DoD's $36M Advanced SAR System Contract Awarded to Utah State University, Raising Competition Concerns

Contract Overview

Contract Amount: $36,175,127 ($36.2M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2022-01-07

End Date: 2025-02-28

Contract Duration: 1,148 days

Daily Burn Rate: $31.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FY22 SENSOR MANAGEMENT OF ADVANCED SYNTHETIC APERTURE RADAR SYSTEM-2B

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $36.2 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: FY22 SENSOR MANAGEMENT OF ADVANCED SYNTHETIC APERTURE RADAR SYSTEM-2B Key points: 1. Significant investment in advanced radar technology. 2. Sole-source award to a university research lab. 3. Potential for limited competition impacting price discovery. 4. Focus on custom computer programming services.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without comparable data. The fixed fee component offers some cost control, but the lack of competition is a primary concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method may limit opportunities for price discovery and potentially lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award warrants scrutiny to ensure fair pricing and optimal use of taxpayer funds.

Public Impact

Advanced radar technology development could have dual-use applications. Investment in university research may foster innovation. Lack of competition could limit broader industry access to DoD contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost-plus contract type
  • Lack of small business participation

Positive Signals

  • Investment in advanced technology
  • University research partnership

Sector Analysis

This contract falls within the custom computer programming services sector, often associated with research and development for specialized government needs. Benchmarks for similar R&D contracts can vary widely based on complexity and uniqueness.

Small Business Impact

The contract data indicates no small business participation. Given the specialized nature of the work, opportunities for small businesses may have been limited, or not actively sought.

Oversight & Accountability

The sole-source justification and the cost-plus fixed fee structure require robust oversight to ensure the contractor is meeting performance objectives and managing costs effectively.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award limits competition.
  • Cost-plus contract type carries cost overrun risk.
  • No small business participation noted.
  • Potential for limited price discovery.
  • Long-term reliance on a single provider.

Tags

custom-computer-programming-services, department-of-defense, ut, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.2 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. FY22 SENSOR MANAGEMENT OF ADVANCED SYNTHETIC APERTURE RADAR SYSTEM-2B

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 $36.2 million.

What is the period of performance?

Start: 2022-01-07. End: 2025-02-28.

What is the justification for the sole-source award, and were alternative competitive approaches considered?

The justification for a sole-source award typically involves unique capabilities, specialized knowledge, or urgent needs that only a specific entity can fulfill. For this contract, the Department of Defense would need to provide documentation detailing why Utah State University's Space Dynamics Laboratory was the only viable option, and if any market research was conducted to explore competitive possibilities before opting for a sole-source procurement.

How does the Cost Plus Fixed Fee structure ensure cost efficiency for this advanced radar system development?

The Cost Plus Fixed Fee (CPFF) structure aims to provide the contractor with cost reimbursement plus a predetermined fixed fee. While the fixed fee incentivizes cost control, the 'cost plus' element means the government bears the risk of cost overruns. Effective oversight is crucial to ensure the contractor diligently manages expenses to stay within projected costs and achieve the fixed fee without excessive spending.

What is the long-term strategic value of developing this specific SAR system with a single, non-traditional defense contractor?

Developing the Advanced Synthetic Aperture Radar System-2B with Utah State University could provide unique, cutting-edge capabilities for the Department of the Air Force. The long-term value lies in potential technological advancements and specialized expertise gained. However, reliance on a single source may limit future flexibility, potentially increase long-term costs if competition is stifled, and require careful management to ensure knowledge transfer and sustainment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: $47,517,152

Exercised Options: $36,601,551

Current Obligation: $36,175,127

Actual Outlays: $36,631

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: 2022-01-07

Current End Date: 2025-02-28

Potential End Date: 2025-02-28 00:00:00

Last Modified: 2025-04-18

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