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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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