DoD's $15M simulator prototype contract awarded to Norwich University Applied Research Institutes Ltd

Contract Overview

Contract Amount: $14,999,803 ($15.0M)

Contractor: Norwich University Applied Research Institutes Ltd

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2014-09-30

Contract Duration: 2,191 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FINANCIAL SIMULATOR PROTOTYPE SOFTWARE

Place of Performance

Location: NORTHFIELD, WASHINGTON County, VERMONT, 05663

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to NORWICH UNIVERSITY APPLIED RESEARCH INSTITUTES LTD for work described as: FINANCIAL SIMULATOR PROTOTYPE SOFTWARE Key points: 1. Contract value of $14.99M over 6 years suggests a significant investment in R&D. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract's duration of 2191 days (approx. 6 years) points to a long-term project. 4. Awarded by the Department of the Air Force, this contract aligns with defense modernization efforts. 5. The NAICS code 541712 signifies a focus on physical, engineering, and life sciences R&D. 6. The contract type (Cost Plus Fixed Fee) can incentivize cost control while allowing for flexibility. 7. The absence of small business set-aside suggests larger firms or academic institutions were primary targets.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the 'FINANCIAL SIMULATOR PROTOTYPE SOFTWARE' and its development costs. However, a $15 million investment over six years for a specialized R&D prototype suggests a moderate to high cost per year. Comparing it to similar R&D contracts for advanced simulation software would be necessary for a more precise value assessment. The Cost Plus Fixed Fee (CPFF) contract type means the government pays the costs plus a fixed fee, which can sometimes lead to higher overall costs if not managed tightly, but also allows for adaptation during development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding process where multiple companies or institutions vied for the contract. The number of bidders is not specified, but the open competition is generally a positive sign for price discovery and potentially achieving a more competitive price for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Air Force, gaining access to advanced financial simulator prototype software. The services delivered involve research and development in physical, engineering, and life sciences, specifically for a financial simulator. The geographic impact is primarily within the United States, supporting defense research capabilities. Workforce implications include employment for researchers, engineers, and software developers at Norwich University Applied Research Institutes Ltd. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not carefully monitored.
The long duration of the contract (6 years) increases the risk of scope creep or evolving technological requirements.
Lack of specific performance metrics makes it difficult to assess the prototype's effectiveness without further context.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract supports critical R&D for the Department of Defense, aligning with national security objectives.
Norwich University Applied Research Institutes Ltd. likely possesses specialized expertise for this niche R&D project.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced simulation technology for financial applications within the defense industry. The market for defense simulation and training systems is substantial, driven by the need for realistic and cost-effective training solutions. This contract represents a specific investment in prototyping a novel capability, fitting into the broader landscape of defense technology modernization and R&D spending.

Small Business Impact

The contract was not awarded as a small business set-aside, and the prime contractor, Norwich University Applied Research Institutes Ltd., is an academic institution. This suggests that the focus was on specialized research capabilities rather than small business participation. There is no explicit information on subcontracting plans for small businesses, but it is possible that smaller firms could be engaged for specific components or services if needed.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements, though specific details of the prototype's development might be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Air Force Simulation and Training Programs
Advanced Technology Development Contracts
Software Development Prototypes
University Research Partnerships with Government

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of evolving technological requirements over the 6-year contract duration.
Uncertainty regarding the specific performance metrics and success criteria for the prototype.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to NORWICH UNIVERSITY APPLIED RESEARCH INSTITUTES LTD. FINANCIAL SIMULATOR PROTOTYPE SOFTWARE

Who is the contractor on this award?

The obligated recipient is NORWICH UNIVERSITY APPLIED RESEARCH INSTITUTES LTD.

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 $15.0 million.

What is the period of performance?

Start: 2008-09-30. End: 2014-09-30.

What is the specific nature and intended application of the 'FINANCIAL SIMULATOR PROTOTYPE SOFTWARE'?

The provided data does not detail the specific functionalities or intended applications of the 'FINANCIAL SIMULATOR PROTOTYPE SOFTWARE.' However, given the context of a Department of the Air Force contract and the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences), it can be inferred that this software is likely intended for complex financial modeling, simulation, or analysis relevant to defense operations, resource management, or strategic planning. This could range from simulating economic impacts of military actions to developing advanced financial planning tools for large-scale defense budgets or logistics.

How does the $15 million cost compare to similar R&D contracts for simulation software?

Direct comparison of the $15 million cost is difficult without knowing the specific scope, complexity, and technological advancements of the 'FINANCIAL SIMULATOR PROTOTYPE SOFTWARE.' However, R&D contracts for advanced simulation and prototyping can range widely. A $15 million investment over six years ($2.5 million per year on average) for a specialized prototype suggests a significant undertaking. Comparable contracts might involve developing flight simulators, battlefield management systems, or complex modeling tools, which often carry substantial R&D price tags. A more precise benchmark would require analyzing contracts with similar technical requirements, development timelines, and contractor expertise.

What are the key performance indicators (KPIs) for this contract, and how is success measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the exact metrics used to measure the success of this contract. For a prototype development contract, success is typically measured against the achievement of defined technical milestones, the successful demonstration of core functionalities, adherence to budget and schedule, and the overall quality and performance of the prototype software. The contracting officer and program managers would likely be responsible for monitoring progress against a detailed statement of work and any associated performance standards outlined in the contract's appendices.

What is Norwich University Applied Research Institutes Ltd.'s track record in developing similar simulation software for the DoD?

Information on Norwich University Applied Research Institutes Ltd.'s specific track record in developing similar simulation software for the DoD is not detailed in the provided data. However, as an applied research institute, it is presumed to have expertise in research and development. To assess their track record, one would need to examine their past performance on government contracts, particularly those involving software development, simulation, and defense-related applications. Reviews of past performance evaluations and contract awards would provide a clearer picture of their capabilities and reliability in delivering complex R&D projects.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of R&D project?

A Cost Plus Fixed Fee (CPFF) contract, while allowing flexibility for R&D projects where scope can evolve, carries inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed, and the profit (fee) is fixed. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen challenges arise. Contractors might also face challenges in accurately estimating costs for novel R&D, potentially impacting the fixed fee. Effective oversight and robust cost accounting systems are crucial to mitigate these risks.

How does this contract fit into the broader landscape of Air Force R&D spending on simulation and training technologies?

This contract represents a specific investment within the Air Force's broader R&D portfolio for simulation and training technologies. The Air Force, like other branches of the DoD, invests heavily in developing advanced training solutions to enhance pilot proficiency, mission readiness, and operational effectiveness while reducing the costs and risks associated with live training. A $15 million prototype development contract for a financial simulator suggests a focus on a niche but potentially critical area, possibly related to strategic planning, resource allocation, or economic warfare simulation, complementing investments in more traditional operational simulators.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 57 OLD FREIGHT YARD, NORTHFIELD, VT, 00

Business Categories: Category Business, Corporate Entity Tax Exempt, Federally Funded Research and Development Corp, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,999,803

Exercised Options: $14,999,803

Current Obligation: $14,999,803

Contract Characteristics

Cost or Pricing Data: YES

Timeline