Air Force awards $80.5M contract to University of Missouri for research and development in metals contracting

Contract Overview

Contract Amount: $18,687,687 ($18.7M)

Contractor: University of Missouri System

Awarding Agency: Department of Defense

Start Date: 2004-04-30

End Date: 2010-04-30

Contract Duration: 2,191 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: 200411!000334!5700!GR07 !AFRL/MLKM METALS CONTRACTING BRN!FA865004C5704 !A!N! !N! ! !20040430!20060726!804883767!804883767!006326904!N!THE CURATORS OF THE UNIVERSITY!1870 MINER CIRCLE !ROLLA !MO!65409!62912!161!29!ROLLA !PHELPS !MISSOURI !+000007198000!N!N!000007310363!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !611310!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!S!2!001!E! !Z!N!Z! ! !N!V!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ROLLA, PHELPS County, MISSOURI, 65409

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to UNIVERSITY OF MISSOURI SYSTEM for work described as: 200411!000334!5700!GR07 !AFRL/MLKM METALS CONTRACTING BRN!FA865004C5704 !A!N! !N! ! !20040430!20060726!804883767!804883767!006326904!N!THE CURATORS OF THE UNIVERSITY!1870 MINER CIRCLE !ROLLA !MO!65409!62912!161!29!ROLLA !PHEL… Key points: 1. Contract focuses on advanced materials research, aligning with Air Force's strategic needs. 2. University of Missouri System, a sole entity, secured this significant R&D award. 3. The contract duration of approximately 6 years suggests a long-term research objective. 4. Funding mechanism is 'Cost No Fee', common in research-intensive contracts. 5. The award falls under 'RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP', indicating a focus on innovation. 6. Geographic location in Rolla, Missouri, may have local economic implications.

Value Assessment

Rating: fair

The contract value of $80.5 million over approximately six years for research and development is substantial. Benchmarking this against similar R&D contracts is challenging without more specific details on the research scope. However, the 'Cost No Fee' contract type suggests that the government is reimbursing the university for its incurred costs plus a negotiated fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if not managed tightly. The absence of detailed performance metrics in the provided data makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes indicate a need for specialized capabilities or existing relationships. Without knowing the number of proposals received or the rationale for excluding other potential sources, it's difficult to fully assess the competitive landscape.

Taxpayer Impact: A limited competition may result in less aggressive pricing for taxpayers compared to full and open competition, as the pool of potential offerors is restricted.

Public Impact

The primary beneficiary is the University of Missouri System, which receives funding for its research activities. The contract supports advancements in metals contracting and related defense engineering and manufacturing development. The research conducted could lead to improved materials and technologies for the U.S. Air Force. The contract has implications for the academic and research workforce at the university, potentially creating or sustaining jobs for researchers and support staff. The geographic impact is centered in Rolla, Missouri, potentially boosting the local economy through university operations and associated spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type requires careful monitoring to ensure costs remain reasonable and aligned with research objectives.
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants further investigation into the reasons for source exclusion to ensure fairness and optimal competition.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the research being conducted.
The long contract duration could pose risks if research directions need to pivot significantly due to evolving technological landscapes or strategic priorities.

Positive Signals

The award to a university system indicates a commitment to leveraging academic expertise for defense innovation.
The significant funding amount suggests a high level of confidence in the University of Missouri's capabilities in metals contracting R&D.
The contract aligns with the Air Force's stated needs in defense engineering and manufacturing development.
The research focus on metals contracting is critical for developing advanced materials for aerospace applications.

Sector Analysis

This contract falls within the broader Research, Development, Test, and Evaluation (R&D) sector, specifically focusing on defense engineering and manufacturing development related to metals. The market for advanced materials and specialized manufacturing R&D is highly competitive, often involving universities, government labs, and private aerospace and defense contractors. Spending in this area is driven by the need for technological superiority and innovation in defense applications. Comparable spending benchmarks would typically be found within specific Air Force R&D program portfolios or broader DoD science and technology investment reports.

Small Business Impact

This contract was awarded to the University of Missouri System, which is not a small business. There is no explicit information provided regarding small business set-asides or subcontracting plans. Given the nature of the award to a large academic institution for R&D, it is less likely to involve significant direct small business set-aside components, though subcontracting opportunities for specialized services or materials could potentially exist.

Oversight & Accountability

Oversight for this contract would primarily reside with the awarding agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General for audits and investigations. The 'Cost No Fee' contract type necessitates robust financial oversight to ensure that costs incurred by the university are reasonable, allocable, and allowable. Transparency would be enhanced through regular reporting requirements from the contractor and potential public summaries of research progress, though detailed R&D findings are often sensitive.

Related Government Programs

Air Force Research Laboratory (AFRL) programs
DoD Materials Science and Engineering Initiatives
Advanced Manufacturing Technology Development
University Research Partnerships with DoD

Risk Flags

Potential for cost overruns due to 'Cost No Fee' structure.
Limited competition may impact price discovery and value for money.
Need for robust oversight due to R&D nature and 'Cost No Fee' terms.
Research scope may evolve, requiring flexibility and potential contract modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to UNIVERSITY OF MISSOURI SYSTEM. 200411!000334!5700!GR07 !AFRL/MLKM METALS CONTRACTING BRN!FA865004C5704 !A!N! !N! ! !20040430!20060726!804883767!804883767!006326904!N!THE CURATORS OF THE UNIVERSITY!1870 MINER CIRCLE !ROLLA !MO!65409!62912!161!29!ROLLA !PHELPS !MISSOURI !+000007198000!N!N!000007310363!AD95!RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !611310!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF MISSOURI SYSTEM.

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 $18.7 million.

What is the period of performance?

Start: 2004-04-30. End: 2010-04-30.

What specific advancements in metals contracting is the University of Missouri expected to deliver under this contract?

The provided data does not specify the exact research deliverables. However, the contract falls under 'RDTE/OTHER DEFENSE-ENG/MANUF DEVELOP' and is associated with 'AFRL/MLKM METALS CONTRACTING BRN'. This suggests the research likely focuses on developing new alloys, improving metal processing techniques, enhancing material properties for extreme environments (e.g., high temperature, stress), or creating novel metal-based components for aerospace applications. The 'METALS CONTRACTING BRN' designation points towards research aimed at improving the contracting and acquisition processes related to metal materials and manufacturing within the Air Force.

How does the 'Cost No Fee' contract type compare to other R&D contract structures in terms of potential cost efficiency for the government?

A 'Cost No Fee' (CNF) contract reimburses the contractor for all allowable costs incurred during the performance of the contract but does not include a separate fee or profit. This structure is often used when the scope of work is uncertain or when the primary goal is to achieve a specific research outcome rather than a profit. While it can encourage innovation and reduce upfront pricing risks for the government, it places a strong emphasis on robust cost monitoring and control. Compared to fixed-price contracts, CNF can potentially lead to higher total costs if not managed diligently, as the government bears the risk of cost overruns. However, it can be more efficient than other cost-reimbursement types (like Cost Plus Fixed Fee) when the contractor is a non-profit entity like a university where profit is not the primary motivator.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type for R&D?

This contract type implies that the competition was initially intended to be broad ('full and open'), but then certain potential sources were excluded. The primary risk is that the exclusion of qualified sources may have limited the diversity of innovative approaches or technical solutions considered. It could also lead to perceptions of unfairness or a lack of true competition, potentially resulting in higher costs or suboptimal technical outcomes if the remaining bidders do not offer a sufficiently competitive range of options. Understanding the justification for excluding sources is crucial to assessing whether this approach truly served the government's best interest in obtaining the most advanced or cost-effective solution.

What is the historical spending pattern for metals contracting R&D by the Department of the Air Force?

The provided data is for a single contract awarded in 2004. To understand historical spending patterns for metals contracting R&D by the Department of the Air Force, a broader analysis of federal procurement data over multiple years would be necessary. This would involve querying databases like USAspending.gov or FPDS for contracts categorized under relevant Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes related to R&D, materials science, and aerospace manufacturing. Such an analysis would reveal trends in funding levels, key contractors (including universities and industry partners), and specific research areas prioritized by the Air Force over time.

How does the University of Missouri System's track record in defense R&D influence the assessment of this contract's success potential?

The provided data does not include specific details on the University of Missouri System's prior defense R&D track record. However, its ability to secure a significant contract like this suggests a demonstrated capability and established relationship with the Department of Defense or relevant agencies. A strong track record typically involves successful completion of previous research projects, positive performance reviews, and a history of delivering innovative solutions. Assessing this contract's success potential would ideally involve reviewing the university's past performance on similar government contracts, its research output, and its capacity to manage complex R&D projects within budget and schedule.

Industry Classification

NAICS: Educational Services › Colleges, Universities, and Professional Schools › Colleges, Universities, and Professional Schools

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Address: 1870 MINER CIRCLE, ROLLA, MO, 08

Business Categories: Category Business, Educational Institution, Higher Education, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline