DoD's $6.6M Project Aurora contract awarded to ProModel Government Solutions for R&D in Michigan

Contract Overview

Contract Amount: $6,645,055 ($6.6M)

Contractor: Promodel Government Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-24

End Date: 2026-11-30

Contract Duration: 1,893 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PROJECT AURORA

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48108

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to PROMODEL GOVERNMENT SOLUTIONS INC for work described as: PROJECT AURORA Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract has a duration of 1893 days, spanning over 5 years. 3. Awarded as a definitive contract with a Cost Plus Fixed Fee pricing structure. 4. Competition was full and open, indicating a broad solicitation process. 5. The contract is managed by the Department of the Air Force. 6. The North American Industry Classification System (NAICS) code is 541715, focusing on R&D. 7. The contract is not set aside for small businesses. 8. The contract is located in Michigan (MI).

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can incentivize cost overruns if not carefully managed. Comparing it to similar R&D contracts in the physical, engineering, and life sciences would require access to a broader dataset of comparable projects. The fixed fee component provides some cost certainty for the government, but the overall cost is variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This typically leads to a more competitive pricing environment and a wider selection of qualified contractors. The presence of two bids indicates some level of competition, but the specifics of the bidding process and the nature of the R&D may limit the number of potential offerors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of Defense and potentially the broader scientific and engineering communities through advancements in physical, engineering, and life sciences. The contract supports research and development activities, the specific outcomes of which are not detailed but are expected to advance technological capabilities. The geographic impact is centered in Michigan, where the contractor is located and presumably where the R&D activities will take place. Workforce implications include the potential for skilled researchers, engineers, and support staff to be employed on this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously monitored.
The specific R&D objectives and deliverables are not detailed, making it difficult to assess performance risks upfront.
Limited information on the contractor's specific track record for similar large-scale R&D projects.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The definitive contract structure provides a framework for a long-term R&D effort.
The contractor, ProModel Government Solutions Inc., is a known entity in government contracting.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers physical, engineering, and life sciences R&D. This sector is characterized by innovation, long development cycles, and often high costs. Government spending in this area is crucial for technological advancement and national security. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD or other federal agencies in similar scientific domains.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors or choose to subcontract independently.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, which awarded the contract. Accountability measures would be embedded in the contract's terms, including reporting requirements and performance milestones. Transparency is facilitated by contract award databases, but detailed project-specific oversight mechanisms and Inspector General jurisdiction would depend on the specific nature of the R&D and any potential issues that arise.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical and Engineering Sciences Research
Life Sciences Research Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Uncertainty (R&D)
Long Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to PROMODEL GOVERNMENT SOLUTIONS INC. PROJECT AURORA

Who is the contractor on this award?

The obligated recipient is PROMODEL GOVERNMENT SOLUTIONS 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 $6.6 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-11-30.

What is ProModel Government Solutions Inc.'s track record with similar large-scale R&D contracts for the Department of Defense?

Assessing ProModel Government Solutions Inc.'s track record with similar large-scale R&D contracts requires a deep dive into their past performance data, specifically focusing on contracts with the Department of Defense (DoD) and other federal agencies. Key indicators to examine would include their success in meeting project milestones, managing budgets effectively, and delivering on technical objectives. Information on past contract awards, modifications, and any performance evaluations or disputes would be crucial. Without access to a comprehensive database of contractor performance specific to R&D, it is difficult to provide a definitive assessment. However, their ability to secure a definitive contract of this magnitude suggests a level of established capability and trust within the federal contracting landscape.

How does the Cost Plus Fixed Fee (CPFF) pricing structure for this contract compare to other R&D contracts in the physical, engineering, and life sciences sectors?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in R&D contracts where the scope of work can be uncertain or evolve. In this structure, the government reimburses the contractor for allowable costs and pays a fixed fee representing profit. Compared to other R&D contracts, CPFF offers the government some cost predictability through the fixed fee, while allowing flexibility to adapt to research findings. However, it can incentivize cost overruns if not managed tightly, as the contractor is guaranteed their fee regardless of cost efficiency beyond the fixed amount. Other R&D contracts might use Firm-Fixed-Price (FFP) for well-defined scopes, or Cost Plus Incentive Fee (CPIF) to better align contractor incentives with cost and performance goals. The suitability of CPFF depends heavily on the specific R&D objectives and the government's ability to monitor costs.

What are the primary risk indicators associated with this specific 'Project Aurora' R&D contract?

Primary risk indicators for 'Project Aurora' include the inherent uncertainties of research and development, where outcomes are not guaranteed and timelines can shift. The CPFF pricing structure presents a risk of cost escalation if not rigorously managed, as the contractor is reimbursed for actual costs. The long duration of the contract (over 5 years) increases the potential for scope creep, technological obsolescence, or changes in government priorities. Furthermore, the specific technical challenges and the novelty of the R&D could pose performance risks. Without detailed insight into the project's technical objectives and the contractor's specific R&D methodologies, assessing the full spectrum of risks is challenging. Effective risk mitigation will rely on strong government oversight, clear communication, and adaptive management.

How does the $6.6 million award amount compare to historical spending on similar R&D initiatives by the Department of the Air Force?

The $6.6 million award amount for 'Project Aurora' represents a moderate investment for a multi-year R&D initiative within the Department of the Air Force (DAF). To contextualize this, one would need to analyze historical spending patterns for R&D contracts under NAICS code 541715 (Physical, Engineering, and Life Sciences R&D) awarded by the DAF. Such analysis would reveal the typical range of funding for projects of similar scope and duration. While $6.6 million is significant, the DAF often funds much larger R&D programs, particularly in areas like aerospace, advanced materials, and defense technologies. This particular contract's value suggests a focused research effort rather than a broad, foundational program. Benchmarking against similar contracts would provide a clearer picture of whether this investment is typical, high, or low for its category.

What are the potential implications of awarding this R&D contract to a single entity (ProModel Government Solutions Inc.) under full and open competition?

Awarding this R&D contract to a single entity, ProModel Government Solutions Inc., following full and open competition, implies that they were deemed the most qualified or offered the best value among the bidders. While full and open competition aims to maximize choice, the final award to one contractor is standard. The implications are that the government is placing its trust and resources with this specific entity to achieve the R&D objectives. This concentrates the execution risk and potential reward with ProModel. It also means that the other bidders, despite their qualifications, will not be directly involved in this specific project, though they may compete for future opportunities. The success of the project now hinges significantly on ProModel's capabilities and execution.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: FA875021S7003

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 540 AVIS DR STE H, ANN ARBOR, MI, 48108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,899,518

Exercised Options: $8,899,518

Current Obligation: $6,645,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline