DoD awards $9.7M R&D contract to Utah State University for missile defense research

Contract Overview

Contract Amount: $9,700,000 ($9.7M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2024-11-26

End Date: 2026-09-30

Contract Duration: 673 days

Daily Burn Rate: $14.4K/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 $9.7 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: RESEARCH AND DEVELOPMENT LABOR ONLY Key points: 1. Contract focuses on specialized physical and engineering R&D, excluding nanotechnology and biotechnology. 2. Sole-source award to Utah State University Space Dynamics Laboratory suggests unique capabilities or limited alternatives. 3. Contract duration of over 2 years indicates a significant research undertaking. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 5. Missile Defense Agency is the primary customer, aligning with national security objectives. 6. The contract's value is modest within the broader DoD R&D landscape.

Value Assessment

Rating: fair

The contract value of $9.7 million for R&D labor is difficult to benchmark without specific deliverables or comparable projects. As a cost-plus-fixed-fee contract, the final cost could exceed the initial estimate, necessitating close oversight. The absence of competition makes a direct value-for-money assessment challenging. However, the award to a known entity like Utah State University's Space Dynamics Laboratory may indicate a pre-existing relationship or specialized expertise that justifies the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when the agency determines that competition is not feasible or in the government's best interest. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a reliance on a specific research institution.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Missile Defense Agency, which will receive advanced research critical for national security. The contract supports specialized research and development in physical and engineering sciences. The geographic impact is concentrated in Utah, supporting the Space Dynamics Laboratory's operations. The contract will likely sustain or create high-skilled jobs in the R&D sector within Utah.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the cost-plus-fixed-fee structure.
Limited transparency in pricing and resource allocation due to sole-source nature.
Risk of vendor lock-in if the contractor's expertise is highly specialized and difficult to replicate.

Positive Signals

Award to a reputable research institution (Utah State University Space Dynamics Laboratory) known for its work in aerospace and defense.
Focus on critical R&D for missile defense, a high-priority national security area.
Contract duration allows for in-depth research and development.

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 on R&D is a critical component of the Department of Defense's budget, aimed at developing advanced technologies to counter missile threats. Comparable spending benchmarks would involve other DoD contracts for similar scientific research, often awarded to universities or specialized research institutions. The market for such specialized R&D is often characterized by a limited number of highly qualified entities.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of the R&D and the award to a university research laboratory, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though the prime contractor may engage them for specific support services.

Oversight & Accountability

Oversight will be provided by the Missile Defense Agency, likely through program managers and contracting officers. The cost-plus-fixed-fee structure necessitates diligent monitoring of expenditures to ensure costs remain reasonable and allocable to the contract. Transparency may be limited due to the sole-source nature, but standard DoD reporting requirements and potential Inspector General reviews would apply.

Related Government Programs

Missile Defense Systems Research
Advanced Technology Development
Department of Defense Research and Development
University Research Partnerships

Risk Flags

Sole-source award limits competition.
Cost-plus-fixed-fee structure requires robust cost oversight.
Specific research deliverables not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.7 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 $9.7 million.

What is the period of performance?

Start: 2024-11-26. End: 2026-09-30.

What specific research objectives does this contract aim to achieve for the Missile Defense Agency?

The provided data indicates the contract is for 'RESEARCH AND DEVELOPMENT LABOR ONLY' under NAICS code 541715, which covers R&D in the physical, engineering, and life sciences. While the specific objectives are not detailed, the awarding agency, Missile Defense Agency (MDA), focuses on developing and deploying systems to protect the United States from ballistic and cruise missile threats. Therefore, this contract likely supports research into advanced materials, sensor technologies, propulsion systems, guidance, navigation, and control (GNC) for missile defense interceptors, or related simulation and modeling efforts. The research could be foundational, exploring new concepts, or developmental, aimed at maturing existing technologies for future weapon systems.

How does the $9.7 million value compare to typical R&D contracts awarded by the Missile Defense Agency?

The $9.7 million value for R&D labor is a moderate sum within the context of the Missile Defense Agency's overall budget, which often includes much larger prime contracts for system development and procurement. For instance, major programs like the Ground-based Midcourse Defense (GMD) or the Next Generation Interceptor (NGI) involve multi-billion dollar investments. However, R&D contracts, especially those focused on specific scientific or engineering challenges awarded to academic institutions, can range from hundreds of thousands to tens of millions of dollars. This $9.7 million award suggests a focused research effort rather than a large-scale system development project, potentially for a specific component, technology maturation, or feasibility study.

What are the potential risks associated with a sole-source, cost-plus-fixed-fee contract for R&D?

Sole-source contracts carry the inherent risk of reduced price competition, potentially leading to higher costs for the government. The absence of multiple bidders means the government cannot leverage market dynamics to ensure the best possible price. The cost-plus-fixed-fee (CPFF) structure, while providing flexibility for R&D where costs can be uncertain, also presents risks. The contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize cost overruns, as the contractor may incur higher costs but still receive the same fixed fee. Effective oversight is crucial to manage these risks, ensuring costs are reasonable, allocable, and that the contractor exercises due diligence in managing expenses.

What is the significance of awarding this contract to Utah State University Space Dynamics Laboratory?

Utah State University's Space Dynamics Laboratory (SDL) is a well-established research institution with a strong track record in aerospace engineering, defense, and space science. SDL has a history of supporting government agencies, including the Department of Defense and NASA, on complex research and development projects. Awarding this contract to SDL suggests that the Missile Defense Agency recognized their specialized expertise, existing infrastructure, or prior successful performance in relevant research areas. This sole-source award implies that SDL may possess unique capabilities or intellectual property essential for the specific research objectives, making them the most qualified or only viable option for the agency at this time.

How does this contract contribute to the broader goals of missile defense?

This contract, by funding R&D labor in physical and engineering sciences, directly contributes to the Missile Defense Agency's overarching mission. The specific nature of the R&D isn't detailed, but it likely aims to enhance existing missile defense capabilities or develop novel technologies for future systems. This could involve research into improved interceptor designs, advanced sensor technologies for target detection and tracking, new materials for enhanced survivability, or sophisticated algorithms for threat assessment and engagement. By investing in R&D, the MDA seeks to stay ahead of evolving threats and ensure the effectiveness of U.S. missile defense architecture.

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: $10,468,053

Exercised Options: $10,468,053

Current Obligation: $9,700,000

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