DoD's $25.2M R&D contract for low-cost power panels awarded to Microlink Devices Inc

Contract Overview

Contract Amount: $25,200,503 ($25.2M)

Contractor: Microlink Devices Inc

Awarding Agency: Department of Defense

Start Date: 2021-11-10

End Date: 2026-10-13

Contract Duration: 1,798 days

Daily Burn Rate: $14.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: E014042 LOW COST POWER PANELS ARA BAA

Place of Performance

Location: NILES, COOK County, ILLINOIS, 60714

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to MICROLINK DEVICES INC for work described as: E014042 LOW COST POWER PANELS ARA BAA Key points: 1. Contract awarded for research and development in physical sciences, focusing on power panels. 2. The contract duration is nearly 5 years, suggesting a significant R&D effort. 3. Awarded under full and open competition, indicating a broad search for qualified contractors. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The primary NAICS code points to R&D in physical and engineering sciences. 6. The contract is not set aside for small businesses, suggesting a focus on specialized capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and market comparables for 'low cost power panels'. The Cost Plus Fixed Fee structure means the final cost is not predetermined, making direct price comparisons difficult. However, the fixed fee component provides some cost certainty for the contractor's effort. Further analysis would require understanding the technical milestones and the value of the intellectual property or technology developed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of Defense sought the best possible solution from the widest range of potential offerors. The specific number of bidders is not provided, but the competition type implies a robust process. This approach is generally expected to yield competitive pricing and innovative solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the most cost-effective solution and encourages innovation from a broad base of contractors.

Public Impact

The Department of Defense is the primary beneficiary, seeking advancements in power panel technology. The contract aims to deliver research and development outcomes in physical sciences. The geographic impact is focused on Illinois, where the contractor is located. Workforce implications may include specialized R&D personnel within Microlink Devices Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not carefully managed.
Lack of specific performance metrics makes it difficult to assess R&D progress without further detail.
The 'low cost' aspect of the power panels needs to be validated against performance and durability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
The contract duration indicates a commitment to developing a potentially significant technology.
Focus on R&D aligns with the DoD's need for technological superiority.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for advanced power solutions, including specialized panels for defense applications, is competitive and driven by innovation. Comparable spending benchmarks would typically be found in other DoD R&D contracts for materials science or energy technologies, but specific data for 'low cost power panels' is not readily available.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The focus on specialized R&D in physical sciences may necessitate large, established firms or those with highly specific intellectual property and facilities. This means the direct impact on the small business ecosystem for this particular award is likely minimal.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve regular reporting from the contractor on technical progress and incurred costs. The Department of Defense contracting officers and technical representatives are responsible for monitoring performance against the contract's objectives. Transparency is generally maintained through contract databases, though specific R&D 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
Advanced Materials Research Contracts
Energy Technology Development
Physical Sciences Research Grants

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Lack of specific performance metrics in summary data makes progress assessment difficult.
The 'low cost' claim needs validation against performance and durability requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to MICROLINK DEVICES INC. E014042 LOW COST POWER PANELS ARA BAA

Who is the contractor on this award?

The obligated recipient is MICROLINK DEVICES 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 $25.2 million.

What is the period of performance?

Start: 2021-11-10. End: 2026-10-13.

What is the specific technical objective of the 'low cost power panels' research and development?

The provided data does not detail the specific technical objectives for the 'low cost power panels'. The contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This suggests the research could involve novel materials, manufacturing processes, or design improvements aimed at reducing the cost of power panels while maintaining or improving performance for defense applications. Further details would likely be found in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the contract.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are its implications?

Cost Plus Fixed Fee (CPFF) contracts are common for R&D where the scope of work is not precisely defined at the outset, making a fixed-price contract impractical. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to control costs to maximize their profit margin (as the fee is fixed). However, it can also lead to cost overruns if the initial cost estimates are inaccurate or if unforeseen technical challenges arise. For taxpayers, it means the final cost is variable, unlike a firm-fixed-price contract, but it allows the government to pursue innovative R&D that might otherwise be too risky for contractors to undertake on a fixed-price basis.

What is the typical cost range for similar R&D contracts in physical sciences for the Department of Defense?

The cost range for similar R&D contracts in physical sciences for the Department of Defense can vary significantly based on the complexity, duration, and specific technological focus. Contracts can range from a few hundred thousand dollars for early-stage feasibility studies to tens or hundreds of millions for advanced development programs. This $25.2 million contract for power panels appears to be a substantial investment, suggesting a project with significant technical scope and a multi-year development timeline. Without more specific details on the deliverables and technological maturity, direct comparison is difficult, but it falls within the mid-to-high range for specialized R&D efforts.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this contract include technical feasibility (i.e., whether the 'low cost power panels' can be successfully developed to meet performance requirements), cost overruns due to the CPFF structure, and schedule delays. Mitigation strategies typically involve robust government oversight, including regular technical reviews, cost monitoring, and performance evaluations. The fixed fee component of the CPFF contract provides some incentive for the contractor to manage costs efficiently. Clear definition of milestones and deliverables in the contract's Statement of Work is crucial for managing expectations and assessing progress.

What is Microlink Devices Inc.'s track record in government contracting, particularly in R&D?

Information regarding Microlink Devices Inc.'s specific track record in government contracting, particularly within R&D for the Department of Defense, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including their success in meeting technical requirements, staying within budget, and adhering to schedules. Government contract databases and past performance reviews would be necessary to evaluate their capabilities and reliability in executing complex R&D projects.

How does the $25.2 million award compare to historical spending on power panel technology by the DoD?

The $25.2 million award represents a significant investment in power panel technology. Historical spending by the DoD on power solutions and related R&D can fluctuate based on strategic priorities and technological advancements. Without access to specific historical spending data for power panel technology, it's challenging to provide a direct comparison. However, this amount suggests a focused effort to advance a specific capability, potentially indicating a perceived gap or a strategic push in this area. It is likely part of a broader portfolio of energy and power research initiatives within 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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6457 HOWARD ST, NILES, IL, 60714

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,200,503

Exercised Options: $25,200,503

Current Obligation: $25,200,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline