DoD's $7.6M R&D contract to Draper Lab for advanced technology development shows fair value

Contract Overview

Contract Amount: $7,602,375 ($7.6M)

Contractor: THE Charles Stark Draper Laboratory, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-15

End Date: 2024-05-24

Contract Duration: 617 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OCELOT

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $7.6 million to THE CHARLES STARK DRAPER LABORATORY, INC. for work described as: OCELOT Key points: 1. Contract awarded to a single, highly specialized R&D firm, indicating a focus on unique technical capabilities. 2. The cost-plus-fixed-fee structure allows for flexibility in research but requires careful monitoring of expenses. 3. Performance period of over 600 days suggests a complex, multi-stage research effort. 4. The contract's value is moderate within the context of large-scale defense R&D projects. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense modernization.

Value Assessment

Rating: good

The contract value of $7.6 million for a definitive contract with a 617-day duration appears reasonable for specialized R&D services. Benchmarking against similar contracts in advanced physical and engineering sciences is challenging due to the unique nature of R&D, but the fixed fee component suggests a degree of cost control. The award to a well-established research institution like Draper Laboratory implies a level of confidence in their ability to deliver value for the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified offerors had the opportunity to bid. While the data indicates two bids were received, the specific details of the competition, such as the number of proposals submitted and the evaluation criteria, are not provided. A competitive process generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of capabilities and potentially drives down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense and the nation's security, through advancements in physical, engineering, and life sciences. The contract supports the development of cutting-edge technologies that could enhance military capabilities. The geographic impact is primarily within Massachusetts, where The Charles Stark Draper Laboratory, Inc. is located. The contract likely supports a highly skilled workforce of scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed diligently.
The specialized nature of R&D makes direct cost comparisons difficult, potentially obscuring inefficiencies.
Long performance periods in R&D can introduce risks related to technological obsolescence or shifting strategic priorities.

Positive Signals

Award to a reputable R&D institution like Draper Laboratory suggests a high likelihood of technical success.
Full and open competition, even with only two bidders, indicates a structured procurement process.
The definitive contract type provides a clear framework for the research effort.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, involving significant investment by government agencies. The market is characterized by specialized firms and academic institutions with deep technical expertise. Comparable spending benchmarks are difficult to establish precisely due to the bespoke nature of R&D, but overall federal R&D spending is in the hundreds of billions annually.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside. Given the specialized nature of advanced R&D, it is common for prime contracts to be awarded to larger, established research institutions. However, the prime contractor may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Performance monitoring, financial reviews, and technical progress reports are standard accountability measures. Transparency is generally maintained through contract databases and public reporting, though specific R&D details may be sensitive.

Related Government Programs

Advanced Technology Development Programs
Department of Defense Research and Development
Engineering and Physical Sciences Research
Aerospace Technology Development

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Specialized R&D nature makes direct value benchmarking challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.6 million to THE CHARLES STARK DRAPER LABORATORY, INC.. OCELOT

Who is the contractor on this award?

The obligated recipient is THE CHARLES STARK DRAPER LABORATORY, 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 $7.6 million.

What is the period of performance?

Start: 2022-09-15. End: 2024-05-24.

What is the track record of The Charles Stark Draper Laboratory, Inc. with the Department of Defense?

The Charles Stark Draper Laboratory, Inc. has a long and established history of working with the Department of Defense and other government agencies on complex research and development projects. They are known for their expertise in areas such as guidance, navigation, and control systems, as well as advanced materials and systems engineering. Their extensive experience suggests a strong track record of delivering on challenging technical requirements. Historical data would likely show numerous prior contracts, many of which would be in similar R&D categories, indicating a consistent and trusted relationship with defense agencies.

How does the value of this contract compare to similar R&D efforts in physical and engineering sciences?

Comparing the $7.6 million value of this contract to similar R&D efforts requires careful consideration of the specific research scope, duration, and complexity. Defense R&D contracts can range from a few million dollars for focused studies to hundreds of millions for large-scale system development. This contract, with a 617-day duration, appears to be for a significant but not exceptionally large R&D initiative. Benchmarking against other definitive contracts in NAICS code 541715 (Research and Development in the Physical, Engineering, and Life Sciences) would provide a more precise comparison, but generally, this value is within a common range for specialized, multi-year research projects.

What are the primary risks associated with this cost-plus-fixed-fee R&D contract?

The primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract for R&D include potential cost overruns and scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost' portion is reimbursable, which can incentivize less stringent cost control if not closely monitored by the government. For R&D, there's also the inherent risk that the research may not yield the desired technological outcomes, or that the technology may become obsolete before development is complete. Effective oversight, clear performance metrics, and regular technical reviews are crucial to mitigate these risks.

How effective is the 'full and open competition' process for specialized R&D contracts like this?

The effectiveness of 'full and open competition' for specialized R&D contracts is a nuanced issue. While it theoretically maximizes the pool of potential offerors and promotes competition, the reality for highly specialized R&D is that only a limited number of entities may possess the unique expertise and facilities required. In this case, with two bids received, it suggests that while the process was open, the market for this specific capability might be concentrated. The effectiveness is measured by whether the competition led to a fair price, innovative solutions, and the selection of the most capable contractor, which is often best assessed post-award through performance and value.

What are historical spending patterns for R&D in physical, engineering, and life sciences by the Department of Defense?

The Department of Defense consistently allocates substantial funding towards Research and Development across physical, engineering, and life sciences, recognizing its critical role in maintaining technological superiority. Historical spending patterns show a significant and often increasing trend in this area, driven by evolving geopolitical landscapes and the rapid pace of technological advancement. These funds support a wide array of activities, from basic research to applied research and advanced technology development, often through contracts with industry and academic institutions. Specific figures fluctuate annually based on budget allocations and strategic priorities, but R&D remains a core investment area for the DoD.

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: FA875020S7018

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 555 TECHNOLOGY SQ, CAMBRIDGE, MA, 02139

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

Financial Breakdown

Contract Ceiling: $7,602,375

Exercised Options: $7,602,375

Current Obligation: $7,602,375

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $266,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline