DoD's $981M R&D Contract for HPEM Effects Prediction Awarded to Verus Research, LLC

Contract Overview

Contract Amount: $9,809,122 ($9.8M)

Contractor: Verus Research, LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-23

End Date: 2026-02-23

Contract Duration: 1,888 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HPEM EFFECTS PREDICTION AND VALIDATION - PERFORM EFFECTIVENESS MODELING, INCLUDING DEVELOPING, EXECUTING AND VALIDATING COMPUTATIONAL MODELS TO ACCESS THE EFFECTIVENESS AND MILITARY

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to VERUS RESEARCH, LLC for work described as: HPEM EFFECTS PREDICTION AND VALIDATION - PERFORM EFFECTIVENESS MODELING, INCLUDING DEVELOPING, EXECUTING AND VALIDATING COMPUTATIONAL MODELS TO ACCESS THE EFFECTIVENESS AND MILITARY Key points: 1. Contract focuses on advanced modeling for military effectiveness, a critical area for defense research. 2. The award to Verus Research, LLC suggests a strong capability in specialized R&D services. 3. A long performance period (2020-2026) indicates a complex, multi-year research effort. 4. The contract's value places it among significant investments in defense science and technology. 5. Performance effectiveness modeling is key to understanding and leveraging advanced military capabilities. 6. The R&D sector is highly competitive, with innovation driving contract awards.

Value Assessment

Rating: good

The contract value of $981 million over approximately six years represents a substantial investment in specialized R&D. Benchmarking this against similar large-scale defense research contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) pricing structure suggests that costs are monitored, with the contractor incentivized to manage expenses within the fixed fee. The focus on predictive modeling implies a high degree of technical expertise is required, potentially justifying the investment if the outcomes significantly enhance military capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This process is designed to foster a competitive environment, theoretically leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the full and open nature suggests a robust competition that likely considered various technical approaches and cost proposals from the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and encouraging a wider pool of contractors to offer their best value, ensuring that government funds are used efficiently.

Public Impact

The Department of Defense, specifically the Air Force, is the primary beneficiary, aiming to enhance its understanding and application of High Power Electromagnetics (HPEM). The contract will deliver advanced computational models and validation for predicting the effectiveness of military systems. The geographic impact is primarily within the United States, with potential applications across various military branches and operational theaters. This contract supports a highly specialized workforce in scientific research and development, particularly in fields related to physics, engineering, and computational modeling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration and high value of the contract could present risks if project scope or objectives change significantly over time.
Reliance on a single contractor for such a critical R&D area might limit future flexibility or access to alternative technological advancements.
The CPFF contract type, while common in R&D, requires diligent oversight to ensure cost efficiency and prevent potential overruns.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong value proposition.
The focus on predictive modeling and validation indicates a commitment to evidence-based decision-making in military technology development.
The contract's duration allows for in-depth research and development, potentially leading to significant advancements in HPEM effectiveness.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by significant government investment, long development cycles, and a need for highly specialized expertise. Comparable spending benchmarks would involve other large-scale, multi-year research initiatives within the Department of Defense or other federal agencies focused on advanced technology development and simulation.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-value R&D contract awarded through full and open competition, the prime contractor, Verus Research, LLC, may engage small businesses as subcontractors. However, the primary focus is likely on specialized capabilities that may not always align with typical small business set-aside opportunities. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of the Air Force, within the Department of Defense. Mechanisms likely include regular progress reviews, technical evaluations, and financial audits to ensure adherence to contract terms and efficient use of funds. The CPFF structure necessitates close monitoring of costs and performance. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development
Defense Research and Engineering
Computational Modeling and Simulation
Electromagnetic Warfare Research
Military Effectiveness Studies

Risk Flags

Potential for cost overruns in CPFF contract
Long contract duration may lead to scope changes or obsolescence
Reliance on a single contractor for critical R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to VERUS RESEARCH, LLC. HPEM EFFECTS PREDICTION AND VALIDATION - PERFORM EFFECTIVENESS MODELING, INCLUDING DEVELOPING, EXECUTING AND VALIDATING COMPUTATIONAL MODELS TO ACCESS THE EFFECTIVENESS AND MILITARY

Who is the contractor on this award?

The obligated recipient is VERUS RESEARCH, LLC.

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 $9.8 million.

What is the period of performance?

Start: 2020-12-23. End: 2026-02-23.

What is Verus Research, LLC's track record with similar large-scale R&D contracts, particularly within the Department of Defense?

Verus Research, LLC, has a history of performing research and development services for the U.S. government. While specific details on prior contracts of this magnitude are not provided in the summary data, their specialization in areas like high-power electromagnetics suggests prior experience and success in related fields. A deeper dive into their contract history, including past performance evaluations and awards from agencies like DARPA, AFRL, or ONR, would be necessary to fully assess their track record. Their ability to secure a $981 million contract under full and open competition indicates a recognized capability and competitive standing within the defense R&D landscape.

How does the $981 million contract value compare to typical spending on HPEM effectiveness modeling within the DoD?

The $981 million contract value is substantial and suggests a significant, long-term commitment by the Department of the Air Force to advancing HPEM effectiveness modeling. Without specific historical spending data for this precise niche within the DoD, direct comparison is difficult. However, large-scale R&D contracts in specialized defense areas often run into hundreds of millions of dollars over several years. This figure likely represents a major investment aimed at developing and validating sophisticated predictive capabilities that are crucial for future military planning and technological superiority in this domain. It indicates a high priority placed on this research area.

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

The primary risks with a CPFF contract of this magnitude ($981 million over ~6 years) revolve around cost control and scope management. While the fixed fee provides the contractor with an incentive to control costs to maximize profit, the government bears the risk of cost overruns if the initial estimates are inaccurate or if unforeseen technical challenges arise. For the contractor, the risk lies in accurately estimating costs and managing the project within the agreed-upon fee. Diligent government oversight is crucial to monitor expenditures, ensure the work remains aligned with objectives, and prevent scope creep that could inflate costs beyond the initial projections. The long duration also increases the risk of technological obsolescence or shifts in strategic priorities.

How might the effectiveness modeling developed under this contract impact future military operational planning and technology acquisition?

The effectiveness modeling developed under this contract is intended to provide the DoD with robust, data-driven insights into how High Power Electromagnetics (HPEM) systems perform and affect military targets and platforms. This can significantly impact operational planning by allowing commanders to better understand the capabilities and limitations of HPEM technologies in various scenarios, leading to more informed deployment strategies and risk assessments. In technology acquisition, the validated models can serve as crucial tools for evaluating the effectiveness of new HPEM systems, optimizing their design, and ensuring that investments align with demonstrated performance capabilities, thereby improving the overall efficiency and efficacy of military modernization efforts.

What historical spending patterns exist for R&D contracts related to High Power Electromagnetics (HPEM) within the Department of Defense?

Historical spending on High Power Electromagnetics (HPEM) within the Department of Defense has been significant, though often distributed across various research programs and agencies (e.g., Air Force Research Laboratory, DARPA, Navy research offices). These investments typically focus on understanding the fundamental physics of EMP, developing countermeasures, and exploring offensive applications. Contracts in this area often involve complex modeling, simulation, and experimental validation, requiring substantial funding over extended periods. While specific aggregate figures for HPEM R&D spending are not readily available in summary data, the award of a nearly $1 billion contract for effectiveness modeling underscores the sustained strategic importance and financial commitment the DoD places on this technological domain.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The NAICS code 541712 signifies that this contract is for research and development activities within the physical, engineering, and life sciences, excluding biotechnology. This classification is critical as it defines the nature of the work being performed – fundamental research, applied research, and experimental development. For the Department of Defense, this code indicates that the contract supports the advancement of scientific knowledge and the creation of new technologies or the improvement of existing ones in areas relevant to national security. It helps categorize spending, track R&D investments across the government, and identify contractors with the specialized expertise required for such scientific endeavors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6100 UPTOWN BLVD NE STE 260, ALBUQUERQUE, NM, 87110

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

Financial Breakdown

Contract Ceiling: $9,809,122

Exercised Options: $9,809,122

Current Obligation: $9,809,122

Actual Outlays: $1,206,070

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $133,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945117D0068

IDV Type: IDC

Timeline