DoD's $11.1M AIMS II Contract Awarded to Penn State for R&D

Contract Overview

Contract Amount: $11,095,000 ($11.1M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2025-01-31

End Date: 2027-02-01

Contract Duration: 731 days

Daily Burn Rate: $15.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCE INNOVATION IN MODELING AND SIMULATION II (AIMS II)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: ADVANCE INNOVATION IN MODELING AND SIMULATION II (AIMS II) Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded to The Pennsylvania State University, a significant research institution. 3. The contract is a Cost Plus Fixed Fee type, common for R&D. 4. No small business participation is indicated.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type is typical for research and development where costs are not easily predictable. The fixed fee provides some incentive for the contractor to manage costs, but the government bears the majority of the cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The rationale for sole-sourcing is not provided.

Taxpayer Impact: Without competition, taxpayers may be paying a premium for the research and development services provided under this contract.

Public Impact

Advancement of modeling and simulation capabilities for defense applications. Potential for breakthroughs in physical, engineering, and life sciences research. Investment in a major university's research infrastructure and expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type increases government cost risk
No small business participation

Positive Signals

Award to a reputable research institution
Focus on critical R&D area for defense

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and maintaining a competitive edge, but often involves higher risk and less predictable outcomes.

Small Business Impact

The contract data indicates no small business participation. This is a missed opportunity to leverage the innovation and agility of small businesses in the research and development space.

Oversight & Accountability

The lack of competition raises questions about the oversight process for justifying a sole-source award. Further review would be needed to ensure the government received fair value and explored all viable options.

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

Sole-source award lacks competition
Cost-plus contract increases government financial risk
No small business involvement
Potential for cost overruns in R&D

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to THE PENNSYLVANIA STATE UNIVERSITY. ADVANCE INNOVATION IN MODELING AND SIMULATION II (AIMS II)

Who is the contractor on this award?

The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.

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 $11.1 million.

What is the period of performance?

Start: 2025-01-31. End: 2027-02-01.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for ensuring taxpayer value. Without a competitive process, it's difficult to ascertain if the selected contractor, The Pennsylvania State University, offered the best value or if other entities could have provided similar services at a lower cost or with greater innovation. A thorough review of the sole-source justification documentation is necessary.

How will the government ensure cost control and effective research outcomes under a Cost Plus Fixed Fee structure for this R&D effort?

With a Cost Plus Fixed Fee (CPFF) contract, the government bears the risk of cost overruns, while the contractor is incentivized by the fixed fee. Effective oversight will involve rigorous monitoring of incurred costs, regular performance reviews, and clear milestones to ensure the research progresses efficiently and stays within the anticipated scope. Strong program management is essential.

What specific modeling and simulation advancements are expected, and how will their impact on defense capabilities be measured?

The expected advancements in modeling and simulation are central to the contract's objective. Measuring their impact requires defining clear, quantifiable performance metrics and deliverables tied to specific defense applications. This could include improvements in simulation accuracy, speed, or the ability to model complex scenarios, ultimately enhancing warfighter training, system design, or operational planning.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HR001124R0013

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 OLD MAIN, UNIVERSITY PARK, PA, 16802

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,634,268

Exercised Options: $25,634,268

Current Obligation: $11,095,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline