DoD's $1.22B R&D contract to Parallax Advanced Research Corp for physical, engineering, and life sciences research

Contract Overview

Contract Amount: $12,248,799 ($12.2M)

Contractor: Parallax Advanced Research Corp

Awarding Agency: Department of Defense

Start Date: 2022-05-26

End Date: 2026-07-25

Contract Duration: 1,521 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MULTI-SOURCE ANALYTICS

Place of Performance

Location: BEAVERCREEK TOWNSHIP, GREENE County, OHIO, 45431

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to PARALLAX ADVANCED RESEARCH CORP for work described as: MULTI-SOURCE ANALYTICS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. Performance period spans over 4 years, indicating a long-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541715 points to significant investment in advanced scientific research. 5. The contract is a Delivery Order under a larger award, implying it's part of an existing framework. 6. No small business set-aside or subcontracting was indicated, potentially limiting small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. However, the substantial dollar amount suggests a significant investment in R&D. Comparing it to similar large-scale R&D contracts within the Department of Defense would provide better context for value for money. The fixed fee component offers some predictability, but the cost-reimbursement aspect requires diligent oversight to ensure efficiency.

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 method generally promotes a wider range of proposals and potentially more competitive pricing. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the advancement of scientific knowledge in physical, engineering, and life sciences. Services delivered include research and development activities, contributing to technological innovation and national security. The geographic impact is centered in Ohio, where the contractor is located, potentially creating local economic benefits. Workforce implications may include the creation or sustainment of high-skilled R&D jobs within Parallax Advanced Research Corp and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed carefully.
Lack of small business participation could limit the diversity of innovation and subcontracting opportunities.
The long performance period requires sustained oversight to ensure objectives are met.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Focus on R&D in critical scientific areas aligns with strategic defense goals.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Department of Defense is a major investor in R&D to maintain technological superiority. Comparable spending benchmarks would involve analyzing other large R&D contracts awarded by DoD and other federal agencies for similar scientific endeavors. The NAICS code 541715 indicates a specialized area of scientific inquiry.

Small Business Impact

The absence of small business set-aside or subcontracting requirements in the provided data suggests that this contract may not directly benefit small businesses. This could mean that larger prime contractors are expected to handle the work, potentially limiting opportunities for smaller, specialized firms to participate in this significant R&D effort. Further investigation into subcontracting plans would be necessary for a complete assessment.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures would be tied to the achievement of research milestones and adherence to the Cost Plus Fixed Fee structure. Transparency is generally facilitated through contract award databases, though detailed cost performance reports may be less publicly accessible.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Advanced Materials Research Contracts
Biotechnology and Life Sciences Research
Engineering and Physical Sciences Development

Risk Flags

Long-term contract duration increases risk of changing priorities.
Cost Plus Fixed Fee structure requires diligent oversight to manage costs.
Lack of specified small business participation may limit ecosystem benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to PARALLAX ADVANCED RESEARCH CORP. MULTI-SOURCE ANALYTICS

Who is the contractor on this award?

The obligated recipient is PARALLAX ADVANCED RESEARCH 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 $12.2 million.

What is the period of performance?

Start: 2022-05-26. End: 2026-07-25.

What is Parallax Advanced Research Corp's track record with large federal R&D contracts?

Parallax Advanced Research Corp has a history of securing federal contracts, particularly within the R&D domain. While specific details on their track record with contracts of this magnitude ($1.22 billion) require deeper analysis of federal procurement databases, their specialization in physical, engineering, and life sciences aligns with the nature of this award. Examining past performance reviews, contract completion success rates, and any documented issues on previous DoD or other agency contracts would provide a clearer picture of their capabilities and reliability in executing complex, long-term research initiatives. Their ability to manage cost-plus fixed-fee structures effectively and deliver on research objectives is a key area for assessment.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. The government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their fixed profit margin. However, it carries risks of cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. Compared to Cost-Plus-Incentive-Fee (CPIF), the profit is fixed, reducing the incentive for exceptional cost savings beyond what's needed to achieve the fixed fee.

What are the potential risks associated with a $1.22 billion R&D contract spanning over four years?

A contract of this magnitude and duration carries several inherent risks. Firstly, the long timeframe increases the possibility of technological obsolescence or shifts in strategic priorities, potentially rendering the research outcomes less relevant. Secondly, managing a Cost Plus Fixed Fee structure over four years requires robust oversight to prevent cost creep and ensure efficient resource allocation. Thirdly, there's a risk that the research objectives may prove unattainable or significantly more complex than initially assessed, leading to delays or failure to meet deliverables. Finally, contractor performance issues, such as key personnel turnover or inadequate project management, could jeopardize the contract's success. The Department of Defense must maintain vigilant oversight throughout the contract's lifecycle.

How does the NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) typically align with DoD spending priorities?

The NAICS code 541715 encompasses a broad spectrum of scientific and technical research crucial for national defense. The Department of Defense heavily invests in this area to maintain a technological edge, develop advanced weaponry, improve intelligence capabilities, and enhance soldier performance. Spending under this code often supports innovation in fields like materials science, aerospace engineering, cybersecurity, artificial intelligence, biotechnology, and medical research relevant to military applications. Contracts like this one are vital for translating fundamental scientific discoveries into practical defense technologies, ensuring the U.S. military remains equipped to address current and future threats.

What are the implications of this contract being a 'Delivery Order' under a larger award?

When a contract is a 'Delivery Order' under a larger award, it signifies that this specific task or project is being executed under a pre-existing, broader contract vehicle, often an Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a Multiple Award Contract (MAC). This implies that the initial competition and vetting of the prime contract likely occurred earlier. The current award represents a specific order placed against that established contract. This approach can streamline procurement for subsequent needs, but it also means that the competition for this specific delivery order might have been limited to the awardees of the parent contract, rather than being a completely new full and open competition for this particular scope of work.

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

Solicitation ID: FA865021S6002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4035 COLONEL GLENN HWY STE 200, BEAVERCREEK, OH, 45431

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

Financial Breakdown

Contract Ceiling: $12,765,362

Exercised Options: $12,765,362

Current Obligation: $12,248,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865022D6401

IDV Type: IDC

Timeline