DoD's $647M Phantom Harvest R&D Contract Awarded to North Point Defense Inc

Contract Overview

Contract Amount: $6,474,328 ($6.5M)

Contractor: North Point Defense Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-19

End Date: 2027-08-19

Contract Duration: 1,826 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: PHANTOM HARVEST

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to NORTH POINT DEFENSE INC for work described as: PHANTOM HARVEST Key points: 1. Contract focuses on advanced research and development in physical, engineering, and life sciences. 2. Awarded through full and open competition, suggesting a robust market evaluation. 3. Long duration (5 years) indicates a significant, ongoing research requirement. 4. Cost-plus-fixed-fee structure incentivizes cost control while allowing for flexibility. 5. Potential for innovation in critical defense technology areas. 6. Geographic concentration in New York may indicate specialized regional capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-reimbursement nature means actual spending could fluctuate. Comparing it to similar R&D contracts in the physical, engineering, and life sciences sector would require access to proprietary cost data and performance outcomes. However, the significant award amount suggests a substantial scope of work.

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. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from advancements in physical, engineering, and life sciences research. Services delivered likely include cutting-edge research and development leading to potential new technologies. Geographic impact is concentrated in New York, potentially fostering local R&D ecosystems. Workforce implications may include highly skilled researchers and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-reimbursement contracts can lead to cost overruns if not managed tightly.
The long contract duration may present risks if research objectives shift or become obsolete.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The fixed fee component provides a degree of cost predictability.
Focus on R&D aligns with strategic defense modernization efforts.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This is a broad category encompassing fundamental and applied research. The Department of Defense is a major investor in this sector, seeking technological superiority. Comparable spending benchmarks would typically be found within DoD's R&D budget allocations for advanced technology development, often measured in billions across various research areas.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a large-scale R&D effort, it is unlikely to involve significant subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus on specialized research may limit direct small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is generally limited for R&D contracts due to the sensitive nature of the research, but contract award details and performance reporting are usually available through federal procurement databases.

Related Government Programs

Defense Research and Development
Advanced Technology Development
Physical Sciences Research
Engineering Research
Life Sciences Research

Risk Flags

Long contract duration may increase risk of obsolescence or shifting priorities.
Cost-reimbursement elements require diligent oversight to manage potential cost growth.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to NORTH POINT DEFENSE INC. PHANTOM HARVEST

Who is the contractor on this award?

The obligated recipient is NORTH POINT DEFENSE 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 $6.5 million.

What is the period of performance?

Start: 2022-08-19. End: 2027-08-19.

What is the specific nature of the 'Phantom Harvest' research and development effort?

The specific nature of the 'Phantom Harvest' research and development effort is not publicly detailed in the provided data. The contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' This broad classification suggests the work could encompass a wide range of activities, from materials science and advanced manufacturing to sensor technology, artificial intelligence applications in physical systems, or novel biological research with engineering applications. Without further classification or project descriptions, the precise focus remains proprietary to the Department of Defense and North Point Defense Inc.

How does the $647 million award amount compare to typical R&D spending in this sector by the DoD?

The $647 million award for 'Phantom Harvest' represents a significant investment within the DoD's Research and Development portfolio. While the DoD's total R&D budget often exceeds tens of billions annually, individual contracts can vary widely. Contracts in the physical, engineering, and life sciences sector (NAICS 541715) can range from a few million for specific studies to hundreds of millions for large-scale, multi-year programs. This $647 million contract, spanning five years, is substantial and likely represents a critical, long-term research initiative deemed important for national security or technological advancement. It is within the upper range for major R&D awards but not unprecedented for strategic defense research programs.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

A Cost Plus Fixed Fee (CPFF) contract, especially one valued at $647 million over five years, carries inherent risks. The primary risk for the government is that the 'cost' component is reimbursable, meaning the contractor is paid for incurred costs. While the fixed fee provides a defined profit margin, there's a risk of cost overruns if the project scope expands, unforeseen technical challenges arise, or if contractor cost management is inefficient. The government bears the brunt of cost increases above the base. For a long-duration project, there's also the risk of technological obsolescence or shifts in strategic priorities, potentially rendering the research less relevant by the contract's end. Effective oversight and robust change management are crucial to mitigate these risks.

What does the 'full and open competition' designation imply about the contractor selection process?

The 'full and open competition' designation signifies that the Department of Defense followed statutory requirements to maximize the number of potential sources and ensure fair and equitable distribution of contracts. This means the solicitation was publicly advertised, and any responsible source was permitted to submit a bid. The fact that North Point Defense Inc. was awarded the contract implies their proposal met or exceeded the evaluation criteria outlined in the solicitation, which could include technical approach, past performance, management capability, and price. This process is designed to foster competition, leading to better value for the government and taxpayers by encouraging multiple companies to offer their best solutions and pricing.

Are there any indications of North Point Defense Inc.'s track record in similar large-scale R&D contracts?

The provided data does not include specific details about North Point Defense Inc.'s track record with large-scale R&D contracts. The data only confirms their selection for this $647 million 'Phantom Harvest' contract. To assess their track record, one would need to examine their past performance on similar government contracts, including their success in delivering R&D outcomes, managing budgets, adhering to timelines, and overall client satisfaction. Information regarding previous contract awards, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations would be necessary for a comprehensive assessment.

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: FA875021S7002

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 184 BROOKS RD STE 101, ROME, NY, 13441

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

Financial Breakdown

Contract Ceiling: $9,456,116

Exercised Options: $9,456,116

Current Obligation: $6,474,328

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline