DoD's $16M IBM RACR Contract: R&D Spending in Physical, Engineering, and Life Sciences
Contract Overview
Contract Amount: $15,986,951 ($16.0M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-29
End Date: 2015-01-29
Contract Duration: 2,010 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST SHARING
Sector: R&D
Official Description: READER AND CONTEXTUAL REASONER (RACR)
Place of Performance
Location: YORKTOWN HEIGHTS, WESTCHESTER County, NEW YORK, 10598
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $16.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: READER AND CONTEXTUAL REASONER (RACR) Key points: 1. Significant investment in advanced R&D for the Department of Defense. 2. IBM is a major player in the IT and defense sectors. 3. Potential risks include technology obsolescence and contractor performance. 4. Spending falls within the R&D sector, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract value of $15.98M over its period of performance (2009-2015) appears moderate for a large R&D effort. Benchmarking against similar large-scale R&D contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayer funds were used for a competitive R&D contract, aiming for technological advancement. The ultimate taxpayer impact depends on the success and applicability of the developed technology.
Public Impact
Advancement of critical defense technologies through research and development. Potential for dual-use technologies benefiting both military and civilian sectors. Investment in a major technology provider, IBM, supporting innovation. Long-term contract duration indicates a sustained R&D focus.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6 years) may lead to cost overruns or outdated technology.
- Reliance on a single contractor (IBM) for a significant R&D effort.
- Lack of specific performance metrics in the provided data.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Focus on R&D aligns with strategic defense needs.
- Contract value is substantial, indicating a significant project.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The data does not indicate any specific involvement or set-aside for small businesses in this contract. Large R&D contracts are often dominated by major corporations like IBM.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The contract's long duration necessitates robust oversight to ensure progress, manage costs, and verify deliverables.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for technology obsolescence due to long contract duration.
- Risk of cost overruns in a complex R&D project.
- Dependence on a single large contractor (IBM).
- Uncertainty of R&D outcomes and practical application.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. READER AND CONTEXTUAL REASONER (RACR)
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.0 million.
What is the period of performance?
Start: 2009-07-29. End: 2015-01-29.
What were the specific research objectives and expected outcomes of the RACR program?
The specific research objectives and expected outcomes of the READER AND CONTEXTUAL REASONER (RACR) program are not detailed in the provided data. However, given the contract's focus on R&D in physical, engineering, and life sciences for the Department of Defense, it likely aimed to develop advanced capabilities in areas such as artificial intelligence, data analysis, or complex system modeling to enhance military operations or intelligence gathering.
How effectively did the full and open competition process ensure competitive pricing for this R&D effort?
While full and open competition is designed to foster price discovery, the effectiveness in ensuring competitive pricing for R&D contracts can vary. The nature of R&D involves inherent uncertainties, making precise cost estimation challenging. The government likely relied on detailed proposals, technical evaluations, and potentially negotiation to arrive at a fair price, but the long-term nature and specialized field might limit direct price comparisons.
What is the long-term strategic value and return on investment for the DoD from this $16 million R&D expenditure?
The long-term strategic value and ROI are difficult to quantify without knowing the specific technological advancements achieved. If the RACR program led to breakthroughs that significantly enhanced national security, improved operational efficiency, or created new defense capabilities, the ROI could be substantial. Conversely, if the research did not yield practical applications or was superseded by newer technologies, the ROI might be minimal.
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 SHARING (T)
Evaluated Preference: NONE
Contractor Details
Address: 1101 KITCHAWAN RD, YORKTOWN HEIGHTS, NY, 10598
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,904,197
Exercised Options: $17,904,197
Current Obligation: $15,986,951
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-29
Current End Date: 2015-01-29
Potential End Date: 2015-01-29 00:00:00
Last Modified: 2020-05-07
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