DoD's EARTH 616 PROGRAM awards $15M contract to SIMBA CHAIN INC for R&D in physical sciences

Contract Overview

Contract Amount: $14,999,354 ($15.0M)

Contractor: Simba Chain Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2027-04-29

Contract Duration: 1,308 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: EARTH 616 PROGRAM

Place of Performance

Location: PLYMOUTH, MARSHALL County, INDIANA, 46563

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to SIMBA CHAIN INC for work described as: EARTH 616 PROGRAM Key points: 1. Contract value of $15M for a 3.5-year duration suggests a significant investment in research and development. 2. The contract type (Cost Sharing) indicates a shared financial risk between the government and the contractor. 3. Research and Development in Physical Sciences is a critical area for technological advancement. 4. The award to SIMBA CHAIN INC warrants scrutiny of their technical capabilities and past performance in this domain. 5. The 'IN' status code might indicate a specific type of contract action or funding mechanism requiring further investigation. 6. The exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a potentially complex procurement process.

Value Assessment

Rating: fair

The contract value of approximately $15 million over 1308 days (3.5 years) averages to roughly $11,467 per day. Without specific benchmarks for similar R&D projects in physical sciences, it's difficult to definitively assess value for money. The cost-sharing nature of the contract implies some level of contractor investment, which can be a positive indicator. However, the lack of detailed cost breakdowns or comparisons makes a thorough value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potentially limited pool of bidders. The specific reasons for exclusion are not provided, which makes it difficult to ascertain the true level of competition and its impact on price discovery. A limited competition can sometimes lead to higher prices if the available bidders are few.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that a broader competition might have yielded. Further details on the exclusion criteria are needed to fully assess the impact on taxpayer value.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the broader scientific community through advancements in physical sciences. The contract aims to deliver research and development outcomes in the physical, engineering, and life sciences. The geographic impact is centered around the contractor's location in Indiana, potentially creating local economic benefits. Workforce implications may include the creation or sustainment of highly skilled R&D jobs within SIMBA CHAIN INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises questions about the breadth of competition and potential for higher costs.
The cost-sharing contract type requires careful monitoring to ensure the contractor's investment aligns with project goals and that cost overruns are managed effectively.
The specific nature of the R&D and the contractor's track record in this specialized field need further examination to ensure technical success.
The 'IN' status code requires clarification to understand its implications for contract performance and oversight.

Positive Signals

The contract supports critical Research and Development in physical sciences, aligning with national defense objectives.
The cost-sharing model demonstrates a commitment from the contractor to invest in the project's success.
The award to SIMBA CHAIN INC, assuming they possess the requisite expertise, can drive innovation in a key technological area.
The definitive contract award provides a framework for a multi-year research effort.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a highly specialized area often characterized by long development cycles and significant upfront investment. The market for such R&D services is competitive, with a mix of large corporations and specialized research firms. Benchmarking this contract's value is challenging without comparable R&D projects in the physical sciences, but the $15 million award over 3.5 years indicates a substantial project.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The focus appears to be on the prime contractor's capabilities for this specific R&D effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. The cost-sharing nature necessitates monitoring of both government and contractor expenditures. Transparency would be enhanced by regular reporting from the contractor on research progress and financial status. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical Sciences Research Grants
Advanced Technology Development Contracts

Risk Flags

Limited Competition Risk
Cost Overrun Potential
Technical Feasibility Uncertainty
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to SIMBA CHAIN INC. EARTH 616 PROGRAM

Who is the contractor on this award?

The obligated recipient is SIMBA CHAIN 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 $15.0 million.

What is the period of performance?

Start: 2023-09-29. End: 2027-04-29.

What is SIMBA CHAIN INC's track record in performing similar Research and Development contracts for the Department of Defense or other federal agencies?

Assessing SIMBA CHAIN INC's track record is crucial for understanding their capability to execute the EARTH 616 PROGRAM. A review of their contract history would reveal past performance on R&D projects, particularly in physical sciences. Key indicators include successful project completion, adherence to timelines and budgets, and positive performance reviews. If SIMBA CHAIN INC has a history of delivering innovative solutions and meeting complex technical requirements for the DoD, it strengthens the confidence in this award. Conversely, a history of performance issues or a lack of relevant experience would raise concerns about the contractor's suitability and the potential risks associated with this contract.

How does the average daily cost of $11,467 for this R&D contract compare to similar government-funded research projects in the physical sciences?

The average daily cost of approximately $11,467 for the EARTH 616 PROGRAM needs to be benchmarked against comparable R&D contracts. Without access to a database of similar projects, a precise comparison is difficult. However, R&D in specialized physical sciences can be resource-intensive, involving highly skilled personnel, specialized equipment, and significant material costs. If this daily rate is significantly higher than the average for similar DoD R&D efforts, it could indicate potential issues with cost efficiency or scope creep. Conversely, if it aligns with or is lower than benchmarks, it suggests a potentially reasonable investment for the expected research outcomes.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this R&D contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method presents specific risks. While intended to be competitive, the exclusion of certain sources inherently limits the bidder pool. This limitation can reduce the pressure on the remaining bidders to offer the most competitive pricing, potentially leading to higher costs for the government. Furthermore, if the exclusion criteria were not robustly justified or transparent, it could raise questions about fairness and the potential for missed opportunities to engage highly capable contractors. The risk is that the government may not have received the best possible value due to a constrained competitive environment.

What are the expected outcomes and program effectiveness metrics for the EARTH 616 PROGRAM, and how will they be measured?

The effectiveness of the EARTH 616 PROGRAM hinges on clearly defined outcomes and measurable metrics. As an R&D contract, expected outcomes likely involve the development of new technologies, scientific discoveries, or improved processes within the physical sciences. Program effectiveness would be measured against milestones such as successful prototype development, validation of scientific principles, or the creation of intellectual property. The contract should outline specific deliverables and Key Performance Indicators (KPIs) that the contracting officer will use to assess progress and determine the overall success of the research effort. Without these, evaluating the program's true impact is challenging.

How has the Department of Defense's spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category (NAICS 541715) trended over the past five years?

Analyzing historical spending trends for NAICS code 541715 within the Department of Defense provides context for the $15 million EARTH 616 PROGRAM award. If DoD spending in this category has been steadily increasing, it suggests a growing emphasis on R&D in these scientific fields, making this contract a part of a larger strategic investment. Conversely, a declining trend might indicate shifting priorities or budget constraints. Understanding these patterns helps assess whether this specific contract represents a typical investment level or a significant deviation, offering insights into the program's strategic importance and potential future funding.

What is the significance of the 'Cost Sharing' contract type (PT: COST SHARING) for this R&D effort, and what are the implications for risk and reward?

The 'Cost Sharing' contract type signifies that both the government and SIMBA CHAIN INC will bear a portion of the project costs. This structure is often used in R&D where outcomes are uncertain, aligning the contractor's financial interests with the government's. The implications are that the contractor has a vested interest in managing costs effectively and achieving project success to ensure a return on their investment. For the government, it can reduce the upfront financial burden and incentivize the contractor's commitment. However, it requires careful negotiation of the cost-sharing ratio and robust oversight to ensure fair allocation of expenses and prevent potential cost-shifting.

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: COST SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 510 W ADAMS ST, PLYMOUTH, IN, 46563

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,297,400

Exercised Options: $17,297,400

Current Obligation: $14,999,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline