DoD's $76.5M contract for plant engineering services awarded to Utah State University Space Dynamics Laboratory
Contract Overview
Contract Amount: $76,537,234 ($76.5M)
Contractor: Utah State University Space Dynamics Laboratory
Awarding Agency: Department of Defense
Start Date: 2020-08-21
End Date: 2025-02-28
Contract Duration: 1,652 days
Daily Burn Rate: $46.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IN PLANT ENGINEERING
Place of Performance
Location: LOGAN, CACHE County, UTAH, 84341
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $76.5 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: IN PLANT ENGINEERING Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price efficiencies. 2. Significant duration of over 5 years suggests a long-term need for these specialized services. 3. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost overruns if not closely monitored. 4. Lack of competition may limit opportunities for innovative solutions from a broader market. 5. Performance context is limited without specific details on deliverables and outcomes. 6. Sector positioning within 'Custom Computer Programming Services' needs further clarification given the 'plant engineering' description.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of publicly available comparable sole-source awards for 'plant engineering' services within the Department of Defense. The 'Cost Plus Fixed Fee' (CPFF) contract type, while common for research and development, carries inherent risks of cost escalation. Without detailed performance metrics and a competitive bidding process, it's difficult to definitively assess if the fixed fee adequately incentivizes efficiency or if the overall cost represents a fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the unique capabilities or proprietary knowledge required for the service. However, the absence of competition limits the government's ability to leverage market forces to secure the best possible pricing and terms. It also raises concerns about whether alternative solutions or more cost-effective approaches might exist within the broader market.
Taxpayer Impact: Taxpayers may not be receiving the best value due to the lack of competitive pressure, potentially leading to higher costs than if multiple bids were solicited.
Public Impact
The primary beneficiary is the Department of the Air Force, receiving specialized plant engineering services. The contract supports the operational and developmental needs of a specific defense program. Geographic impact is centered in Utah, where Utah State University Space Dynamics Laboratory is located. Workforce implications include the employment of specialized engineers and technical staff at the contractor's facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential innovation.
- Cost Plus Fixed Fee structure can lead to cost overruns if not managed stringently.
- Lack of transparency in the justification for sole-source award.
- Description 'plant engineering' is vague and could encompass a wide range of services, making performance assessment difficult.
Positive Signals
- Utah State University Space Dynamics Laboratory has a history of performing complex research and development for government agencies.
- The long contract duration suggests a stable, ongoing need for the services provided.
- The fixed fee component of the CPFF contract provides some level of cost predictability.
Sector Analysis
This contract falls under the broad category of professional, scientific, and technical services, specifically within custom computer programming services, though the description 'plant engineering' suggests a more specialized application. The market for such services is diverse, ranging from large aerospace and defense contractors to specialized engineering firms. Benchmarking is difficult without more specific details on the nature of the 'plant engineering' required, but spending in this sector is substantial, driven by complex government and industrial needs.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized capabilities likely required, it is improbable that subcontracting opportunities for small businesses would be mandated or significant, unless the prime contractor proactively seeks them out.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force contracting and program management offices. Accountability measures would be defined by the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the proprietary aspects often associated with specialized engineering services. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Research and Development Services
- Engineering and Technical Services
- Defense Contract Management
- Aerospace Support Services
Risk Flags
- Sole-source award raises concerns about competition and potential value.
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Ambiguity in service description ('plant engineering' vs. NAICS code) hinders performance assessment.
Tags
defense, department-of-defense, air-force, sole-source, cost-plus-fixed-fee, engineering-services, custom-computer-programming-services, utah, research-and-development, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.5 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. IN PLANT ENGINEERING
Who is the contractor on this award?
The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.
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 $76.5 million.
What is the period of performance?
Start: 2020-08-21. End: 2025-02-28.
What specific 'plant engineering' services are being provided under this contract, and how do they align with the 'Custom Computer Programming Services' NAICS code?
The provided data lists the NAICS code as 541511 (Custom Computer Programming Services) and the description as 'IN PLANT ENGINEERING'. This presents a potential discrepancy or a highly specialized application of computer programming within an engineering context. 'Plant engineering' typically involves the design, construction, operation, and maintenance of industrial facilities. It's possible that the contract involves developing custom software or systems for managing, optimizing, or simulating plant operations, or perhaps for the design and integration of complex engineering systems. Without further details from the contracting agency, the precise nature of the services and their alignment with the NAICS code remains unclear. This ambiguity could impact performance evaluation and the assessment of value for money.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically stems from a determination that only one responsible source is capable of providing the required services. For this contract, awarded to Utah State University Space Dynamics Laboratory (USU SDL), the justification likely relates to USU SDL's unique expertise, specialized facilities, or prior work on related programs that make them the only viable option. The Department of Defense would have conducted market research to confirm the lack of competition or documented specific circumstances (e.g., urgent need, proprietary technology) that preclude full and open competition. Without access to the official Justification for Other Than Full and Open Competition (JOFOC) document, the precise reasons remain undisclosed, but common rationales include unique technical qualifications, essential follow-on work, or specific research capabilities.
How does the 'Cost Plus Fixed Fee' (CPFF) pricing structure for this contract compare to industry benchmarks for similar engineering services?
The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a fixed fee representing profit. This structure is common for research and development or services where the scope is not fully defined, but it carries a risk of cost overruns if not managed diligently. Benchmarking CPFF contracts is complex as the 'fixed fee' percentage can vary significantly based on contract risk, complexity, and the contractor's overhead structure. For specialized engineering services like those potentially involved in 'plant engineering' for the DoD, typical fixed fee percentages might range from 7% to 15% of the estimated cost. Without knowing the total estimated cost and the final negotiated fixed fee for this $76.5 million contract, a precise benchmark is impossible. However, the government's oversight is crucial to ensure costs remain reasonable and the fixed fee adequately compensates the contractor for the defined scope.
What are the key performance indicators (KPIs) used to evaluate the success of this contract, and what has been the contractor's performance history?
Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, for 'plant engineering' services, KPIs could include project completion timelines, adherence to design specifications, system efficiency improvements, cost savings achieved, safety compliance, and successful integration of new systems. Utah State University Space Dynamics Laboratory (USU SDL) generally has a strong reputation for performing complex research and development, particularly in areas related to space and defense. Their historical performance with government contracts would typically be assessed through past performance evaluations during any competitive bidding process. For this sole-source award, the agency likely relied on existing knowledge of USU SDL's capabilities and past successes, but formal, publicly accessible performance metrics for this specific contract are unavailable.
How does the total spending on 'plant engineering' services by the Department of Defense compare to this specific contract award?
The total annual spending by the Department of Defense (DoD) on 'plant engineering' services, or related categories like engineering and technical services, is substantial, often running into billions of dollars across various agencies and programs. This $76.5 million contract represents a significant award for a single task order, particularly given its multi-year duration (August 2020 to February 2025). However, in the context of the DoD's overall budget and its extensive infrastructure and research needs, this specific contract is likely one of many similar awards. To provide a precise comparison, one would need to analyze historical DoD spending data for specific NAICS codes or service descriptions related to plant engineering, which are often aggregated or categorized differently across various reporting systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: 1695 N RESEARCH PKWY, NORTH LOGAN, UT, 84341
Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,429,028
Exercised Options: $77,429,028
Current Obligation: $76,537,234
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,900,610
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852717D0004
IDV Type: IDC
Timeline
Start Date: 2020-08-21
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-03-11
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