DoD's $11.6M SBIR III contract with Lumera Corp. for R&D faces scrutiny over limited competition and value
Contract Overview
Contract Amount: $11,629,555 ($11.6M)
Contractor: Lumera Corporation
Awarding Agency: Department of Defense
Start Date: 2008-03-19
End Date: 2010-03-31
Contract Duration: 742 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SBIR III
Place of Performance
Location: BOTHELL, KING County, WASHINGTON, 98011
Plain-Language Summary
Department of Defense obligated $11.6 million to LUMERA CORPORATION for work described as: SBIR III Key points: 1. Contract awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' raises questions about true competition. 2. The $11.6M award for R&D services lacks clear performance metrics and benchmarks for value. 3. Potential for overpayment exists given the Cost Plus Fixed Fee structure and limited competitive data. 4. The R&D sector is prone to cost overruns and difficulty in measuring tangible outcomes.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, with a total award of $11.6M, makes direct value assessment difficult without detailed cost breakdowns and performance data. Benchmarking against similar R&D contracts is challenging due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competitive process. This method may restrict price discovery and potentially lead to higher costs than a fully open competition.
Taxpayer Impact: The limited competition and CPFF structure suggest a higher potential taxpayer burden if costs are not rigorously managed and justified.
Public Impact
Taxpayers may be funding research with unclear deliverables or return on investment. The exclusion of other potential bidders limits innovation and cost-saving opportunities. Lack of transparency in R&D spending can erode public trust in government contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of clear performance metrics
- High contract value for R&D
Positive Signals
- SBIR program aims to foster innovation
- Contract awarded by DoD
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. This sector often involves high uncertainty and can be difficult to benchmark due to the unique nature of innovation and discovery.
Small Business Impact
The data does not indicate if small businesses were involved in this specific contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and value warrant oversight to ensure funds are used efficiently and effectively towards defined research objectives. Auditing cost claims under the CPFF structure is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition may inflate prices.
- Difficulty in measuring R&D effectiveness and ROI.
- Lack of transparency in the 'exclusion of sources' process.
- High contract value without clear performance benchmarks.
Tags
research-and-development-in-the-physical, department-of-defense, wa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.6 million to LUMERA CORPORATION. SBIR III
Who is the contractor on this award?
The obligated recipient is LUMERA CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2008-03-19. End: 2010-03-31.
What specific R&D objectives were achieved with the $11.6M awarded, and how do they align with DoD's strategic goals?
Without detailed project reports and performance metrics, it's difficult to ascertain the specific R&D achievements. The alignment with DoD's strategic goals would depend on the nature of the research funded. A review of project milestones and final outcomes is necessary to evaluate the effectiveness and strategic relevance of the awarded funds.
How was the 'exclusion of sources' justified, and what was the process for ensuring fair pricing despite limited competition?
The justification for excluding sources typically involves technical superiority of the incumbent or unique capabilities. However, the process for ensuring fair pricing under such conditions requires rigorous cost analysis, comparison with market data for similar technologies, and negotiation by the contracting officer to mitigate the lack of competitive pressure.
What is the long-term value or potential return on investment for the $11.6M spent on this R&D contract?
Assessing the long-term value of R&D is inherently challenging. It depends on the successful transition of research findings into practical applications, new technologies, or improved systems. Without clear metrics for success and a plan for technology transfer, the ROI remains speculative and requires ongoing monitoring.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Gigpeak, Inc. (UEI: 017588224)
Address: 19910 NORTH CREEK PKWY STE 100, BOTHELL, WA, 98011
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business
Financial Breakdown
Contract Ceiling: $11,629,555
Exercised Options: $11,629,555
Current Obligation: $11,629,555
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-03-19
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2021-11-01
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