Air Force awards $28.8M engineering support contract to Utah State University Space Dynamics Laboratory

Contract Overview

Contract Amount: $28,788,999 ($28.8M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2024-03-15

End Date: 2026-03-15

Contract Duration: 730 days

Daily Burn Rate: $39.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SUPPORT.

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: ENGINEERING SUPPORT. Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 730 days suggests a need for sustained engineering expertise. 3. The fixed-fee pricing structure provides some cost certainty, but requires careful monitoring. 4. Utah State University's Space Dynamics Laboratory has a history of performing similar work. 5. The contract value is moderate within the broader context of defense engineering services. 6. Lack of competition may limit opportunities for other qualified firms and potentially impact innovation.

Value Assessment

Rating: fair

The contract value of approximately $28.8 million over two years for engineering support appears reasonable given the specialized nature of the work. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain within acceptable bounds and that the fixed fee is justified by the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a full and open competition. The lack of competition means that the Air Force did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive pressure to drive down costs. The government did not explore alternative solutions or pricing from other qualified vendors.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive essential engineering support. Services delivered include specialized engineering expertise crucial for complex aerospace and defense projects. The geographic impact is concentrated in Utah, where Utah State University Space Dynamics Laboratory is located. The contract supports a workforce of engineers and technical specialists at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Cost-plus-fixed-fee contracts can incentivize cost overruns if not closely managed.
Lack of competition may stifle innovation and limit opportunities for other specialized firms.

Positive Signals

Utah State University Space Dynamics Laboratory has a demonstrated track record in similar engineering support.
The fixed-fee component provides a degree of cost predictability.
The contract duration suggests a stable, ongoing need for these specialized services.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for specialized engineering support is characterized by high barriers to entry due to the need for advanced technical expertise and security clearances. Comparable spending in this sector can vary widely based on project complexity and duration, but contracts in the tens of millions are common for significant defense engineering efforts.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature of the award and the specialized expertise required, it is unlikely that subcontracting opportunities for small businesses will be significant unless specifically mandated by the prime contractor. This limits the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures will be tied to the performance requirements outlined in the contract and the fixed-fee structure. Transparency may be limited due to the sole-source nature of the award, with details of the negotiation and justification for the award not being publicly available.

Related Government Programs

Air Force Research Laboratory Contracts
Department of Defense Engineering Services
Aerospace Engineering Support Contracts
University Research and Development Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. ENGINEERING SUPPORT.

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 $28.8 million.

What is the period of performance?

Start: 2024-03-15. End: 2026-03-15.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances that preclude competition. A full justification document, often referred to as a Justification and Approval (J&A), would normally be required and publicly accessible for sole-source awards above certain thresholds, detailing the rationale and market research conducted.

How does the fixed fee compare to industry benchmarks for similar engineering support services?

Benchmarking the fixed fee for this contract against industry standards is challenging without more detailed information on the specific engineering services provided and the complexity involved. Fixed fees are negotiated based on estimated costs, desired profit margins, and the level of risk assumed by the contractor. Given that Utah State University Space Dynamics Laboratory is a research institution, its cost structure and fee expectations might differ from traditional for-profit engineering firms. A thorough analysis would require comparing the scope of work, required expertise, and duration against similar sole-source or competitively awarded contracts in the defense engineering sector.

What are the potential risks associated with a cost-plus-fixed-fee contract structure in this context?

The cost-plus-fixed-fee (CPFF) contract structure carries inherent risks, primarily related to cost control. While the fixed fee provides the contractor with a predetermined profit, the government bears the risk of cost overruns. If the actual costs exceed the estimated costs, the government still pays the actual costs plus the agreed-upon fixed fee. This necessitates robust oversight from the Air Force to monitor expenditures, ensure efficiency, and prevent unnecessary costs. Without stringent management and clear performance metrics, there's a risk that the total contract cost could escalate beyond initial expectations.

What is the track record of Utah State University Space Dynamics Laboratory in performing Air Force engineering contracts?

Utah State University Space Dynamics Laboratory (SDL) has a significant history of performing research, development, and engineering support for the Department of Defense, including the Air Force. SDL is known for its expertise in areas such as space systems engineering, satellite technology, and advanced sensor development. While specific contract details and performance reviews are not provided in the data, SDL's long-standing presence and involvement in complex defense projects suggest a generally positive track record and established capability to meet the demanding requirements of the Air Force.

How does the $28.8 million contract value compare to historical Air Force spending on engineering services?

The $28.8 million contract value is a moderate sum within the broader landscape of Air Force spending on engineering services. The Air Force procures a vast array of engineering support, ranging from small, specialized technical assistance contracts to multi-billion dollar system development programs. This particular contract, spanning two years, represents a significant but not exceptionally large investment. It is likely intended to fund specific, ongoing engineering needs rather than a large-scale, long-term program. Historical data would show numerous contracts of similar or larger magnitudes for specialized engineering expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,164,771

Exercised Options: $54,164,771

Current Obligation: $28,788,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA820422D0001

IDV Type: IDC

Timeline