DoD awards $930K contract to Picogrid for advanced reconnaissance platform research
Contract Overview
Contract Amount: $9,300,000 ($9.3M)
Contractor: Picogrid, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-23
End Date: 2029-07-22
Contract Duration: 1,460 days
Daily Burn Rate: $6.4K/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: PICOGRID PLATFORM EXTENDING SBIR RESEARCH IN LINE WITH CONGRESSIONAL INTENT IN SUPPORT OF THE PLATFORM FOR ACTIVE PROTECTION AND RECONNAISSANCE (PAPR) PROGRAM.
Place of Performance
Location: LUKE AFB, MARICOPA County, ARIZONA, 85309
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $9.3 million to PICOGRID, INC. for work described as: PICOGRID PLATFORM EXTENDING SBIR RESEARCH IN LINE WITH CONGRESSIONAL INTENT IN SUPPORT OF THE PLATFORM FOR ACTIVE PROTECTION AND RECONNAISSANCE (PAPR) PROGRAM. Key points: 1. Contract supports the Platform for Active Protection and Reconnaissance (PAPR) program, aligning with congressional intent for SBIR research extension. 2. The award is a definitive contract with a firm fixed price, indicating clear cost expectations. 3. Research and Development in Physical, Engineering, and Life Sciences is the primary NAICS code. 4. The contract duration is approximately four years, suggesting a medium-term research objective. 5. The small business status of the contractor is not specified, but the contract is not a small business set-aside. 6. The contract is being performed in Arizona.
Value Assessment
Rating: good
The contract value of $930,000 for a four-year R&D effort appears reasonable for specialized technology development. Benchmarking against similar SBIR Phase III or PAPR-related contracts would provide more precise value assessment. The firm fixed-price structure suggests that the contractor has a clear understanding of the scope and associated costs, which is generally positive for value realization.
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 competition was sought, specific circumstances led to the exclusion of certain potential sources. The exact number of bidders is not provided, making it difficult to fully assess the level of competition. This procurement method suggests a need for specialized capabilities that may not be widely available.
Taxpayer Impact: The limited competition may result in a higher price than if a broader range of vendors were able to bid. However, it also ensures that the specific, potentially unique, expertise required for this advanced research is secured.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Air Force, through advancements in the PAPR program. The contract will deliver research and development services for an active protection and reconnaissance platform. The geographic impact is localized to Arizona, where the contractor is based. The contract supports specialized R&D roles, potentially impacting a niche workforce within the engineering and physical sciences sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could potentially restrict price discovery and lead to less favorable pricing for the government.
- The specific nature of the R&D may present inherent risks in achieving desired technological outcomes within the defined timeline and budget.
Positive Signals
- The contract extends SBIR research, indicating a focus on leveraging proven innovative technologies.
- The firm fixed-price contract provides cost certainty for the government.
- The four-year duration allows for focused development and testing of the reconnaissance platform.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced reconnaissance and active protection systems is highly specialized, often involving small to medium-sized businesses with unique technological capabilities. Spending in this area is driven by evolving defense needs and technological advancements, with significant government investment aimed at maintaining a strategic advantage.
Small Business Impact
The contract is not a small business set-aside. While the contractor's size is not explicitly stated, the nature of specialized R&D can sometimes favor larger firms or require specific technological expertise that may not be readily available from small businesses. Subcontracting opportunities for small businesses are not detailed in the provided information.
Oversight & Accountability
Oversight will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability is established through the firm fixed-price contract terms and performance milestones. Transparency is facilitated by federal contract databases, though detailed project progress reports may be internal.
Related Government Programs
- Small Business Innovation Research (SBIR) Program
- Platform for Active Protection and Reconnaissance (PAPR)
- Advanced Reconnaissance Systems
- Defense Research and Development
Risk Flags
- Limited competition may impact price.
- R&D inherently carries technological uncertainty.
- Contract duration is substantial for R&D.
Tags
research-and-development, department-of-defense, department-of-the-air-force, definitive-contract, firm-fixed-price, limited-competition, arizona, sbir-extension, active-protection, reconnaissance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.3 million to PICOGRID, INC.. PICOGRID PLATFORM EXTENDING SBIR RESEARCH IN LINE WITH CONGRESSIONAL INTENT IN SUPPORT OF THE PLATFORM FOR ACTIVE PROTECTION AND RECONNAISSANCE (PAPR) PROGRAM.
Who is the contractor on this award?
The obligated recipient is PICOGRID, 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 $9.3 million.
What is the period of performance?
Start: 2025-07-23. End: 2029-07-22.
What is the track record of Picogrid, Inc. in performing government contracts, particularly those related to R&D and defense?
Information regarding Picogrid, Inc.'s specific track record with government contracts, especially in R&D and defense, is not detailed in the provided data. A thorough assessment would require examining past performance reviews, contract completion history, and any reported issues or successes on previous federal awards. Without this data, it is difficult to gauge their reliability and expertise in delivering on similar projects. Further research into federal procurement databases and contractor performance systems would be necessary to establish a comprehensive understanding of their past performance.
How does the $930,000 contract value compare to similar R&D efforts for active protection and reconnaissance platforms?
The $930,000 contract value for a four-year R&D effort in active protection and reconnaissance platforms appears to be on the lower end for significant technological development. However, its appropriateness depends heavily on the specific scope, maturity of the technology being developed, and the phase of research. If this represents an extension of prior SBIR work or focuses on a specific component or simulation, the value could be adequate. Benchmarking against contracts for similar research phases, technologies, or system components awarded by agencies like the DoD, DARPA, or other defense branches would be crucial for a definitive comparison. The limited competition aspect also influences price expectations.
What are the primary risks associated with this contract, considering it's for R&D in a specialized defense area?
The primary risks associated with this R&D contract include technological uncertainty, where the desired outcomes may not be achievable within the given timeframe or budget. There's also a risk of scope creep if requirements are not clearly defined or evolve significantly. Given the limited competition, there's a potential risk of suboptimal pricing. Furthermore, contractor performance risk exists, as with any contract, where Picogrid, Inc. might face challenges in meeting technical specifications or delivery schedules. The specialized nature of the technology could also mean a limited pool of alternative solutions if issues arise, increasing dependency on the current contractor.
How does this contract align with the broader goals of the Platform for Active Protection and Reconnaissance (PAPR) program?
This contract directly aligns with the PAPR program's objectives by extending Small Business Innovation Research (SBIR) efforts, as stated in the data. The focus on developing an active protection and reconnaissance platform suggests it contributes to enhancing the military's situational awareness and defensive capabilities. By leveraging SBIR research, the program aims to transition innovative technologies from small businesses into practical defense applications. This specific award likely supports a critical research phase or component development necessary for the overall success and advancement of the PAPR program's strategic goals.
What is the historical spending trend for R&D contracts related to active protection and reconnaissance systems within the Department of Defense?
Historical spending trends for R&D contracts related to active protection and reconnaissance systems within the Department of Defense are generally characterized by significant and often increasing investment. These systems are critical for modern warfare, addressing threats from various domains. Spending is driven by technological advancements, evolving threat landscapes, and strategic priorities. While specific figures fluctuate annually based on program needs and budget allocations, the overall trajectory indicates a sustained commitment to developing and fielding advanced capabilities in this area. Contracts often range from early-stage research to system integration and testing, involving diverse funding mechanisms and contract types.
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: BASIC RESEARCH
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 113 MAIN ST, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,300,000
Exercised Options: $9,300,000
Current Obligation: $9,300,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2025-07-23
Current End Date: 2029-07-22
Potential End Date: 2029-07-22 00:00:00
Last Modified: 2025-12-03
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