DoD's $132M R&D contract with Sterling Research Corp. awarded in 2004 for advanced technology development

Contract Overview

Contract Amount: $13,214,202 ($13.2M)

Contractor: Sterling Research Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-22

End Date: 2009-01-31

Contract Duration: 1,592 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84108

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to STERLING RESEARCH CORPORATION for work described as: Key points: 1. Contract awarded for advanced research and development, indicating a focus on innovation. 2. The contract duration of over 1500 days suggests a long-term commitment to the project. 3. Awarded by the Defense Advanced Research Projects Agency (DARPA), known for high-risk, high-reward research. 4. The contract type, Cost Plus Fixed Fee, allows for flexibility but requires careful cost monitoring. 5. The geographic location of performance in Utah may indicate specialized regional expertise or facilities. 6. The absence of small business set-asides suggests the primary contractor is likely a larger entity.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee structure can sometimes lead to cost overruns if not managed tightly. However, given the R&D nature and the awarding agency (DARPA), the price may reflect the inherent uncertainties and innovative nature of the work. Comparing it to similar R&D contracts would require detailed analysis of the scope and objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and innovative solutions. The fact that there were 2 bids suggests a moderate level of competition for this specific R&D effort.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of solutions and can drive down costs through market forces, ensuring federal dollars are used efficiently.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially the broader national security apparatus, through advancements in technology. The services delivered are research and development in physical, engineering, and life sciences, aiming to create novel capabilities. The geographic impact is centered in Utah, where the contractor is located, potentially stimulating local economic activity and employment. Workforce implications include the employment of scientists, engineers, and researchers involved in cutting-edge R&D projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The long duration of the contract increases the risk of scope creep or evolving requirements not being adequately managed.
Without specific performance metrics, it's difficult to assess the true value and success of the R&D investment.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract is with Sterling Research Corporation, implying a potentially established entity with relevant expertise.
The R&D focus by DARPA suggests investment in potentially groundbreaking technologies.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, often involving significant investment in exploring novel concepts and technologies. Comparable spending benchmarks in this sector are highly variable, depending on the specific technological domain and the maturity of the research.

Small Business Impact

The contract does not indicate any small business set-asides, and the 'sb' field is false. This suggests that the primary contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The overall impact on the small business ecosystem would depend on whether Sterling Research Corporation engages small businesses as subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) or the specific program office within DARPA. Accountability measures would be tied to the contract's milestones and deliverables, as well as the Cost Plus Fixed Fee structure, which requires detailed financial reporting. Transparency is generally maintained through contract award databases, though specific project details might be sensitive.

Related Government Programs

Defense Research and Development Programs
Advanced Technology Development Contracts
DARPA Research Initiatives
Cost-Plus Contracting Vehicles

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Long contract duration increases potential for scope creep and evolving requirements.
R&D contracts inherently carry technical and performance risks.
Lack of specific performance metrics makes post-award evaluation challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to STERLING RESEARCH CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is STERLING RESEARCH CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2004-09-22. End: 2009-01-31.

What specific technological advancements or research outcomes were achieved under this contract?

The provided data does not specify the exact technological advancements or research outcomes achieved under this contract. The contract number 'DCA' and the description 'Research and Development in the Physical, Engineering, and Life Sciences' indicate a broad scope. To determine specific outcomes, one would need to access DARPA's project archives, final reports, or publications associated with Sterling Research Corporation during the contract period (2004-2009). Such information is often classified or proprietary, especially for cutting-edge defense research, making public disclosure limited.

How does the $132 million cost compare to similar R&D contracts awarded by DARPA during that period?

Comparing the $132 million cost requires identifying similar DARPA R&D contracts awarded between 2004 and 2009 with comparable scope and objectives. DARPA's portfolio includes a wide range of projects, from fundamental research to applied technology development, with varying costs. Without specific details on the technological domain (e.g., AI, materials science, cyber), the contract's objectives, and the number of bidders, a direct comparison is difficult. However, $132 million is a substantial investment, suggesting a significant, multi-year research effort likely involving multiple research teams or complex technological challenges.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) contracts, especially in R&D, milestones are often tied to research phases, prototype development, testing, and final reporting. The contracting officer's representative (COR) and the program manager at DARPA would have overseen adherence to these milestones. Detailed KPIs would typically be found in the contract's statement of work (SOW) or performance work statement (PWS), which are not publicly available in this dataset.

What is Sterling Research Corporation's track record with government contracts, particularly with DARPA?

Sterling Research Corporation's track record with government contracts, particularly with DARPA, is not detailed in the provided data snippet. To assess their track record, one would need to examine their contract history, including the types of contracts awarded, their performance ratings (if available), and any past performance evaluations. Information on previous awards, terminations, or disputes could provide further insight. A comprehensive review would involve searching federal procurement databases like SAM.gov or FPDS for their contract history and performance metrics.

What risks were identified during the procurement process for this contract, and how were they mitigated?

The provided data does not detail specific risks identified during the procurement process for this contract. However, common risks for large R&D contracts include technical feasibility, cost overruns, schedule delays, and contractor performance. Given the 'Cost Plus Fixed Fee' (CPFF) structure, risks related to cost control are significant. Mitigation strategies would typically involve rigorous proposal evaluation, clear contract terms, defined milestones, regular progress reviews, and strong oversight by the contracting officer and technical representatives to ensure the contractor stays within budget and meets objectives.

How did the 'full and open competition' process influence the final contract price and terms?

A 'full and open competition' process generally aims to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This competition can exert downward pressure on pricing and encourage more favorable terms for the government. For this $132 million contract, the presence of two bidders suggests a level of competition that likely contributed to establishing a reasonable fixed fee and overall cost structure, relative to the perceived value and risk of the R&D effort. The government could select the offer that represented the best value, considering both technical merit and cost.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 360 WAKARA WAY, SALT LAKE CITY, UT, 90

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline