DoD Awards $3.24M R&D Contract for Autonomous Pallet Loader to Stratom, Inc

Contract Overview

Contract Amount: $3,241,581 ($3.2M)

Contractor: Stratom, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-08

End Date: 2027-02-08

Contract Duration: 1,096 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: R&D: AUTONOMOUS PALLET LOADER (APL). SBIR PHASE II (SEQUENTIAL). SBIR TOPIC NUMBER: N191-002.

Place of Performance

Location: LOUISVILLE, BOULDER County, COLORADO, 80027

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to STRATOM, INC. for work described as: R&D: AUTONOMOUS PALLET LOADER (APL). SBIR PHASE II (SEQUENTIAL). SBIR TOPIC NUMBER: N191-002. Key points: 1. This contract focuses on R&D for an Autonomous Pallet Loader (APL) under an SBIR Phase II program. 2. Stratom, Inc. is the sole awardee, indicating a specific technological niche or prior success. 3. The contract is Firm Fixed Price, providing cost certainty for the government. 4. The award falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code.

Value Assessment

Rating: fair

The contract value of $3.24M for a 3-year R&D effort appears reasonable for a specialized SBIR Phase II project. Benchmarking is difficult without specific details on the APL's capabilities and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial limited competition or a specific SBIR topic that may have had fewer qualified bidders, but the process aimed for broad participation.

Taxpayer Impact: Taxpayer funds are being invested in advanced R&D for potential future military logistics improvements, with the aim of increasing efficiency and reducing labor costs.

Public Impact

Potential for increased efficiency and reduced manpower needs in military logistics operations. Advancement in robotics and AI for defense applications. Development of autonomous systems could have broader commercial applications. Investment in small business innovation through the SBIR program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition history for SBIR Phase II awards.
Potential for cost overruns if R&D proves more complex than anticipated.
Dependence on a single contractor for specialized technology development.

Positive Signals

Firm Fixed Price contract provides cost control.
SBIR program fosters innovation and supports small businesses.
Focus on autonomous systems aligns with modernization efforts.

Sector Analysis

This contract falls within the R&D sector, specifically focusing on physical and engineering sciences. Spending in this area is crucial for technological advancement but can be subject to long development cycles and uncertain outcomes. Benchmarks are difficult without more specific technical details.

Small Business Impact

While the award is to Stratom, Inc., the SBIR (Small Business Innovation Research) program itself is designed to foster innovation within small businesses. This contract is a Phase II award, indicating the company has already demonstrated technical merit in Phase I.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Navy. Oversight will focus on milestone achievement, technical progress, and adherence to the firm fixed price terms to ensure accountability for taxpayer funds.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

SBIR Phase II awards can be complex and carry inherent R&D risks.
Dependence on a single contractor (Stratom, Inc.) for this specific technology.
Potential for scope creep if requirements evolve significantly during development.
Integration challenges with existing military logistics infrastructure.
Long-term sustainment and maintenance costs are not detailed in this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to STRATOM, INC.. R&D: AUTONOMOUS PALLET LOADER (APL). SBIR PHASE II (SEQUENTIAL). SBIR TOPIC NUMBER: N191-002.

Who is the contractor on this award?

The obligated recipient is STRATOM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-02-08. End: 2027-02-08.

What is the specific technological advancement expected from this APL, and how does it compare to existing solutions?

The specific technological advancement expected is the development of an Autonomous Pallet Loader (APL) capable of operating within military logistics environments. This likely involves enhanced AI for navigation, obstacle avoidance, and load handling in dynamic settings, potentially surpassing current semi-automated or manually operated systems in terms of efficiency, speed, and operational flexibility.

What are the primary risks associated with the R&D nature of this contract, and how are they being mitigated?

The primary risks include technical feasibility challenges, potential for schedule delays due to unforeseen R&D hurdles, and the possibility that the final product may not meet all performance requirements. Mitigation strategies likely involve rigorous milestone reviews, phased development, clear performance metrics, and the firm fixed price structure which incentivizes the contractor to manage costs effectively.

How will the effectiveness of the APL be measured post-development to ensure value for taxpayer investment?

Effectiveness will be measured through rigorous testing and evaluation (T&E) phases, comparing the APL's performance against predefined metrics for speed, accuracy, load capacity, operational uptime, and integration with existing logistics systems. User feedback from military personnel and cost-benefit analyses comparing its operational efficiency to current methods will also determine its overall value.

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: M6785423R6507

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 331 S 104TH ST, LOUISVILLE, CO, 80027

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,241,581

Exercised Options: $3,241,581

Current Obligation: $3,241,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline