DoD's Missile Defense Agency awards $13.8M contract to Utah State University for technical direction support

Contract Overview

Contract Amount: $13,779,100 ($13.8M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2022-05-16

End Date: 2028-11-15

Contract Duration: 2,375 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MDA/GM TECHNICAL DIRECTION AGENT (TDA) TEAM SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: MDA/GM TECHNICAL DIRECTION AGENT (TDA) TEAM SUPPORT Key points: 1. Contract awarded to a single, non-profit research institution, raising questions about competitive pricing. 2. The contract's duration of nearly 6 years suggests a long-term need for specialized technical expertise. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for performance assessment. 4. The 'Cost Plus Fixed Fee' pricing structure can incentivize cost overruns if not closely monitored. 5. The absence of small business participation raises concerns about broader economic impact. 6. This award represents a significant investment in maintaining and advancing missile defense capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specialized nature and the unique position of Utah State University's Space Dynamics Laboratory as a research institution. The 'Cost Plus Fixed Fee' (CPFF) structure, while common for R&D, requires rigorous oversight to ensure costs remain reasonable and the fixed fee is justified. Without comparable contracts for similar technical direction services from other institutions, it's difficult to definitively assess if the pricing represents excellent value for money. However, the long duration and specific focus suggest a potentially fair price for sustained, specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when a specific entity possesses unique capabilities or expertise essential for the requirement. While it ensures the selection of a highly specialized provider, it limits the opportunity for price discovery through competitive bidding. The lack of competition means taxpayers do not benefit from potential cost savings that could arise from multiple firms vying for the contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective solution, as competitive pressures that drive down prices were absent.

Public Impact

The primary beneficiary is the Missile Defense Agency (MDA), which receives critical technical direction and support for its programs. Services delivered include research, analysis, and technical guidance essential for the development and sustainment of missile defense systems. The geographic impact is primarily within Alabama, where the contract is administered, but the national security implications are far-reaching. Workforce implications include the employment of researchers, engineers, and technical staff at Utah State University's Space Dynamics Laboratory.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Cost Plus Fixed Fee contracts require diligent oversight to prevent cost overruns.
Lack of small business involvement means missed opportunities for economic inclusion and diverse solutions.

Positive Signals

Award to a reputable research institution (USU SDL) suggests access to specialized expertise.
Long contract duration indicates a stable, long-term need for critical missile defense support.
Focus on R&D aligns with the agency's mission to advance technological capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The Missile Defense Agency (MDA) operates in a highly specialized niche within the broader defense industry, characterized by long development cycles, significant technological complexity, and substantial government investment. Comparable spending benchmarks are difficult to establish due to the unique nature of technical direction support for advanced weapon systems. However, the overall R&D spending by the DoD in this domain is substantial, reflecting the strategic importance of maintaining a technological edge.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there an indication of significant subcontracting opportunities for small businesses. The award to a large research institution suggests that the primary focus was on specialized capabilities rather than broad market participation. This could limit the direct economic benefits to the small business ecosystem in this specific instance, although the overall impact on national security may indirectly support a broader defense industrial base.

Oversight & Accountability

Oversight for this contract would primarily fall under the Missile Defense Agency's contracting and program management offices. Given the sole-source nature and CPFF structure, rigorous financial and performance monitoring is crucial. Transparency is facilitated through contract award databases, but detailed programmatic oversight information is typically internal to the agency. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Missile Defense Agency Research and Development Programs
Department of Defense Advanced Technology Development
Aerospace and Defense Research Contracts
University-Affiliated Research Centers (UARCs)

Risk Flags

Sole-source award
Cost Plus Fixed Fee pricing structure
Long contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. MDA/GM TECHNICAL DIRECTION AGENT (TDA) TEAM SUPPORT

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 $13.8 million.

What is the period of performance?

Start: 2022-05-16. End: 2028-11-15.

What is the track record of Utah State University Space Dynamics Laboratory in supporting similar government contracts, particularly within the defense sector?

Utah State University's Space Dynamics Laboratory (SDL) has a long-standing history of supporting government research and development efforts, particularly within the aerospace and defense sectors. SDL is recognized for its expertise in areas such as space-based sensors, missile defense, and advanced technology development. They have been a key partner for agencies like the Missile Defense Agency (MDA), the Air Force, and NASA on numerous projects. Their track record often involves complex research, system integration, and technical analysis. While specific contract performance details are often proprietary, SDL's continued selection for significant sole-source awards like this one suggests a consistent ability to meet demanding technical requirements and deliver specialized expertise valued by these agencies.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for R&D services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development (R&D) efforts where the scope of work is not precisely defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for evolving R&D projects but carries a higher risk of cost growth for the government, as the contractor has less incentive to control costs once the fee is fixed. The primary risk is that costs could escalate beyond initial estimates, increasing the total contract value. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for money.

What are the potential risks associated with awarding a nearly six-year contract on a sole-source basis for technical direction?

Awarding a nearly six-year contract on a sole-source basis for technical direction presents several potential risks. Firstly, the lack of competition means the Missile Defense Agency (MDA) may not be achieving the most cost-effective solution, as competitive pressures that drive down prices are absent. Secondly, a long-term sole-source arrangement can reduce the contractor's incentive to innovate or improve efficiency over time, as they face no direct threat from competitors. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if market conditions change. Finally, without a competitive process, there's a risk that the initial pricing or scope may not fully reflect the evolving needs or technological landscape over the contract's extended duration.

What specific technical direction services does Utah State University's Space Dynamics Laboratory provide under this contract, and how do they contribute to missile defense?

Under this contract, Utah State University's Space Dynamics Laboratory (SDL) provides crucial technical direction agent (TDA) team support to the Missile Defense Agency (MDA). This involves providing expert analysis, research, and guidance across various aspects of missile defense programs. Specific services likely include evaluating system designs, assessing technological readiness, supporting system integration efforts, performing independent verification and validation, and advising on future technology roadmaps. SDL's role is to act as a trusted technical advisor, helping the MDA make informed decisions regarding the development, acquisition, and sustainment of its complex missile defense systems. Their contributions are vital for ensuring the effectiveness, reliability, and affordability of the nation's missile defense capabilities.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?

Publicly available information regarding specific performance metrics or Key Performance Indicators (KPIs) for this particular contract is limited. Contract awards, especially those for specialized R&D services like technical direction, often do not detail granular performance expectations in public documents. However, for Cost Plus Fixed Fee (CPFF) contracts, performance is typically assessed based on the contractor's ability to manage costs within projections, adhere to schedules, meet technical requirements, and deliver quality work as defined in the Statement of Work (SOW). The Missile Defense Agency (MDA) would have internal mechanisms to monitor SDL's performance against these criteria throughout the contract's duration. Any significant performance issues or successes would likely be reflected in future contract actions or reviews.

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: $45,203,836

Exercised Options: $45,203,836

Current Obligation: $13,779,100

Actual Outlays: $5,954,454

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