Verus Research awarded $9.2M for R&D in physical sciences, with a 50% benchmark for value

Contract Overview

Contract Amount: $9,251,837 ($9.3M)

Contractor: Verus Research, LLC

Awarding Agency: Department of Defense

Start Date: 2021-03-11

End Date: 2026-03-10

Contract Duration: 1,825 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FUTURE SPACE COMMUNICATIONS (FSC)

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to VERUS RESEARCH, LLC for work described as: FUTURE SPACE COMMUNICATIONS (FSC) Key points: 1. Contract value of $9.2M for R&D services. 2. Competition dynamics indicate a full and open process. 3. Risk indicators are moderate, given the R&D nature. 4. Performance context is set against a 5-year period. 5. Sector positioning is within physical, engineering, and life sciences R&D. 6. Value for money is benchmarked at 50%.

Value Assessment

Rating: fair

The contract value of $9.2M over five years suggests an average annual spend of approximately $1.85M. Benchmarking this against similar R&D contracts in the physical sciences is challenging without more specific service details. However, the provided value-for-money benchmark of 50% indicates a potential concern regarding cost efficiency or the pricing of the services rendered. Further analysis would be needed to determine if this represents a competitive price for the expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but a full and open process generally promotes price discovery and can lead to more competitive pricing. This approach is typically favored for ensuring the government receives the best value by leveraging a broad range of potential offerors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price, reducing the risk of overpayment and encouraging innovation among a wider pool of contractors.

Public Impact

Benefits the Department of the Air Force through advanced research and development. Services delivered are focused on physical, engineering, and life sciences research. Geographic impact is primarily in New Mexico, where the contractor is located. Workforce implications include specialized R&D personnel employed by Verus Research, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 50% value-for-money benchmark raises questions about cost efficiency and pricing.
The specific deliverables and their alignment with R&D objectives require further scrutiny.
The long-term duration of the contract (5 years) necessitates ongoing performance monitoring.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contractor is Verus Research, LLC, indicating a specific entity is responsible for performance.
The contract type (Cost Plus Fixed Fee) is common for R&D where scope may evolve.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for technological advancement and national security. The market for such specialized R&D services is competitive, with numerous firms capable of undertaking complex scientific endeavors. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the research, but government investment in R&D is substantial across various agencies.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss: false' and 'sb: false'. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on securing specialized R&D capabilities from the most qualified offeror(s) through open competition, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, with specific program managers responsible for monitoring performance and expenditures. Accountability measures are inherent in the Cost Plus Fixed Fee structure, which requires detailed reporting and justification of costs. Transparency is generally maintained through contract databases, though specific research details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
Physical and Engineering Sciences Research Contracts
Advanced Technology Development

Risk Flags

Value-for-money benchmark requires further investigation.
Specific R&D deliverables and success metrics are not detailed.
Contractor performance history needs independent verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to VERUS RESEARCH, LLC. FUTURE SPACE COMMUNICATIONS (FSC)

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 $9.3 million.

What is the period of performance?

Start: 2021-03-11. End: 2026-03-10.

What is the specific nature of the R&D being conducted under this contract?

The contract is classified under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the broad category is defined, the specific research objectives, methodologies, and expected outcomes are not detailed in the provided data. This could range from materials science and advanced manufacturing to complex systems engineering or fundamental scientific inquiry. Understanding the precise R&D focus is crucial for evaluating the contract's alignment with Air Force strategic goals and assessing the relevance of the 50% value-for-money benchmark.

How does the $9.2M contract value compare to similar R&D efforts within the Air Force or DoD?

Direct comparison of the $9.2M value is difficult without knowing the specific R&D domain and scope. However, the Department of Defense invests billions annually in research and development across various scientific fields. For context, the Air Force's R&D budget typically runs into the tens of billions of dollars each fiscal year. A single contract of $9.2M for a 5-year period represents a modest portion of the overall R&D spending, suggesting it might be for a focused project or a specific technological advancement rather than a large-scale program. Benchmarking would require identifying contracts with similar NAICS codes, contract types, and research objectives.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) for this Cost Plus Fixed Fee contract. Typically, for R&D contracts, KPIs would relate to milestones achieved, research progress, successful experimentation, technical reports delivered, and adherence to project timelines. Performance measurement would involve regular reviews by the contracting officer's representative (COR) and technical experts to assess whether the contractor is meeting the defined objectives and managing costs effectively within the agreed-upon fee structure. The 50% value-for-money benchmark might be an internal assessment metric or a result of a specific performance review.

What is Verus Research, LLC's track record with government contracts, particularly with the Department of Defense?

Verus Research, LLC has a history of performing government contracts, including those with the Department of Defense. While specific details on past performance quality, past issues, or the volume of their prior work are not in this dataset, their ability to secure this contract suggests they meet certain qualification criteria. A deeper dive into contract databases (like SAM.gov or FPDS) would reveal the number and types of previous awards, their performance ratings, and any significant contract disputes or successes. This information is vital for a comprehensive risk assessment.

How does the Cost Plus Fixed Fee (CPFF) contract type influence risk and cost control for this R&D effort?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where the scope of work can be uncertain or evolve. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it places a significant oversight burden on the government to ensure costs are reasonable and allocable. For taxpayers, the risk lies in potential cost overruns if not managed diligently, while the benefit is access to specialized R&D expertise that might be difficult to define precisely upfront.

What is the significance of the 'NM' (New Mexico) designation for the contract's location?

The 'NM' designation indicates that the contract's primary place of performance or the contractor's location is New Mexico. This has implications for regional economic impact, potentially supporting the local workforce and technology ecosystem within the state. For federal spending analysis, it helps in understanding geographic distribution of contracts and identifying states or regions that receive significant R&D investment. It may also relate to specific state-level incentives or research hubs that the Air Force leverages.

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: TWO STEP

Solicitation ID: FA945317S0005

Offers Received: 1

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: $9,682,545

Exercised Options: $9,682,545

Current Obligation: $9,251,837

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $497,612

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline