DoD awards $768K contract to SARCOS GROUP LC for advanced robotics research, with a 1050-day performance period

Contract Overview

Contract Amount: $7,684,614 ($7.7M)

Contractor: Sarcos Group LC

Awarding Agency: Department of Defense

Start Date: 2023-09-15

End Date: 2026-07-31

Contract Duration: 1,050 days

Daily Burn Rate: $7.3K/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: SBIR PHASE II (STRATFI) - SARCOS GROUP LC

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to SARCOS GROUP LC for work described as: SBIR PHASE II (STRATFI) - SARCOS GROUP LC Key points: 1. Contract focuses on advanced robotics, aligning with DoD's strategic modernization goals. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. Research and Development (R&D) contracts often have inherent uncertainty in outcomes. 4. The contract duration of 1050 days suggests a significant research undertaking. 5. SARCOS GROUP LC's specialization in robotics positions them well for this work. 6. The award was made under full and open competition, indicating a broad search for qualified vendors.

Value Assessment

Rating: fair

The contract value of $768,461 is modest for a multi-year R&D effort. Benchmarking R&D contracts is challenging due to the unique nature of each project and the difficulty in defining comparable 'units' of work. However, the price appears reasonable given the specialized nature of advanced robotics and the contractor's expertise. Further analysis would require understanding the specific technical milestones and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the initial solicitation may have had some exclusions, the final award was made after a broad competitive process. The number of bidders is not specified, but the designation suggests a robust competition was sought, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple sources.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, which will receive advancements in robotics technology. The services delivered are research and development in advanced robotics, potentially leading to new military capabilities. The geographic impact is primarily within the United States, where the research will be conducted and potentially deployed. Workforce implications include potential job creation for highly skilled engineers and researchers in the robotics field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The inherent risks associated with R&D projects, where successful outcomes are not guaranteed.
The long duration of the contract (1050 days) could lead to scope creep or evolving technological requirements.
Dependence on a single contractor for specialized robotics research may limit future options if performance is subpar.

Positive Signals

The contract is firm-fixed-price, which transfers cost overrun risk to the contractor.
Awarded under full and open competition, suggesting a thorough vetting of potential offerors.
The contractor, SARCOS GROUP LC, has a stated specialization in robotics, indicating relevant expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced robotics. The market for defense-related robotics is growing, driven by the need for enhanced capabilities in areas like reconnaissance, logistics, and combat support. Comparable spending benchmarks are difficult to establish precisely due to the bespoke nature of R&D, but significant government investment is directed towards technological superiority in this domain.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on the project's needs and the contractor's subcontracting plan. The overall impact on the small business ecosystem is neutral to potentially positive if subcontracting occurs.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract type, requiring the contractor to meet defined milestones and deliverables. Transparency is facilitated through contract award databases, though specific technical progress reports are typically not publicly disclosed.

Related Government Programs

SBIR Phase II (STRATFI)
Advanced Robotics Research
Department of Defense Research and Development Programs
Air Force Science and Technology Investments

Risk Flags

R&D project uncertainty
Long contract duration
Potential for technological obsolescence
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to SARCOS GROUP LC. SBIR PHASE II (STRATFI) - SARCOS GROUP LC

Who is the contractor on this award?

The obligated recipient is SARCOS GROUP LC.

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 $7.7 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-07-31.

What is SARCOS GROUP LC's track record with government R&D contracts, particularly in robotics?

SARCOS GROUP LC has a history of engaging in government contracts, including those related to robotics and advanced technologies. Their involvement in programs like SBIR Phase II (STRATFI) indicates a focus on innovation and development supported by federal funding. While specific details on past performance metrics for similar R&D projects are not publicly detailed in this summary, their specialization suggests a relevant background. Further investigation into past performance evaluations and contract completion success rates would provide a more comprehensive understanding of their track record in delivering on complex R&D initiatives for the government.

How does the $768,461 award value compare to similar advanced robotics R&D contracts within the DoD?

The $768,461 award value for this advanced robotics R&D contract is on the lower end for significant, multi-year research efforts within the Department of Defense. Larger, more complex R&D programs can range from several million to tens or even hundreds of millions of dollars. This contract's value suggests a focused scope, perhaps targeting a specific technological advancement or a foundational research phase. Benchmarking requires detailed comparison of technical objectives, deliverables, and contract durations. However, for a Phase II SBIR STRATFI effort, this value is within a typical range, indicating a potentially reasonable investment for the defined research scope.

What are the primary risks associated with this specific contract, beyond general R&D uncertainties?

Beyond the inherent risks of R&D, specific concerns for this contract include the long performance period (1050 days), which increases the potential for technological obsolescence or shifts in strategic priorities. The reliance on a single contractor, SARCOS GROUP LC, for this specialized research could pose a risk if they encounter significant technical hurdles or fail to meet performance expectations. Furthermore, the success of the project hinges on the accurate definition and achievement of complex technical milestones, which can be challenging to monitor and validate in cutting-edge robotics development. The firm-fixed-price nature, while beneficial for cost control, could also incentivize cutting corners if not rigorously overseen.

What is the expected program effectiveness or impact of this contract on DoD's robotics capabilities?

The expected effectiveness and impact of this contract are centered on advancing the Department of Defense's robotics capabilities through targeted research and development. The specific outcomes will depend on the precise research objectives, which are not detailed here but are implied to be within SARCOS GROUP LC's expertise in robotics. Successful completion could lead to prototypes, enhanced algorithms, or new operational concepts that improve situational awareness, reduce risk to personnel, or increase operational efficiency. The STRATFI (Strategic Funding Increase) designation suggests alignment with high-priority strategic needs, implying an expectation of significant technological advancement with potential for future fielding.

How has federal spending on advanced robotics R&D evolved over the past five years, and where does this contract fit?

Federal spending on advanced robotics R&D has seen a consistent upward trend over the past five years, driven by national security imperatives and the desire to maintain technological superiority. Agencies like the DoD, DARPA, and others have increased investments in areas such as autonomous systems, human-robot interaction, and artificial intelligence for robotic platforms. This $768,461 contract, awarded under the SBIR STRATFI program, represents a small but strategic investment within this larger trend. It fits into the category of targeted R&D funding aimed at fostering innovation from small and medium-sized businesses or specialized firms to address specific defense challenges, complementing larger-scale institutional research efforts.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a nuanced procurement approach. Initially, certain sources or types of sources may have been excluded from consideration, perhaps due to specific requirements or prior relationships. However, the subsequent 'full and open competition' phase means that after these exclusions, the solicitation was broadly advertised, and all responsible sources meeting the revised criteria were permitted to submit proposals. This suggests an effort to balance specialized needs with a desire for broad market engagement, aiming to secure the best value while potentially addressing unique technological requirements that might not be met through a completely unrestricted competition.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Palladyne AI Corp.

Address: 650 S 500 W # 150, SALT LAKE CITY, UT, 84101

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,788,672

Exercised Options: $7,684,614

Current Obligation: $7,684,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline