DoD's $23.9M RACER Contract Awarded to The Keyw Corporation for RF Exploitation R&D
Contract Overview
Contract Amount: $23,924,180 ($23.9M)
Contractor: THE Keyw Corporation
Awarding Agency: Department of Defense
Start Date: 2017-07-18
End Date: 2022-10-14
Contract Duration: 1,914 days
Daily Burn Rate: $12.5K/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 - RESEARCH TO ADVANCE COMPREHENSIVE EXPLOITATION OF RADIO FREQUENCY (RACER)
Place of Performance
Location: SEVERN, ANNE ARUNDEL County, MARYLAND, 21144
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.9 million to THE KEYW CORPORATION for work described as: IGF::OT::IGF - RESEARCH TO ADVANCE COMPREHENSIVE EXPLOITATION OF RADIO FREQUENCY (RACER) Key points: 1. The contract focuses on advanced research and development in radio frequency exploitation. 2. Awarded to The Keyw Corporation, a single entity, raising questions about competition. 3. The contract duration is substantial (1914 days), indicating a long-term project. 4. The sector is R&D, specifically in physical, engineering, and life sciences. 5. The total award value is $23.9 million.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. The fixed fee component provides some incentive for the contractor to control costs, but the overall cost-plus nature warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being listed as 'FULL AND OPEN COMPETITION', the award went to a single entity, The Keyw Corporation. This suggests either a highly specialized requirement or potential limitations in the competition process that need further investigation to ensure optimal price discovery.
Taxpayer Impact: The full and open competition, if truly effective, should have driven the best value for taxpayers. However, the single awardee raises concerns about whether the full potential for cost savings through robust competition was realized.
Public Impact
Advancement in radio frequency exploitation technology could have significant national security implications. The long contract duration suggests a sustained investment in this specialized R&D area. Taxpayer funds are being directed towards cutting-edge research with potential dual-use applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential lack of robust competition despite 'full and open' designation.
- Cost Plus Fixed Fee contract type can be susceptible to cost growth.
- Long contract duration may indicate high risk or complexity.
Positive Signals
- Focus on critical R&D area for national security.
- Award to a single entity may indicate specialized expertise.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its inherent uncertainties and long-term nature.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to The Keyw Corporation, a single entity, suggests it may be a larger firm, and further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight from the Department of the Air Force to ensure cost control, adherence to research objectives, and accountability for taxpayer funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for limited competition despite 'full and open' status.
- Cost overruns possible with CPFF contract type.
- Long contract duration increases exposure to changing technological landscapes.
- Lack of small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to THE KEYW CORPORATION. IGF::OT::IGF - RESEARCH TO ADVANCE COMPREHENSIVE EXPLOITATION OF RADIO FREQUENCY (RACER)
Who is the contractor on this award?
The obligated recipient is THE KEYW CORPORATION.
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 $23.9 million.
What is the period of performance?
Start: 2017-07-18. End: 2022-10-14.
What specific factors led to a single awardee despite the 'full and open competition' designation for this R&D contract?
Further investigation is needed to understand the specific requirements of the RACER program and the capabilities of potential bidders. It's possible that The Keyw Corporation possessed unique, highly specialized expertise or intellectual property essential for this advanced RF exploitation research, making them the sole viable candidate. Alternatively, the solicitation process might have inadvertently limited the pool of qualified bidders.
How effectively will the Cost Plus Fixed Fee structure manage cost risks over the 1914-day contract period?
The CPFF structure aims to balance contractor incentive with government oversight. The fixed fee provides a ceiling on profit, encouraging efficiency. However, the 'cost-plus' element means the government bears the risk of actual costs incurred. Rigorous monitoring of direct and indirect costs, along with regular performance reviews, will be critical to mitigate potential cost overruns and ensure value for money.
What are the projected technological advancements from this $23.9M investment in RF exploitation R&D?
The contract aims to advance comprehensive exploitation of radio frequency. Potential outcomes could include enhanced intelligence gathering capabilities, improved electronic warfare systems, or novel methods for spectrum management and defense. The specific deliverables and milestones within the contract will dictate the precise nature and impact of these advancements on national security and technological capabilities.
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
Solicitation ID: FA865017S1005
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 7740 MILESTONE PKWY STE 400, HANOVER, MD, 21076
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,924,180
Exercised Options: $23,924,180
Current Obligation: $23,924,180
Actual Outlays: $664,656
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $4,287,669
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-07-18
Current End Date: 2022-10-14
Potential End Date: 2022-10-14 00:00:00
Last Modified: 2021-09-16
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