DoD's $1.99M PESST Project Awarded to University of Illinois for R&D

Contract Overview

Contract Amount: $1,991,222 ($2.0M)

Contractor: University of Illinois

Awarding Agency: Department of Defense

Start Date: 2024-09-23

End Date: 2026-09-04

Contract Duration: 711 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 26

Pricing Type: COST NO FEE

Sector: R&D

Official Description: PERFORMER EVALUATION SECURITY SYSTEM TESTBED (PESST) PROJECT

Place of Performance

Location: URBANA, CHAMPAIGN County, ILLINOIS, 61801

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to UNIVERSITY OF ILLINOIS for work described as: PERFORMER EVALUATION SECURITY SYSTEM TESTBED (PESST) PROJECT Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Competition was full and open, suggesting a broad search for qualified performers. 3. The contract type is a definitive contract, typically used for complex projects. 4. Performance period spans over 700 days, indicating a substantial research undertaking. 5. The performer, University of Illinois, is likely chosen for its research capabilities. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract value of $1.99 million for a research and development project of this duration (711 days) appears to be within a reasonable range for specialized scientific endeavors. Benchmarking against similar R&D contracts is challenging without more specific details on the project's scope and deliverables. However, the 'Cost No Fee' (CPFF) contract type suggests that the government is primarily reimbursing the contractor for incurred costs, with the fee being nominal or non-existent, which can be a cost-control mechanism. Further analysis would require understanding the specific research objectives and expected outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, potentially leading to better pricing and innovation. The solicitation resulted in 26 offers, suggesting a healthy level of interest from potential performers in this research area. The presence of numerous bidders typically benefits the government by providing a wider range of technical solutions and cost proposals to evaluate.

Taxpayer Impact: A full and open competition with 26 offers is beneficial for taxpayers as it increases the likelihood of securing the best value for the government's investment and minimizes the risk of overpayment due to a lack of alternatives.

Public Impact

The primary beneficiaries are likely researchers and students at the University of Illinois, who will be involved in cutting-edge R&D. The project aims to advance knowledge and capabilities within the physical, engineering, and life sciences. The geographic impact is centered in Illinois, where the University of Illinois is located. Workforce implications include potential opportunities for scientists, engineers, and support staff involved in the research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the project's success and value for money.
The 'Cost No Fee' contract type, while potentially cost-saving, requires diligent oversight to ensure cost reasonableness.
The broad R&D nature of the contract may lead to unforeseen cost overruns if not managed carefully.

Positive Signals

Award to a reputable university like the University of Illinois suggests a strong technical foundation and research expertise.
Full and open competition with 26 offers indicates a robust market response and potential for competitive pricing.
The definitive contract structure, while complex, is suitable for well-defined, long-term research projects.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, driving advancements in technology and capabilities. The market for R&D services is highly specialized, often involving universities and research institutions with unique expertise. Comparable spending benchmarks are difficult to establish without knowing the precise R&D focus, but government investment in this area is substantial and aims to maintain technological superiority.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large university suggests that the primary focus was on specialized research capabilities rather than small business participation. This is common for advanced R&D contracts where specific institutional expertise is paramount.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. As a 'Cost No Fee' contract, rigorous financial oversight is crucial to ensure that all costs incurred by the University of Illinois are reasonable, allocable, and allowable. Transparency would be facilitated through regular reporting requirements and potential site visits by government representatives. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
University Research Grants
Advanced Technology Development Contracts
Physical Sciences Research Initiatives

Risk Flags

Potential for research to not yield desired outcomes
Risk of cost overruns in R&D projects
Need for diligent oversight of 'Cost No Fee' contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to UNIVERSITY OF ILLINOIS. PERFORMER EVALUATION SECURITY SYSTEM TESTBED (PESST) PROJECT

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF ILLINOIS.

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: 2024-09-23. End: 2026-09-04.

What is the specific research objective of the PERFORMER EVALUATION SECURITY SYSTEM TESTBED (PESST) PROJECT?

The provided data does not detail the specific research objectives of the PERFORMER EVALUATION SECURITY SYSTEM TESTBED (PESST) PROJECT. However, the contract falls under the North American Industry Classification System (NAICS) code 541715, which covers Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). Given the 'security system testbed' in the project name and the awarding agency (DARPA), it is plausible that the research aims to develop, test, or evaluate advanced security systems, potentially related to hardware, software, or operational protocols. Further details would be available in the contract's statement of work or related documentation.

How does the University of Illinois's track record in R&D influence this award?

While specific details of the University of Illinois's track record are not provided, its selection for a DARPA-funded project under full and open competition strongly suggests a history of successful research and development, particularly in areas relevant to physical, engineering, and life sciences. Universities like Illinois are often chosen for their established research infrastructure, access to specialized equipment, pool of expert faculty, and ability to attract and train skilled researchers and students. DARPA typically seeks out institutions with proven capabilities and a history of innovation to tackle complex, cutting-edge research challenges. The university's ability to secure this contract implies it met or exceeded the rigorous technical and programmatic requirements set forth by DARPA.

Can the value of this contract be benchmarked against similar R&D efforts?

Benchmarking the $1.99 million contract value for the PESST Project against similar R&D efforts is challenging without more granular information about the project's specific scope, deliverables, and duration. R&D contracts can vary significantly in cost based on the complexity of the research, the required personnel expertise, the need for specialized equipment, and the expected outcomes. However, the contract duration of 711 days (approximately 23.7 months) and the 'Cost No Fee' (CPFF) structure provide some context. CPFF contracts aim to reimburse actual costs incurred, making direct value comparisons difficult without understanding the cost drivers. Generally, R&D projects of this length awarded to major research institutions can range from hundreds of thousands to millions of dollars, depending on the technological frontier being explored.

What are the potential risks associated with this research and development contract?

Research and development contracts inherently carry risks due to the exploratory nature of the work. For the PESST Project, potential risks include the possibility that the research may not yield the desired technological advancements or breakthroughs, leading to a failure to meet project objectives. There's also a risk of cost overruns, even with a 'Cost No Fee' structure, if unforeseen technical challenges arise or if the scope needs to expand. Furthermore, the security system aspect suggests potential vulnerabilities if the developed systems are not robust or if intellectual property is not adequately protected. Ensuring effective project management and continuous oversight by DARPA is crucial to mitigate these risks.

How does the 'Cost No Fee' (CPFF) contract type impact cost control and contractor incentive?

The 'Cost No Fee' (CPFF) contract type means the contractor (University of Illinois) is reimbursed for all allowable, allocable, and reasonable costs incurred in performing the contract, but receives no additional fee or profit. This structure is often used for research and development where the final outcome is uncertain, and the primary goal is to facilitate the research itself. For cost control, it shifts the focus to ensuring the contractor's expenses are legitimate and necessary. However, it can reduce the contractor's direct financial incentive to control costs aggressively, as they are guaranteed to be reimbursed for approved expenditures. Therefore, robust government oversight and auditing are essential to prevent unnecessary spending and ensure value for taxpayer money.

What is the significance of 26 offers received under full and open competition for this contract?

Receiving 26 offers under full and open competition for the PESST Project is a strong positive signal. It indicates that the research area is of significant interest to multiple organizations capable of performing the work, suggesting a competitive and dynamic market. This high level of interest allows the awarding agency (DARPA) to select from a wide pool of potential performers, increasing the likelihood of finding the best technical solution at a competitive price. For taxpayers, a robust competition generally leads to better value, as contractors are motivated to submit more attractive proposals to win the contract. It also reduces the risk of sole-source awards, which can sometimes lead to higher prices.

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

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: HR001124S0003

Offers Received: 26

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 506 S WRIGHT ST, URBANA, IL, 61801

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $1,991,222

Exercised Options: $1,991,222

Current Obligation: $1,991,222

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline