DoD's $24.9M R&D contract for intelligence, surveillance, and reconnaissance systems awarded to Sensintel Inc

Contract Overview

Contract Amount: $24,897,373 ($24.9M)

Contractor: Sensintel Inc.

Awarding Agency: Department of Defense

Start Date: 2010-07-20

End Date: 2016-05-13

Contract Duration: 2,124 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SILVER FOX ISR OUE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85706

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $24.9 million to SENSINTEL INC. for work described as: SILVER FOX ISR OUE Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for defense innovation. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. A duration of 2124 days (approx. 5.8 years) indicates a long-term project with sustained R&D effort. 5. The contract was awarded in 2010, with completion in 2016, providing historical performance data. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and market comparisons for similar ISR technologies. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries inherent risks of cost escalation. The total award amount of $24.9 million over nearly six years suggests a moderate investment for the period, but its true value depends on the technological advancements achieved and their operational impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This suggests a competitive environment where multiple companies likely vied for the contract. The level of competition, while not explicitly stated in terms of the number of bidders, is generally expected to drive more favorable pricing and innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive landscape that can lead to better pricing and a wider array of innovative solutions, maximizing the return on investment for federal R&D funds.

Public Impact

The primary beneficiaries are the Department of Defense and its intelligence agencies, receiving advanced ISR capabilities. The contract supports the development of technologies crucial for national security and situational awareness. Geographic impact is likely global, as ISR systems are deployed to support various operational theaters. Workforce implications include specialized R&D roles for engineers, scientists, and technicians within Sensintel Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
The long duration of the contract increases the risk of scope creep or evolving technological requirements.
Lack of specific performance metrics makes it difficult to assess the true value and success of the R&D investment.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that could yield better value.
The contract focuses on R&D, a critical area for maintaining technological superiority.
The contractor, Sensintel Inc., was awarded a definitive contract, implying a structured and defined agreement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). This sector is vital for defense innovation, encompassing the creation of new technologies and systems. The market for ISR technologies is highly specialized and competitive, driven by government demand for advanced surveillance and intelligence gathering capabilities. Comparable spending benchmarks would typically be found within broader DoD R&D budgets for advanced systems.

Small Business Impact

The contract was not set aside for small businesses (ss=false, sb=false). This indicates that the competition was open to all responsible sources, regardless of size. While this specific contract did not directly benefit small businesses through a set-aside, large prime contractors like Sensintel Inc. may engage small businesses as subcontractors for specialized components or services, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to prevent overruns. Transparency is generally maintained through contract reporting requirements, though specific details of R&D progress may be classified or proprietary.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Research and Development Programs
Advanced Technology Development Contracts
Department of Defense Procurement

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration increases potential for scope creep and evolving requirements.
Lack of specific performance metrics makes post-award evaluation challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.9 million to SENSINTEL INC.. SILVER FOX ISR OUE

Who is the contractor on this award?

The obligated recipient is SENSINTEL 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 $24.9 million.

What is the period of performance?

Start: 2010-07-20. End: 2016-05-13.

What was the specific technological outcome or deliverable of this R&D contract?

The provided data does not specify the exact technological outcome or deliverable of the 'SILVER FOX ISR OUE' contract. Contracts for Research and Development in Physical, Engineering, and Life Sciences (NAICS 541712) are often focused on advancing fundamental knowledge, developing prototypes, or proving the feasibility of new concepts. Without access to the contract's statement of work or final reports, it's impossible to detail the specific ISR capabilities or systems that resulted from Sensintel Inc.'s work under this $24.9 million award. The nature of R&D means that outcomes can range from theoretical advancements to tangible prototypes, with the ultimate success measured by their potential for future application and integration into operational systems.

How does the $24.9 million award compare to other R&D contracts for ISR systems awarded around the same period (2010-2016)?

Comparing the $24.9 million award for the 'SILVER FOX ISR OUE' contract to other R&D contracts for ISR systems during the 2010-2016 timeframe requires access to a broader dataset of federal procurements. However, $24.9 million over approximately 5.8 years (2124 days) represents an average annual investment of roughly $4.3 million. This figure is moderate for defense R&D, especially for complex systems like ISR, which can involve significant technological challenges and long development cycles. Larger, more complex ISR platform development or integration programs could easily exceed hundreds of millions or even billions of dollars. Conversely, smaller, more focused research efforts might be in the low millions. Therefore, this contract appears to be a mid-tier investment for a specific ISR-related R&D effort.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Sensintel Inc., present specific risks, particularly in R&D contexts. The primary risk is that the 'cost-plus' element can incentivize the contractor to incur higher costs, as their fee is a fixed percentage of the estimated costs. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise, driving up actual expenses. For R&D, where the scope and technical path are often uncertain, this risk is amplified. Effective oversight is crucial to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. The fixed fee provides the contractor with a guaranteed profit margin, but the government bears the brunt of cost uncertainty, potentially leading to a higher overall expenditure than initially budgeted.

What was Sensintel Inc.'s track record or past performance with the DoD prior to this contract?

The provided data does not include information on Sensintel Inc.'s specific track record or past performance with the Department of Defense prior to or during the 'SILVER FOX ISR OUE' contract. Assessing a contractor's history is crucial for understanding their reliability, technical capabilities, and ability to manage complex projects. Typically, agencies review past performance evaluations, contract history, and any instances of performance issues or disputes when awarding contracts. Without this context, it's difficult to definitively gauge Sensintel Inc.'s suitability or historical success in fulfilling similar R&D requirements for the DoD. Further research into federal procurement databases and contract award histories would be necessary to build a comprehensive performance profile.

How did the 'full and open competition' impact the pricing and innovation for this specific ISR R&D contract?

A 'full and open competition' generally fosters a more competitive environment, which can positively impact both pricing and innovation for R&D contracts like the 'SILVER FOX ISR OUE'. By allowing all responsible sources to bid, the Department of Defense likely received proposals from multiple companies, each offering different approaches, technologies, and price points. This competition pressures bidders to offer their best value, potentially leading to more cost-effective solutions and driving innovation as companies strive to differentiate themselves. While the specific number of bidders isn't provided, the open nature of the competition suggests that the DoD aimed to leverage the market's capabilities to secure advanced ISR R&D. The ultimate impact on pricing and innovation depends on the specific proposals received and the evaluation criteria used.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3292 E HEMISPHERE LOOP, TUCSON, AZ, 85706

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,296,305

Exercised Options: $24,897,373

Current Obligation: $24,897,373

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline