DoD's $138M R&D Contract for TANGRAM FLEX INC Faces Scrutiny Amidst Full and Open Competition After Exclusion of Sources
Contract Overview
Contract Amount: $13,804,252 ($13.8M)
Contractor: Tangram Flex Inc
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2026-08-18
Contract Duration: 1,825 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RAPID INTEGRATION WITH CONFIDENCE
Place of Performance
Location: DAYTON, MONTGOMERY County, OHIO, 45402
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to TANGRAM FLEX INC for work described as: RAPID INTEGRATION WITH CONFIDENCE Key points: 1. The contract value of $138M is significant for R&D in physical, engineering, and life sciences. 2. Competition was 'Full and Open After Exclusion of Sources,' suggesting a complex procurement history. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risk of cost overruns. 4. The sector is R&D, a critical area for defense innovation but often with uncertain outcomes.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) structure can lead to higher costs compared to fixed-price contracts, especially in R&D where scope can be fluid. Benchmarking CPFF R&D contracts is challenging due to variability, but the $138M value warrants close monitoring for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition After Exclusion of Sources' indicates that while competition was sought, specific circumstances led to excluding certain potential bidders. This method can impact price discovery by potentially limiting the pool of competitive offers, though the 'full and open' aspect suggests a broad search.
Taxpayer Impact: The ultimate taxpayer impact depends on the efficiency and effectiveness of the R&D outcomes achieved relative to the $138M investment. The procurement method warrants scrutiny to ensure value for money.
Public Impact
Taxpayers are funding advanced R&D with potential dual-use applications. The contract's duration (5 years) suggests a long-term investment in technological advancement. The specific R&D area (NAICS 541715) is crucial for national security and technological competitiveness.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Complex competition method ('after exclusion of sources')
- Long contract duration
Positive Signals
- Significant investment in critical R&D sector
- Potential for technological breakthroughs
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541715), a sector vital for innovation and national security. Spending benchmarks in this area are highly variable due to the nature of R&D, but significant investments are common for defense agencies seeking technological superiority.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct small business participation or benefit from this specific award, which could be a missed opportunity for economic development.
Oversight & Accountability
The 'Delivery Order' under a larger contract structure suggests potential for phased oversight. However, the 'Cost Plus Fixed Fee' nature necessitates robust monitoring by the Department of the Air Force to ensure costs remain reasonable and deliverables are met effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Ambiguity in competition exclusion rationale
- Lack of defined R&D deliverables and value metrics
- No small business participation
Tags
research-and-development-in-the-physical, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to TANGRAM FLEX INC. RAPID INTEGRATION WITH CONFIDENCE
Who is the contractor on this award?
The obligated recipient is TANGRAM FLEX 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 $13.8 million.
What is the period of performance?
Start: 2021-08-19. End: 2026-08-18.
What specific R&D advancements are expected from this $138M contract, and how will their value be measured?
The expected advancements are not detailed in the provided data. Measuring the value of R&D is inherently challenging and often assessed through milestones, prototypes, patents, or eventual operational capabilities. The Department of the Air Force must establish clear metrics and review processes to track progress and determine the return on investment for this significant expenditure.
What were the reasons for excluding sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final price?
The specific reasons for excluding sources are not provided. This exclusion could stem from technical requirements, prior performance issues, or other eligibility criteria. While the 'full and open' aspect suggests a broad initial search, the exclusion might have limited the competitive landscape, potentially influencing the final negotiated price. Further investigation into the pre-award justifications is needed.
How effectively will the 'Cost Plus Fixed Fee' structure incentivize TANGRAM FLEX INC to control costs and deliver R&D outcomes efficiently?
CPFF contracts aim to cover costs plus a fixed fee, providing flexibility for R&D but potentially reducing the contractor's incentive for strict cost control compared to fixed-price contracts. Effectiveness relies heavily on the government's oversight, clear definition of work, and robust milestone tracking to ensure the fixed fee remains appropriate for the value delivered and that costs are managed diligently.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 607 E 3RD ST STE 500, DAYTON, OH, 45402
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,619,598
Exercised Options: $24,619,598
Current Obligation: $13,804,252
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA875020D1000
IDV Type: IDC
Timeline
Start Date: 2021-08-19
Current End Date: 2026-08-18
Potential End Date: 2026-08-18 00:00:00
Last Modified: 2025-12-17
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