DoD's $18.7M Precision Nutrition R&D contract awarded to SHEE ATIKA ENTERPRISES LLC for Special Operations Command

Contract Overview

Contract Amount: $18,732,619 ($18.7M)

Contractor: Shee Atika Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-17

End Date: 2025-07-16

Contract Duration: 821 days

Daily Burn Rate: $22.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: R&D

Official Description: PRECISION NUTRITION RESEARCH & DEVELOPMENT FOR THE UNITED STATES SPECIAL OPERATIONS COMMAND

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27701

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $18.7 million to SHEE ATIKA ENTERPRISES LLC for work described as: PRECISION NUTRITION RESEARCH & DEVELOPMENT FOR THE UNITED STATES SPECIAL OPERATIONS COMMAND Key points: 1. Contract awarded as a sole-source procurement, raising questions about potential cost efficiencies and market competition. 2. The fixed-price level-of-effort contract type suggests a defined scope but may allow for cost overruns if not managed tightly. 3. The duration of 821 days indicates a significant, long-term research and development effort. 4. The contract is categorized under R&D in Physical, Engineering, and Life Sciences, aligning with specialized military health needs. 5. The award to a single entity without competition warrants scrutiny regarding the justification and potential alternatives. 6. The lack of small business set-aside suggests the primary contractor is not a small business or subcontracting opportunities were not mandated.

Value Assessment

Rating: questionable

Benchmarking the value of this $18.7 million contract is challenging without comparable sole-source R&D contracts for precision nutrition within the Special Operations Command. The fixed-price level-of-effort structure provides some cost control, but the absence of competition means there's no direct market comparison to assess if the price is optimal. Further analysis would require understanding the specific deliverables and the uniqueness of the services provided by SHEE ATIKA ENTERPRISES LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided in the data, but sole-source awards typically occur when only one vendor possesses the unique capabilities or proprietary technology required for the specific need. This limits the opportunity for price discovery through competitive bidding.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also bypasses opportunities to engage a wider range of businesses, potentially including small businesses.

Public Impact

This contract directly benefits the United States Special Operations Command by advancing precision nutrition research. The services delivered are expected to enhance the health, performance, and readiness of special operations forces. The geographic impact is primarily within the operational domains of special operations forces, with potential for broader application in military health. Workforce implications may include specialized research personnel employed by SHEE ATIKA ENTERPRISES LLC and potential knowledge transfer within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation from a broader market.
Fixed-price level-of-effort contract type requires careful monitoring to ensure cost control and prevent scope creep.
Lack of transparency regarding the justification for sole-source procurement.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Focus on critical R&D for specialized military personnel enhances operational effectiveness.
Long-term contract duration (821 days) suggests a commitment to a significant research objective.
Contract awarded to a single entity implies specialized expertise in precision nutrition for demanding environments.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on life sciences and physical sciences. This area is crucial for military readiness, encompassing advancements in human performance, health, and resilience. The market for specialized military R&D is often characterized by unique requirements and a limited number of highly specialized contractors, which can influence procurement strategies and pricing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that either the primary contractor, SHEE ATIKA ENTERPRISES LLC, is not a small business, or that subcontracting opportunities for small businesses were not explicitly mandated or identified within the contract's scope. Without specific subcontracting plans, the direct impact on the small business ecosystem is limited for this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Specific accountability measures would be detailed within the contract itself, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature and lack of publicly available justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Special Operations Forces Health and Performance Programs
Military Nutrition Research
Department of Defense Research and Development Contracts
Life Sciences Research Contracts

Risk Flags

Sole-source award requires justification.
Fixed-price level-of-effort requires careful monitoring.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.7 million to SHEE ATIKA ENTERPRISES LLC. PRECISION NUTRITION RESEARCH & DEVELOPMENT FOR THE UNITED STATES SPECIAL OPERATIONS COMMAND

Who is the contractor on this award?

The obligated recipient is SHEE ATIKA ENTERPRISES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2023-04-17. End: 2025-07-16.

What is the specific nature of the 'Precision Nutrition' research being conducted for the Special Operations Command?

The provided data does not detail the specific research objectives of the 'Precision Nutrition' initiative. However, given the context of the Special Operations Command (SOCOM), it is highly probable that this research aims to optimize the dietary intake and nutritional strategies for elite military personnel operating in demanding and diverse environments. This could include research into macronutrient timing, micronutrient supplementation, hydration strategies, and personalized dietary plans to enhance physical endurance, cognitive function, recovery, and overall mission effectiveness under extreme conditions. The R&D classification (NAICS 541715) further supports that this involves scientific inquiry and experimentation.

What is the justification for awarding this $18.7 million contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source determination is not included in the data. Typically, sole-source awards are made when only one responsible source is available or capable of providing the required goods or services. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is impossible to ascertain the precise reasons why SHEE ATIKA ENTERPRISES LLC was the only viable option for this particular R&D effort.

How does the fixed-price level-of-effort contract type function in this R&D context?

A Fixed-Price Level-of-Effort (FPLE) contract, like the one awarded to SHEE ATIKA ENTERPRISES LLC, obligates the contractor to expend a specified level of effort (e.g., hours, direct labor costs) within a stated period. The government agrees to pay a fixed price for this effort, regardless of the contractor's actual costs. In an R&D context, this structure is often used when the scope of work is relatively well-defined, but the specific outcomes or discoveries are uncertain. It provides the government with cost certainty for the planned effort while allowing the contractor flexibility to pursue research objectives. However, it requires diligent oversight to ensure the effort is being expended effectively and efficiently towards the contract's goals.

What is the track record of SHEE ATIKA ENTERPRISES LLC in performing similar R&D contracts for the Department of Defense?

The provided data does not include information on the track record or past performance of SHEE ATIKA ENTERPRISES LLC. To assess their suitability and reliability for this $18.7 million precision nutrition R&D contract, one would need to consult additional resources such as the Federal Procurement Data System (FPDS), the Contractor Performance Assessment Reporting System (CPARS), or conduct a deeper search for their contract history. Evaluating past performance is crucial, especially for sole-source awards, to ensure the contractor has demonstrated capability and success in delivering similar research and development services to the DoD or other federal agencies.

Are there any comparable R&D contracts for nutrition or human performance within the DoD or other federal agencies that can serve as a benchmark?

While the provided data does not list comparable contracts, the Department of Defense, particularly through agencies like the Defense Health Agency (DHA) and various research laboratories (e.g., U.S. Army Research Institute of Environmental Medicine - USARIEM), frequently engages in R&D related to soldier performance, health, and nutrition. Other federal agencies like NASA and the National Institutes of Health (NIH) also fund significant research in nutrition and human physiology. Benchmarking this $18.7 million contract would involve identifying similar R&D efforts, considering factors like contract type, duration, scope, and the specific scientific domain. The sole-source nature of this award complicates direct price benchmarking against competitively awarded contracts.

What are the potential risks associated with a sole-source R&D contract of this magnitude?

The primary risks associated with a sole-source R&D contract of this magnitude include: 1) Lack of Price Competition: Without competitive bidding, the government may pay a higher price than if multiple vendors had competed. 2) Limited Innovation: Relying on a single contractor may stifle innovation that could arise from a more diverse pool of bidders. 3) Contractor Lock-in: The government becomes dependent on the sole source, potentially making future transitions difficult or costly. 4) Performance Risk: If the sole-source contractor underperforms, there are limited immediate alternatives. 5) Justification Scrutiny: Sole-source awards require robust justification, and if that justification is weak, it can lead to program delays or protests.

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 › N – Health R&D Services

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT942523R0012

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Evaluated Preference: NONE

Contractor Details

Parent Company: Shee Atika, Incorporated

Address: 315 LINCOLN ST, SITKA, AK, 99835

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,732,619

Exercised Options: $18,732,619

Current Obligation: $18,732,619

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline