DoD's $231M Raven Nanosystems Contract Awarded to Varioscale Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $23,122,434 ($23.1M)
Contractor: Varioscale, Inc
Awarding Agency: Department of Defense
Start Date: 2016-11-23
End Date: 2022-12-30
Contract Duration: 2,228 days
Daily Burn Rate: $10.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF RAPID ANALYSIS OF VARIOUS EMERGING NANOELECTRONICS (RAVEN)
Place of Performance
Location: SAN MARCOS, SAN DIEGO County, CALIFORNIA, 92078
Plain-Language Summary
Department of Defense obligated $23.1 million to VARIOSCALE, INC for work described as: IGF::OT::IGF RAPID ANALYSIS OF VARIOUS EMERGING NANOELECTRONICS (RAVEN) Key points: 1. The contract focuses on advanced nanosystems research and development, a critical area for defense modernization. 2. Varioscale Inc. secured the award through a full and open competition, suggesting a competitive bidding process. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a high-tech focus. 4. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not managed diligently.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not closely monitored. Benchmarking against similar R&D contracts is difficult due to the specialized nature of emerging nanotechnologies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders likely participated. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are supporting cutting-edge research, with the potential for significant technological advancements that could benefit national security.
Public Impact
Advancement of critical nanotechnology for defense applications. Potential for dual-use technologies with civilian applications. Investment in U.S. technological superiority in a key emerging field. Job creation in the high-tech R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type requires robust oversight to manage costs.
- Long contract duration (2228 days) increases risk of scope creep or evolving requirements.
- Emerging technology carries inherent technical and performance risks.
Positive Signals
- Awarded via full and open competition.
- Focus on critical R&D for national security.
- Contract awarded to a single entity, potentially allowing for focused expertise.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on advanced physical sciences and engineering. Spending in this area is crucial for maintaining technological superiority but can be subject to high uncertainty and long development cycles.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates strong government oversight to ensure cost control and adherence to project milestones. Regular performance reviews and audits are critical for accountability.
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
- Cost overrun risk due to CPFF structure.
- Technical feasibility and performance risk of emerging nanotechnologies.
- Long contract duration increases risk of requirement changes or obsolescence.
- Potential for limited visibility into subcontractor performance if applicable.
- Dependence on a single contractor for specialized R&D.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to VARIOSCALE, INC. IGF::OT::IGF RAPID ANALYSIS OF VARIOUS EMERGING NANOELECTRONICS (RAVEN)
Who is the contractor on this award?
The obligated recipient is VARIOSCALE, INC.
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 $23.1 million.
What is the period of performance?
Start: 2016-11-23. End: 2022-12-30.
What is the projected return on investment for this R&D contract, considering the long development timeline and inherent risks of emerging technologies?
Quantifying ROI for emerging R&D is challenging. Success hinges on successful technology maturation and subsequent adoption. Potential returns could be immense if the nanotechnologies lead to breakthrough capabilities, but the risk of failure or obsolescence is also significant. The DoD's investment is strategic, prioritizing future capabilities over immediate financial returns.
How will the government ensure cost efficiency and prevent overruns under the Cost Plus Fixed Fee (CPFF) structure for this extensive R&D effort?
Effective cost control under CPFF requires rigorous government oversight, including detailed cost tracking, regular audits, and performance reviews tied to milestones. Clear definition of work and change control processes are essential. The contracting officer must actively manage the contractor's performance and expenditures to ensure value for money.
What are the key performance indicators (KPIs) being used to measure the success of the RAVEN program, and how will they be assessed given the R&D nature?
Success metrics for R&D programs like RAVEN often focus on technical milestones, prototype development, and demonstration of specific capabilities rather than traditional output metrics. KPIs might include achieving certain performance thresholds in speed, size, or power consumption for the nanodevices, successful integration into test platforms, and timely delivery of research reports and prototypes.
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: 12
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1782 LA COSTA MEADOWS DR STE 103, SAN MARCOS, CA, 92078
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,119,924
Exercised Options: $27,119,924
Current Obligation: $23,122,434
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-11-23
Current End Date: 2022-12-30
Potential End Date: 2022-12-30 00:00:00
Last Modified: 2022-06-22
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