DoD's $251M HIDRA program for atomic sensors awarded to AOSENSE, Inc. under full and open competition

Contract Overview

Contract Amount: $25,102,608 ($25.1M)

Contractor: Aosense, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-04

End Date: 2017-09-30

Contract Duration: 2,948 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 50

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COMPLETE THE TASKINGS FOR THE HIGH DYNAMIC RANGE ATOMIC SENSORS (HIDRA) PROGRAM.

Place of Performance

Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94085

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $25.1 million to AOSENSE, INC. for work described as: COMPLETE THE TASKINGS FOR THE HIGH DYNAMIC RANGE ATOMIC SENSORS (HIDRA) PROGRAM. Key points: 1. The contract's value of $251 million over nearly 8 years suggests a significant investment in advanced sensor technology. 2. Awarded via full and open competition, this indicates a deliberate effort to solicit the best possible solutions and pricing. 3. The Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns, requiring robust oversight. 4. The NAICS code 541712 points to research and development in physical sciences, a high-risk, high-reward sector. 5. The contract duration of 2948 days (approx. 8 years) allows for extensive development and testing phases. 6. The absence of small business set-asides suggests the scope or nature of the work may not have been suitable for smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this $251 million contract is challenging without specific performance metrics or comparable R&D projects. The CPFF structure, while common in R&D, inherently carries higher risk for the government compared to fixed-price contracts. The long duration suggests a complex, multi-phase development process, where initial pricing may not fully reflect the eventual costs. Further analysis would require understanding the specific technological advancements sought and the market landscape for such specialized sensors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' implying that all responsible sources were permitted to submit proposals. The number of bidders is not specified, but this approach generally fosters a competitive environment, encouraging multiple companies to offer their best technical solutions and pricing to win the award. This method is intended to ensure the government receives optimal value by leveraging the widest possible pool of talent and innovation.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially reducing overall program costs and maximizing the return on investment.

Public Impact

The primary beneficiaries are the Department of Defense, which gains access to advanced atomic sensor technology for potential applications in defense systems. The contract supports the development of high-dynamic-range atomic sensors, crucial for enhanced sensing capabilities. The geographic impact is centered in California, where AOSENSE, Inc. is located, potentially creating or sustaining high-tech jobs in the region. The program stimulates innovation within the specialized field of atomic physics and sensor technology, advancing scientific and engineering expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
Long contract duration (nearly 8 years) increases the risk of scope creep or technological obsolescence.
R&D contracts are inherently high-risk, with no guarantee of successful technological outcomes.
Lack of specified small business participation may limit opportunities for smaller innovative firms.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
Focus on advanced R&D in atomic sensors indicates a commitment to cutting-edge technological development.
The contract is with AOSENSE, Inc., implying a specific capability or expertise sought by DARPA.
The long duration allows for thorough development and testing of complex sensor technology.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for specialized sensors, particularly atomic sensors, is niche but critical for various applications including defense, navigation, and scientific research. Spending in this area is often driven by government investment in next-generation technologies. Comparable benchmarks would involve other large-scale R&D contracts awarded by agencies like DARPA or other defense research entities for novel technological development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting goals (ss: false). This suggests that the nature of the work, the required expertise, or the contract size may have been deemed more suitable for larger, established companies or that specific small business participation requirements were not mandated for this particular solicitation. Consequently, the direct impact on the small business ecosystem for this specific contract appears limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to manage costs and ensure progress aligns with objectives. DARPA is known for its hands-on program management, which likely includes regular reviews and technical assessments. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Research Programs
Advanced Sensor Development Contracts
Atomic Physics Research Funding
Department of Defense Research and Development Spending
Physical Sciences R&D Contracts

Risk Flags

Cost Overrun Risk (CPFF Contract Type)
Technological Obsolescence Risk (Long Duration)
R&D Success Uncertainty
Potential for Shifting Requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.1 million to AOSENSE, INC.. COMPLETE THE TASKINGS FOR THE HIGH DYNAMIC RANGE ATOMIC SENSORS (HIDRA) PROGRAM.

Who is the contractor on this award?

The obligated recipient is AOSENSE, INC..

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 $25.1 million.

What is the period of performance?

Start: 2009-09-04. End: 2017-09-30.

What specific types of high-dynamic-range atomic sensors were developed under this contract, and what were their intended applications?

The contract focused on the development of High-Dynamic-Range Atomic Sensors (HIDRA) program. While the specific technical details of the sensors are often proprietary, DARPA's mission is to fund research that could lead to revolutionary military capabilities. HIDRA likely aimed to create sensors with significantly improved sensitivity and range compared to existing technologies. Potential applications could include advanced navigation systems (e.g., GPS-denied environments), improved radar or lidar systems, enhanced electronic warfare capabilities, or more precise scientific measurement tools for defense-related research. The 'high-dynamic-range' aspect suggests the sensors are designed to operate effectively across a wide spectrum of signal strengths, from very weak to very strong, which is critical for complex operational environments.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types in terms of risk and value for the government?

Cost Plus Fixed Fee (CPFF) contracts are common in research and development where the scope of work is not precisely defined at the outset, making fixed-price contracts difficult. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. This structure shifts much of the cost risk to the government, as the final price is not capped. However, it allows for flexibility in R&D and encourages innovation by removing the contractor's disincentive to explore new approaches due to cost concerns. Compared to fixed-price contracts, CPFF offers less price certainty for the government but greater adaptability for R&D. Other R&D contract types like Cost Plus Incentive Fee (CPIF) or Cost No Fee (CNF) have different risk/reward profiles, with CPIF offering potential cost savings incentives and CNF offering no fee upon completion.

What is the typical success rate for DARPA-funded R&D programs like HIDRA, and how is success measured?

DARPA's success is often measured not just by the direct delivery of a product, but by the transformative impact of the technologies it pioneers. Many DARPA projects aim for breakthroughs that may not be immediately commercialized or fielded but lay the groundwork for future advancements. Success is typically defined by achieving specific technical milestones outlined in the program, demonstrating novel capabilities, and potentially leading to follow-on programs or commercial spin-offs. While not all DARPA projects result in immediate, tangible defense systems, the agency's historical track record includes foundational work for technologies like the internet (ARPANET), GPS, and stealth aircraft. Measuring success in R&D is inherently complex, involving technical feasibility, potential for leap-ahead capabilities, and long-term strategic value, rather than simple cost-performance metrics.

What is the significance of the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) in the context of this contract?

The North American Industry Classification System (NAICS) code 541712 signifies that the contract's primary purpose is research and development activities within the physical sciences, engineering, and life sciences, excluding biotechnology. For this HIDRA contract, it specifically points to the scientific and engineering efforts involved in creating advanced atomic sensors. This classification helps categorize the contract within federal spending, allowing for comparisons with similar R&D investments across government agencies. It indicates that the work is focused on discovery, innovation, and the creation of new knowledge or technologies, rather than the production of existing goods or standard services. Contracts under this code often involve high levels of scientific expertise and carry inherent risks associated with the R&D process.

Given the nearly 8-year duration, what are the primary risks associated with technological obsolescence or changing requirements?

A contract duration of nearly eight years, especially in a rapidly evolving field like sensor technology, presents significant risks of technological obsolescence and changing requirements. By the time the HIDRA program concludes, the initial technological goals might be surpassed by advancements made elsewhere, or the defense landscape might shift, altering the perceived need for the developed sensors. To mitigate this, DARPA programs typically incorporate regular reviews and potential re-baselining of objectives. The CPFF structure allows for some flexibility to adapt to new discoveries or pivot the research direction, but significant shifts could still lead to cost increases or a final product that doesn't meet future needs. Continuous monitoring of the technological horizon and close collaboration between the contractor and program managers are essential.

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: 50

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 40919 ENCYCLOPEDIA CIR, FREMONT, CA, 94538

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,248,796

Exercised Options: $25,102,608

Current Obligation: $25,102,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline