DoD's $24M R&D contract for anti-tamper tech awarded to Idaho Scientific LLC

Contract Overview

Contract Amount: $24,001,618 ($24.0M)

Contractor: Idaho Scientific LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-04

End Date: 2028-07-03

Contract Duration: 1,398 days

Daily Burn Rate: $17.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ANTI-TAMPER EXECUTIVE AGENT (ATEA) FIELD PROGRAM OFFICE (FPO) - BITTERCLOUD

Place of Performance

Location: BOISE, ADA County, IDAHO, 83702

State: Idaho Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to IDAHO SCIENTIFIC LLC for work described as: ANTI-TAMPER EXECUTIVE AGENT (ATEA) FIELD PROGRAM OFFICE (FPO) - BITTERCLOUD Key points: 1. Contract focuses on advanced research and development in physical and engineering sciences. 2. Sole-source award raises questions about potential for better pricing through competition. 3. Long contract duration of nearly four years suggests a significant, ongoing need. 4. The 'Cost Plus Fixed Fee' structure can incentivize cost overruns if not closely monitored. 5. Research and Development sector often involves inherent risks and evolving requirements. 6. Contractor's specific expertise in anti-tamper technology is a key factor in this award.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The lack of competition suggests that the government may not have achieved the most favorable pricing. Comparing this to similar R&D contracts for specialized technology would be necessary to assess if the fixed fee and estimated costs are reasonable for the scope of work. The absence of competitive bids limits the ability to validate the overall value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Idaho Scientific LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in higher prices and reduced innovation compared to full and open competition. The lack of multiple bidders means the government did not benefit from price discovery through market forces.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive pressure. Without competing the requirement, there is less assurance that the government secured the best possible price for the research and development services.

Public Impact

The Department of Defense benefits from advancements in anti-tamper technology, enhancing the security of its assets. This contract supports research and development activities, potentially leading to new technological solutions. The primary impact is on national security and defense capabilities, rather than broad public services. Workforce implications are likely concentrated within Idaho Scientific LLC and potentially its subcontractors, focusing on specialized R&D roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type can lead to cost escalation if not managed rigorously.
Long contract duration increases exposure to potential scope creep or changing requirements.
Lack of transparency inherent in sole-source R&D can make performance assessment difficult.

Positive Signals

Focus on critical anti-tamper technology addresses a specific and important defense need.
Award to a single entity suggests specialized expertise required for this niche R&D.
Defined contract period provides a clear timeframe for achieving research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for anti-tamper technology is specialized, often driven by government defense needs. Comparable spending in this niche R&D area can vary widely depending on the specific technological advancements sought. The overall R&D spending by the Department of Defense is substantial, with significant portions allocated to advanced technology development.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Idaho Scientific LLC is the prime contractor. There is no explicit information provided regarding subcontracting plans or goals for small businesses. The absence of set-asides means that opportunities for small businesses to participate in this specific contract are not guaranteed through preferential treatment, though they could still be engaged as subcontractors by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure funds are used effectively and objectives are met. Transparency may be limited due to the sole-source nature and the proprietary aspects of R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Cybersecurity and Counterintelligence Technology Research
Aerospace and Defense Engineering Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to IDAHO SCIENTIFIC LLC. ANTI-TAMPER EXECUTIVE AGENT (ATEA) FIELD PROGRAM OFFICE (FPO) - BITTERCLOUD

Who is the contractor on this award?

The obligated recipient is IDAHO SCIENTIFIC 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 $24.0 million.

What is the period of performance?

Start: 2024-09-04. End: 2028-07-03.

What is the specific nature of the 'anti-tamper' technology being developed under this contract?

The provided data does not specify the exact nature of the 'anti-tamper' technology. However, in a defense context, anti-tamper mechanisms are designed to protect sensitive technologies, data, or hardware from unauthorized access, reverse engineering, or tampering. This could involve physical security measures, cryptographic protections, or self-destruct features for critical components. The 'Executive Agent (ATEA) Field Program Office (FPO)' suggests a focus on protecting high-value or classified systems within the Department of Defense.

What is Idaho Scientific LLC's track record with similar sole-source R&D contracts for the Department of Defense?

Information regarding Idaho Scientific LLC's specific track record with sole-source R&D contracts for the Department of Defense is not detailed in the provided data. To assess this, one would need to examine historical contract awards, performance reviews, and any publicly available information on the company's past projects. A lack of readily available information on past sole-source awards could indicate a limited history or a focus on proprietary projects where details are not widely disseminated. Further investigation into federal procurement databases and contractor performance systems would be necessary.

How does the 'Cost Plus Fixed Fee' structure compare to other contract types for R&D in this sector?

The 'Cost Plus Fixed Fee' (CPFF) contract type is common in R&D where the final costs are uncertain. The government agrees to pay the contractor's actual allowable costs plus a fixed fee representing profit. This structure aims to provide the contractor with an incentive to control costs, as the fee remains constant regardless of the final cost. However, it can still lead to cost overruns if the initial cost estimates are inaccurate or if the scope changes significantly. Other R&D contract types include 'Cost Reimbursement' (where profit is a percentage of cost) and 'Fixed Price' (where profit is built into a set price, often used for well-defined R&D). CPFF offers a balance but requires diligent oversight.

What are the potential risks associated with a sole-source award for advanced R&D?

Sole-source awards for advanced R&D carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, meaning taxpayers may not receive the best value. Secondly, it limits the government's exposure to a wider range of innovative solutions or alternative approaches that other qualified contractors might offer. Thirdly, without the pressure of competition, there might be less incentive for the sole-source contractor to be highly efficient or to push the boundaries of innovation beyond the minimum required to meet the contract terms. Finally, it can raise concerns about fairness and equal opportunity for other potential vendors.

What is the historical spending pattern for anti-tamper technology research within the Department of Defense?

The provided data does not offer historical spending patterns for anti-tamper technology research within the Department of Defense. To analyze this, one would need to access historical contract databases (like FPDS or USASpending) and filter for contracts related to 'anti-tamper,' 'tamper protection,' or similar keywords, specifically within the DoD. Examining trends over several fiscal years would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify key contractors and agencies involved in such research.

What is the significance of the contract's North American Industry Classification System (NAICS) code 541715?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' signifies that this contract is for research and development activities that fall within these broad scientific and engineering domains. It excludes highly specialized areas like nanotechnology and biotechnology, indicating the focus is on more general physical sciences (e.g., materials science, physics) and engineering disciplines. This code is crucial for categorizing the contract within federal spending data and understanding the type of expertise and services being procured.

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: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 199 N CAPITOL BLVD STE 402, BOISE, ID, 83702

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,666,676

Exercised Options: $42,666,676

Current Obligation: $24,001,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline