DoD Awards $11.1M for Small Unmanned Aircraft Systems R&D to Naval Systems, Inc
Contract Overview
Contract Amount: $11,116,301 ($11.1M)
Contractor: Naval Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-21
End Date: 2027-12-27
Contract Duration: 1,832 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SMALL UNMANNED AIRCRAFT SYSTEMS AND ENABLING TECHNOLOGIES ANALYSIS FOR NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION
Place of Performance
Location: LEXINGTON PARK, SAINT MARYS County, MARYLAND, 20653
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.1 million to NAVAL SYSTEMS, INC. for work described as: SMALL UNMANNED AIRCRAFT SYSTEMS AND ENABLING TECHNOLOGIES ANALYSIS FOR NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION Key points: 1. Focus on R&D for unmanned aircraft systems and related technologies. 2. Contract awarded by the Department of the Air Force for Naval Surface Warfare Center. 3. Potential for advancements in naval warfare capabilities. 4. Competition method indicates a desire for broad market participation.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. This can be effective for R&D where costs are uncertain, but requires robust oversight to manage spending and ensure value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting initial limitations but ultimately allowing broad competition. This method aims to achieve fair pricing through market forces.
Taxpayer Impact: The total award value of $11.1 million represents a significant investment in advanced technology, with taxpayer funds supporting research and development efforts.
Public Impact
Enhances naval capabilities through advanced drone technology. Supports innovation in military research and development. Potential for dual-use applications benefiting civilian sectors. Invests in future defense readiness and technological superiority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) requires careful monitoring.
- R&D contracts have inherent uncertainty in outcomes and costs.
- Exclusion of sources in initial phase warrants scrutiny.
Positive Signals
- Full and open competition promotes market engagement.
- Focus on critical defense technology area.
- Long-term contract duration allows for sustained development.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological advantage, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). Larger prime contractors may engage small businesses as subcontractors, but direct opportunities for small businesses on this specific award are not evident.
Oversight & Accountability
The CPFF contract type necessitates strong oversight from the Department of the Air Force to ensure cost control and adherence to project milestones. Regular audits and performance reviews are critical for accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Research and Development (R&D) inherently involves uncertainty.
- Potential for cost overruns without strict oversight.
- Exclusion of sources in the initial procurement phase.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.1 million to NAVAL SYSTEMS, INC.. SMALL UNMANNED AIRCRAFT SYSTEMS AND ENABLING TECHNOLOGIES ANALYSIS FOR NAVAL SURFACE WARFARE CENTER, PANAMA CITY DIVISION
Who is the contractor on this award?
The obligated recipient is NAVAL 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 $11.1 million.
What is the period of performance?
Start: 2022-12-21. End: 2027-12-27.
What is the projected return on investment for this R&D spending in terms of enhanced naval capabilities?
The return on investment is difficult to quantify precisely due to the nature of R&D. However, successful development of advanced small unmanned aircraft systems could significantly enhance intelligence, surveillance, reconnaissance, and strike capabilities for naval forces, potentially reducing risk to personnel and increasing operational effectiveness.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract structure for this R&D project?
The primary risks with CPFF include potential cost overruns if the contractor's estimated costs are inaccurate, and the contractor may have less incentive to control costs compared to fixed-price contracts. Effective government oversight is crucial to mitigate these risks and ensure fair pricing.
How will the effectiveness of the developed technologies be measured and validated?
Effectiveness will likely be measured through rigorous testing and evaluation phases, including simulations and field trials, against defined performance metrics and operational requirements. The Naval Surface Warfare Center will oversee validation to ensure the technologies meet the intended naval applications.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 21491 GREAT MILLS RD STE 100, LEXINGTON PARK, MD, 20653
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $14,787,326
Exercised Options: $14,787,326
Current Obligation: $11,116,301
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA807519D0025
IDV Type: IDC
Timeline
Start Date: 2022-12-21
Current End Date: 2027-12-27
Potential End Date: 2027-12-27 00:00:00
Last Modified: 2025-09-17
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