Dod's $11.7M R&D Contract for Polarizing Keyless Cryptography (polka) Awarded to Ziva Corporation

Contract Overview

Contract Amount: $11,707,075 ($11.7M)

Contractor: Ziva Corporation

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2010-09-30

Contract Duration: 1,098 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: POLARIZING KEYLESS CRYPTOGRAPHY (POLKA)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to ZIVA CORPORATION for work described as: POLARIZING KEYLESS CRYPTOGRAPHY (POLKA) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Research and Development focus aligns with the physical, engineering, and life sciences sector. 3. The contract duration of approximately 3 years (1098 days) indicates a medium-term project. 4. Award type 'DCA' (Defense Contract Audit Agency) implies specific financial oversight. 5. The contractor, ZIVA CORPORATION, has secured this significant R&D funding from the Air Force. 6. The contract's value of over $11 million represents a substantial investment in this technology area.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific performance metrics or comparable projects. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to cost overruns if not managed tightly. However, for research and development, this pricing model is common to incentivize innovation and exploration of novel concepts. The total award of $11.7 million for a 3-year R&D effort in a specialized field like cryptography appears within a reasonable range for such complex scientific endeavors, though a direct comparison to similar 'POLKA' specific contracts is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specialized R&D requirement. While not an extremely high number of bidders, it does demonstrate that multiple entities were interested and capable of pursuing this work, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider pool of innovative solutions being considered.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Air Force, in advancing its cryptographic capabilities. The services delivered are research and development in advanced cryptography, potentially leading to new secure communication technologies. The geographic impact is primarily within the United States, where the contractor operates and where the research will be conducted. Workforce implications include employment for specialized researchers, engineers, and technical staff at ZIVA CORPORATION.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes incentivize contractors to incur higher costs if the fixed fee is substantial, requiring diligent oversight.
The specialized nature of the R&D may limit the pool of qualified contractors, potentially impacting future competition.
The specific application and success of 'POLARIZING KEYLESS CRYPTOGRAPHY' are not detailed, posing a risk to the ultimate utility of the research.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor, ZIVA CORPORATION, has secured a significant R&D contract, suggesting a level of trust and capability.
The contract focuses on a critical area of national security (cryptography), implying potential for significant technological advancement.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering, with a specialization in cryptography. The market for advanced cryptographic solutions is driven by national security needs and the increasing demand for secure data transmission and storage. Comparable spending benchmarks in this niche R&D area are difficult to establish without more specific project details, but significant government investment in cybersecurity and advanced technologies is a consistent trend across various agencies.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary focus was on securing the best technical solution through open competition. There is no explicit information regarding subcontracting plans with small businesses. The impact on the small business ecosystem is likely minimal unless ZIVA CORPORATION voluntarily engages small businesses for specialized support or components.

Oversight & Accountability

The contract is subject to oversight by the Department of the Air Force and potentially the Defense Contract Audit Agency (DCAA) given the award type. The Cost Plus Fixed Fee (CPFF) pricing structure necessitates careful monitoring of costs and progress to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific details of the R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Cryptography Research
Secure Communications Technology
National Security R&D Programs
Department of Defense Research Initiatives

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to manage costs.
R&D projects inherently carry a risk of not achieving desired outcomes.
Specialized technology area may limit future competition or contractor options.
Contract duration of 3 years increases exposure to technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to ZIVA CORPORATION. POLARIZING KEYLESS CRYPTOGRAPHY (POLKA)

Who is the contractor on this award?

The obligated recipient is ZIVA CORPORATION.

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 $11.7 million.

What is the period of performance?

Start: 2007-09-28. End: 2010-09-30.

What is the specific technological advancement expected from 'POLARIZING KEYLESS CRYPTOGRAPHY (POLKA)'?

The provided data does not detail the specific technological advancements expected from 'POLARIZING KEYLESS CRYPTOGRAPHY (POLKA)'. However, the name suggests research into cryptographic methods that utilize polarization phenomena, potentially for key distribution or secure communication without traditional key management. This could involve quantum-based principles or novel physical properties to enhance security and eliminate the need for pre-shared secrets. The R&D nature of the contract implies that the exact outcomes are exploratory and may lead to foundational discoveries rather than a fully developed product at this stage. Further details would likely be found in the contract's Statement of Work (SOW) or related technical documentation, which are not publicly available in this dataset.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are its implications?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not precisely defined, and innovation is a primary goal. In a CPFF contract, the government reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee, representing the contractor's profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. Compared to fixed-price contracts, CPFF offers more flexibility for the government to adapt to evolving research needs. However, it carries a risk of cost overruns if not managed diligently, as the government bears the cost risk. For R&D, it balances the need for flexibility with contractor incentive, making it a suitable, albeit closely monitored, choice.

What is ZIVA CORPORATION's track record in R&D contracts, particularly with the Department of Defense?

The provided data identifies ZIVA CORPORATION as the contractor for this specific $11.7 million R&D contract with the Department of the Air Force. However, it does not offer details about ZIVA CORPORATION's broader track record, including the number or value of previous R&D contracts, their success rates, or their history with the Department of Defense or other federal agencies. To assess their track record, one would need to consult additional databases like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS). Without this supplementary information, it is impossible to evaluate ZIVA CORPORATION's experience and past performance in R&D beyond this single award.

What are the potential risks associated with a 3-year R&D contract in a specialized field like cryptography?

A 3-year R&D contract in a specialized field like cryptography carries several potential risks. Firstly, technological obsolescence is a significant concern; the field of cryptography evolves rapidly, and research initiated today might be outdated by the time it is completed or implemented. Secondly, the inherent uncertainty of R&D means that the project may not yield the desired results or breakthroughs, leading to a failure to meet objectives despite significant investment. Thirdly, the specialized nature of the work can limit the pool of qualified personnel and potentially lead to contractor performance issues if key individuals leave. Finally, the Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, introduces financial risks if costs escalate beyond initial projections without commensurate progress. Effective risk mitigation would involve clear milestones, regular technical reviews, and contingency planning.

How does the $11.7 million award compare to typical R&D spending in the physical sciences and engineering sector by the DoD?

The $11.7 million award for 'POLARIZING KEYLESS CRYPTOGRAPHY (POLKA)' represents a substantial investment for a single R&D project within the physical, engineering, and life sciences sector. While the Department of Defense (DoD) invests billions annually in R&D across numerous disciplines, the size of this contract places it in the mid-to-large tier for individual research efforts. For context, the DoD's overall R&D budget often exceeds $100 billion annually, funding a wide spectrum of activities from basic research to advanced technology development. Contracts in the tens of millions are common for significant technological advancements or system developments. This specific award, focusing on a niche area of cryptography, suggests a strategic priority within the Air Force for advancing secure communication capabilities, aligning with broader DoD investments in cybersecurity and advanced technologies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6160 LUSK BLVD STE C106, SAN DIEGO, CA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $13,776,342

Exercised Options: $11,707,075

Current Obligation: $11,707,075

Contract Characteristics

Cost or Pricing Data: YES

Timeline