DoD's DARPA AMP Program Awarded $148M to Fraunhofer USA for R&D
Contract Overview
Contract Amount: $14,848,280 ($14.8M)
Contractor: Fraunhofer USA Incorporated
Awarding Agency: Department of Defense
Start Date: 2007-04-16
End Date: 2011-06-30
Contract Duration: 1,536 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA AMP PROGRAM
Place of Performance
Location: NEWARK, NEW CASTLE County, DELAWARE, 19702
State: Delaware Government Spending
Plain-Language Summary
Department of Defense obligated $14.8 million to FRAUNHOFER USA INCORPORATED for work described as: DARPA AMP PROGRAM Key points: 1. Significant investment in advanced materials research. 2. Competition method: Full and open, suggesting broad market engagement. 3. Contract type: Cost Plus Fixed Fee, common for R&D but can lead to cost overruns. 4. Sector: Research and Development, crucial for technological advancement.
Value Assessment
Rating: fair
The contract value of $148M over 4 years is substantial for R&D. Benchmarking is difficult without specific deliverables, but the Cost Plus Fixed Fee structure warrants close monitoring for cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and innovation, though the final price is influenced by the R&D nature and CPFF structure.
Taxpayer Impact: Taxpayer funds are supporting cutting-edge research with potential long-term benefits, but the CPFF structure requires diligent oversight to ensure value for money.
Public Impact
Supports advanced materials research with potential for dual-use applications. Invests in scientific innovation through a large federal contract. The program's success could lead to technological breakthroughs benefiting national security and industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher costs.
- Long contract duration (4 years) increases risk of scope creep or changing requirements.
- Lack of specific performance metrics in provided data.
Positive Signals
- Full and open competition promotes innovation.
- Focus on R&D aligns with strategic national goals.
- Significant funding indicates high priority for the research area.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541710. Spending in this area is critical for maintaining technological superiority and driving economic growth through innovation.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large federal R&D contracts often involve prime contractors who may subcontract, potentially offering opportunities for small businesses.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and allocable to the contract's objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun risk due to CPFF structure.
- Potential for scope creep over the 4-year duration.
- Difficulty in measuring ROI for pure R&D.
- Dependence on contractor's technical expertise and management.
Tags
research-and-development-in-the-physical, department-of-defense, de, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.8 million to FRAUNHOFER USA INCORPORATED. DARPA AMP PROGRAM
Who is the contractor on this award?
The obligated recipient is FRAUNHOFER USA INCORPORATED.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.8 million.
What is the period of performance?
Start: 2007-04-16. End: 2011-06-30.
What specific advanced materials or technologies were targeted by the DARPA AMP Program, and what were the expected outcomes?
The DARPA AMP (Advanced Materials Program) likely focused on developing novel materials with enhanced properties for defense applications, such as improved strength, heat resistance, or reduced weight. Expected outcomes would include prototypes, material characterization data, and feasibility studies demonstrating the potential for integration into existing or future military systems.
How effectively did the Cost Plus Fixed Fee structure balance innovation incentives with cost control for this R&D effort?
The CPFF structure aims to incentivize contractor innovation by allowing cost recovery plus a fixed fee, regardless of final cost. However, it can also reduce the contractor's incentive to control costs. Effective oversight is crucial to ensure the fee remains appropriate and costs are reasonable, preventing potential overspending while still fostering the necessary R&D exploration.
What is the long-term strategic value and potential return on investment for taxpayers from this $148M R&D investment?
The long-term value depends on the successful development and application of the advanced materials. Potential ROI could be significant if these materials lead to next-generation defense capabilities, reduced lifecycle costs for equipment, or commercial spin-offs. However, R&D inherently carries risk, and not all investments yield direct, quantifiable returns.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 9 INNOVATION WAY, NEWARK, DE, 19711
Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,848,280
Exercised Options: $14,848,280
Current Obligation: $14,848,280
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-04-16
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2024-09-26
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