DoD's Missile Defense Agency awards $1.6B R&D contract to Utah State University Space Dynamics Laboratory

Contract Overview

Contract Amount: $15,973,291 ($16.0M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2022-04-23

End Date: 2026-03-15

Contract Duration: 1,422 days

Daily Burn Rate: $11.2K/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 $16.0 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 raises questions about competition and potential for cost savings. 3. Long contract duration (nearly 4 years) necessitates close monitoring of performance and costs. 4. The contract is for R&D in physical, engineering, and life sciences, excluding specific sub-fields. 5. Performance is geographically concentrated in Utah, with potential workforce implications there. 6. The cost-plus-fixed-fee structure incentivizes cost control but requires robust oversight.

Value Assessment

Rating: questionable

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and comparison to similar R&D efforts. CPFF contracts can lead to higher costs if not managed diligently, as the contractor is reimbursed for all allowable costs plus a fixed fee. The absence of competition further complicates value assessment, as there's no market-driven price discovery. However, the fixed fee component does provide some cost certainty for the government regarding the contractor's profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple potential offerors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means the Missile Defense Agency did not benefit from a competitive bidding process, which could have potentially driven down prices or led to innovative solutions from a wider pool of contractors.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses to secure federal contracts and may result in higher costs for taxpayers compared to competitively awarded contracts.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which will receive advanced research and development services. The contract supports the development of technologies crucial for national security and missile defense. Geographic impact is concentrated in Utah, where the Space Dynamics Laboratory is located, potentially supporting local high-tech employment. The services delivered are highly specialized R&D, contributing to the advancement of scientific and engineering knowledge in defense applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost-plus-fixed-fee structure requires diligent cost oversight to prevent overruns.
Long contract duration increases the risk of scope creep or performance degradation without active management.
Lack of public details on specific R&D objectives makes independent performance assessment difficult.

Positive Signals

Utah State University Space Dynamics Laboratory is a recognized research institution with a history of defense-related work.
The fixed fee component provides a degree of cost predictability for the contractor's profit.
The contract supports critical national security objectives in missile defense.
Long-term engagement allows for deep development and integration of complex technologies.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with agencies like the Missile Defense Agency investing heavily in advanced technologies to counter evolving threats. Comparable spending benchmarks are difficult to establish for highly specialized R&D, but the scale of this award suggests a significant undertaking. The contract aligns with the broader trend of government investment in innovation to maintain technological superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. As a sole-source award to a large research institution, the primary focus is on specialized R&D capabilities rather than broad market participation. This limits the direct impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Missile Defense Agency's contracting and technical teams. Given the Cost Plus Fixed Fee structure, rigorous monitoring of incurred costs, performance milestones, and adherence to the Statement of Work will be crucial. Transparency may be limited due to the sensitive nature of missile defense R&D, but standard reporting requirements and potential reviews by the Government Accountability Office (GAO) would apply. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Research and Development
Department of Defense Research Contracts
Space Dynamics Laboratory Research
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee structure
Long contract duration
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 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 $16.0 million.

What is the period of performance?

Start: 2022-04-23. End: 2026-03-15.

What is the track record of Utah State University Space Dynamics Laboratory with the Department of Defense, particularly on similar R&D contracts?

Utah State University Space Dynamics Laboratory (SDL) has a long-standing history of supporting the Department of Defense (DoD) and other government agencies with advanced research and development, particularly in areas related to space, missile defense, and sensor technology. SDL has been involved in numerous projects for agencies like the Missile Defense Agency (MDA), Space Force, and NASA. Their expertise often lies in developing and testing complex systems, including payloads, sensors, and data processing capabilities. While specific contract values and performance details are often proprietary, SDL's consistent engagement with DoD suggests a generally positive track record and recognized capability in fulfilling demanding R&D requirements. Their work often involves cutting-edge technology development, requiring specialized knowledge and facilities, which aligns with the nature of this sole-source award.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of cost efficiency for the government?

The Cost Plus Fixed Fee (CPFF) contract structure is one of several options for R&D procurements. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing the contractor's profit. This structure can be advantageous when the scope of work is not precisely defined, allowing flexibility for R&D exploration. However, it carries a risk of cost growth if not managed carefully, as the contractor is incentivized to incur costs to perform the work, and the government bears that cost. Compared to fixed-price contracts, CPFF generally offers less cost certainty for the government. However, it can be more cost-efficient than a Cost Plus Incentive Fee (CPIF) if the incentive targets are difficult to establish or if the primary goal is exploration rather than achieving specific performance metrics under tight cost controls. Robust government oversight is critical to ensure costs are reasonable and allocable.

What are the primary risks associated with a sole-source award for a large R&D contract like this?

The primary risks associated with a sole-source award for a large R&D contract are centered around cost and competition. Without competition, there is no market-driven price discovery, potentially leading to the government paying a higher price than if multiple bids were solicited. This lack of competition can also reduce the incentive for the contractor to innovate aggressively or control costs, as they are the only option. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other capable contractors. There's also a risk that the government may not be aware of alternative, potentially more cost-effective or technologically superior solutions that could have emerged from a competitive process. Effective negotiation and stringent oversight are crucial to mitigate these risks.

Given the $1.6 billion value and nearly 4-year duration, what are the key performance indicators (KPIs) the Missile Defense Agency should focus on?

For a contract of this magnitude and duration, the Missile Defense Agency (MDA) should focus on a balanced set of Key Performance Indicators (KPIs) that cover technical progress, cost control, and schedule adherence. Key technical KPIs could include the successful completion of defined research phases, validation of developed technologies through testing and simulation, achievement of specific performance metrics for prototypes or models, and the generation of actionable research findings. Cost-related KPIs should involve tracking actual costs against the estimated cost baseline, monitoring the contractor's indirect cost rates, and ensuring the fixed fee is earned appropriately based on performance. Schedule KPIs would focus on meeting key milestones, deliverables, and overall project completion dates. Regular technical reviews, progress reports, and independent cost assessments will be vital for monitoring these KPIs effectively.

How does this contract's spending compare to historical R&D investments by the Missile Defense Agency or the DoD?

The $1.6 billion awarded to Utah State University Space Dynamics Laboratory represents a significant investment in missile defense R&D. While specific historical comparisons require access to detailed budget data, the Missile Defense Agency (MDA) consistently receives substantial funding for research, development, testing, and evaluation (RDT&E). MDA's annual RDT&E budget typically runs into the billions of dollars, reflecting the critical nature of its mission. Large, multi-year R&D contracts are common within the DoD, especially for complex systems like missile defense, which require sustained technological advancement. This $1.6 billion award, spread over nearly four years, is substantial but likely falls within the expected range of major R&D investments for a program of this strategic importance. It underscores the ongoing commitment to advancing missile defense capabilities.

What are the potential implications of this contract for future technological advancements in missile defense?

This contract has the potential to significantly influence future technological advancements in missile defense. By funding specialized R&D at an institution like the Space Dynamics Laboratory, the Missile Defense Agency is investing in the foundational science and engineering that could lead to next-generation interceptors, advanced sensor technologies, improved tracking and discrimination capabilities, and novel countermeasures. The long-term nature of the contract allows for deep exploration of complex problems and the development of robust solutions. The research conducted could pave the way for breakthroughs in areas such as hypersonic defense, directed energy weapons, or AI-driven threat assessment, ultimately enhancing the nation's ability to counter evolving missile threats.

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: $15,988,291

Exercised Options: $15,988,291

Current Obligation: $15,973,291

Actual Outlays: $6,070,331

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