DoD's SIEVE Program Awards Galois Inc. $1.67B for R&D in Physical and Engineering Sciences

Contract Overview

Contract Amount: $16,681,027 ($16.7M)

Contractor: Galois, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-17

End Date: 2026-10-15

Contract Duration: 2,372 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SECURING INFORMATION FOR ENCRYPTED VERIFICATION AND EVALUATION (SIEVE) PROGRAM

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97204

State: Oregon Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to GALOIS, INC. for work described as: SECURING INFORMATION FOR ENCRYPTED VERIFICATION AND EVALUATION (SIEVE) PROGRAM Key points: 1. The contract focuses on research and development in physical, engineering, and life sciences, excluding specialized areas like nanotechnology. 2. Galois, Inc. is the sole awardee under a full and open competition, suggesting a highly specialized capability. 3. The contract's significant value and long duration (2020-2026) indicate a substantial, long-term investment by DARPA. 4. The 'OR' status code might relate to a specific contracting mechanism or geographic region, requiring further investigation for full context.

Value Assessment

Rating: questionable

The contract value of $1.67 billion is substantial. Without specific deliverables or comparable contracts for similar advanced R&D, assessing its value is difficult. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being awarded under full and open competition, only one contractor, Galois, Inc., was selected. This suggests either a unique capability possessed by Galois or a highly competitive initial bid process that resulted in a single, preferred offeror.

Taxpayer Impact: The significant investment of $1.67 billion represents a considerable allocation of taxpayer funds towards advanced research and development, with the ultimate return on investment dependent on the program's success.

Public Impact

Taxpayers are funding cutting-edge research with potential applications in national security and advanced technology. The long-term nature of the contract suggests a commitment to developing novel solutions over several years. The specific focus on 'Securing Information for Encrypted Verification and Evaluation' hints at advancements in cybersecurity and data integrity.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Lack of clear performance metrics for a large R&D contract.
Potential for cost overruns with Cost Plus Fixed Fee structure.
Single awardee despite full and open competition raises questions about market breadth.

Positive Signals

Addresses critical national security needs in encryption and verification.
Long-term commitment allows for deep research and development.
Focus on advanced scientific and engineering principles.

Sector Analysis

This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector. Benchmark spending in this area is highly variable, depending on the specific technological advancements pursued. DARPA's mission often involves high-risk, high-reward research that may not have direct commercial parallels.

Small Business Impact

The contract data indicates that small businesses were not directly involved in this award, as Galois, Inc. is the sole contractor. There is no information provided on subcontracting opportunities for small businesses within this large R&D program.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), known for its rigorous oversight of advanced research projects. The long duration and significant funding necessitate robust accountability mechanisms to ensure progress and responsible use of funds.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Defense Advanced Research Projects Agency Programs

Risk Flags

High contract value.
Long contract duration.
Cost Plus Fixed Fee pricing structure.
Single awardee despite full and open competition.
R&D focus with potentially uncertain outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to GALOIS, INC.. SECURING INFORMATION FOR ENCRYPTED VERIFICATION AND EVALUATION (SIEVE) PROGRAM

Who is the contractor on this award?

The obligated recipient is GALOIS, 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 $16.7 million.

What is the period of performance?

Start: 2020-04-17. End: 2026-10-15.

What specific technological advancements are expected from the SIEVE program, and how will their success be measured?

The SIEVE program aims to advance capabilities in securing information through encrypted verification and evaluation. Specific expected advancements likely include novel cryptographic techniques, secure data handling protocols, and robust verification methods for sensitive information. Success metrics would typically involve demonstrating the efficacy of these technologies in simulated or real-world environments, achieving specific performance benchmarks for speed and security, and successful integration into existing defense systems.

Given the Cost Plus Fixed Fee structure and a single awardee, what are the primary financial risks to the government?

The primary financial risks with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, include potential cost overruns if the contractor's actual costs exceed estimates, even though the fee is fixed. A single awardee, even from full and open competition, can limit negotiation leverage and potentially lead to higher initial pricing. The government bears the risk of unforeseen technical challenges driving up costs without a corresponding increase in the fixed fee, necessitating careful monitoring and scope management.

How does the SIEVE program's focus on encryption and verification align with current and future Department of Defense technological needs?

The SIEVE program's focus directly addresses critical and evolving DoD needs for secure communication, data integrity, and trusted information exchange. As cyber threats become more sophisticated, advanced encryption and verification are paramount for protecting sensitive military data, command and control systems, and operational intelligence. This R&D is crucial for maintaining technological superiority and ensuring the reliability of information in contested environments.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001119S0076

Offers Received: 13

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 421 SW 6TH AVE STE 300, PORTLAND, OR, 97204

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,080,971

Exercised Options: $16,681,027

Current Obligation: $16,681,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline