DoD Awards $29.3M R&D Contract to Maxar for RED WING Accelerated PED
Contract Overview
Contract Amount: $29,270,214 ($29.3M)
Contractor: Maxar Mission Solutions Inc
Awarding Agency: Department of Defense
Start Date: 2023-06-28
End Date: 2027-08-27
Contract Duration: 1,521 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RED WING ACCELERATED PED
Place of Performance
Location: YPSILANTI, WASHTENAW County, MICHIGAN, 48197
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $29.3 million to MAXAR MISSION SOLUTIONS INC for work described as: RED WING ACCELERATED PED Key points: 1. Contract awarded to Maxar Mission Solutions Inc. for Research and Development. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over 4 years, indicating a significant project. 4. The specific NAICS code (541715) points to R&D in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct price discovery benefits of competition.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D, with the ultimate value dependent on the successful development and application of the technology.
Public Impact
Supports advanced research and development initiatives within the Department of Defense. Potential for technological advancements that could benefit national security. Contract duration suggests a long-term investment in a specific R&D area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics makes it hard to assess value for money.
- Limited transparency on how the fixed fee was determined.
Positive Signals
- Awarded through full and open competition.
- Contract supports critical R&D for the Air Force.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this sector is crucial for technological advancement but can be subject to cost overruns and uncertain outcomes.
Small Business Impact
The contract was awarded to Maxar Mission Solutions Inc. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Oversight will be critical to ensure that the Cost Plus Fixed Fee structure does not lead to excessive spending and that the R&D objectives are met efficiently.
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
- Potential for cost overruns due to CPFF contract type.
- Uncertainty of R&D outcomes.
- Lack of detailed performance metrics in the provided data.
- Limited visibility into the fixed fee negotiation process.
Tags
research-and-development-in-the-physical, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to MAXAR MISSION SOLUTIONS INC. RED WING ACCELERATED PED
Who is the contractor on this award?
The obligated recipient is MAXAR MISSION 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 $29.3 million.
What is the period of performance?
Start: 2023-06-28. End: 2027-08-27.
What specific technological advancements are expected from this R&D contract, and how will they be measured?
The contract aims to accelerate the 'RED WING ACCELERATED PED' program, likely focusing on specific technological developments within physical, engineering, or life sciences. Measurable outcomes would typically involve defined milestones, prototype development, testing results, and successful integration into existing systems. Without further details on the program's objectives, a precise assessment of expected advancements and their measurement criteria is not possible.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this R&D context?
The primary risk with Cost Plus Fixed Fee (CPFF) in R&D is that the contractor may have less incentive to control costs, as the government bears the cost of performance plus a fixed fee. This can lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen challenges arise during research. Effective oversight is crucial to mitigate this risk and ensure the fixed fee remains reasonable for the scope of work.
How does this contract contribute to the Department of the Air Force's overall R&D strategy and technological superiority?
This contract supports the Department of the Air Force's investment in critical R&D, aiming to accelerate the development of new technologies. By funding specific research areas, it contributes to maintaining technological superiority and addressing future operational needs. The success of the 'RED WING ACCELERATED PED' program will determine its specific contribution to the Air Force's strategic goals and overall capabilities.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA875021S7006
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Stratagem Group LLC
Address: 1200 JOE HALL DR, YPSILANTI, MI, 48197
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,861,019
Exercised Options: $39,861,019
Current Obligation: $29,270,214
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $809,939
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-06-28
Current End Date: 2027-08-27
Potential End Date: 2027-08-27 00:00:00
Last Modified: 2026-04-15
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