DoD's $17.8M Convergence Lab Initiative contract awarded to Virginia Commonwealth University for R&D

Contract Overview

Contract Amount: $17,858,565 ($17.9M)

Contractor: Virginia Commonwealth University

Awarding Agency: Department of Defense

Start Date: 2023-09-22

End Date: 2026-12-21

Contract Duration: 1,186 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: R&D

Official Description: CONVERGENCE LAB INITIATIVE (CLI)

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23284

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to VIRGINIA COMMONWEALTH UNIVERSITY for work described as: CONVERGENCE LAB INITIATIVE (CLI) Key points: 1. Contract focuses on advanced research and development, aligning with strategic national security objectives. 2. The awardee, Virginia Commonwealth University, is a recognized research institution with a strong academic background. 3. The contract duration of nearly four years suggests a significant, long-term research effort. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical area for technological advancement. 5. The 'Cost No Fee' contract type indicates the government will reimburse allowable costs but will not pay a fee. 6. The contract's value is substantial, reflecting the complexity and importance of the research undertaken.

Value Assessment

Rating: fair

Benchmarking the value of this research and development contract is challenging due to its specialized nature and the 'Cost No Fee' structure. The total award of $17.8 million over approximately four years suggests a significant investment in scientific exploration. Without specific deliverables or comparable projects, assessing value-for-money is difficult. However, the 'Cost No Fee' arrangement implies the government is primarily interested in the research process and outcomes, bearing the cost of execution without an additional profit margin for the contractor.

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 proposals. This competitive process is designed to ensure the government receives the best possible value by considering a wide range of qualified offerors. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more innovative solutions and potentially lower costs through price discovery.

Public Impact

The primary beneficiaries are expected to be the Department of Defense and the nation through advancements in physical, engineering, and life sciences. The contract will support cutting-edge research and development activities, potentially leading to new technologies and capabilities. The geographic impact is centered around Virginia Commonwealth University, likely stimulating local research ecosystems and talent development. Workforce implications include opportunities for researchers, scientists, and support staff at the university and potentially its collaborators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract type can sometimes lead to less stringent cost control if not properly managed, as the contractor does not have a direct financial incentive to minimize expenses beyond allowable costs.
The long duration of the contract requires sustained oversight to ensure research stays on track and objectives are met.
The specialized nature of R&D makes it difficult to benchmark performance and outcomes against readily available metrics.

Positive Signals

Award to a university suggests a focus on fundamental research and innovation, potentially yielding breakthrough discoveries.
Full and open competition indicates a thorough evaluation process, likely selecting a highly qualified research institution.
The significant investment signals a commitment to advancing critical scientific fields relevant to national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing fundamental research and applied research aimed at discovering new knowledge and developing new technologies. The market for such R&D services is characterized by a mix of academic institutions, private research firms, and government laboratories. The total federal spending in R&D is substantial, with significant portions allocated to defense-related research to maintain technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of advanced research and development, the primary awardee is a large academic institution. There may be opportunities for small businesses to participate as subcontractors, but this is not explicitly detailed in the provided data. The focus is on the core research capabilities of the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. Given the 'Cost No Fee' structure and the R&D focus, oversight will emphasize adherence to research protocols, progress tracking, and responsible use of funds. Transparency will be maintained through regular reporting requirements from Virginia Commonwealth University. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
University Research Partnerships
Advanced Technology Development Contracts

Risk Flags

Cost Control Risk (Cost No Fee)
Research Outcome Uncertainty
Long-Term Project Management
Defining Measurable Success in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to VIRGINIA COMMONWEALTH UNIVERSITY. CONVERGENCE LAB INITIATIVE (CLI)

Who is the contractor on this award?

The obligated recipient is VIRGINIA COMMONWEALTH UNIVERSITY.

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: 2023-09-22. End: 2026-12-21.

What is the specific research focus of the Convergence Lab Initiative (CLI)?

The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under the 'CONVERGENCE LAB INITIATIVE (CLI)'. While the broad category is defined, the specific convergence areas or technological goals are not detailed. This initiative likely aims to foster interdisciplinary research, bringing together different scientific fields to address complex challenges or create novel solutions. Further details on the CLI's objectives would be needed to understand the precise research focus.

How does the $17.8 million award compare to typical R&D contracts in this sector?

The $17.8 million award for a nearly four-year R&D effort is a substantial but not extraordinary amount for a federal contract in this domain. Large-scale, multi-disciplinary research initiatives awarded to major universities or research institutions often fall within this range or higher. For context, federal R&D spending across all agencies is in the tens of billions annually. Contracts of this magnitude typically support significant scientific exploration or the development of advanced technological capabilities deemed critical by the awarding agency, such as the Department of Defense.

What are the potential risks associated with a 'Cost No Fee' R&D contract?

A 'Cost No Fee' (CNF) contract means the government reimburses the contractor for allowable costs incurred in performing the contract but does not pay any fee or profit. For R&D, the primary risks include potential for less aggressive cost management by the contractor, as there's no direct profit incentive tied to efficiency. The government bears the full financial risk of the research outcomes. Effective oversight is crucial to ensure costs remain reasonable and allocable to the contract's objectives. Additionally, defining and measuring success in R&D can be inherently difficult, posing a risk of project scope creep or failure to achieve desired breakthroughs.

What is Virginia Commonwealth University's track record in securing and executing large federal R&D contracts?

Virginia Commonwealth University (VCU) is a major research university and has a history of securing federal funding, including grants and contracts from agencies like the National Institutes of Health (NIH) and the Department of Defense (DoD). While specific details on past DoD contracts of this exact magnitude are not provided here, VCU's designation as a research-intensive institution suggests a capacity to manage complex research projects. Its success in obtaining this contract indicates it met the rigorous requirements of the Air Force's competitive selection process for advanced R&D.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' category align with the Department of Defense's strategic priorities?

This category directly aligns with the DoD's strategic priorities, which heavily rely on technological superiority. Advances in physical sciences (materials, physics), engineering (aerospace, robotics, systems), and life sciences (biotechnology, human performance, medical countermeasures) are crucial for developing next-generation defense capabilities. This includes areas like advanced materials for platforms, AI and autonomous systems, enhanced soldier performance, and medical readiness. Funding R&D in these areas ensures the U.S. military can maintain a qualitative advantage over potential adversaries.

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

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 910 WEST FRANKLIN ST, RICHMOND, VA, 23284

Business Categories: Category Business, Educational Institution, Government, Higher Education, Higher Education (Minority Serving), U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $26,724,010

Exercised Options: $17,858,565

Current Obligation: $17,858,565

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $599,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline