DoD's $16.98M SOSITE Tech Contract with Apogee Research LLC: R&D Spending Analysis
Contract Overview
Contract Amount: $16,982,212 ($17.0M)
Contractor: Apogee Research LLC
Awarding Agency: Department of Defense
Start Date: 2014-09-11
End Date: 2020-12-30
Contract Duration: 2,302 days
Daily Burn Rate: $7.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF SYSTEMS OF SYSTEMS INTEG TECH&EXPER (SOSITE)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to APOGEE RESEARCH LLC for work described as: IGF::OT::IGF SYSTEMS OF SYSTEMS INTEG TECH&EXPER (SOSITE) Key points: 1. The contract awarded to Apogee Research LLC for SOSITE technology development represents a significant investment in R&D. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type (Cost Plus Fixed Fee) can introduce cost overrun risks. 4. Spending in the R&D sector (NAICS 541712) is crucial for technological advancement but requires careful oversight.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract structure allows for cost reimbursement plus a fixed fee, which can incentivize contractor efficiency but also carries inherent risk of cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing, but the Cost Plus Fixed Fee structure can still lead to higher-than-expected costs if scope or execution is not well-defined.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D. While potentially yielding valuable technological advancements, the Cost Plus Fixed Fee structure necessitates robust oversight to ensure cost-effectiveness and prevent unnecessary expenditures.
Public Impact
Investment in advanced defense technology systems. Potential for technological breakthroughs impacting national security. Contract duration of over 6 years suggests a long-term R&D effort. Focus on 'Systems of Systems Integration Technology & Experience' implies complex, interconnected solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded by Department of Defense
- Focus on critical R&D area
Sector Analysis
This contract falls within the Research and Development sector, specifically for Physical, Engineering, and Life Sciences. Spending in this area is vital for innovation but often involves higher risk and longer timelines compared to procurement of existing technologies.
Small Business Impact
The data indicates the contractor is Apogee Research LLC, and there is no explicit mention of small business participation or subcontracting. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms are in place. However, the Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance to ensure accountability.
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
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns.
- Long contract duration (over 6 years) increases exposure to changing requirements or market conditions.
- Lack of specific performance metrics or outcome data.
- Potential for scope creep in R&D projects.
- Limited insight into small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to APOGEE RESEARCH LLC. IGF::OT::IGF SYSTEMS OF SYSTEMS INTEG TECH&EXPER (SOSITE)
Who is the contractor on this award?
The obligated recipient is APOGEE RESEARCH LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.0 million.
What is the period of performance?
Start: 2014-09-11. End: 2020-12-30.
What specific technological advancements or capabilities were achieved through this $16.98M contract?
The provided data does not detail the specific technological advancements or capabilities achieved. Further analysis of contract performance reports and deliverables would be necessary to assess the tangible outcomes and value generated by Apogee Research LLC's work on the SOSITE program.
How did the final costs compare to the initial estimates, given the Cost Plus Fixed Fee structure?
The Cost Plus Fixed Fee (CPFF) structure means the government reimburses allowable costs plus a predetermined fixed fee. Without access to the final incurred costs and the fixed fee amount, a direct comparison to initial estimates is not possible from this data alone. CPFF contracts require close monitoring to manage cost growth.
What was the impact of the full and open competition on the final contract price and value?
Full and open competition generally leads to a more competitive bidding process, which can result in a better price for the government. However, the ultimate value and cost-effectiveness of this $16.98M contract depend heavily on the contractor's performance, the efficiency of the CPFF structure, and the criticality of the R&D outcomes.
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: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4075 WILSON BLVD STE 575, ARLINGTON, VA, 22203
Business Categories: Category Business, Limited Liability Corporation, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $17,097,928
Exercised Options: $17,097,928
Current Obligation: $16,982,212
Actual Outlays: $1,130,045
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-09-11
Current End Date: 2020-12-30
Potential End Date: 2020-12-30 00:00:00
Last Modified: 2025-11-06
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