DoD's $200M SBIR Contract for Cryptographic Engineering Research Awarded to Arkham Technology Limited
Contract Overview
Contract Amount: $1,999,949 ($2.0M)
Contractor: Arkham Technology Limited
Awarding Agency: Department of Defense
Start Date: 2024-01-10
End Date: 2026-04-10
Contract Duration: 821 days
Daily Burn Rate: $2.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 17
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: EMPIRICAL PROVING GROUND FOR CRYPTOGRAPHIC ENGINEERING CHALLENGES IN LARGE SCALE DEPLOYMENTS (EPIC EAGLE), SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II PROGRAM.
Place of Performance
Location: IRVINE, ORANGE County, CALIFORNIA, 92614
Plain-Language Summary
Department of Defense obligated $2.0 million to ARKHAM TECHNOLOGY LIMITED for work described as: EMPIRICAL PROVING GROUND FOR CRYPTOGRAPHIC ENGINEERING CHALLENGES IN LARGE SCALE DEPLOYMENTS (EPIC EAGLE), SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II PROGRAM. Key points: 1. This contract focuses on R&D for cryptographic engineering in large-scale deployments. 2. The awardee, Arkham Technology Limited, is a small business. 3. The contract value is substantial at $199,994,900. 4. Competition was conducted under 'Full and Open Competition after Exclusion of Sources'.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts in R&D is difficult due to unique project scopes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' suggesting a limited competition. This method may not have yielded the most competitive pricing.
Taxpayer Impact: The significant value of this contract means taxpayer funds are being used for advanced research, with the ultimate benefit depending on the success of the cryptographic engineering.
Public Impact
Advancement in cryptographic security for large-scale systems. Potential for new technologies and intellectual property developed under the contract. Investment in a small business for critical defense research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may impact price discovery.
- CPFF contract type carries inherent cost overrun risks.
- Long duration (821 days) increases exposure to changing technological landscapes.
Positive Signals
- Focus on critical R&D area for national security.
- Award to a small business aligns with SBIR program goals.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. The value is significantly higher than typical R&D contracts, indicating a large-scale, critical project.
Small Business Impact
The contract is awarded to Arkham Technology Limited, a small business, aligning with the Small Business Innovation Research (SBIR) program's objective to foster innovation within small businesses. This provides a significant opportunity for the company.
Oversight & Accountability
The Department of Defense, through DARPA, is responsible for oversight. The CPFF contract type necessitates robust monitoring to ensure cost efficiency and adherence to research objectives.
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
- Cost overrun risk due to CPFF structure.
- Potential for insufficient competition impacting price.
- Long contract duration may lead to technology obsolescence.
- Dependence on a single small business for critical research.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.0 million to ARKHAM TECHNOLOGY LIMITED. EMPIRICAL PROVING GROUND FOR CRYPTOGRAPHIC ENGINEERING CHALLENGES IN LARGE SCALE DEPLOYMENTS (EPIC EAGLE), SMALL BUSINESS INNOVATION RESEARCH (SBIR) PHASE II PROGRAM.
Who is the contractor on this award?
The obligated recipient is ARKHAM TECHNOLOGY LIMITED.
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 $2.0 million.
What is the period of performance?
Start: 2024-01-10. End: 2026-04-10.
What is the specific technological advancement expected from this cryptographic engineering research, and how will its success be measured?
The contract aims to develop cryptographic engineering solutions for large-scale deployments. Success metrics would likely involve demonstrated improvements in security, efficiency, and scalability of cryptographic systems under simulated or real-world conditions. Specific deliverables and performance benchmarks should be detailed in the contract's statement of work.
Given the limited competition, what steps are in place to ensure the cost-effectiveness and value for money of this $200 million contract?
While the competition was limited, the Cost Plus Fixed Fee structure requires rigorous oversight. The government must actively monitor expenditures, track progress against milestones, and ensure Arkham Technology Limited is operating efficiently. Independent technical reviews and cost audits would be crucial to validate value for money.
How will the research outcomes be transitioned into practical applications or further development to maximize taxpayer benefit?
The SBIR program typically includes provisions for technology transition. DARPA likely has a plan to leverage the research findings, potentially through follow-on contracts, licensing agreements, or integration into existing defense systems. Ensuring clear pathways for commercialization or military adoption is key to realizing taxpayer return on investment.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001123S0001
Offers Received: 17
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2525 MAIN ST, IRVINE, CA, 92614
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $3,999,781
Exercised Options: $1,999,949
Current Obligation: $1,999,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-01-10
Current End Date: 2026-04-10
Potential End Date: 2026-04-10 00:00:00
Last Modified: 2026-01-06
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