DoD's $23M RDT&E contract for DCGS engineering awarded to Utah State University Space Dynamics Laboratory

Contract Overview

Contract Amount: $23,022,565 ($23.0M)

Contractor: Utah State University Space Dynamics Laboratory

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $31.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ENGINEER & INTEGRATION LABOR (RDT&E) CONTRACT IN SUPPORT OF DCGS

Place of Performance

Location: LOGAN, CACHE County, UTAH, 84341

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $23.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY for work described as: ENGINEER & INTEGRATION LABOR (RDT&E) CONTRACT IN SUPPORT OF DCGS Key points: 1. Contract focuses on research and development for intelligence systems, indicating a need for specialized expertise. 2. The award to a single entity suggests a unique capability or a specific research requirement. 3. Long-term contract duration of two years implies ongoing support needs for the DCGS program. 4. The firm-fixed-price structure aims to control costs for the government. 5. This contract falls under RDT&E, highlighting investment in future capabilities rather than immediate operational procurement. 6. The geographic location of the contractor in Utah may have implications for regional economic impact.

Value Assessment

Rating: fair

Benchmarking the value of this RDT&E contract is challenging without specific deliverables or comparable research projects. The $23 million award over two years suggests a significant investment in specialized engineering and integration labor. Given the nature of R&D, the value is tied to the potential for innovation and future system improvements. However, without more detail on the scope of work and expected outcomes, a definitive value-for-money assessment is difficult. The firm-fixed-price contract type is a positive indicator for cost control.

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. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from a bidding process that could have potentially driven down prices or offered alternative solutions. The justification for a sole-source award would need to be thoroughly documented to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing. The government may pay a premium when competition is absent, as there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, which will receive advanced engineering and integration support for the Distributed Common Ground System (DCGS). The services delivered will enhance the capabilities and effectiveness of intelligence, surveillance, and reconnaissance (ISR) operations. The geographic impact is primarily centered in Utah, where the contractor, Utah State University Space Dynamics Laboratory, is located, potentially creating or sustaining high-skilled jobs. The contract supports the development of advanced technologies and systems crucial for national security and defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Sole-source awards require strong justification to ensure fair and reasonable pricing.
R&D contracts can carry inherent risks regarding the successful development of desired outcomes.

Positive Signals

Award to a specialized research institution (USU Space Dynamics Laboratory) suggests access to unique expertise.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration indicates a sustained need for critical engineering support.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on engineering and integration for intelligence systems. The market for such specialized R&D services is often characterized by a limited number of highly qualified institutions and companies. The Department of Defense is a major investor in this sector, seeking to maintain technological superiority. Comparable spending benchmarks would typically involve other RDT&E contracts for complex defense systems or intelligence platforms.

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 university research laboratory suggests a focus on specialized technical capabilities rather than broad market outreach. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for specialized support not covered by their internal capabilities.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific deliverables and progress reports will be crucial for accountability. The Inspector General's office for the Department of Defense may conduct audits or investigations as deemed necessary to ensure the proper use of funds and adherence to contract terms.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems
Defense Research and Development Programs
Ground Systems Engineering
Advanced Technology Development

Risk Flags

Sole-source award may limit price competition.
R&D contracts have inherent uncertainty in outcomes.
Need for clear performance metrics to assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.0 million to UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY. ENGINEER & INTEGRATION LABOR (RDT&E) CONTRACT IN SUPPORT OF DCGS

Who is the contractor on this award?

The obligated recipient is UTAH STATE UNIVERSITY SPACE DYNAMICS LABORATORY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What is the specific technical scope of work for this DCGS engineering and integration contract?

The provided data indicates the contract is for 'ENGINEER & INTEGRATION LABOR (RDT&E) CONTRACT IN SUPPORT OF DCGS'. DCGS, or Distributed Common Ground System, is a critical intelligence system used by the U.S. military to process and disseminate intelligence data. This contract likely involves research and development activities aimed at enhancing the system's capabilities, integrating new technologies, improving its performance, or ensuring its continued operational effectiveness. Specific tasks could include software development, hardware integration, systems engineering, testing, and analysis related to the DCGS architecture. The RDT&E nature suggests a focus on future improvements and innovation rather than routine maintenance or upgrades.

Why was this contract awarded on a sole-source basis to Utah State University Space Dynamics Laboratory?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For Utah State University Space Dynamics Laboratory (USU SDL), this could be due to possessing unique, specialized expertise, proprietary technology, or extensive prior experience with the specific DCGS components or research objectives. USU SDL is known for its work in space science, engineering, and advanced technology development, often collaborating with government agencies on complex research projects. The Department of the Navy likely determined that USU SDL was the only entity that could fulfill the specific RDT&E requirements for DCGS engineering and integration within the required timeframe and technical parameters.

How does the firm-fixed-price contract type benefit the government in this RDT&E context?

A firm-fixed-price (FFP) contract establishes a price that is not subject to adjustment based on the contractor's cost experience. In an RDT&E context, where the scope of work might evolve or involve uncertainties, an FFP contract provides the government with the greatest cost certainty. The contractor assumes the primary risk for cost overruns. This structure incentivizes the contractor to manage its resources efficiently and control costs to maximize profit. For the government, it means a predictable expenditure, making budgeting and financial planning more straightforward, even for research and development efforts.

What is the significance of the NAICS code 541715 for this contract?

The North American Industry Classification System (NAICS) code 541715 designates 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. This code accurately categorizes the nature of the work being performed under this contract. It signifies that the contract is focused on scientific inquiry and experimentation aimed at discovering or improving knowledge and products. The inclusion of 'Physical, Engineering, and Life Sciences' covers a broad range of technical disciplines, aligning with the complex engineering and integration needs for a system like DCGS, while excluding highly specialized fields like nano or biotech.

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

Sole-source RDT&E contracts carry several potential risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, as the government lacks leverage to negotiate the best possible rate. Secondly, without multiple bidders, there's a reduced opportunity to explore diverse technical approaches or innovative solutions that other firms might offer. Thirdly, R&D projects inherently carry technical risks; the outcomes are not guaranteed, and the investment may not yield the desired technological advancements. Finally, sole-source awards can sometimes raise concerns about fairness and transparency if the justification is not robust and well-documented, potentially leading to perceptions of favoritism or inefficiency.

How does this contract contribute to the overall mission of the Department of the Navy's intelligence capabilities?

This contract directly supports the Department of the Navy's intelligence mission by ensuring the continued development and enhancement of the Distributed Common Ground System (DCGS). DCGS is a foundational element for collecting, processing, analyzing, and disseminating intelligence, surveillance, and reconnaissance (ISR) data across various naval operations. By investing in engineering and integration labor for DCGS through RDT&E, the Navy aims to maintain a technological edge, adapt to evolving threats, and improve the effectiveness of its intelligence gathering and analysis capabilities. This ultimately strengthens situational awareness and supports informed decision-making for naval commanders.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: M6785424R2010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 416 E INNOVATION AVE, NORTH LOGAN, UT, 84341

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,979,676

Exercised Options: $23,023,165

Current Obligation: $23,022,565

Actual Outlays: $1,770,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline