DoD's $21.7M R&D contract for broad spectrum generation awarded to Functional Genetics, Inc

Contract Overview

Contract Amount: $21,734,414 ($21.7M)

Contractor: Functional Genetics, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-08-16

End Date: 2011-02-28

Contract Duration: 1,657 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 130

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GENERATION OF NOVEL BROAD SPECTRUM

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20878

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to FUNCTIONAL GENETICS, INC. for work described as: GENERATION OF NOVEL BROAD SPECTRUM Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract duration of 1657 days indicates a long-term research objective. 3. Awarded under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 4. The contractor, Functional Genetics, Inc., has a track record with this agency. 5. The contract type is Cost Plus Fixed Fee, common for R&D where costs are uncertain. 6. This contract represents a significant investment in advanced scientific research for defense applications.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the inherent uncertainties in research outcomes. The Cost Plus Fixed Fee (CPFF) structure means the government pays for actual costs plus a negotiated fee, which can lead to cost overruns if not managed carefully. Without specific performance metrics or comparable contracts for 'broad spectrum generation,' a definitive value-for-money assessment is difficult. However, the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This competitive process is generally expected to yield fair pricing and encourage innovation. The presence of 131 bids suggests a healthy level of interest and competition for this specialized research requirement.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiary is the Department of Defense, which gains advanced capabilities in broad spectrum generation for potential defense applications. The contract supports research and development in cutting-edge scientific fields, potentially leading to technological advancements. The geographic impact is primarily within Maryland, where the contractor is located, potentially supporting local high-tech employment. This contract fosters innovation within the scientific research community, particularly in areas relevant to national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can carry a risk of cost escalation if not closely monitored.
The specialized nature of the research may limit the number of qualified contractors, potentially impacting future competition.
Long-term R&D projects can face scope creep or shifts in strategic priorities.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The large number of bids (131) suggests strong interest and a robust bidding process.
The contract supports critical research and development for national security.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized R&D services supporting defense applications is often characterized by a limited number of highly specialized firms. Government spending in this area is crucial for maintaining technological superiority and addressing emerging threats. Comparable spending benchmarks are difficult to establish due to the unique nature of 'broad spectrum generation' research.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of the R&D and the large contract value, it is likely that larger, established research firms or divisions within larger companies were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Threat Reduction Agency Research Programs
Department of Defense Advanced Research Projects Agency (DARPA) Initiatives
National Science Foundation (NSF) Research Grants
National Institutes of Health (NIH) Research Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Specialized R&D nature may limit future competition if knowledge is highly proprietary.
Long project duration increases risk of scope changes or evolving technological landscapes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to FUNCTIONAL GENETICS, INC.. GENERATION OF NOVEL BROAD SPECTRUM

Who is the contractor on this award?

The obligated recipient is FUNCTIONAL GENETICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2006-08-16. End: 2011-02-28.

What is the specific scientific objective of 'broad spectrum generation' in the context of this contract?

The term 'broad spectrum generation' in the context of this Department of Defense contract likely refers to the development of technologies or methods capable of producing or manipulating energy or signals across a wide range of frequencies or wavelengths. This could have applications in areas such as advanced communications, electronic warfare, sensing, or directed energy systems. The specific scientific objective would be detailed in the contract's Statement of Work (SOW), which outlines the technical requirements, deliverables, and research methodologies expected from Functional Genetics, Inc. Without access to the SOW, the precise application remains speculative but is clearly tied to enhancing defense capabilities through novel technological development.

How does the Cost Plus Fixed Fee (CPFF) contract type influence the risk and reward for both the contractor and the government?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work and final costs are difficult to estimate precisely upfront. For the government, the primary risk is that the final cost of the contract could exceed initial estimates, although the 'fixed fee' portion provides a ceiling on the contractor's profit. The government pays the contractor's actual allowable costs plus a predetermined fixed fee, which is negotiated at the outset. For the contractor, the reward is the fixed fee, which is earned regardless of the final cost, provided they meet the contract's technical requirements. However, the contractor bears the risk of cost overruns, as any costs exceeding the estimated total cost will not be reimbursed beyond the negotiated fee. This structure incentivizes the contractor to manage costs efficiently to maximize their profit margin.

What is Functional Genetics, Inc.'s track record with the Defense Threat Reduction Agency (DTRA) or similar defense research entities?

Functional Genetics, Inc. has a history of receiving contracts from the Defense Threat Reduction Agency (DTRA). This specific contract, awarded in 2006, indicates a prior relationship and a level of trust established between the agency and the contractor for specialized research and development services. While the provided data doesn't detail the success or outcomes of previous contracts, the repeated award suggests the company possesses the necessary expertise and capabilities that DTRA deems valuable for its mission. Further investigation into past performance reviews and contract completion reports would provide a more comprehensive understanding of their track record.

Given the 131 bids received, what does this suggest about the market competitiveness for advanced scientific R&D in this domain?

The submission of 131 bids for this contract strongly indicates a highly competitive market for advanced scientific research and development services, particularly within the defense sector. This large number of interested parties suggests that the requirement was well-defined and that numerous companies possess the capabilities to undertake such specialized work. High competition typically benefits the government by driving down prices, fostering innovation, and ensuring a wider pool of potential solutions. It also suggests that the barriers to entry for qualified firms in this specific R&D niche may not be excessively high, or that the potential rewards are attractive enough to warrant significant investment in proposal preparation.

What are the potential long-term implications of this R&D investment for national security or technological advancement?

Investments in advanced R&D, such as the 'broad spectrum generation' project, have significant long-term implications for national security and technological advancement. Success in this area could lead to breakthroughs in areas critical to defense, such as enhanced intelligence gathering, more effective communication systems, advanced countermeasures, or novel weapon systems. These advancements can provide a strategic advantage, deter potential adversaries, and ensure the nation's technological edge. Furthermore, discoveries made under such contracts can often have dual-use applications, potentially spurring innovation in the commercial sector and contributing to broader economic growth and scientific progress.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 130

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 708 QUINCE ORCHARD ROAD, GAITHERSBURG, MD, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,041,647

Exercised Options: $28,041,647

Current Obligation: $21,734,414

Contract Characteristics

Cost or Pricing Data: NO

Timeline