DoD's $291M Fuel Cell R&D Contract with FuelCell Energy Inc. Faces Oversight Questions

Contract Overview

Contract Amount: $29,170,282 ($29.2M)

Contractor: Fuelcell Energy Inc

Awarding Agency: Department of Defense

Start Date: 2000-05-19

End Date: 2008-11-30

Contract Duration: 3,117 days

Daily Burn Rate: $9.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: R&D

Official Description: 200009!1700!000917!E614B !OFFICE OF NAVAL RESEARCH, HEADQU!N0001400C0169 !A!*!* !20000519!20030530!050627884!050627884!050627884!N!63161!FUELCELL ENERGY, INC. !3 GREAT PASTURE ROAD !DANBURY !CT!06813!18430!001!09!DANBURY !FAIRFIELD !CONN !0001!+000000030000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8733!3!*!*!*!B!A!*!A !N!T!2!001!A!* !Z!Y!Z!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $29.2 million to FUELCELL ENERGY INC for work described as: 200009!1700!000917!E614B !OFFICE OF NAVAL RESEARCH, HEADQU!N0001400C0169 !A!*!* !20000519!20030530!050627884!050627884!050627884!N!63161!FUELCELL ENERGY, INC. !3 GREAT PASTURE ROAD !DANBURY !CT!06813!18430!001!09!DANBURY !FAI… Key points: 1. The contract awarded to FuelCell Energy Inc. for $291.7 million focuses on advanced technology development in ships. 2. Competition was full and open, but the specific pricing assessment and taxpayer impact require further scrutiny. 3. The contract's duration of over 8 years and cost-sharing nature present potential risks if not managed effectively. 4. This spending falls under the Research and Development sector, specifically for Physical, Engineering, and Life Sciences.

Value Assessment

Rating: questionable

The contract value of $291.7 million is substantial for R&D. Without specific per-unit cost data or benchmarks for similar advanced fuel cell development contracts, a definitive pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the lack of detailed pricing information makes it hard to assess if the final price truly reflects the best value.

Taxpayer Impact: The significant investment of $291.7 million for R&D necessitates careful oversight to ensure taxpayer funds are used efficiently and yield tangible technological advancements.

Public Impact

Significant taxpayer investment in advanced naval technology development. Potential for breakthroughs in fuel cell technology with broad applications. Contract duration raises questions about long-term project viability and evolving technological needs. Cost-sharing aspect could indicate shared risk but also requires clear financial reporting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing assessment
Long contract duration
Limited transparency on specific deliverables and milestones

Positive Signals

Full and open competition
Focus on advanced technology development
Potential for significant technological advancement

Sector Analysis

This contract falls within the Research and Development sector, specifically for Physical, Engineering, and Life Sciences. Defense R&D spending often involves high-risk, high-reward projects with long development cycles and substantial investment.

Small Business Impact

The contract was awarded to FuelCell Energy Inc., a specific company, and there is no indication of subcontracting opportunities for small businesses within the provided data. Further investigation would be needed to determine if small businesses were involved.

Oversight & Accountability

The contract's long duration and substantial value warrant robust oversight from the Department of Defense to ensure progress, accountability, and effective use of funds. Specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

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

Risk Flags

Lack of detailed cost breakdown and justification for the $291.7M award.
Extended contract duration (over 8 years) increases risk of obsolescence and cost escalation.
Limited information on specific performance metrics and deliverables.
Potential for insufficient oversight given the contract's scale and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to FUELCELL ENERGY INC. 200009!1700!000917!E614B !OFFICE OF NAVAL RESEARCH, HEADQU!N0001400C0169 !A!*!* !20000519!20030530!050627884!050627884!050627884!N!63161!FUELCELL ENERGY, INC. !3 GREAT PASTURE ROAD !DANBURY !CT!06813!18430!001!09!DANBURY !FAIRFIELD !CONN !0001!+000000030000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8733!3!*!*!*!B!A!*!A !N!T!

Who is the contractor on this award?

The obligated recipient is FUELCELL ENERGY 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 $29.2 million.

What is the period of performance?

Start: 2000-05-19. End: 2008-11-30.

What specific technological advancements or deliverables are expected from this $291.7 million contract, and how will their achievement be measured?

The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences' for naval applications. While the exact deliverables are not specified, they likely pertain to the development, testing, and integration of advanced fuel cell technologies for shipboard use. Success metrics would typically involve performance benchmarks, efficiency improvements, and operational readiness assessments, requiring detailed reporting and milestone reviews by the Office of Naval Research.

Given the 'full and open competition' award, how was the $291.7 million price determined to be fair and reasonable for the scope of work?

While 'full and open competition' suggests a competitive bidding process, the provided data lacks the specifics of how the $291.7 million price was validated as fair and reasonable. This typically involves detailed cost proposals, technical evaluations, and negotiation between the contractor and the contracting agency. Without access to these details, it's difficult to assess the pricing strategy and ensure optimal value for taxpayer funds.

What are the primary risks associated with a contract of this length (over 8 years) and value in the rapidly evolving field of fuel cell technology?

The primary risks include technological obsolescence, where advancements may outpace the contract's scope before completion. There's also the risk of cost overruns due to unforeseen technical challenges or market shifts. Furthermore, maintaining contractor focus and performance over such an extended period can be challenging, potentially impacting the final effectiveness and relevance of the developed technology.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST SHARING (T)

Contractor Details

Address: 3 GREAT PASTURE ROAD, DANBURY, CT, 05

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,139,851

Exercised Options: $2,195,281

Current Obligation: $29,170,282

Contract Characteristics

Cost or Pricing Data: YES

Timeline