Stanford University awarded $10.6M for R&D in physical, engineering, and life sciences by DoD

Contract Overview

Contract Amount: $10,615,509 ($10.6M)

Contractor: THE Leland Stanford Junior University

Awarding Agency: Department of Defense

Start Date: 2006-08-25

End Date: 2011-08-24

Contract Duration: 1,825 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 130

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PROJECT FUNDING

Place of Performance

Location: STANFORD, SANTA CLARA County, CALIFORNIA, 94305

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.6 million to THE LELAND STANFORD JUNIOR UNIVERSITY for work described as: PROJECT FUNDING Key points: 1. Contract awarded through full and open competition, suggesting a robust selection process. 2. The contract duration of 5 years indicates a significant, long-term research endeavor. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The award to a prominent academic institution like Stanford suggests a focus on cutting-edge research. 5. The 'Cost No Fee' contract type implies that the government will reimburse allowable costs up to the negotiated amount, with no additional profit. 6. The contract was awarded by the Defense Threat Reduction Agency, highlighting its strategic importance.

Value Assessment

Rating: good

The contract value of $10.6 million over five years for R&D is within a reasonable range for a project of this scope awarded to a major research institution. Without specific benchmarks for similar R&D projects by the Defense Threat Reduction Agency, a direct per-unit cost comparison is difficult. However, the 'Cost No Fee' structure suggests a focus on cost control and reimbursement of actual expenses rather than profit margins, which can be advantageous for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The fact that it was competed openly suggests that multiple research institutions or companies likely vied for this award. This level of competition is generally expected to drive better pricing and innovation.

Taxpayer Impact: A full and open competition ensures that taxpayer funds are used efficiently by fostering a competitive environment that can lead to more cost-effective research outcomes.

Public Impact

The primary beneficiaries are the Department of Defense and the nation, through advancements in physical, engineering, and life sciences relevant to defense. The services delivered are research and development activities aimed at enhancing national security capabilities. The geographic impact is primarily within California, where Stanford University is located, but the research outcomes have national security implications. The workforce implications include employment for researchers, scientists, and support staff at Stanford University.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for research to be highly theoretical with long lead times for practical application.
The 'Cost No Fee' structure requires diligent oversight to ensure costs are allowable and reasonable.

Positive Signals

Award to a top-tier research institution like Stanford suggests high-quality research potential.
The long-term nature of the contract allows for sustained focus on complex R&D challenges.
Full and open competition indicates a thorough vetting process for the awardee.

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 innovation, enabling the development of new technologies and capabilities. The market for defense R&D is competitive, with significant investment from government agencies in academic institutions and private companies to maintain technological superiority. Comparable spending benchmarks would typically involve other large-scale R&D grants and contracts awarded by agencies like DARPA, ONR, or DTRA to universities and research consortia.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The primary awardee is a large academic institution. There is no explicit information regarding subcontracting plans for small businesses within this data, but large research grants often involve collaborations where small businesses could potentially participate as subcontractors if their specialized expertise is required.

Oversight & Accountability

Oversight for this 'Cost No Fee' contract would typically be managed by the Defense Threat Reduction Agency's contracting officers and program managers. They would be responsible for monitoring research progress, reviewing incurred costs, and ensuring compliance with contract terms. Transparency is generally maintained through regular reporting requirements from the contractor. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Research and Development
University Research Grants
Physical Sciences Research
Engineering Sciences Research
Life Sciences Research
National Security Research

Risk Flags

Potential for research misalignment with evolving needs.
Need for diligent cost oversight due to 'Cost No Fee' structure.
Risk of key personnel departure impacting long-term research.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to THE LELAND STANFORD JUNIOR UNIVERSITY. PROJECT FUNDING

Who is the contractor on this award?

The obligated recipient is THE LELAND STANFORD JUNIOR UNIVERSITY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2006-08-25. End: 2011-08-24.

What is the specific research focus within 'Research and Development in the Physical, Engineering, and Life Sciences' for this contract?

The provided data does not specify the exact research focus within the broad category of 'Research and Development in the Physical, Engineering, and Life Sciences.' This category encompasses a vast array of scientific and technical disciplines. Given the awarding agency, the Defense Threat Reduction Agency (DTRA), the research likely pertains to areas that enhance national security, potentially including areas like advanced materials, sensor technology, biological defense, chemical defense, nuclear defense, or other scientific domains relevant to threat reduction and national security.

How does the 'Cost No Fee' contract type impact the government's financial risk and oversight requirements compared to other contract types?

The 'Cost No Fee' (CNF) contract type means the government agrees to pay the contractor's allowable, allocable, and reasonable costs incurred in performing the contract, but the contractor does not receive any fee or profit. This shifts the financial risk more towards the contractor, as they cannot recover costs beyond the agreed-upon ceiling without modification, and they do not earn a profit. For the government, this can be cost-effective, especially for research and development where the final outcome is uncertain. However, it necessitates robust oversight to ensure that all claimed costs are legitimate and directly related to the contract's objectives. The government must meticulously audit expenditures to prevent overcharging or the inclusion of non-allowable costs, making oversight more intensive in terms of cost verification.

What is the typical track record of The Leland Stanford Junior University in securing and successfully executing large federal R&D contracts, particularly with the Department of Defense?

The Leland Stanford Junior University (Stanford University) has a long and distinguished history of securing and successfully executing large federal research and development contracts, particularly with agencies like the Department of Defense (DoD). As a leading research institution, Stanford consistently ranks among the top universities for federal R&D funding. Its extensive research infrastructure, world-class faculty, and proven ability to manage complex projects make it a highly sought-after partner for government agencies. Stanford has a strong track record in various scientific and engineering disciplines relevant to defense, including but not limited to, computer science, materials science, aerospace engineering, and biomedical research. Their success in obtaining contracts from agencies like the DoD underscores their capability to meet rigorous scientific, technical, and administrative requirements.

Can we benchmark the $10.6 million contract value against other similar R&D investments made by the Defense Threat Reduction Agency (DTRA) in recent years?

Benchmarking the $10.6 million contract value requires access to DTRA's historical contract databases and analysis of similar R&D projects. DTRA funds a wide range of research, from basic science to applied technology, across various disciplines related to threat reduction. Contract values can vary significantly based on the scope, duration, and complexity of the research. A $10.6 million award over five years for R&D is a substantial investment, suggesting a project of significant scope and potential impact. To provide a precise benchmark, one would need to compare this award to other DTRA contracts awarded for similar research areas (e.g., chemical, biological, radiological, nuclear defense R&D) to institutions of comparable size and research capacity during a similar timeframe. Without that specific comparative data, it's challenging to definitively state if this value is high, low, or average.

What are the potential risks associated with a long-duration (5-year) R&D contract awarded to a single academic institution?

Long-duration R&D contracts, especially those awarded to a single academic institution, carry several potential risks. One primary risk is the potential for research to become misaligned with evolving national security needs or technological advancements over the five-year period. The pace of scientific discovery can be rapid, and a fixed research direction might become outdated. Another risk is the potential for 'scope creep' or a lack of agility if the research objectives need to be significantly altered. Furthermore, reliance on a single institution could concentrate risk; if key personnel leave or institutional priorities shift, the project's momentum could be jeopardized. Ensuring continuous innovation and adaptation within the defined research scope requires proactive program management and clear communication channels between the agency and the university.

Given the 'Cost No Fee' structure, what are the primary mechanisms for ensuring accountability and preventing cost overruns or inappropriate expenditures?

Accountability and prevention of cost overruns in a 'Cost No Fee' contract are primarily managed through rigorous government oversight and strict adherence to contract terms. The contracting officer's representative (COR) or technical point of contact plays a crucial role in monitoring the contractor's progress against milestones and deliverables. Regular financial reporting by the contractor, detailing all incurred costs, is subject to review and audit by government personnel, including Defense Contract Audit Agency (DCAA) auditors if applicable. The contract itself will define allowable cost principles (often referencing the Federal Acquisition Regulation - FAR), and any expenditures not meeting these criteria can be disallowed. Performance metrics and periodic reviews help ensure that the research remains on track and that funds are being utilized effectively towards the contract's objectives. Any deviations or potential overruns must be identified early and addressed through contract modifications or corrective actions.

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 › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 130

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 651 SERRA ST, STANFORD, CA, 18

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,615,509

Exercised Options: $10,615,509

Current Obligation: $10,615,509

Contract Characteristics

Cost or Pricing Data: NO

Timeline