DoD Awards $22.8M R&D Contract to Kitware Inc. for VIRAT System, Ending 2030
Contract Overview
Contract Amount: $22,847,159 ($22.8M)
Contractor: Kitware Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-11
End Date: 2030-12-25
Contract Duration: 8,140 days
Daily Burn Rate: $2.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: VIRAT
Place of Performance
Location: CLIFTON PARK, SARATOGA County, NEW YORK, 12065
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $22.8 million to KITWARE INC for work described as: VIRAT Key points: 1. Significant R&D investment in advanced systems. 2. Kitware Inc. is a key player in visualization and data analysis. 3. Long-term contract (12+ years) indicates ongoing need and potential for cost overruns. 4. Sector focus on physical, engineering, and life sciences R&D.
Value Assessment
Rating: fair
The contract value of $22.8M over 12 years suggests a moderate annual spend. Without specific deliverables or milestones, assessing value for money is difficult. Benchmarking against similar R&D contracts for complex systems is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the definitive contract type and long duration may limit ongoing competitive pressure.
Taxpayer Impact: Taxpayers are funding advanced R&D, with the ultimate benefit dependent on the success and application of the VIRAT system.
Public Impact
Investment in advanced research and development capabilities. Potential for technological advancements with broad applications. Long-term commitment of federal funds for a specific research project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 12 years) increases risk of scope creep and cost escalation.
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics makes it hard to gauge success.
- No indication of small business participation.
Positive Signals
- Awarded via full and open competition, suggesting fair market pricing.
- Kitware Inc. has a strong reputation in relevant R&D fields.
- Contract supports critical research and development for the Department of Defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be high-risk. Benchmarks for similar long-term R&D contracts are essential for evaluation.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature of the R&D, it's possible that larger, specialized firms are the primary contractors, but opportunities for subcontracting should be explored.
Oversight & Accountability
The long duration of this definitive contract warrants close oversight to ensure adherence to scope, budget, and performance milestones. Regular reviews by the Department of the Army are critical to manage risks and ensure taxpayer value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases risk.
- CPFF contract type can lead to cost overruns.
- Lack of defined performance metrics.
- No small business participation noted.
- Potential for scope creep over 12+ years.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.8 million to KITWARE INC. VIRAT
Who is the contractor on this award?
The obligated recipient is KITWARE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.8 million.
What is the period of performance?
Start: 2008-09-11. End: 2030-12-25.
What specific capabilities or technologies does the VIRAT system aim to develop, and how do these align with current DoD strategic priorities?
The VIRAT (Video and Imagery Retrieval and Analysis Tools) system is designed to enhance the ability of intelligence analysts to search, retrieve, and analyze vast amounts of video and imagery data. This aligns with DoD strategic priorities focused on leveraging advanced data analytics and artificial intelligence for intelligence, surveillance, and reconnaissance (ISR) missions, improving situational awareness and decision-making in complex operational environments.
Given the Cost Plus Fixed Fee (CPFF) structure and long duration, what mechanisms are in place to control costs and prevent contractor inefficiency?
While CPFF contracts can incentivize cost increases, effective oversight is key. The Department of the Army should implement rigorous performance metrics, regular progress reviews, and potentially independent cost audits. Clear contract modifications procedures and strong program management are essential to ensure the contractor remains efficient and costs are controlled throughout the contract's extended period.
How will the success and effectiveness of the VIRAT system be measured, particularly given the R&D nature and long timeline?
Success will likely be measured through a combination of technical performance milestones, successful integration into existing DoD systems, and demonstrated utility in operational scenarios. Key Performance Parameters (KPPs) related to data processing speed, accuracy of analysis, user feedback, and the system's ability to meet evolving intelligence requirements will be crucial. Independent testing and validation phases will also be vital.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 20
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 28 CORPORATE DR, CLIFTON PARK, NY, 12065
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $22,847,159
Exercised Options: $22,847,159
Current Obligation: $22,847,159
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-09-11
Current End Date: 2030-12-25
Potential End Date: 2030-12-25 12:12:00
Last Modified: 2016-04-28
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