigations depends heavily on the expertise of Episy Science Inc. and the clarity of the iterative development roadmap.

What is the expected impact of this contract on the advancement of autonomous capabilities within the Department of the Air Force?

This contract is expected to significantly advance the Department of the Air Force's autonomous capabilities by fostering the development and refinement of modular autonomy kits. These kits are designed to be adaptable and upgradeable, allowing for quicker integration of new technologies and functionalities into various unmanned platforms. The iterative development process ensures that the technology matures based on real-world feedback and evolving operational needs. Successful completion could lead to more sophisticated unmanned systems capable of performing complex missions with reduced human oversight, enhancing operational effectiveness, reducing risk to personnel, and potentially lowering long-term operational costs through increased efficiency and reduced manning requirements.

How has spending on R&D for autonomy systems evolved within the Department of Defense over the past five years?

Spending on R&D for autonomy systems within the Department of Defense has seen a substantial and consistent increase over the past five years, driven by a strategic imperative to maintain technological superiority and explore the potential of AI and unmanned systems. This growth reflects a shift from theoretical research to practical application and integration across various domains, including air, ground, and maritime platforms. Budgets have been allocated towards areas such as sensor fusion, machine learning for decision-making, swarm robotics, and human-machine teaming. The DoD has actively utilized programs like SBIR and other research initiatives to tap into innovative solutions from both established defense contractors and emerging technology firms. This upward trend is projected to continue as the military increasingly relies on autonomous capabilities for intelligence, surveillance, reconnaissance, logistics, and combat operations.

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 › 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13025 DANIELSON ST STE 106, POWAY, CA, 92064

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

Financial Breakdown

Contract Ceiling: $15,000,000

Exercised Options: $12,434,000

Current Obligation: $12,434,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline