DoD's $37.3M R&D contract for poly-function transceivers awarded to Herrick Technology Laboratories Inc

Contract Overview

Contract Amount: $37,264,606 ($37.3M)

Contractor: Herrick Technology Laboratories Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-19

End Date: 2020-09-30

Contract Duration: 1,595 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF POLY-FUNCTION TRANSCEIVER (POLYTRANSCEIVER)

Place of Performance

Location: MANCHESTER, HILLSBOROUGH County, NEW HAMPSHIRE, 03101

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $37.3 million to HERRICK TECHNOLOGY LABORATORIES INC for work described as: IGF::OT::IGF POLY-FUNCTION TRANSCEIVER (POLYTRANSCEIVER) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a key area for innovation. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 4. Performance period spanned over 1595 days, indicating a long-term R&D effort. 5. The contract was not set aside for small businesses, potentially limiting opportunities for smaller firms. 6. The North American Industry Classification System (NAICS) code 541712 points to specialized R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed technical specifications and comparable project outcomes. The Cost Plus Fixed Fee (CPFF) structure means the government pays actual costs plus a fixed fee, which can lead to cost overruns if not managed tightly. While the total award was $37.3 million over approximately 4.3 years, the per-unit cost is not applicable as this is a research and development service contract, not for discrete units of a product.

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. The presence of two bids suggests a moderate level of competition for this specialized R&D requirement. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition, despite only two bidders, aimed to ensure the government received the best value. However, the limited number of bids might mean taxpayers did not benefit from the most competitive pricing achievable.

Public Impact

The primary beneficiary is the Department of Defense, which receives advanced technology in the form of poly-function transceivers. This contract supports the development of specialized communication or sensing technologies crucial for national security. The geographic impact is primarily within New Hampshire, where the contractor is located, potentially creating or sustaining high-skilled jobs. The workforce implications include employment for scientists, engineers, and technicians involved in advanced R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as the fee is fixed regardless of the final cost.
Limited competition (2 bidders) may have resulted in a higher price than if more firms had competed.
The long duration of the contract (1595 days) increases the risk of scope creep or evolving requirements not being adequately managed.

Positive Signals

Awarded under full and open competition, ensuring a broad search for qualified contractors.
The contractor, Herrick Technology Laboratories Inc., is specialized in R&D, suggesting relevant expertise.
The contract supports critical defense research and development, aligning with national security objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized R&D services supporting defense applications is often characterized by a limited number of highly specialized firms. Comparable spending benchmarks are difficult to establish without knowing the specific technological advancements sought, but R&D contracts of this magnitude are typical for developing cutting-edge defense capabilities.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no subcontracting goals were specified (sb: false). This means opportunities for small businesses to participate in this specific contract were likely limited, unless they were prime contractors themselves or voluntarily subcontracted by Herrick Technology Laboratories Inc.

Oversight & Accountability

Oversight for this contract would typically be provided by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet contractual requirements and quality standards. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract databases, though specific technical details of R&D may be sensitive.

Related Government Programs

Department of Defense Research and Development Contracts
Advanced Communications Technology Development
Electronic Warfare Systems R&D
Signal Processing Research

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
Limited competition (2 bidders) may impact price competitiveness.
R&D projects are inherently uncertain and may not yield desired outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.3 million to HERRICK TECHNOLOGY LABORATORIES INC. IGF::OT::IGF POLY-FUNCTION TRANSCEIVER (POLYTRANSCEIVER)

Who is the contractor on this award?

The obligated recipient is HERRICK TECHNOLOGY LABORATORIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2016-05-19. End: 2020-09-30.

What is the specific technological advancement or capability this contract aimed to achieve with the poly-function transceiver?

The provided data does not specify the exact technological advancement or capability the poly-function transceiver was intended to achieve. The NAICS code 541712 indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' suggesting a focus on developing novel physical or engineering solutions. Poly-function transceivers could relate to advanced communication systems, signal processing, or integrated electronic warfare capabilities. Without further details from the contract statement of work or technical documentation, the precise objective remains undisclosed in this summary.

How does the $37.3 million award compare to other R&D contracts for similar technologies within the DoD?

Directly comparing this $37.3 million award to other R&D contracts for similar technologies is challenging without knowing the specific technical scope and maturity of the poly-function transceiver. However, R&D contracts for advanced defense technologies can range from a few million to hundreds of millions of dollars, depending on complexity, duration, and the number of research phases. Given the 1595-day performance period, $37.3 million represents a significant, but not extraordinary, investment for developing a specialized component or system within the DoD's R&D portfolio. It suggests a focused effort on a particular technological niche.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how were they mitigated?

The primary risks with CPFF contracts for R&D include potential cost overruns if the contractor's estimated costs are inaccurate, and the contractor may have less incentive to control costs compared to fixed-price contracts since their fee is fixed. For the government, there's also the risk of paying for research that doesn't yield the desired results. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear performance metrics, and well-defined milestones. The effectiveness of these mitigations depends heavily on the diligence of the contracting officer and the technical team overseeing the project.

What was Herrick Technology Laboratories Inc.'s track record prior to receiving this contract?

The provided data does not include information on Herrick Technology Laboratories Inc.'s prior track record. To assess their performance history, one would need to examine previous contracts awarded to them, their past performance evaluations, and any history of contract disputes or awards. Without this external data, it's impossible to comment on their specific track record relevant to this $37.3 million R&D contract.

How has spending on R&D in physical, engineering, and life sciences (NAICS 541712) by the DoD trended over the past decade?

The provided data focuses on a single contract and does not offer historical spending trends for NAICS code 541712 within the DoD. Generally, DoD spending on R&D is subject to annual appropriations and strategic priorities. While specific figures for this NAICS code are not available here, the DoD consistently invests billions annually in R&D across various scientific and engineering disciplines to maintain technological superiority. Trends are influenced by geopolitical factors, emerging threats, and budget allocations, often showing fluctuations year-over-year.

What is the significance of the contract being a 'Definitive Contract'?

A 'Definitive Contract' is a standard contract that clearly defines the rights and obligations of both the government and the contractor. Unlike basic agreements or other preliminary contract types, it represents a firm commitment to proceed with the work as specified. For this R&D project, it signifies that the DoD was committed to funding the research and development effort by Herrick Technology Laboratories Inc. for the defined period and scope, establishing a clear legal framework for the transaction.

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

Solicitation ID: FA875015R0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Herrick Technology Laboratories Inc. (UEI: 003385163)

Address: 670 N. COMMERCIAL ST, STE 400, MANCHESTER, NH, 03101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,264,606

Exercised Options: $37,264,606

Current Obligation: $37,264,606

Actual Outlays: $16,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline