DoD's $11M R&D contract with Crane Co. for physical sciences research shows fair value and strong competition

Contract Overview

Contract Amount: $11,055,505 ($11.1M)

Contractor: Crane CO.

Awarding Agency: Department of Defense

Start Date: 2005-03-29

End Date: 2006-07-31

Contract Duration: 489 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: RICHARDSON, DALLAS County, TEXAS, 75082

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to CRANE CO. for work described as: Key points: 1. The contract's value appears reasonable given the scope of research and development in physical sciences. 2. Full and open competition suggests a healthy market with multiple potential bidders. 3. The fixed-fee structure on a cost-plus award provides some incentive for cost control. 4. Performance duration of 489 days is standard for complex R&D projects. 5. This contract aligns with the Defense Department's ongoing investment in advanced physical sciences. 6. The specific NAICS code indicates a focus on specialized scientific inquiry.

Value Assessment

Rating: good

The contract award of $11.06 million for R&D in physical sciences appears to be within a reasonable range for specialized research. Benchmarking against similar contracts for advanced scientific inquiry is challenging without more specific project details, but the fixed-fee component on a cost-plus basis suggests an effort to manage contractor risk and ensure value. The duration of the contract (489 days) is also typical for such endeavors, indicating a well-planned project timeline.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, leading to better pricing and innovation. The presence of multiple bidders, though not explicitly detailed, is implied by the 'full and open' designation, suggesting that the government explored a wide range of capabilities.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible value for its investment in research and development.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced research in physical sciences. The contract supports the development of new technologies and scientific understanding relevant to national security. The geographic impact is primarily within Texas, where the contractor is located. Workforce implications include employment for scientists, engineers, and support staff involved in the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the ultimate success of the R&D.
The cost-plus-fixed-fee structure can sometimes lead to cost overruns if not closely monitored.
The duration of the contract is relatively short for fundamental research, potentially limiting deep exploration.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
The fixed-fee component provides a ceiling on contractor profit, aligning incentives.
The contractor, Crane Co., likely has a track record in defense-related R&D, implying relevant expertise.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). This is a critical area for defense innovation, enabling the development of next-generation technologies. The market for such specialized R&D is often characterized by a mix of large defense contractors and specialized research firms. Government spending in this area is substantial, reflecting a continuous need for technological advancement.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Crane Co. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. 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 outcomes may be classified or proprietary.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Materials Research Contracts
Physical Sciences Research Initiatives
Defense Science and Technology Strategy

Risk Flags

Potential for cost overruns due to CPFF structure if not closely monitored.
Scope definition clarity for R&D projects can be challenging, leading to potential disputes.
Dependence on contractor's specific expertise may limit alternative solutions if issues arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to CRANE CO.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CRANE CO..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2005-03-29. End: 2006-07-31.

What is Crane Co.'s track record with similar R&D contracts for the Department of Defense?

Crane Co. has a history of engaging in various defense-related contracts, including research and development. While specific details on prior R&D projects in physical sciences would require deeper database analysis, their established presence in the defense sector suggests a familiarity with government contracting requirements and a capacity to undertake complex scientific endeavors. Their portfolio often includes areas like aerospace, electronics, and engineered materials, which can overlap with physical sciences research. Further investigation into their past performance ratings and specific technical achievements on similar contracts would provide a more comprehensive understanding of their capabilities and reliability in this domain.

How does the $11.06 million value compare to other physical sciences R&D contracts awarded by the DoD?

The $11.06 million award for this physical sciences R&D contract is a moderate-sized investment within the broader DoD R&D spending landscape. The Department of Defense allocates billions annually to research and development across numerous scientific disciplines. Contracts for fundamental or applied physical sciences research can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and technological complexity. This particular contract's value suggests a focused research effort rather than a large-scale, multi-year program. Benchmarking requires comparing it to contracts with similar NAICS codes (541712) and specific research objectives, but it appears to be a typical investment for specialized scientific inquiry.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for a Research and Development contract in physical sciences, typical deliverables often include research reports, technical data packages, prototypes, experimental results, feasibility studies, and potentially recommendations for further development or application. Performance would likely be assessed based on the timely completion of research milestones, the quality and rigor of the scientific methodology employed, the clarity and comprehensiveness of the final reports, and the achievement of defined research objectives. The contracting officer's representative (COR) would be responsible for monitoring progress against these unstated but implied performance expectations.

What is the potential risk associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this R&D project?

The 'Cost Plus Fixed Fee' (CPFF) contract type for this R&D project presents a moderate level of risk. For the government, the primary risk is that the contractor may not have a strong incentive to control costs beyond what is necessary to achieve the fixed fee, as all allowable costs are reimbursed. However, the fixed fee itself provides a ceiling on the contractor's profit, which mitigates some of this risk. For the contractor, the risk lies in accurately estimating all costs to ensure they can complete the work within the agreed-upon fixed fee. Effective oversight by the government is crucial to monitor costs, ensure compliance, and prevent scope creep that could inflate expenses without a corresponding increase in the fee.

How does the contract's duration of 489 days impact the potential for groundbreaking discoveries?

A contract duration of 489 days (approximately 16 months) is relatively short for truly groundbreaking discoveries in fundamental physical sciences, which often require years of sustained research and experimentation. This timeframe is more suitable for applied research, proof-of-concept studies, or the development of specific technologies based on existing scientific principles. While significant progress and valuable insights can certainly be achieved within 16 months, the potential for paradigm-shifting breakthroughs might be limited. The success within this period would depend heavily on the project's scope, the clarity of objectives, and the efficiency of the research team. It suggests a focused effort rather than a long-term exploration of unknown scientific frontiers.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Crane CO (UEI: 001280726)

Address: 1820 PRESTON PARK BLVD STE, PLANO, TX, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline