Dod's Coltrane Contract Awarded to Northeast Information Discovery Inc. for $37.4M in R&D

Contract Overview

Contract Amount: $37,436,516 ($37.4M)

Contractor: Northeast Information Discovery Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-13

End Date: 2020-12-31

Contract Duration: 1,389 days

Daily Burn Rate: $27.0K/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 COLLECTION TECHNIQUES FOR RADIO AND NETWORK EXPLORATION (COLTRANE)

Place of Performance

Location: CANASTOTA, MADISON County, NEW YORK, 13032

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to NORTHEAST INFORMATION DISCOVERY INC. for work described as: IGF::OT::IGF COLLECTION TECHNIQUES FOR RADIO AND NETWORK EXPLORATION (COLTRANE) Key points: 1. Contract focuses on radio and network exploration R&D. 2. Awarded via full and open competition. 3. Potential risks include cost overruns given the fixed-fee structure. 4. The R&D sector is critical for national security.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. However, the CPFF pricing model may limit the direct impact of competition on final cost.

Taxpayer Impact: Taxpayer funds are allocated for advanced R&D, aiming for technological superiority. Oversight is crucial to ensure value for money.

Public Impact

Supports advanced research in radio and network exploration. Contract duration of nearly 4 years indicates a significant project. Potential for technological advancements benefiting national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor spending.
Lack of specific performance metrics makes value assessment difficult.
Contract awarded to a single entity limits broader market engagement.

Positive Signals

Full and open competition ensures a wide pool of potential bidders.
R&D focus aligns with strategic defense objectives.
Contract duration suggests a well-defined, long-term research need.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is vital for maintaining technological advantage, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

Contract oversight by the Defense Contract Management Agency (DCMA) is in place. However, the effectiveness of oversight for CPFF contracts depends heavily on detailed monitoring of costs and progress.

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

Cost overrun potential due to CPFF structure.
Difficulty in benchmarking R&D contract value.
Limited transparency on specific research outcomes.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to NORTHEAST INFORMATION DISCOVERY INC.. IGF::OT::IGF COLLECTION TECHNIQUES FOR RADIO AND NETWORK EXPLORATION (COLTRANE)

Who is the contractor on this award?

The obligated recipient is NORTHEAST INFORMATION DISCOVERY 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 $37.4 million.

What is the period of performance?

Start: 2017-03-13. End: 2020-12-31.

What is the expected return on investment for this R&D contract?

The return on investment for R&D contracts is inherently uncertain and often realized in the long term through technological advancements or operational efficiencies. Specific ROI metrics are not typically defined at the outset for foundational research like COLTRANE, making direct financial return difficult to quantify. The value is often measured by the potential strategic advantage gained.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) structure in this contract?

The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs exceeding the estimate are shared. This can lead to budget overruns if not rigorously monitored. Additionally, defining the 'fixed fee' accurately for complex R&D can be challenging, potentially leading to disputes or reduced contractor motivation if the fee proves inadequate for the effort.

How effectively does this contract leverage competition to ensure optimal pricing for taxpayers?

While the contract was awarded under 'full and open competition,' the Cost Plus Fixed Fee (CPFF) structure itself can mitigate the direct impact of competitive pricing on the final cost. Competition ensures a broad search for capable contractors, but the CPFF model means the government bears the cost risk. Effective price discovery relies more on robust negotiation and ongoing oversight of costs rather than solely on the initial competitive bid.

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: FA875015S0001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 136 HUNT VALLEY RD, ONEIDA, NY, 13421

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $37,436,516

Exercised Options: $37,436,516

Current Obligation: $37,436,516

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline