DoD's DIESEL program awards $11.8M to Defense Engineering Corp for sensor development

Contract Overview

Contract Amount: $11,800,971 ($11.8M)

Contractor: Defense Engineering Corp

Awarding Agency: Department of Defense

Start Date: 2022-03-21

End Date: 2026-09-21

Contract Duration: 1,645 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEVELOPMENT, INTEGRATION, EXPERIMENTATION OF SENSORS FOR ENHANCED LETHALITY (DIESEL)

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45440

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to DEFENSE ENGINEERING CORP for work described as: DEVELOPMENT, INTEGRATION, EXPERIMENTATION OF SENSORS FOR ENHANCED LETHALITY (DIESEL) Key points: 1. Contract focuses on R&D for advanced sensor lethality. 2. Defense Engineering Corp is the sole awardee. 3. Contract duration extends through September 2026. 4. Award type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. Geographic location of performance is Ohio. 6. No small business set-aside was applied. 7. The contract falls under R&D in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure warrants careful monitoring to ensure cost control. Benchmarking this specific R&D effort against similar sensor development contracts is challenging due to its specialized nature. However, the fixed fee component provides some predictability in contractor profit. The total award amount of $11.8M appears reasonable for a multi-year R&D project of this scope, but detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad outreach to potential offerors. However, only one award was made, which could indicate a highly specialized requirement or limited market response. The competitive process, even with a single award, should have driven a reasonable price. Further analysis would be needed to understand the number of proposals received and the evaluation criteria.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, potentially leading to more competitive pricing.

Public Impact

The Department of Defense benefits from advancements in sensor technology for enhanced military capabilities. Research and development services are being delivered to improve weapon system lethality. The primary geographic impact is in Ohio, where the contractor is located. The contract supports specialized R&D roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if not managed diligently.
Limited number of awards from full and open competition may warrant investigation into market dynamics.
The specialized nature of R&D may limit transparency in cost comparisons.

Positive Signals

Awarded under full and open competition, maximizing potential for diverse solutions.
Clear contract end date provides a defined period for development and testing.
Focus on enhancing lethality aligns with stated defense modernization goals.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The market for advanced sensor development is highly specialized, often dominated by a few key players with unique expertise. Comparable spending benchmarks are difficult to establish without more specific details on the technology, but R&D contracts of this duration and value are common within the defense industrial base.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing the most capable large business for this specialized R&D effort. The impact on the small business ecosystem is likely minimal for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency may be limited due to the sensitive and specialized nature of defense R&D, but standard contract reporting mechanisms should be in place.

Related Government Programs

Advanced Weapon Systems Development
Sensor Technology Research
Defense Research and Development
Military Lethality Enhancement Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
Single award from full and open competition may indicate limited market interest or high specialization.
R&D contracts can be subject to scope creep and technological uncertainty.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to DEFENSE ENGINEERING CORP. DEVELOPMENT, INTEGRATION, EXPERIMENTATION OF SENSORS FOR ENHANCED LETHALITY (DIESEL)

Who is the contractor on this award?

The obligated recipient is DEFENSE ENGINEERING CORP.

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 $11.8 million.

What is the period of performance?

Start: 2022-03-21. End: 2026-09-21.

What is the specific technological advancement targeted by the DIESEL program?

The DIESEL (Development, Integration, Experimentation of Sensors for Enhanced Lethality) program aims to advance sensor technologies to improve the effectiveness and precision of military weapon systems. While the provided data does not detail the specific technological advancements, the focus on 'enhanced lethality' suggests research into areas such as improved target acquisition, tracking, identification, and potentially the integration of novel sensor fusion techniques. This could involve advancements in electro-optical, infrared, radar, or acoustic sensing capabilities, tailored for specific operational environments and platforms to provide warfighters with superior situational awareness and engagement options.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of risk and value?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development where the scope of work is not fully defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. This structure shifts some cost risk to the government, as the final cost can exceed initial estimates if costs escalate. However, the fixed fee provides the contractor with an incentive to control costs to maximize their profit margin. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving R&D but potentially less cost certainty for the government. Compared to Cost Plus Incentive Fee (CPIF) contracts, CPFF offers a more stable fee structure but fewer direct incentives for cost reduction beyond the contractor's desire to maintain a good relationship and secure future work.

What is Defense Engineering Corp's track record with similar DoD R&D contracts?

Information regarding Defense Engineering Corp's specific track record with similar DoD R&D contracts is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and experience with sensor development and lethality enhancement projects. Typically, agencies evaluate a contractor's past performance as a key factor in award decisions, looking for evidence of successful project completion, adherence to schedule and budget, and technical proficiency. Without access to this historical data, it's difficult to definitively assess their suitability and past success in comparable endeavors.

Are there any publicly available performance metrics or milestones for the DIESEL program?

Publicly available performance metrics or specific milestones for the DIESEL program are not detailed in the provided contract award data. Government R&D contracts, especially those involving sensitive defense technologies, often have performance metrics and milestones that are considered proprietary or classified to protect national security interests and competitive advantages. While the contract specifies an end date (September 21, 2026), the interim deliverables, testing protocols, and success criteria are typically outlined in the contract's Statement of Work (SOW) and are not usually made public. Oversight bodies and the contracting agency would monitor these internal metrics.

How does the $11.8M award compare to historical spending on sensor development within the Department of the Air Force?

Comparing the $11.8M award for the DIESEL program to historical spending on sensor development within the Department of the Air Force requires access to broader historical spending data. This single award represents a specific R&D initiative. The Air Force, like other branches of the DoD, invests significantly in sensor technology across various programs, including intelligence, surveillance, reconnaissance (ISR), electronic warfare, and weapon systems. The total annual spending on sensor R&D can range from hundreds of millions to billions of dollars, depending on strategic priorities and technological advancements. This $11.8M award is likely a component of a larger, ongoing investment strategy in advanced sensing 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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA865021S1180

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 124 CHARTLEY CRT, BEAVERCREEK, OH, 45440

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

Financial Breakdown

Contract Ceiling: $14,699,823

Exercised Options: $14,699,823

Current Obligation: $11,800,971

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline