DoD's $33M R&D Contract for Low Cost Engine Architecture Development Awarded to Florida Turbine Technologies
Contract Overview
Contract Amount: $33,045,684 ($33.0M)
Contractor: Florida Turbine Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-20
End Date: 2026-12-10
Contract Duration: 1,604 days
Daily Burn Rate: $20.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LOW COST ENGINE ARCHITECTURE DEVELOPMENT PROGRAM
Place of Performance
Location: JUPITER, PALM BEACH County, FLORIDA, 33458
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $33.0 million to FLORIDA TURBINE TECHNOLOGIES, INC. for work described as: LOW COST ENGINE ARCHITECTURE DEVELOPMENT PROGRAM Key points: 1. This contract focuses on research and development in engine architecture, a critical area for aerospace innovation. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control while allowing for flexibility. 4. The primary sector is R&D, with a specific NAICS code for physical, engineering, and life sciences research.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and the fixed fee is justified. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The competitive nature of the award is intended to secure the best possible price for the research and development services, ultimately benefiting taxpayers.
Public Impact
Advancement in engine technology could lead to more efficient and cost-effective aircraft in the future. Investment in R&D supports technological leadership and national security capabilities. The contract duration of over four years suggests a significant and complex research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The specific technical outcomes and their long-term cost-effectiveness are yet to be determined.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Focus on R&D in a critical defense technology area.
- Long-term contract duration allows for thorough development and testing.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for maintaining technological superiority and innovation, particularly within the Department of Defense.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is not listed as a small business. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Air Force to monitor costs, progress, and ensure the fixed fee remains appropriate throughout the contract's lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns inherent in CPFF contracts.
- Technical feasibility and performance risks in novel R&D.
- Long development timeline increases risk of obsolescence or changing requirements.
- Lack of small business participation noted in prime award.
Tags
research-and-development-in-the-physical, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to FLORIDA TURBINE TECHNOLOGIES, INC.. LOW COST ENGINE ARCHITECTURE DEVELOPMENT PROGRAM
Who is the contractor on this award?
The obligated recipient is FLORIDA TURBINE TECHNOLOGIES, 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 $33.0 million.
What is the period of performance?
Start: 2022-07-20. End: 2026-12-10.
What is the projected long-term cost saving or efficiency gain expected from the developed low-cost engine architecture?
The primary goal of this R&D program is to develop a 'low cost' engine architecture. While the immediate contract value is $33 million, the long-term taxpayer impact hinges on the successful realization of significant cost reductions in future engine production and maintenance, potentially saving billions over the lifespan of new aircraft platforms.
What are the key technical risks associated with developing a novel low-cost engine architecture, and how are they being mitigated?
Key risks include achieving desired performance metrics (thrust, efficiency, durability) at a lower cost, material science challenges, and integration complexities. Mitigation strategies likely involve phased development, rigorous testing, and close collaboration between the contractor and the Air Force's technical experts to address challenges as they arise.
How will the effectiveness of this R&D investment be measured beyond the contract's completion?
Effectiveness will be measured by the successful transition of the developed architecture into production-ready designs, demonstrated performance improvements in subsequent testing or prototypes, and ultimately, the actual cost savings realized in future engine procurements compared to existing technologies. Independent reviews and validation will be crucial.
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
Parent Company: Kratos Systems and Solutions, Inc.
Address: 1701 MILITARY TRL STE 110, JUPITER, FL, 33458
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $80,703,478
Exercised Options: $33,638,398
Current Obligation: $33,045,684
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865019D2056
IDV Type: IDC
Timeline
Start Date: 2022-07-20
Current End Date: 2026-12-10
Potential End Date: 2026-12-10 00:00:00
Last Modified: 2026-01-20
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