DoD's Project EOS awards $21.8M to Premier Technology, Inc. for R&D, raising competition concerns
Contract Overview
Contract Amount: $21,872,259 ($21.9M)
Contractor: Premier Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-07-22
End Date: 2026-07-21
Contract Duration: 1,825 days
Daily Burn Rate: $12.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PROJECT EOS.
Place of Performance
Location: ABERDEEN, MOORE County, NORTH CAROLINA, 28315
Plain-Language Summary
Department of Defense obligated $21.9 million to PREMIER TECHNOLOGY, INC. for work described as: PROJECT EOS. Key points: 1. Premier Technology, Inc. secured a significant $21.8M contract for R&D services. 2. The contract was awarded on a sole-source basis, limiting competition. 3. The R&D sector is critical for national security, but lack of competition may impact value. 4. Potential risks include inflated costs and missed opportunities for innovation from other firms.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure for R&D can lead to cost overruns. Without competitive bidding, it's difficult to benchmark pricing against similar R&D contracts effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
Awarded as 'NOT COMPETED', this sole-source approach bypasses competitive discovery processes. This significantly limits the government's ability to secure the best possible price and technical solution.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving optimal value for the $21.8M investment.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited visibility into the specific R&D outcomes and their direct impact. Potential for reduced innovation due to lack of market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical R&D efforts
- Long-term contract duration
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight to ensure efficiency and innovation.
Small Business Impact
The contract was not awarded to a small business, indicating a missed opportunity to support small business innovation in the R&D sector.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering on objectives and costs are reasonable, despite the lack of competition.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Lack of transparency in pricing due to no competition.
- Potential for contractor inefficiency.
- Missed opportunity for small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to PREMIER TECHNOLOGY, INC.. PROJECT EOS.
Who is the contractor on this award?
The obligated recipient is PREMIER TECHNOLOGY, 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 $21.9 million.
What is the period of performance?
Start: 2021-07-22. End: 2026-07-21.
What specific R&D objectives does Project EOS aim to achieve, and how will their success be measured?
Project EOS focuses on advancing research within the physical, engineering, and life sciences, excluding biotechnology. Success metrics are likely tied to technological milestones, prototype development, or scientific breakthroughs as defined in the contract's statement of work. Detailed performance metrics should be available within the contract documentation to ensure accountability and track progress towards stated R&D goals.
What justification was provided for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. For Project EOS, the Defense Threat Reduction Agency would need to document why Premier Technology, Inc. was the only viable option. A thorough review of the justification and any documented considerations of alternative competitive approaches is essential to assess the necessity of the sole-source decision.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?
Managing a Cost Plus Fixed Fee (CPFF) contract requires robust government oversight. This includes detailed monitoring of incurred costs, regular audits, and strict adherence to the fixed fee component. The agency must ensure that Premier Technology, Inc. operates efficiently and that the final cost, including the fee, represents fair value for the R&D services rendered, especially given the absence of competitive pressure.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1858 W BRIDGE RD, BLACKFOOT, ID, 83221
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $24,637,490
Exercised Options: $24,029,941
Current Obligation: $21,872,259
Actual Outlays: $6,431,638
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA116D0003
IDV Type: IDC
Timeline
Start Date: 2021-07-22
Current End Date: 2026-07-21
Potential End Date: 2026-07-21 00:00:00
Last Modified: 2025-07-23
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