Dod's $34.3M R&D Contract for Spectrum-Agile, Location Aware, Enhanced Electromagnetic KIT (sleek) Awarded to Herrick Technology Laboratories Inc

Contract Overview

Contract Amount: $34,356,011 ($34.4M)

Contractor: Herrick Technology Laboratories Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-23

End Date: 2024-10-24

Contract Duration: 1,858 days

Daily Burn Rate: $18.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SPECTRUM-AGILE, LOCATION AWARE, ENHANCED ELECTROMAGNETIC KIT (SLEEK)

Place of Performance

Location: MANCHESTER, HILLSBOROUGH County, NEW HAMPSHIRE, 03101

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $34.4 million to HERRICK TECHNOLOGY LABORATORIES INC for work described as: SPECTRUM-AGILE, LOCATION AWARE, ENHANCED ELECTROMAGNETIC KIT (SLEEK) Key points: 1. Contract awarded for advanced electromagnetic kit research and development. 2. Focus on location awareness and agile spectrum capabilities. 3. Research and Development sector, specifically physical and engineering sciences. 4. Long-term contract duration of over 5 years. 5. No small business set-aside indicated. 6. Definitive contract type suggests a long-term relationship. 7. Cost Plus Fixed Fee pricing structure.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of readily available comparable contracts for the SLEEK system. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed carefully. While the total award value is $34.3 million over five years, the per-year expenditure is moderate for advanced R&D. Further analysis would require understanding the specific technical milestones and deliverables to assess if the fixed fee adequately incentivizes efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data only specifies the award type and does not detail the number of bids received or the evaluation process. Full and open competition generally promotes competitive pricing and encourages innovation by allowing a wide range of potential contractors to participate.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is intended to drive down costs and ensure the government receives the best value through a competitive process.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving advanced electromagnetic capabilities. This contract supports research and development in advanced physical and engineering sciences. The contract is located in New Hampshire, potentially impacting the local tech and research workforce. Successful development could lead to enhanced national security capabilities for the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost-plus behavior if not closely monitored.
Long contract durations (over 5 years) require sustained oversight to ensure continued relevance and performance.
Lack of specific performance metrics in the provided data makes it difficult to assess progress and value.
The specialized nature of the R&D may limit the pool of qualified oversight personnel.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Definitive contract type implies a strategic, long-term investment by the agency.
The contract is for research and development, a critical area for technological advancement.
The specific focus on 'SPECTRUM-AGILE, LOCATION AWARE, ENHANCED ELECTROMAGNETIC KIT' indicates a targeted and potentially high-impact technological goal.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in physical, engineering, and life sciences. This sector is characterized by innovation, long development cycles, and significant investment. Comparable spending benchmarks are difficult to establish without knowing the specific technological advancements sought, but R&D contracts for defense applications can range widely in value. The market for advanced electromagnetic systems is competitive, with a mix of large defense contractors and specialized R&D firms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a larger entity or that the competition was open to all qualified businesses, regardless of size. There is no information on subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though larger prime contractors may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure cost efficiency. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Advanced Technology Development
Electromagnetic Spectrum Operations
Location-Aware Systems Research
Signal Intelligence Technology

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Long-term R&D Uncertainty
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.4 million to HERRICK TECHNOLOGY LABORATORIES INC. SPECTRUM-AGILE, LOCATION AWARE, ENHANCED ELECTROMAGNETIC KIT (SLEEK)

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $34.4 million.

What is the period of performance?

Start: 2019-09-23. End: 2024-10-24.

What is the specific technological innovation expected from the SPECTRUM-AGILE, LOCATION AWARE, ENHANCED ELECTROMAGNETIC KIT (SLEEK)?

The provided data does not detail the specific technological innovations expected from the SLEEK system. However, the name suggests a focus on developing an electromagnetic kit that is agile in spectrum usage (adapting to changing frequencies and conditions), location-aware (able to determine its position or the position of targets), and enhanced, implying improved performance over existing technologies. This could relate to areas such as electronic warfare, signals intelligence, secure communications, or advanced radar systems. Further details would likely be found in the contract's statement of work or technical specifications, which are not publicly available in this dataset.

How does the $34.3 million award compare to typical R&D spending for similar electromagnetic systems within the DoD?

Comparing the $34.3 million award for the SLEEK system to typical R&D spending is challenging without more specific technical details and market data. However, R&D contracts for advanced defense technologies can vary significantly. For a multi-year project (over 5 years) focused on developing a novel electromagnetic kit with location awareness and spectrum agility, this funding level appears moderate for a definitive contract. Some advanced R&D programs can reach hundreds of millions or even billions of dollars, while smaller, more focused research efforts might be in the tens of millions. The Cost Plus Fixed Fee structure suggests a defined scope with a negotiated profit margin, aiming for cost control within the R&D context.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D?

The primary risks associated with a CPFF contract for advanced R&D, like the one awarded to Herrick Technology Laboratories Inc., revolve around cost control and contractor incentive. While the fixed fee provides a ceiling on the contractor's profit, the 'cost-plus' element means the government reimburses allowable costs. If the R&D proves more complex or expensive than initially estimated, costs can escalate significantly, potentially exceeding budget expectations even with a fixed fee. There's also a risk that the contractor might not be sufficiently incentivized to find the most cost-effective solutions, as their profit is fixed regardless of the final cost. Robust government oversight, clear performance metrics, and well-defined allowable costs are critical to mitigate these risks.

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

A definitive contract is a fixed-price or cost-reimbursement contract that, in its form and content, is fixed and final. It is typically used for long-term requirements or when the exact quantity or delivery schedule is known or can be reasonably predicted. In the context of this R&D award, designating it as a definitive contract suggests a commitment by the Department of the Air Force to a specific project or set of objectives over its duration (2019-2024). It implies a more stable and predictable relationship between the government and Herrick Technology Laboratories Inc. compared to, for example, a requirements contract or an indefinite-delivery indefinite-quantity (IDIQ) contract, which offer more flexibility but less certainty.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' NAICS code imply about the contract's focus?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that this contract is focused on scientific and technical research aimed at discovering new knowledge and developing new or improved products, processes, or services. The exclusion of nanotechnology and biotechnology suggests the R&D is likely centered on areas like materials science, electronics, physics, mechanical engineering, aerospace engineering, or other related physical and engineering disciplines. For the SLEEK system, this implies the research involves fundamental scientific principles and engineering applications within these specified fields, rather than advanced biological or nanoscale innovations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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: FA875017S7003

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Herrick Technology Laboratories Inc.

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

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

Financial Breakdown

Contract Ceiling: $65,016,506

Exercised Options: $65,016,506

Current Obligation: $34,356,011

Actual Outlays: $7,377,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline