DoD's $5.6M Systems Engineering Research Center Contract Awarded to Stevens Institute of Technology

Contract Overview

Contract Amount: $5,593,258 ($5.6M)

Contractor: THE Trustees of the Stevens Institute of Technology

Awarding Agency: Department of Defense

Start Date: 2023-05-04

End Date: 2027-01-03

Contract Duration: 1,340 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEMS ENGINEERING RESEARCH CENTER, SPACEFORCE HEADQUARTERS WRT 1069

Place of Performance

Location: HOBOKEN, HUDSON County, NEW JERSEY, 07030

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $5.6 million to THE TRUSTEES OF THE STEVENS INSTITUTE OF TECHNOLOGY for work described as: SYSTEMS ENGINEERING RESEARCH CENTER, SPACEFORCE HEADQUARTERS WRT 1069 Key points: 1. Awarded to a single entity, raising questions about competition. 2. Focuses on R&D in physical and engineering sciences, a critical sector for defense. 3. Long contract duration (1340 days) suggests a significant, ongoing project. 4. The 'NOT COMPETED' status is a primary risk factor for price and value. 5. Potential for cost overruns given the Cost Plus Fixed Fee contract type.

Value Assessment

Rating: questionable

The contract's value of $5.6M for a 1340-day duration needs comparison against similar R&D contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying a premium for the services rendered.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The specific research outcomes and their direct benefit to national security are not detailed. Reliance on a single provider could create long-term dependencies and limit future innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
Long contract duration
Sole-source award

Positive Signals

Supports critical R&D for Space Force
Established institution (Stevens Institute of Technology)

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but requires rigorous oversight to ensure value.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This award appears to bypass opportunities for small business participation.

Oversight & Accountability

The 'NOT COMPETED' status warrants close scrutiny from oversight bodies to ensure the justification for a sole-source award is robust and that the pricing is reasonable.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Washington Headquarters Services Programs

Risk Flags

Lack of competitive bidding
Potential for inflated costs
Limited transparency
No small business participation
Sole-source award justification unclear

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.6 million to THE TRUSTEES OF THE STEVENS INSTITUTE OF TECHNOLOGY. SYSTEMS ENGINEERING RESEARCH CENTER, SPACEFORCE HEADQUARTERS WRT 1069

Who is the contractor on this award?

The obligated recipient is THE TRUSTEES OF THE STEVENS INSTITUTE OF TECHNOLOGY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2023-05-04. End: 2027-01-03.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or a lack of available alternatives. Without further details, it's impossible to assess the validity of this decision. Agencies must provide clear documentation supporting the rationale for bypassing competitive procedures to ensure accountability and prevent potential misuse of funds.

How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?

Ensuring cost control and value with a CPFF contract awarded sole-source requires robust government oversight, detailed performance metrics, and regular audits. The government must actively monitor expenditures, scrutinize cost proposals, and ensure the fixed fee remains appropriate for the scope of work. Benchmarking against similar projects and engaging independent technical experts can help validate costs and performance.

What are the expected deliverables and milestones for this research and development contract?

The specific deliverables and milestones are not detailed in the provided data. For a contract of this nature and duration, clear, measurable objectives, phased deliverables, and defined milestones are essential for tracking progress and ensuring the research aligns with the Space Force's strategic goals. Regular reporting and technical reviews are crucial for monitoring the effectiveness of the R&D efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003418R0300

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1 CASTLE POINT ON HUDSON, HOBOKEN, NJ, 07030

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Private), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,683,661

Exercised Options: $5,593,258

Current Obligation: $5,593,258

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,703,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003419D0003

IDV Type: IDC

Timeline