DoD's $3.28M R&D Contract with Spectral Energies LLC for Diagnostic Research Shows Moderate Competition

Contract Overview

Contract Amount: $3,281,351 ($3.3M)

Contractor: Spectral Energies LLC

Awarding Agency: Department of Defense

Start Date: 2022-06-15

End Date: 2028-06-30

Contract Duration: 2,207 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ICP RESEARCH, DIAGNOSTIC RESEARCH AND DEVELOPMENT

Place of Performance

Location: BEAVERCREEK, GREENE County, OHIO, 45430

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $3.3 million to SPECTRAL ENERGIES LLC for work described as: ICP RESEARCH, DIAGNOSTIC RESEARCH AND DEVELOPMENT Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract duration is over 2200 days, indicating a long-term project. 3. Full and open competition was utilized, suggesting a broad search for qualified contractors. 4. The award was a delivery order, implying it's part of a larger contract vehicle. 5. The contractor, Spectral Energies LLC, is based in Ohio. 6. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 7. This contract falls under the R&D sector, specifically focusing on diagnostic research.

Value Assessment

Rating: fair

Benchmarking the value of this specific $3.28 million contract is challenging without more data on comparable diagnostic R&D projects. The Cost Plus Fixed Fee (CPFF) structure means the final cost is not fixed upfront, making direct price comparisons difficult. However, the duration of over 2200 days suggests a substantial scope of work. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar research endeavors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. With 4 bidders identified, this suggests a reasonable level of competition for this specialized R&D requirement. The presence of multiple bidders generally aids in price discovery and ensures that the government receives competitive offers, although the specific pricing outcomes are not detailed here.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value and competitive pricing for research and development services.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially other government agencies that will utilize the diagnostic research findings. The services delivered involve advanced diagnostic research and development, contributing to technological advancements. The geographic impact is centered in Ohio, where Spectral Energies LLC is located, potentially creating local economic benefits. Workforce implications may include employment for scientists, researchers, and support staff involved in the R&D process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely managed.
The long duration of the contract (over 2200 days) increases the risk of scope creep or changing research needs.
Limited public information on the specific diagnostic research makes it difficult to assess the true value and potential impact.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract supports critical research and development for the Department of Defense.
The existence of 4 bidders indicates a healthy level of interest and capability in the market for this service.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). This is a highly specialized area where government funding plays a crucial role in driving innovation. Comparable spending benchmarks would involve looking at other DoD R&D contracts in similar scientific domains, though specific figures are often proprietary.

Small Business Impact

There is no indication that this contract was set aside for small businesses, and the data shows `ss` (small business set-aside) as false and `sb` (small business) as false. Therefore, this contract does not appear to directly benefit small businesses through a set-aside. Subcontracting opportunities for small businesses are not specified but are possible depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, but specific project details and progress reports may be limited due to the sensitive nature of R&D.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Diagnostic Technology Development
Physical and Engineering Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type requires careful oversight to manage potential cost overruns.
Long contract duration increases the risk of scope changes or evolving research needs.
Limited public detail on specific R&D objectives hinders independent value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.3 million to SPECTRAL ENERGIES LLC. ICP RESEARCH, DIAGNOSTIC RESEARCH AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is SPECTRAL ENERGIES LLC.

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 $3.3 million.

What is the period of performance?

Start: 2022-06-15. End: 2028-06-30.

What is the specific nature of the diagnostic research being conducted under this contract?

The provided data indicates the contract is for 'Diagnostic Research and Development' under NAICS code 541715, which covers R&D in Physical, Engineering, and Life Sciences. However, the specific applications or technologies within 'diagnostic research' are not detailed. This could range from medical diagnostics to system diagnostics for military equipment. Without further information, it's impossible to ascertain the precise scientific focus or the intended end-use of the research findings. Further inquiry would be needed to understand if this relates to personnel health, equipment maintenance, or other critical operational areas for the Department of Defense.

How does the $3.28 million cost compare to similar diagnostic R&D contracts awarded by the DoD?

Directly comparing the $3.28 million cost to similar diagnostic R&D contracts is challenging without access to a comprehensive database of comparable projects, including their scope, duration, and specific R&D focus. The contract type, Cost Plus Fixed Fee (CPFF), also complicates direct cost comparisons as the final expenditure is not predetermined. However, for long-term R&D efforts (over 2200 days), this funding level appears moderate. A more thorough analysis would involve identifying contracts with similar NAICS codes, research objectives, and contract types, and then normalizing for factors like inflation and project complexity.

What are the key performance indicators (KPIs) or milestones for this contract?

The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a Cost Plus Fixed Fee contract, especially one focused on R&D, milestones are typically tied to research progress, development of prototypes, testing phases, and final reports. The contracting officer and program managers within the Department of the Air Force would be responsible for defining and monitoring these milestones. The long duration of the contract suggests that these milestones would be phased over several years, requiring regular progress reviews to ensure the project remains on track and within budget.

What is Spectral Energies LLC's track record with government R&D contracts, particularly with the Department of Defense?

Information regarding Spectral Energies LLC's specific track record with government R&D contracts, especially with the Department of Defense, is not detailed in the provided data. To assess their capabilities and past performance, one would need to consult government contract databases (like SAM.gov or FPDS) for previous awards, contract values, and performance reviews. Understanding their history with similar research areas, their success in meeting deadlines and budget constraints, and any past performance issues would be crucial for a comprehensive assessment of their suitability for this contract.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D project?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government, primarily related to cost control. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' aspect means the government reimburses the contractor for allowable costs incurred. This can incentivize less stringent cost management by the contractor compared to fixed-price contracts. For R&D projects, where the scope and costs can be uncertain, CPFF is often used to encourage innovation and attract contractors for complex work. However, robust oversight, detailed cost reporting, and clear definition of allowable costs are essential to mitigate the risk of cost overruns and ensure value for taxpayer money.

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 › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4065 EXECUTIVE DR., BEAVERCREEK, OH, 45430

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,419,034

Exercised Options: $5,419,034

Current Obligation: $3,281,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865022D2014

IDV Type: IDC

Timeline