DoD awards $4M R&D contract for corrosion prevention to University of Dayton

Contract Overview

Contract Amount: $3,994,456 ($4.0M)

Contractor: University of Dayton

Awarding Agency: Department of Defense

Start Date: 2018-06-14

End Date: 2024-09-03

Contract Duration: 2,273 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: QUICK REACTION EVALUATION (QRE) III TASK ORDER 1 -- CORROSION PREVENTION/CONTROL

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45469

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $4.0 million to UNIVERSITY OF DAYTON for work described as: QUICK REACTION EVALUATION (QRE) III TASK ORDER 1 -- CORROSION PREVENTION/CONTROL Key points: 1. Contract focuses on advanced research and development in physical sciences. 2. Full and open competition was utilized for this award. 3. The contract duration is substantial, spanning over six years. 4. The contract type is Cost Plus Fixed Fee, which can shift risk. 5. Research and Development in Physical, Engineering, and Life Sciences is a key sector. 6. The awardee, University of Dayton, is a significant research institution.

Value Assessment

Rating: fair

The contract value of approximately $4 million for a six-year research and development effort appears reasonable given the specialized nature of corrosion prevention and control. Benchmarking against similar R&D contracts in the physical sciences is challenging due to the unique technical requirements. However, the Cost Plus Fixed Fee (CPFF) contract type suggests that the government is willing to cover actual costs plus a negotiated fee, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if cost overruns occur. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of full and open competition generally promotes a competitive environment, which can lead to better pricing and innovation. This approach allows the government to select the offer that best meets its technical and cost requirements from a wide pool of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the opportunity to receive the best value by encouraging a broad range of proposals and potentially driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, who will receive advancements in corrosion prevention technologies. The services delivered include research and development aimed at improving the longevity and reliability of military assets. The geographic impact is primarily within Ohio, where the University of Dayton is located, but the research findings can have a nationwide impact on military readiness. The contract supports research personnel and potentially students at the University of Dayton, contributing to the scientific workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost uncertainty if not managed closely.
Long contract duration (over six years) may present challenges in adapting to evolving technological needs.
Limited information on specific performance metrics makes it difficult to assess progress and value realization.

Positive Signals

Award to a reputable research institution like the University of Dayton suggests strong technical capabilities.
Full and open competition indicates a robust selection process, likely resulting in a technically sound proposal.
Focus on corrosion prevention is critical for maintaining the service life and operational readiness of military equipment.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for R&D in defense is substantial, with significant investment in materials science, engineering, and advanced technologies to maintain military superiority and asset longevity. The University of Dayton's role as a research institution positions it well within this sector, competing for and executing government-funded research projects. Comparable spending benchmarks would typically involve other R&D contracts awarded by DoD agencies for similar scientific endeavors.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. As a research and development effort awarded to a university, the primary focus is on technical expertise rather than small business subcontracting goals, unless explicitly stated in the contract. The impact on the small business ecosystem is likely minimal for this specific award, though universities often collaborate with small businesses on research projects.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Air Force contracting officers and program managers. They are responsible for monitoring costs, ensuring adherence to the fixed fee, and verifying that the research objectives are being met. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Materials Science Research
Corrosion Prevention Research Programs
University Research Partnerships with Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may necessitate adaptive management to evolving research needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.0 million to UNIVERSITY OF DAYTON. QUICK REACTION EVALUATION (QRE) III TASK ORDER 1 -- CORROSION PREVENTION/CONTROL

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF DAYTON.

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 $4.0 million.

What is the period of performance?

Start: 2018-06-14. End: 2024-09-03.

What is the University of Dayton's track record with federal R&D contracts, particularly with the Department of Defense?

The University of Dayton has a significant history of engaging in federal research and development contracts, including numerous awards from the Department of Defense and its various branches like the Air Force. Their research portfolio often spans areas such as materials science, aerospace engineering, and advanced manufacturing. While specific details on past corrosion prevention contracts would require deeper database searches, the university's designation as a research institution with a strong emphasis on engineering and physical sciences suggests a substantial capacity and experience in undertaking complex federal R&D projects. Their established infrastructure and research personnel are well-suited for such endeavors, often leading to successful outcomes and follow-on funding opportunities.

How does the $4 million value compare to similar corrosion prevention R&D contracts awarded by the DoD?

Benchmarking the $4 million value for this specific corrosion prevention R&D contract requires careful consideration of its scope, duration, and technical complexity. Contracts for R&D can vary widely in cost based on the novelty of the research, the required personnel expertise, and the expected deliverables. A six-year duration for a $4 million award suggests an average annual funding of approximately $667,000. This figure appears moderate for a dedicated R&D effort within a specialized field like corrosion control. Similar contracts might range from hundreds of thousands to several million dollars annually, depending on whether they involve fundamental research, applied research, or advanced technology development. Without more granular data on the specific technical objectives and the number of research personnel involved, a precise comparison is difficult, but the award seems within a reasonable range for a multi-year, specialized R&D project.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) primarily revolve around cost control and potential for scope creep. Under a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. The risk for the government is that costs could escalate beyond initial projections, even though the fee remains fixed. This can occur if the research proves more complex or time-consuming than anticipated, or if the contractor's cost management is not rigorous. For the contractor, the risk lies in accurately estimating the costs to ensure the fixed fee is sufficient to cover their efforts and provide a reasonable profit, especially if unforeseen challenges arise. Effective oversight and clear definition of allowable costs are crucial to mitigate these risks for the government.

How effective is full and open competition in ensuring value for money in specialized R&D contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in specialized R&D contracts. By allowing all responsible sources to compete, the government broadens the pool of potential innovators and service providers, increasing the likelihood of receiving technically superior proposals at competitive prices. This process encourages contractors to offer their best solutions and pricing to win the award. In specialized R&D, where unique expertise and novel approaches are critical, competition can uncover a wider range of innovative solutions than might be found through limited or sole-source procurements. While the technical merit of proposals is paramount in R&D, competitive pressure still influences pricing and resource allocation, ultimately benefiting the taxpayer by driving efficiency and innovation.

What are the potential long-term implications of this contract for military asset maintenance and readiness?

The long-term implications of this contract for military asset maintenance and readiness could be significant. Corrosion is a pervasive issue that affects a wide range of military equipment, from aircraft and vehicles to ships and infrastructure, leading to reduced operational lifespan, increased maintenance costs, and potential mission failures. Advancements in corrosion prevention and control technologies developed through this R&D effort could lead to more durable materials, more effective protective coatings, or improved maintenance strategies. Successful outcomes could translate into substantial cost savings over the lifecycle of military assets, reduced downtime for repairs, and enhanced overall readiness and reliability of the armed forces. The research aims to proactively address a critical threat to military hardware.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 300 COLLEGE PARK, DAYTON, OH, 45469

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,019,635

Exercised Options: $4,019,635

Current Obligation: $3,994,456

Actual Outlays: $279,168

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $108,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865018D5600

IDV Type: IDC

Timeline