DoD Awards $21.9M for Virtual Imagery Processing Support to Utah State University

Contract Overview

Contract Amount: $21,971,165 ($22.0M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $60.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS TASK ORDER PROVIDES SERVICES AND SUPPLIES FOR THE SUSTAINMENT AND SUPPORT OF THE VIRTUAL IMAGERY PROCESSING CAPABILITY (VIP-C). PERFORMANCE SHALL BE IN ACCORDANCE WITH ALL PROVISIONS AND SPECIFICATION IN THE IDIQ, FA2398-25-D-B002.

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: THIS TASK ORDER PROVIDES SERVICES AND SUPPLIES FOR THE SUSTAINMENT AND SUPPORT OF THE VIRTUAL IMAGERY PROCESSING CAPABILITY (VIP-C). PERFORMANCE SHALL BE IN ACCORDANCE WITH ALL PROVISIONS AND SPECIFICATION IN THE IDIQ, FA2398-25-D-B002. Key points: 1. The contract is for sustainment and support of the Virtual Imagery Processing Capability (VIP-C). 2. Utah State University's Space Dynamics Laboratory is the sole awardee. 3. The contract is a Cost Plus Fixed Fee type. 4. This award falls under Custom Computer Programming Services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost control, but the overall value depends heavily on the efficiency of the contractor and the government's oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $21.9 million contract may result in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Ensures continued operation of critical virtual imagery processing capabilities for the Air Force. Supports advanced research and development through specialized programming services. Potential for cost inefficiencies due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
  • No small business participation noted.

Positive Signals

  • Awardee is a known entity with likely relevant expertise.
  • Contract supports critical national security capabilities.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The award amount is significant for this category, suggesting a complex and specialized requirement for the Department of Defense.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could indicate a lack of outreach or a focus on large, specialized contractors.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust government oversight to ensure efficient performance and prevent cost overruns. The lack of competition further emphasizes the need for strong accountability measures.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of small business participation
  • Potential for cost overruns
  • Requires strong government oversight

Tags

custom-computer-programming-services, department-of-defense, ut, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. THIS TASK ORDER PROVIDES SERVICES AND SUPPLIES FOR THE SUSTAINMENT AND SUPPORT OF THE VIRTUAL IMAGERY PROCESSING CAPABILITY (VIP-C). PERFORMANCE SHALL BE IN ACCORDANCE WITH ALL PROVISIONS AND SPECIFICATION IN THE IDIQ, FA2398-25-D-B002.

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

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 $22.0 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Agencies must document these justifications thoroughly. To ensure fair pricing, the government may conduct market research, use historical pricing data, or engage in detailed negotiation with the sole-source provider, often relying on independent government cost estimates.

What are the specific risks associated with the Cost Plus Fixed Fee contract structure for this particular service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs once the fixed fee is established, as they are reimbursed for all allowable costs. This can lead to cost overruns if the government's oversight is not stringent. For custom computer programming, scope creep or unforeseen technical challenges can significantly increase costs beyond initial estimates.

How will the effectiveness of the Virtual Imagery Processing Capability (VIP-C) sustainment and support be measured and ensured?

Effectiveness will be measured through performance metrics defined in the IDIQ contract and this task order. These likely include system uptime, response times, data processing accuracy, and successful delivery of imagery analysis. Regular reviews, technical assessments, and user feedback from the Department of the Air Force will be crucial for ensuring the ongoing effectiveness of the VIP-C.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 416 E INNOVATION AVE, NORTH LOGAN, UT, 84341

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

Financial Breakdown

Contract Ceiling: $22,064,076

Exercised Options: $22,064,076

Current Obligation: $21,971,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA239825DB002

IDV Type: IDC

Timeline

Start Date: 2025-03-01

Current End Date: 2026-02-28

Potential End Date: 2026-02-28 00:00:00

Last Modified: 2025-09-26

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