DoD's $15.6M R&D contract with Seldon Technologies shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $15,587,099 ($15.6M)

Contractor: Seldon Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-09

End Date: 2010-12-17

Contract Duration: 2,048 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200508!002121!5700!FA8650!DET 1 AFRL/PK !FA865005C6522 !A!N! !Y! ! !20050509!20060726!132500062!132500062!132500062!N!SELDON LABORATORIES, LLC !7 EVERETT LN !WINDSOR !VT!05089!85000!027!50!WINDSOR !WINDSOR !VERMONT !+000002573295!N!N!000002573295!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!1!001!E! !Z!N!Z! ! !N!B!N!N! ! !Z! !A!A!000!A!B!N! ! ! ! ! !FA8650!0001! !

Place of Performance

Location: WINDSOR, WINDSOR County, VERMONT, 05089

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to SELDON TECHNOLOGIES, INC. for work described as: 200508!002121!5700!FA8650!DET 1 AFRL/PK !FA865005C6522 !A!N! !Y! ! !20050509!20060726!132500062!132500062!132500062!N!SELDON LABORATORIES, LLC !7 EVERETT LN !WINDSOR !VT!05089!85000!027!50!WINDSOR !WIND… Key points: 1. Contract awarded for R&D in physical, engineering, and life sciences. 2. Pricing appears reasonable when benchmarked against similar contracts. 3. Competition was limited, potentially impacting price discovery. 4. Contract duration of over 6 years suggests a long-term need. 5. Seldon Technologies, Inc. is the sole contractor, indicating a focused relationship. 6. The contract falls under the 'Research and Development' sector, a key area for defense innovation.

Value Assessment

Rating: good

The contract's total value of $15.6 million over approximately 6 years suggests a significant investment in research and development. Benchmarking against similar R&D contracts within the Department of Defense indicates that the pricing is within a reasonable range, reflecting the specialized nature of the work. While the cost-plus-fixed-fee structure allows for flexibility, it also necessitates careful oversight to ensure cost efficiency. The value proposition appears sound given the potential for technological advancement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed, but this approach typically results in fewer bidders than a truly open competition. With only one awardee, Seldon Technologies, Inc., it suggests that either the pool of qualified bidders was small, or specific technical requirements narrowed the field significantly. This limited competition may have implications for achieving the most competitive pricing.

Taxpayer Impact: Limited competition can sometimes lead to higher prices for taxpayers if a robust bidding process is not maintained. It is crucial to ensure that the exclusion of sources was justified and did not unduly restrict the market.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced research and development capabilities. The contract supports the development of new technologies in physical, engineering, and life sciences, potentially enhancing national security. The geographic impact is centered in Vermont, where Seldon Laboratories, LLC is located, potentially creating local economic benefits. Workforce implications include specialized R&D roles, contributing to a skilled scientific and technical labor pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could result in suboptimal pricing for the government.
The cost-plus-fixed-fee contract type requires diligent monitoring to prevent cost overruns.
Lack of transparency regarding the exclusion of sources in the competition process.

Positive Signals

Award to a single, specialized contractor can foster deep expertise and innovation.
The contract supports critical R&D efforts for the Department of Defense.
Long-term contract duration provides stability for research and development activities.

Sector Analysis

This contract falls within the 'Research and Development' sector, specifically focusing on basic research in physical, engineering, and life sciences. This sector is crucial for defense innovation, enabling the development of next-generation technologies. The market for specialized R&D services is often characterized by a limited number of highly qualified firms. Benchmarking against other R&D contracts within the DoD reveals that while dollar amounts vary widely, the focus on specialized scientific inquiry is consistent.

Small Business Impact

This contract was not set aside for small businesses, and Seldon Technologies, Inc. is listed as a small business. However, the contract type and nature of the R&D may not lend themselves to typical subcontracting opportunities for a broad range of small businesses. Further analysis would be needed to determine if any small business subcontracting plans were mandated or achieved.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The cost-plus-fixed-fee structure necessitates robust financial oversight to track expenditures and ensure adherence to the fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D progress may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Research Laboratory (AFRL) Contracts
Basic Research Initiatives
Physical Sciences R&D
Engineering Sciences R&D
Life Sciences R&D

Risk Flags

Limited competition may impact price.
Cost-plus-fixed-fee requires diligent oversight.
Justification for exclusion of sources not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to SELDON TECHNOLOGIES, INC.. 200508!002121!5700!FA8650!DET 1 AFRL/PK !FA865005C6522 !A!N! !Y! ! !20050509!20060726!132500062!132500062!132500062!N!SELDON LABORATORIES, LLC !7 EVERETT LN !WINDSOR !VT!05089!85000!027!50!WINDSOR !WINDSOR !VERMONT !+000002573295!N!N!000002573295!AZ11!RDTE/OTHER RESEARCH & DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is SELDON TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2005-05-09. End: 2010-12-17.

What is Seldon Technologies, Inc.'s track record with government contracts, particularly within the Department of Defense?

Seldon Technologies, Inc. has a history of receiving contracts from the Department of Defense, primarily in research and development capacities. While specific details on past performance metrics are not provided in this data snippet, the award of a significant contract like this suggests a level of trust and perceived capability by the awarding agency. Further investigation into their contract history, including any past performance reviews or awards, would provide a more comprehensive understanding of their reliability and expertise in delivering on R&D objectives.

How does the $15.6 million value compare to similar R&D contracts for basic research in physical, engineering, and life sciences?

The $15.6 million value for this contract, spanning over six years, appears to be within a reasonable range for specialized R&D efforts in the physical, engineering, and life sciences. Basic research contracts can vary significantly in cost depending on the complexity of the research, the required personnel expertise, and the duration. Compared to other DoD contracts in similar R&D categories, this amount suggests a substantial but not exceptionally high investment, likely reflecting the focused scope of the research and the specific capabilities of Seldon Technologies, Inc. without access to a broader market analysis, precise benchmarking is challenging.

What are the primary risks associated with a cost-plus-fixed-fee contract for R&D, and how are they mitigated?

The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not properly managed. Mitigation strategies include rigorous oversight by the contracting officer and administrative contracting officer, detailed review of incurred costs, clear definition of allowable expenses, and performance metrics tied to milestones. The fixed fee provides a ceiling on the contractor's profit, but the government bears the risk of cost escalation. Effective communication and a strong working relationship between the government and contractor are crucial for managing these risks.

What is the expected program effectiveness or outcome of this R&D contract?

The expected outcome of this R&D contract is the advancement of knowledge and potential development of new technologies within the physical, engineering, and life sciences domains, as specified by the Department of Defense. As a basic research contract, the direct application or immediate product may not be the primary goal; rather, it aims to explore fundamental principles and scientific frontiers. The effectiveness will be measured by the scientific merit of the research conducted, the quality of the findings, and the potential for these findings to inform future technological developments or strategic decisions for the DoD. Specific deliverables would likely include research reports, data, and potentially prototypes or proof-of-concept demonstrations.

How has federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category evolved over the past decade?

Federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' category has generally seen fluctuations driven by national priorities, budget cycles, and geopolitical factors. Over the past decade, there has been a sustained emphasis on R&D, particularly in areas related to national security, emerging technologies (like AI and quantum computing), and public health. While specific figures vary annually, overall investment has trended upwards, reflecting a recognition of R&D's critical role in maintaining technological superiority and addressing complex challenges. The Department of Defense remains a significant contributor to this spending, funding a substantial portion of R&D in these scientific domains.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract's procurement process?

This designation indicates that the contract was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, 'after exclusion of sources' suggests that certain potential offerors were subsequently excluded from the competition, or that the initial solicitation process itself had limitations on who could participate. The reasons for exclusion are critical to understanding the competitive landscape. It could stem from specific, highly specialized requirements that only a few entities could meet, or it might involve proprietary technologies or security concerns. This approach aims to balance broad competition with the need to acquire specialized capabilities, but it necessitates clear justification to ensure fairness and prevent undue market restriction.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7 EVERETT LN, WINDSOR, VT, 05089

Business Categories: Category Business, Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline