DoD's $5.7M VADOR contract awarded to Clear Creek Applied Technologies Inc. for R&D

Contract Overview

Contract Amount: $5,712,305 ($5.7M)

Contractor: Clear Creek Applied Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-14

End Date: 2026-11-14

Contract Duration: 1,096 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: VIRTUAL AIR THREATS AGILE DELIVERY ORDER (VADOR)

Place of Performance

Location: FAIRBORN, GREENE County, OHIO, 45324

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to CLEAR CREEK APPLIED TECHNOLOGIES INC for work described as: VIRTUAL AIR THREATS AGILE DELIVERY ORDER (VADOR) Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Research and Development focus in physical, engineering, and life sciences. 3. Performance period spans over three years, indicating a medium-term project. 4. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. No small business set-aside, potentially impacting small business participation. 6. Geographic location of contractor is Ohio.

Value Assessment

Rating: questionable

Benchmarking the value of this $5.7 million contract is challenging without more detailed cost breakdowns and comparison to similar R&D efforts. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as the government pays actual costs plus a fixed fee, which may not always represent the most cost-effective approach. Without a competitive bidding process, it's difficult to ascertain if Clear Creek Applied Technologies Inc. offered the best value for the research and development services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Clear Creek Applied Technologies Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities), they generally result in less price competition and potentially higher costs for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that typically arise from a competitive environment, potentially leading to a higher overall expenditure for the services rendered.

Public Impact

The Department of Defense is the primary beneficiary, receiving research and development services. The contract aims to advance capabilities related to virtual air threats. The geographic impact is primarily within Ohio, where the contractor is located. Workforce implications may include specialized R&D personnel employed by Clear Creek Applied Technologies Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee structure carries a risk of cost escalation.
Lack of small business set-aside may reduce opportunities for smaller firms.

Positive Signals

Contract supports critical research and development for national security.
Clear Creek Applied Technologies Inc. is the selected contractor for this specific need.
Defined performance period provides a clear timeline for project completion.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish without knowing the specific nature of the virtual air threat research, but R&D contracts can range widely in value depending on complexity and duration.

Small Business Impact

This contract does not appear to have a small business set-aside. The absence of such a provision means that large businesses or the prime contractor are not explicitly required to subcontract with small businesses. This could limit opportunities for small businesses to participate in this specific contract, although they might be involved as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force, a component of the Department of Defense. Accountability measures would be tied to the contract's performance clauses and deliverables. Transparency is generally maintained through contract databases, though specific R&D details might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Research and Development Programs
Advanced Technology Development Contracts
Air Force Research Laboratory Contracts
Virtual Threat Simulation Research

Risk Flags

Sole-source award may indicate a lack of market research or justification.
CPFF contract type can lead to cost overruns.
Lack of competition limits price discovery and potentially increases costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to CLEAR CREEK APPLIED TECHNOLOGIES INC. VIRTUAL AIR THREATS AGILE DELIVERY ORDER (VADOR)

Who is the contractor on this award?

The obligated recipient is CLEAR CREEK APPLIED 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 $5.7 million.

What is the period of performance?

Start: 2023-11-14. End: 2026-11-14.

What is the specific nature of the 'Virtual Air Threats Agile Delivery Order (VADOR)' and its intended application?

The specific application and detailed nature of the 'Virtual Air Threats Agile Delivery Order (VADOR)' are not fully elaborated in the provided data. However, the contract title suggests it pertains to research and development (R&D) aimed at creating or improving systems and methodologies for addressing virtual air threats. This could encompass a wide range of activities, from developing advanced simulation environments for training and testing to researching new technologies for detecting, tracking, or countering aerial threats in a simulated or virtual space. The 'Agile Delivery Order' aspect implies an iterative development approach, likely focusing on rapid prototyping and adaptation to evolving requirements within the Department of Defense's R&D framework.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other R&D contract types in terms of risk and value for the government?

The Cost Plus Fixed Fee (CPFF) contract type is common in R&D where the scope of work is not precisely defined at the outset, making fixed-price contracts difficult. In a CPFF contract, the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as it bears the burden of actual costs incurred. While it allows for flexibility and encourages innovation by reducing contractor risk, it can lead to higher overall costs for the government compared to fixed-price contracts if costs escalate beyond initial estimates. Value is assessed based on the successful completion of research objectives and the quality of deliverables, rather than strict adherence to a pre-set budget, making oversight crucial.

What are the potential implications of a sole-source award for this R&D contract on innovation and long-term cost-effectiveness?

A sole-source award for this R&D contract means that Clear Creek Applied Technologies Inc. was selected without competition. This can limit the infusion of diverse ideas and innovative approaches that might have emerged from a competitive bidding process involving multiple firms. While the government may have specific reasons for choosing a sole-source provider (e.g., unique expertise, existing technology), it removes the incentive for the contractor to offer the most competitive pricing. Over the long term, this could potentially lead to higher costs for the government if the selected contractor does not face market pressures to optimize efficiency or explore more cost-effective solutions. It also bypasses the opportunity to benchmark against potential competitors, making it harder to gauge true market value.

What is the track record of Clear Creek Applied Technologies Inc. in performing similar R&D contracts for the Department of Defense?

Information regarding the specific track record of Clear Creek Applied Technologies Inc. in performing similar R&D contracts for the Department of Defense is not detailed in the provided data. To assess their capabilities and past performance, one would typically need to consult contract databases (like SAM.gov or FPDS) for historical awards, performance reviews, and any reported issues. A thorough analysis would involve examining the types of R&D projects they have undertaken, their success rates, adherence to schedules and budgets, and any past performance evaluations or disputes. Without this historical context, it is difficult to definitively gauge their suitability and reliability for this specific VADOR contract.

Are there any publicly available benchmarks for R&D contracts in the physical, engineering, and life sciences sector to compare this contract's value?

Publicly available benchmarks for R&D contracts in the physical, engineering, and life sciences sector are challenging to establish precisely due to the highly specialized and varied nature of such research. While broad spending categories exist, the specific technical requirements, project scope, duration, and novelty of research significantly influence contract values. General benchmarks might indicate average contract values for specific NAICS codes (like 541715), but these are often aggregated and may not reflect the unique demands of a project like VADOR. Comparing this $5.7 million contract would ideally involve looking at similar sole-source, CPFF R&D contracts within the DoD or Air Force for virtual threat technologies, which are not readily accessible in public domain data without deeper investigation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3855 COLONEL GLENN HWY STE 100, FAIRBORN, OH, 45324

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,942,173

Exercised Options: $5,712,305

Current Obligation: $5,712,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA860418D4100

IDV Type: IDC

Timeline