DoD's $19.6M R&D contract with Utah State University Space Dynamics Laboratory for advanced research

Contract Overview

Contract Amount: $19,598,919 ($19.6M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2029-11-09

Contract Duration: 2,048 days

Daily Burn Rate: $9.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SNAPET TO 11 WAYFINDER

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $19.6 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: SNAPET TO 11 WAYFINDER Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Significant duration of over 6 years suggests a complex, long-term research objective. 3. Sole-source award raises questions about potential lack of competitive pressure on pricing. 4. High value indicates a critical or specialized research need by the Air Force. 5. Focus on R&D aligns with strategic investments in technological advancement. 6. Geographic concentration in Utah may point to regional research strengths or existing infrastructure.

Value Assessment

Rating: questionable

The contract's value of $19.6 million over approximately six years for R&D services warrants scrutiny. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The cost-plus-fixed-fee structure can sometimes lead to cost overruns if not managed tightly. Further analysis would be needed to determine if the fixed fee adequately incentivizes efficiency and if the estimated costs are reasonable for the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Utah State University Space Dynamics Laboratory, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may result in higher costs for the government compared to a fully competed contract with multiple bidders.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these research and development services. Without competing offers, there's less pressure on the contractor to offer cost savings.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive advanced research outcomes. The contract supports scientific and technological advancement in physical, engineering, and life sciences. Research outcomes could lead to new technologies or improved defense capabilities. The contract is likely to impact the research workforce at Utah State University and potentially its partners. Geographic impact is concentrated in Utah, leveraging the state's research infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs effectively.
Long contract duration (over 6 years) increases the risk of scope creep or changing research priorities.
Lack of publicly available details on specific research objectives makes performance assessment challenging.

Positive Signals

Award to a university research lab suggests access to specialized expertise and facilities.
Focus on R&D aligns with strategic goals for technological innovation and national security.
Long-term nature of the contract indicates a significant and potentially impactful research endeavor.
Utah State University has a track record in aerospace and defense research, suggesting capability.

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 spending, driving innovation and maintaining technological superiority. The market for specialized R&D services is often characterized by a mix of large corporations, research institutions, and smaller specialized firms. Benchmarking spending in this category requires comparing contract values against similar R&D efforts within the DoD and other federal agencies, considering the specific scientific domains involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' and 'sb' being false. The prime contractor is Utah State University, an educational institution. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the university voluntarily engages small businesses for specific support services.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting agency, the Department of the Air Force, and potentially the Department of Defense's Inspector General. Given the sole-source nature and the R&D focus, oversight will likely concentrate on adherence to the research plan, cost tracking under the cost-plus-fixed-fee structure, and the achievement of defined research milestones. Transparency may be limited due to the sensitive nature of some R&D, but regular reporting and reviews are expected.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Science and Technology Investments
University Research Partnerships
Advanced Technology Development Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.6 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. SNAPET TO 11 WAYFINDER

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

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 $19.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2029-11-09.

What is the specific research area and expected outcome of this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' under NAICS code 541715. While the broad category is defined, the specific research objectives and expected outcomes are not detailed in the provided data. Contracts of this nature often involve fundamental research, applied research, or advanced technology development aimed at enhancing defense capabilities, improving existing systems, or exploring novel scientific principles. Utah State University's Space Dynamics Laboratory has a history in areas like space systems, sensor technology, and aerospace engineering, suggesting the research may align with these domains. Further details would typically be found in the contract's statement of work.

How does the $19.6 million value compare to similar R&D contracts awarded by the Air Force?

The $19.6 million value for a contract spanning over six years is substantial but not extraordinary within the context of large-scale federal R&D efforts, particularly those undertaken by the Department of Defense. To provide a precise comparison, one would need to analyze the specific scientific domain (physical, engineering, life sciences) and the scope of work. However, R&D contracts of this magnitude are common for developing advanced technologies, complex systems, or conducting extensive scientific investigations. Without knowing the specific deliverables, it's challenging to benchmark precisely, but it falls within the typical range for significant, multi-year research initiatives aimed at strategic technological advancement.

What are the risks associated with a sole-source award for this R&D contract?

The primary risk of a sole-source award is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may not secure the most cost-effective solution. Additionally, sole-source awards can sometimes indicate a lack of available qualified sources or an urgent need, which may introduce other risks if not managed properly. For R&D, there's also a risk that the chosen contractor, while possessing unique capabilities, might not be the most innovative or efficient compared to a pool of competitors. Transparency and robust oversight become even more critical in sole-source situations to ensure fair pricing and effective execution.

What is the track record of Utah State University Space Dynamics Laboratory with federal contracts?

Utah State University's Space Dynamics Laboratory (SDL) has a significant history of performing research and development for federal agencies, particularly the Department of Defense and NASA. SDL is known for its expertise in areas such as space weather, satellite technology, sensor systems, and aerospace engineering. They have successfully managed numerous complex research projects and delivered advanced technological solutions. Their extensive experience suggests a strong capability to execute the current R&D contract effectively. Reviewing their past performance on similar contracts would provide further insight into their reliability and technical proficiency.

How does the Cost Plus Fixed Fee (CPFF) contract type influence cost control and contractor incentives?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, common in R&D. For cost control, the government must diligently audit and approve all incurred costs. The fixed fee provides a clear profit target, but it doesn't directly incentivize cost reduction beyond what's necessary to complete the work within the estimated cost ceiling. The contractor's incentive is to complete the project successfully, as the fee is fixed regardless of the final cost, though significant cost overruns could strain the relationship and future opportunities.

What are the potential long-term implications of this R&D investment for the Air Force?

This R&D investment by the Air Force, valued at $19.6 million over more than six years, has the potential for significant long-term implications. Successful research outcomes could lead to the development of next-generation technologies, enhancing the Air Force's operational capabilities, improving intelligence gathering, or creating more effective defense systems. It could also foster innovation within the scientific community and strengthen partnerships with academic institutions like Utah State University. The investment signifies a commitment to staying at the forefront of technological advancement, which is crucial for maintaining national security and a strategic advantage in a rapidly evolving global landscape.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 416 E INNOVATION AVE, NORTH LOGAN, UT, 84341

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

Financial Breakdown

Contract Ceiling: $21,486,349

Exercised Options: $21,486,349

Current Obligation: $19,598,919

Actual Outlays: $699,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA945322D0005

IDV Type: IDC

Timeline