DoD's $17.9M LINGER contract for advanced electro-optical research awarded to Defense Engineering Corp

Contract Overview

Contract Amount: $17,890,822 ($17.9M)

Contractor: Defense Engineering Corp

Awarding Agency: Department of Defense

Start Date: 2022-02-01

End Date: 2027-02-01

Contract Duration: 1,826 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LIDAR NEXT GENERATION ELECTRO-OPTICAL RESEARCH (LINGER)

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45440

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to DEFENSE ENGINEERING CORP for work described as: LIDAR NEXT GENERATION ELECTRO-OPTICAL RESEARCH (LINGER) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Research and Development focus aligns with critical defense modernization efforts. 3. Long contract duration of 5 years indicates a significant, ongoing project. 4. Cost Plus Fixed Fee (CPFF) contract type may incentivize cost overruns if not closely monitored. 5. Performance period spans from early 2022 to early 2027. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this specific $17.9 million contract is challenging without more context on the scope of 'LIDAR NEXT GENERATION ELECTRO-OPTICAL RESEARCH'. However, R&D contracts can vary widely in cost based on complexity and novelty. The CPFF structure requires careful oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for the effort without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the method of award implies multiple proposals were likely considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where contractors vie for the best price and performance, potentially leading to cost savings and higher quality outcomes.

Public Impact

The Department of Defense benefits from advancements in electro-optical research, potentially enhancing surveillance, targeting, and reconnaissance capabilities. The research is expected to yield next-generation LIDAR technologies. The geographic impact is primarily within Ohio, where the contractor is located. Workforce implications include employment for specialized researchers and engineers in the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for all allowable costs plus a fixed fee.
The long duration of the contract (5 years) increases the risk of scope creep or evolving technological requirements that may not be fully captured in the initial award.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the likelihood of successful project completion.
The specific nature of 'electro-optical research' can be highly specialized, potentially limiting the pool of qualified oversight personnel.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive value.
The contract focuses on advanced research and development, crucial for maintaining technological superiority.
The contractor, Defense Engineering Corp, is likely selected based on demonstrated expertise in the relevant field.
The long-term nature of the contract suggests a strategic investment in a critical defense capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced electro-optical systems, including LIDAR, is driven by defense, aerospace, and increasingly, autonomous vehicle applications. Spending in this niche R&D area is critical for innovation, with government contracts often funding the foundational research that later commercializes. Comparable spending benchmarks are difficult without knowing the specific technological advancements sought, but significant R&D investments are common in defense.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor, Defense Engineering Corp, may engage small businesses as subcontractors for specialized services or components, though this is not specified.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Given the CPFF structure, rigorous financial oversight and progress monitoring are essential to ensure costs are controlled and the fixed fee remains appropriate. Transparency is usually maintained through contract reporting requirements and potential audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Advanced Sensor Development Programs
Next-Generation Targeting Systems
Electronic Warfare Research
Defense Research and Engineering
LIDAR Technology Development

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases risk of scope changes and evolving requirements.
Lack of specific performance metrics in summary data hinders assessment of project success likelihood.
Nature of R&D can be inherently uncertain, with potential for technical challenges or failures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to DEFENSE ENGINEERING CORP. LIDAR NEXT GENERATION ELECTRO-OPTICAL RESEARCH (LINGER)

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 $17.9 million.

What is the period of performance?

Start: 2022-02-01. End: 2027-02-01.

What is the specific technological advancement sought by the 'LIDAR NEXT GENERATION ELECTRO-OPTICAL RESEARCH (LINGER)' contract, and how does it compare to current capabilities?

The provided data does not detail the specific technological advancements sought by the LINGER contract beyond its general description. 'Next-generation electro-optical research' implies a focus on developing novel or significantly improved systems for sensing and imaging using light. This could encompass areas like enhanced resolution, longer detection ranges, improved performance in adverse weather conditions, reduced size/weight/power (SWaP), or new functionalities such as advanced target identification or 3D mapping capabilities. Comparing it to current capabilities would require knowledge of the state-of-the-art in military LIDAR and electro-optical systems, which is often classified or proprietary. However, the contract's R&D nature suggests it aims to push beyond existing technological frontiers to provide a future advantage.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the contractor's incentives and the government's risk exposure for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type reimburses the contractor for all allowable costs incurred during the project and pays a predetermined fixed fee as profit. For R&D, this structure is often used when the scope of work is not precisely defined or when innovation is paramount, allowing flexibility. The contractor is incentivized to complete the work efficiently to maximize their profit margin (fixed fee relative to actual costs). However, it shifts significant financial risk to the government, as the government bears the full cost of any overruns. Effective oversight is crucial to ensure costs are reasonable and allocable, and that the fixed fee remains fair for the effort expended. Without stringent controls, CPFF contracts can lead to cost escalation.

What is the historical spending pattern for similar electro-optical or LIDAR research contracts within the Department of Defense?

Historical spending on electro-optical and LIDAR research within the Department of Defense (DoD) is substantial and spans decades, reflecting the critical role these technologies play in defense capabilities. While specific figures for 'LINGER' or directly comparable contracts are not publicly itemized in aggregate, the DoD consistently invests billions annually in Research, Development, Test, and Evaluation (RDT&E). Major defense contractors and specialized R&D firms frequently secure contracts for advanced sensor development, including LIDAR for applications like targeting, navigation, terrain mapping, and missile defense. Spending fluctuates based on strategic priorities, technological breakthroughs, and specific program needs. The $17.9 million for LINGER appears to be a moderate investment for a focused R&D effort within this broader category.

What is the track record of Defense Engineering Corp in delivering complex R&D projects, particularly those involving electro-optics?

Information regarding the specific track record of Defense Engineering Corp in delivering complex R&D projects, especially in electro-optics, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on government contracts, including CPARS (Contractor Performance Assessment Reporting System) reports, any past performance evaluations, and their portfolio of completed projects. Companies in this sector often specialize in niche areas, and their success is typically measured by their ability to meet technical specifications, adhere to schedules, and manage costs within their contract structures. Without access to their performance history, it's difficult to definitively assess their reliability for this specific R&D endeavor.

How does the geographic location of the contractor (Ohio) potentially impact project execution and oversight for this Department of Defense contract?

The contractor's location in Ohio means that oversight activities, such as site visits, progress reviews, and audits, would be conducted by personnel assigned to that region or requiring travel. The Defense Contract Management Agency (DCMA) has a significant presence in Ohio, which likely facilitates oversight. While Ohio has a strong industrial and technological base, including in aerospace and defense, the specific impact on project execution is generally minimal unless specialized facilities or unique logistical challenges arise. Proximity can sometimes aid in collaboration and oversight efficiency, but modern communication tools often mitigate geographic distance for R&D projects. The primary consideration is the contractor's capability, not their location, though logistical support for government personnel may be a factor.

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

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: $22,441,493

Exercised Options: $22,441,493

Current Obligation: $17,890,822

Actual Outlays: $256,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865020D1013

IDV Type: IDC

Timeline