DoD Awards MSU $14.3M for Single Event Effect Test Facility Upgrades
Contract Overview
Contract Amount: $14,283,478 ($14.3M)
Contractor: Michigan State University
Awarding Agency: Department of Defense
Start Date: 2022-08-19
End Date: 2035-06-30
Contract Duration: 4,698 days
Daily Burn Rate: $3.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: R&D
Official Description: SINGLE EVENT EFFECT TEST FACILITY UPGRADES
Place of Performance
Location: EAST LANSING, INGHAM County, MICHIGAN, 48824
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $14.3 million to MICHIGAN STATE UNIVERSITY for work described as: SINGLE EVENT EFFECT TEST FACILITY UPGRADES Key points: 1. Significant investment in advanced research infrastructure for missile defense. 2. Limited competition raises questions about cost-effectiveness and potential alternatives. 3. Long contract duration (13 years) presents long-term risk and oversight challenges. 4. Focus on R&D in physical sciences, aligning with DoD's strategic goals.
Value Assessment
Rating: questionable
The contract type is Cost No Fee, which offers limited incentive for cost control. The total award amount is substantial, and without competitive bidding, it's difficult to assess if this represents fair value compared to potential market rates for similar facility upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium for the facility upgrades.
Public Impact
Enhances critical research capabilities for national security. Supports advanced scientific discovery and technological innovation. Potential for long-term economic benefits through research output and skilled workforce development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Limited small business participation
Positive Signals
- Supports critical national security research
- Investment in advanced scientific infrastructure
- Potential for technological breakthroughs
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority, but often involves high costs and inherent risks due to the exploratory nature of the work.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large university. This suggests limited direct opportunities for small businesses to participate in this specific contract.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Missile Defense Agency to ensure funds are used efficiently and effectively, and that project milestones are met.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Lack of competitive bidding
- Cost No Fee contract type
- Extended contract duration (13 years)
- Potential for cost overruns
- Limited transparency on justification for sole-source award
Tags
research-and-development-in-the-physical, department-of-defense, mi, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 million to MICHIGAN STATE UNIVERSITY. SINGLE EVENT EFFECT TEST FACILITY UPGRADES
Who is the contractor on this award?
The obligated recipient is MICHIGAN STATE UNIVERSITY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2022-08-19. End: 2035-06-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. For a large facility upgrade, it's important to understand if unique capabilities or prior research relationships necessitated this approach, or if competitive options were overlooked.
How will the Missile Defense Agency ensure cost control and value for money given the Cost No Fee contract structure and lack of competition?
The Missile Defense Agency must implement rigorous monitoring and performance management. This includes detailed cost tracking, regular reviews of progress against objectives, and potentially establishing performance metrics that trigger additional scrutiny or require justification for cost overruns, despite the fee structure.
What are the specific performance metrics and deliverables for this 13-year contract, and how will success be measured?
The provided data does not detail specific performance metrics or deliverables. For a contract of this length and scope, clear, measurable objectives and phased deliverables are essential for tracking progress and ensuring the facility upgrades meet the evolving needs of the Missile Defense Agency over the project's lifespan.
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
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 426 AUDITORIUM RD RM 2, EAST LANSING, MI, 48824
Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government, School of Forestry, Veterinary College
Financial Breakdown
Contract Ceiling: $17,102,424
Exercised Options: $14,283,478
Current Obligation: $14,283,478
Actual Outlays: $4,568,753
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-08-19
Current End Date: 2035-06-30
Potential End Date: 2035-06-30 00:00:00
Last Modified: 2025-10-29
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