DoD's $245M R&D contract for secure persistent live, virtual, and constructive environments awarded to Frontier Technology Inc

Contract Overview

Contract Amount: $24,502,525 ($24.5M)

Contractor: Frontier Technology Inc

Awarding Agency: Department of Defense

Start Date: 2020-12-02

End Date: 2025-12-02

Contract Duration: 1,826 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SECURE PERSISTENT LIVE, VIRTUAL, AND CONST RES - NEW AWARD SBIR III

Place of Performance

Location: BEAVERCREEK TOWNSHIP, GREENE County, OHIO, 45431

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to FRONTIER TECHNOLOGY INC for work described as: SECURE PERSISTENT LIVE, VIRTUAL, AND CONST RES - NEW AWARD SBIR III Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Awarded via full and open competition, suggesting a robust market for these specialized services. 3. The contract duration of 1826 days indicates a long-term investment in technological advancement. 4. Cost Plus Fixed Fee pricing structure allows for flexibility in research but requires careful oversight. 5. The specific NAICS code (541715) points to a niche but critical area of scientific inquiry. 6. Geographic location of the contractor in Ohio may influence regional economic impact.

Value Assessment

Rating: good

The contract's value of $245 million over approximately five years for R&D services is substantial. Benchmarking this against similar large-scale R&D efforts within the Department of Defense is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can sometimes lead to higher costs if not managed tightly. The fixed fee component provides some cost certainty for the government, but the overall value will depend on the successful development of the 'secure persistent live, virtual, and constructive' environments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple potential bidders were allowed to submit proposals. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. However, the designation suggests a competitive environment was sought, which typically benefits price discovery and innovation.

Taxpayer Impact: A full and open competition generally provides the best opportunity for taxpayers to receive competitive pricing and innovative solutions, as it allows the government to consider a wide range of qualified contractors.

Public Impact

The Department of Defense benefits from advancements in secure persistent live, virtual, and constructive environments, crucial for training and operational readiness. Frontier Technology Inc. will deliver research and development services, potentially leading to new technological capabilities. The contract's impact is primarily national, supporting defense modernization efforts. Workforce implications may include specialized R&D roles within Frontier Technology Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified by performance.
The broad nature of R&D can introduce uncertainties in project scope and final cost, necessitating robust program management.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contract's long duration suggests a strategic commitment to developing critical capabilities.
Focus on advanced R&D aligns with the DoD's need for technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced simulation and virtual environment technologies. The market for such specialized R&D is often driven by government defense needs, with a limited number of firms possessing the requisite expertise. Comparable spending benchmarks would likely be found within other large DoD R&D contracts for simulation, modeling, and advanced computing, though precise figures are difficult to ascertain without more granular data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with Frontier Technology Inc. could exist, providing avenues for small businesses to participate in this large R&D effort, depending on the company's subcontracting plan and needs.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and program management teams within the Department of the Air Force. Accountability measures will be tied to performance milestones and the delivery of R&D outcomes. Transparency will depend on the DoD's reporting practices for R&D contracts and any public disclosures made by Frontier Technology Inc. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Simulation and Training Programs
Advanced Research Projects Agency (ARPA) Contracts
Department of Defense Science and Technology Programs
Virtual and Augmented Reality Development Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage potential cost escalations.
R&D projects inherently carry technical and schedule risks.
Definition of 'secure persistent live, virtual, and constructive' needs clear articulation and measurable outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to FRONTIER TECHNOLOGY INC. SECURE PERSISTENT LIVE, VIRTUAL, AND CONST RES - NEW AWARD SBIR III

Who is the contractor on this award?

The obligated recipient is FRONTIER TECHNOLOGY 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 $24.5 million.

What is the period of performance?

Start: 2020-12-02. End: 2025-12-02.

What is Frontier Technology Inc.'s track record with similar large-scale DoD R&D contracts?

Information regarding Frontier Technology Inc.'s specific track record with large-scale DoD R&D contracts of this magnitude is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any awards or penalties received on previous government contracts. Understanding their experience in developing secure persistent live, virtual, and constructive environments would be crucial. Without this historical data, it's difficult to definitively assess their capability and reliability for this specific project. Further investigation into their portfolio and client feedback would be necessary.

How does the $245 million value compare to similar R&D contracts for virtual environments?

The $245 million value for this R&D contract over approximately five years is significant, reflecting the complexity and strategic importance of developing secure persistent live, virtual, and constructive environments. Benchmarking this against similar contracts is challenging without access to a comprehensive database of R&D procurements. However, large-scale simulation and virtual environment development for defense purposes often involve multi-million dollar investments. The value appears commensurate with the potential scope of work, which could include advanced software development, hardware integration, and extensive testing. A detailed comparison would require identifying contracts with similar objectives, technologies, and durations within the defense sector.

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 R&D include potential cost overruns if the contractor's actual costs exceed estimates, although the fixed fee provides a ceiling on the profit. There's also a risk that the contractor might not be sufficiently incentivized to control costs, as they are reimbursed for allowable expenses. For the government, ensuring the 'allowable' costs are reasonable and directly related to the R&D objectives requires robust oversight. Furthermore, the complexity of R&D can lead to scope creep or unforeseen technical challenges, which need careful management within the CPFF framework to avoid disputes and ensure the project stays on track and within budget.

How effective is 'full and open competition after exclusion of sources' in ensuring value for taxpayer money in R&D?

Full and open competition after exclusion of sources is generally considered an effective method for ensuring value for taxpayer money, as it allows a broad range of qualified vendors to compete. This process encourages competitive pricing and fosters innovation by bringing diverse approaches to the table. By excluding specific sources, it implies that certain pre-identified entities were deemed not capable or suitable, streamlining the process while still maintaining broad competition. The effectiveness hinges on clear evaluation criteria and robust oversight to ensure the chosen solution represents the best value, balancing technical merit, cost, and delivery timelines. For R&D, this approach can lead to novel solutions that might not emerge from more restrictive competition methods.

What is the historical spending trend for R&D in simulation and virtual environments within the DoD?

Historical spending trends for R&D in simulation and virtual environments within the DoD have generally shown a consistent and often increasing investment over the years. This is driven by the recognized need for advanced training, mission rehearsal, and operational planning capabilities that these technologies provide. Factors such as evolving threats, the desire for cost-effective training solutions compared to live exercises, and advancements in computing power and graphics have fueled this spending. While specific figures fluctuate annually based on budget priorities and emerging technologies, the overall trajectory indicates a sustained commitment to this area of R&D. This contract aligns with that broader trend of investment in sophisticated virtual and constructive simulation 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 Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA865019R6039

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4141 COLONEL GLENN HWY STE 140, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,502,525

Exercised Options: $24,502,525

Current Obligation: $24,502,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline