DoD's Missile Defense Agency awards $8.4M R&D contract to Utah State University Space Dynamics Laboratory

Contract Overview

Contract Amount: $8,449,713 ($8.4M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2026-02-28

Contract Duration: 1,445 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT LABOR ONLY

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: RESEARCH AND DEVELOPMENT LABOR ONLY Key points: 1. Contract focuses on critical research and development for missile defense systems. 2. Sole-source award to a university-affiliated research center raises questions about competition. 3. Long performance period (approx. 4 years) suggests a complex, ongoing research effort. 4. Cost-plus-fixed-fee structure requires careful monitoring to ensure cost control. 5. Geographic concentration in Utah for this specific R&D effort. 6. Contract value is modest within the broader context of defense R&D spending.

Value Assessment

Rating: fair

The contract value of $8.4 million for R&D labor is difficult to benchmark without specific details on the scope of work. However, given the sole-source nature and the long performance period, it suggests a specialized capability. The Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed diligently, but it is common for R&D where final costs are uncertain. Without comparable contracts for similar R&D services, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Utah State University Space Dynamics Laboratory. This indicates that the agency identified a unique capability or necessity that only this contractor could fulfill, or that it falls under a specific exception for research institutions. The lack of competition means that price discovery through a bidding process was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through competitive bidding. The agency's justification for the sole-source award needs to be robust to ensure funds are used efficiently.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which will receive advanced research and development services. The services delivered are focused on physical, engineering, and life sciences R&D, likely contributing to the advancement of missile defense technologies. The geographic impact is concentrated in Utah, where the Space Dynamics Laboratory is located, potentially supporting local high-tech employment. The contract supports specialized scientific and engineering workforce within the university's research arm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing and innovation.
Cost-plus-fixed-fee contract requires stringent oversight to prevent cost escalation.
Lack of public details on specific R&D objectives makes performance assessment difficult.

Positive Signals

Award to a university research lab suggests focus on cutting-edge, potentially foundational research.
Long-term contract indicates a strategic investment in a specific research area.
Utah State University has a known track record in aerospace and defense research.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The Missile Defense Agency's spending is a subset of the broader Department of Defense budget, which allocates significant resources to R&D for maintaining technological superiority. Comparable spending benchmarks would involve other R&D contracts awarded by DoD agencies for similar scientific endeavors, often involving specialized academic or research institutions.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded directly to a university. There is no indication of subcontracting requirements for small businesses within the provided data. The focus is on specialized research capabilities rather than broad service delivery where small business participation is typically mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Missile Defense Agency contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure the efficient use of funds. Transparency is limited due to the sole-source nature and the classified or sensitive aspects often associated with defense R&D. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Missile Defense Agency Research and Development Programs
Department of Defense Research and Development Contracts
University Research Partnerships with Government Agencies
Advanced Technology Development Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Long performance period

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. RESEARCH AND DEVELOPMENT LABOR ONLY

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2022-03-16. End: 2026-02-28.

What is the specific research and development focus of this contract for the Missile Defense Agency?

The contract data indicates the North American Industry Classification System (NAICS) code 541715, which covers 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. While the specific project details are not provided, this suggests the research likely pertains to areas such as advanced materials, sensor technology, propulsion systems, guidance and control, or other scientific and engineering disciplines critical to the development and enhancement of missile defense systems. Given the agency, the work could involve theoretical studies, simulations, laboratory experiments, or prototype development aimed at improving threat detection, tracking, interception, or countermeasures.

How does the Cost Plus Fixed Fee (CPFF) pricing structure impact the value for money in this R&D contract?

The CPFF structure is common in R&D where the scope and final costs are uncertain. The 'cost' component covers allowable direct and indirect costs incurred by the contractor, while the 'fixed fee' represents the contractor's profit. This structure incentivizes the contractor to control costs to maximize their fee, but it also places a significant burden on the government to meticulously audit and approve incurred costs. For value for money, the government must ensure that the fixed fee is reasonable for the work performed and that cost accounting standards are strictly enforced. Without competitive bidding, establishing a 'fair and reasonable' fee is more challenging and relies heavily on the agency's negotiation and oversight capabilities.

What are the potential risks associated with a sole-source award to Utah State University Space Dynamics Laboratory for this R&D effort?

The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated pricing and reduced innovation compared to a competed contract. The Missile Defense Agency (MDA) must have a strong justification for bypassing competition, such as a unique capability possessed only by the Space Dynamics Laboratory or a critical need that cannot be met through other means within the required timeframe. Another risk is potential complacency from the contractor, assuming they have a guaranteed contract without the need to continuously prove their value. Effective contract management, including performance metrics and regular reviews, is essential to mitigate these risks.

What is the historical spending pattern of the Missile Defense Agency on R&D with Utah State University Space Dynamics Laboratory?

The provided data only pertains to this specific contract award. To assess historical spending patterns, a broader analysis of past contracts awarded by the Missile Defense Agency (MDA) to Utah State University Space Dynamics Laboratory (SDL) would be necessary. This would involve querying federal procurement databases for previous awards, examining their values, durations, and scopes of work. Understanding this history could reveal trends in the types of R&D services procured, the consistency of the relationship, and whether this $8.4 million award represents a typical investment or a significant deviation. Without this historical context, it's difficult to determine if this contract aligns with established spending patterns.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) typically translate into tangible outcomes for missile defense?

NAICS 541715 covers a broad spectrum of scientific and engineering R&D. For missile defense, this could translate into tangible outcomes such as the development of more sensitive radar or optical sensors for early warning and tracking, advanced materials for interceptors or countermeasures that are lighter, stronger, or stealthier, improved algorithms for trajectory prediction and interception, novel warhead technologies, or enhanced electronic warfare capabilities. The 'physical, engineering, and life sciences' aspect implies work that could range from fundamental physics research related to atmospheric effects on missiles to complex systems engineering for integrating new technologies into existing defense architectures, or even bio-inspired designs for certain components.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ085421R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1695 N RESEARCH PARK WAY, NORTH LOGAN, UT, 84341

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,692,482

Exercised Options: $8,692,482

Current Obligation: $8,449,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ085422D0001

IDV Type: IDC

Timeline