DoD awards $18.4M for advanced metal 3D printer demonstrator, focusing on R&D

Contract Overview

Contract Amount: $18,408,261 ($18.4M)

Contractor: 3D Systems Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-30

End Date: 2027-09-27

Contract Duration: 1,458 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LARGE-FORMAT METAL 3D PRINTER ADVANCED TECHNOLOGY DEMONSTRATOR (GEN-II DMP-1000)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to 3D SYSTEMS INC for work described as: LARGE-FORMAT METAL 3D PRINTER ADVANCED TECHNOLOGY DEMONSTRATOR (GEN-II DMP-1000) Key points: 1. Contract focuses on research and development for advanced manufacturing technology. 2. The award represents a significant investment in next-generation additive manufacturing capabilities. 3. Competition was full and open, suggesting a robust market for this technology. 4. The contract duration of nearly four years indicates a substantial development timeline. 5. This technology could have implications for defense supply chain resilience and innovation. 6. The specific application of a large-format metal 3D printer points to specialized industrial needs.

Value Assessment

Rating: good

The contract value of $18.4 million for a large-format metal 3D printer demonstrator appears reasonable given the R&D nature and the advanced technology involved. Benchmarking against similar advanced manufacturing R&D contracts is challenging due to the specificity of the technology. However, the cost-plus-fixed-fee structure suggests that while the contractor has an incentive to control costs, the government bears a significant portion of the financial risk. Further analysis would require detailed cost breakdowns and comparison to commercial equivalents if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions. The number of bidders is not specified, but the open competition suggests a healthy market for this type of advanced manufacturing technology.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, maximizing the value for public funds invested in research and development.

Public Impact

The Department of Defense, specifically the Air Force, is the primary beneficiary, seeking to advance its technological capabilities. The contract will deliver an advanced technology demonstrator for a large-format metal 3D printer. The geographic impact is likely concentrated in California, where the contractor is located, and potentially at defense research facilities. Workforce implications may include specialized roles in additive manufacturing, materials science, and engineering within the contractor's organization and potentially at government research labs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
The long duration of the contract requires sustained oversight to ensure progress and adherence to objectives.
The novelty of the technology may present unforeseen technical challenges and risks.

Positive Signals

The focus on R&D for advanced manufacturing aligns with strategic modernization goals.
Full and open competition suggests a mature market and potential for innovation.
The award to a known entity like 3D Systems Inc. may indicate a level of confidence in their capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced manufacturing and additive technologies. The market for large-format metal 3D printing is a rapidly evolving niche within the broader industrial manufacturing landscape. Spending in this area is driven by the need for rapid prototyping, complex part fabrication, and on-demand production, particularly in high-value sectors like aerospace and defense. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of the technology, but investments in advanced manufacturing R&D are generally considered strategic for national competitiveness.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor, 3D Systems Inc., is a large business, there is potential for small businesses to be involved as subcontractors, particularly in specialized component supply or material development. The impact on the small business ecosystem would depend on the extent to which subcontracting opportunities are pursued and awarded.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and technical officers. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and progress to ensure value for money. Transparency will be maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Manufacturing Technology Development
Additive Manufacturing Research
Defense Industrial Base Modernization
Aerospace Materials Research
3D Printing Technology Demonstrators

Risk Flags

Cost Overrun Risk (CPFF Contract)
Technical Feasibility Risk
Long Development Timeline Risk
Integration Challenges Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to 3D SYSTEMS INC. LARGE-FORMAT METAL 3D PRINTER ADVANCED TECHNOLOGY DEMONSTRATOR (GEN-II DMP-1000)

Who is the contractor on this award?

The obligated recipient is 3D SYSTEMS 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 $18.4 million.

What is the period of performance?

Start: 2023-09-30. End: 2027-09-27.

What is the specific technological advancement expected from this large-format metal 3D printer demonstrator?

The contract aims to develop and demonstrate an advanced technology demonstrator for a large-format metal 3D printer (GEN-II DMP-1000). While specific technical specifications are not detailed in the provided data, the 'advanced technology demonstrator' designation implies a focus on pushing the boundaries of current capabilities. This could involve improvements in print speed, material deposition rates, build volume, material compatibility (e.g., exotic alloys), precision, surface finish, or integration with advanced software for design and process control. The goal is likely to prove the feasibility and potential of a next-generation system for complex, large-scale metal additive manufacturing applications relevant to defense needs.

How does the cost-plus-fixed-fee (CPFF) contract type influence the risk and incentive structure for the contractor and the government?

A Cost-Plus-Fixed-Fee (CPFF) contract structure means the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee representing profit. This structure is often used for research and development or when the scope of work is not precisely defined. For the contractor, it offers a guaranteed profit margin (the fixed fee) regardless of the final cost, reducing their financial risk. However, it also provides less incentive to control costs compared to fixed-price contracts, as their profit is not directly tied to cost savings. For the government, this structure shifts a significant portion of the cost risk to the agency. Effective oversight is crucial to ensure costs are reasonable and allocable to the contract, and that the contractor exercises due diligence in managing expenses.

What are the potential applications and benefits of a large-format metal 3D printer for the Department of Defense?

A large-format metal 3D printer offers several potential benefits for the Department of Defense (DoD). It can enable the on-demand production of large, complex metal parts that are difficult or impossible to manufacture using traditional methods. This capability can enhance supply chain resilience by reducing reliance on overseas manufacturing or lengthy lead times for critical components. It also facilitates rapid prototyping and iteration of designs for new weapon systems or upgrades. Furthermore, additive manufacturing allows for design optimization, such as creating lighter, stronger structures or integrating multiple components into a single printed part, potentially improving performance and reducing assembly costs. Applications could range from producing large structural components for aircraft or vehicles to fabricating specialized tooling or repair parts in forward operating locations.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541715) signify in the context of this contract?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that the primary purpose of this contract is scientific research and experimental development. This means the work is intended to advance scientific knowledge or to apply scientific knowledge to create or improve materials, products, processes, or services. For this specific contract, it signifies that the focus is on developing and demonstrating new capabilities in metal 3D printing technology, rather than acquiring a production-ready system or off-the-shelf equipment. The contract value is allocated towards innovation, experimentation, and proving the viability of advanced concepts.

Given the contract is for a 'demonstrator,' what are the typical next steps or phases after successful completion?

Following the successful completion of an advanced technology demonstrator phase, the typical next steps for the Department of Defense often involve further development, integration, and potential transition to production or operational use. This could include a follow-on contract for engineering and manufacturing development (EMD) to refine the technology based on demonstrator results, address any identified shortcomings, and prepare it for a specific application. Subsequently, there might be a low-rate initial production (LRIP) phase to manufacture a limited number of units for testing and validation in operational environments. Ultimately, if the technology proves successful and meets requirements, it could lead to full-rate production contracts. Alternatively, the demonstrator might inform future system designs or lead to the development of new standards and processes within the DoD.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA865021S5001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: 3D Systems, Inc.

Address: 16550 W BERNARDO DR, SAN DIEGO, CA, 92127

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

Financial Breakdown

Contract Ceiling: $18,408,261

Exercised Options: $18,408,261

Current Obligation: $18,408,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline