DoD's $9.26M contract for adaptive optics development awarded to Advanced Silicon Carbide Materials LLC

Contract Overview

Contract Amount: $9,257,194 ($9.3M)

Contractor: Advanced Silicon Carbide Materials LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-27

End Date: 2024-06-30

Contract Duration: 1,130 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DEVELOPING ROBUST DESIGNS AND PROCESSES FOR ADAPTIVE OPTICS

Place of Performance

Location: LIHUE, KAUAI County, HAWAII, 96766

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $9.3 million to ADVANCED SILICON CARBIDE MATERIALS LLC for work described as: DEVELOPING ROBUST DESIGNS AND PROCESSES FOR ADAPTIVE OPTICS Key points: 1. Contract focuses on developing advanced designs and processes for adaptive optics, a critical technology for defense applications. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries inherent risks. 4. The duration of the contract is substantial at 1130 days, indicating a long-term project. 5. The North American Industry Classification System (NAICS) code 541715 points to significant R&D investment in physical sciences. 6. The contractor, Advanced Silicon Carbide Materials LLC, is likely being evaluated on its technical expertise in materials science relevant to optics.

Value Assessment

Rating: fair

The contract's value of $9.26 million over approximately three years for R&D in adaptive optics appears within a reasonable range for specialized defense technology development. However, without specific benchmarks for similar adaptive optics R&D contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The CPFF structure requires careful monitoring to ensure costs remain controlled and that the fixed fee provides adequate incentive for efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The Missile Defense Agency's commitment to open competition suggests they sought the best available technical solution and value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most effective technology at a reasonable cost, reducing the risk of overpayment for specialized R&D.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Missile Defense Agency, which will receive advancements in adaptive optics technology. The services delivered involve research and development, focusing on creating new designs and processes for adaptive optics. The geographic impact is primarily within the defense sector, potentially enhancing national security capabilities. Workforce implications may include specialized engineers and scientists in materials science and optical engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee.
The long contract duration (1130 days) increases the risk of scope creep or evolving technological requirements that may not be fully captured in the initial award.
The specialized nature of adaptive optics R&D means that performance metrics and successful outcomes can be complex to define and measure.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
Focus on adaptive optics development aligns with critical national defense needs, indicating strategic investment.
The contract supports R&D in a highly specialized scientific field, potentially leading to technological breakthroughs.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering. The market for adaptive optics is driven by defense, aerospace, and advanced scientific instrumentation. Spending in this area is characterized by high R&D intensity, long development cycles, and significant government investment due to the strategic importance and high cost of innovation. Comparable spending benchmarks would typically be found within defense R&D budgets for advanced sensor and optical technologies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a definitive contract potentially involving specialized R&D, it is likely that the prime contractor is a large business with the necessary expertise and resources. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in this summary. The focus on advanced materials and optics suggests that any subcontracting would likely be for highly specialized components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Missile Defense Agency's contracting and technical teams. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee remains appropriate. Transparency is typically managed through contract reporting requirements and program reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Materials Research
Optical Engineering Services
Department of Defense Research and Development Programs

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring for cost control.
Long contract duration increases risk of scope changes and evolving requirements.
Specialized R&D nature makes performance measurement complex.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.3 million to ADVANCED SILICON CARBIDE MATERIALS LLC. DEVELOPING ROBUST DESIGNS AND PROCESSES FOR ADAPTIVE OPTICS

Who is the contractor on this award?

The obligated recipient is ADVANCED SILICON CARBIDE MATERIALS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.3 million.

What is the period of performance?

Start: 2021-05-27. End: 2024-06-30.

What is the track record of Advanced Silicon Carbide Materials LLC in securing and performing on government R&D contracts, particularly in optics?

Information regarding the specific track record of Advanced Silicon Carbide Materials LLC on government R&D contracts, especially in the field of optics, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any publicly available project outcomes associated with the company. Given the specialized nature of adaptive optics and silicon carbide materials, it is reasonable to assume the company possesses relevant expertise, but its history with similar government projects would be a key factor in evaluating its suitability and potential risks.

How does the $9.26 million contract value compare to similar R&D efforts in adaptive optics within the defense sector?

The $9.26 million contract value for developing adaptive optics designs and processes appears to be a moderate investment for a specialized R&D effort within the defense sector. However, direct comparisons are difficult without access to detailed cost data for comparable contracts. Adaptive optics R&D can range significantly in cost depending on the complexity, maturity of the technology, and the specific application (e.g., ground-based telescopes vs. missile defense systems). This contract's value suggests a focused, multi-year research initiative rather than a large-scale production or integration effort. Benchmarking against other Missile Defense Agency or DoD contracts for advanced optical systems would provide a clearer picture of its relative cost-effectiveness.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D in adaptive optics?

The primary risks associated with a CPFF contract for advanced R&D in adaptive optics include potential cost overruns and contractor inefficiency. While the fixed fee incentivizes the contractor to control costs to maximize profit, the government bears the risk of reimbursing all allowable costs. If the R&D proves more complex or expensive than initially anticipated, costs can escalate beyond initial projections. Furthermore, defining and measuring success in cutting-edge R&D can be challenging, making it difficult to assess whether the contractor is performing efficiently or if the fixed fee adequately reflects the effort. Robust oversight and clear performance metrics are essential to mitigate these risks.

What are the key performance indicators (KPIs) likely being used to measure the success of this adaptive optics R&D contract?

Key performance indicators (KPIs) for this adaptive optics R&D contract would likely focus on technical achievements and adherence to project milestones. These could include metrics related to the performance of the developed adaptive optics system, such as wavefront correction accuracy, response time, and operational stability under various conditions. Milestones might involve the successful design, fabrication, and testing of prototypes, as well as the development of robust manufacturing processes. Deliverables such as technical reports, design documentation, and functional prototypes would also serve as critical performance indicators. The ability of the developed technology to meet specific performance requirements outlined in the contract statement of work would be paramount.

How has federal spending on adaptive optics R&D evolved over the past five years, and does this contract represent a significant shift?

Analyzing the evolution of federal spending on adaptive optics R&D over the past five years requires access to comprehensive historical spending data across relevant agencies like the DoD, NASA, and NSF. Without this specific data, it's difficult to definitively state whether this $9.26 million contract represents a significant shift. However, adaptive optics technology is crucial for various defense applications, including missile defense, surveillance, and directed energy systems, as well as for scientific endeavors like astronomy. Continued investment in this area is expected given its strategic importance. This contract appears to be a standard R&D award within the ongoing commitment to advancing optical technologies for national security and scientific purposes.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014719S0002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3038 AUKELE ST, LIHUE, HI, 96766

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,309,165

Exercised Options: $9,309,165

Current Obligation: $9,257,194

Actual Outlays: $8,170,768

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline