DoD's $36.4M R&D Contract with Quantum Magnetics for Advanced Tech Development

Contract Overview

Contract Amount: $14,777,756 ($14.8M)

Contractor: Quantum Magnetics, LLC

Awarding Agency: Department of Defense

Start Date: 2003-04-23

End Date: 2009-07-01

Contract Duration: 2,261 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200307!001369!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0265 !A!N! !N! !20030423!20060423!364449744!364449744!623924651!N!QUANTUM MAGNETICS, INC !15175 INNOVATION DRIVE !SAN DIEGO !CA!92128!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004019582!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!005!E! !Z!Y!Z! ! !N!B!N!N! ! !C! !A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SANTA ANA, ORANGE County, CALIFORNIA, 92705

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to QUANTUM MAGNETICS, LLC for work described as: 200307!001369!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0265 !A!N! !N! !20030423!20060423!364449744!364449744!623924651!N!QUANTUM MAGNETICS, INC !15175 INNOVATION DRIVE !SAN DIEGO !CA!92128!66000!073!06!SAN DIEGO !SAN D… Key points: 1. The contract, valued at $36.4 million, focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded under full and open competition, the contract aims to advance defense technologies. 3. The primary risk appears to be the 'NOT DISCERNABLE OR CLASSIFIED' nature of the specific deliverables, potentially impacting oversight. 4. The sector is Defense R&D, a critical area for national security and technological superiority.

Value Assessment

Rating: fair

The contract value of $36.4 million for a 5-year R&D effort appears within a reasonable range for specialized defense technology development. Benchmarking is difficult without specific deliverable details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'NOT DISCERNABLE OR CLASSIFIED' nature of the work may limit the ability to precisely assess price discovery.

Taxpayer Impact: Taxpayer funds are being used for advanced R&D, which can yield long-term benefits if successful, but carries inherent risks of research failure.

Public Impact

Potential for groundbreaking defense technologies that could enhance national security. Investment in cutting-edge scientific research and development within the United States. Supports innovation in the specialized field of quantum magnetics, potentially leading to commercial spin-offs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unclear deliverables ('NOT DISCERNABLE OR CLASSIFIED') hinder precise value assessment and oversight.
Long contract duration (5 years) increases risk exposure to changing technological landscapes or program needs.
Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed tightly.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
Focus on advanced R&D aligns with strategic defense priorities.
Contract awarded to a specialized firm, Quantum Magnetics, Inc., suggesting expertise in the required field.

Sector Analysis

This contract falls within the Defense R&D sector, specifically focusing on advanced technology development. Spending in this area is crucial for maintaining a technological edge but is also subject to high uncertainty and long development cycles.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for DoD contracts. However, the 'NOT DISCERNABLE OR CLASSIFIED' nature of the work may present challenges for effective oversight and accountability.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of clarity on specific deliverables.
Potential for cost overruns due to CPFF contract type.
Long contract duration increases uncertainty.
Classification/secrecy may impede public understanding and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to QUANTUM MAGNETICS, LLC. 200307!001369!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001403C0265 !A!N! !N! !20030423!20060423!364449744!364449744!623924651!N!QUANTUM MAGNETICS, INC !15175 INNOVATION DRIVE !SAN DIEGO !CA!92128!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000004019582!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is QUANTUM MAGNETICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.8 million.

What is the period of performance?

Start: 2003-04-23. End: 2009-07-01.

What is the specific technological advancement expected from this contract, and how will its success be measured given the 'not discernible or classified' nature of the deliverables?

The specific technological advancement is not detailed in the provided data, described only as 'Research and Development in Physical, Engineering, and Life Sciences' under 'RDTE/OTHER DEFENSE-ADV TECH DEV'. The 'not discernible or classified' nature of deliverables makes objective success measurement challenging without further context on program goals and key performance indicators established by the Office of Naval Research.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for advanced R&D, and how are they mitigated in this case?

CPFF contracts carry the risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation typically involves robust oversight, clear scope definition, and performance incentives. Given the 'not discernible or classified' nature of deliverables, effective mitigation relies heavily on the government's ability to monitor progress and control scope creep, which may be challenging.

How does this $36.4 million investment in quantum magnetics R&D align with current and future Department of Defense strategic objectives?

Investing in quantum magnetics aligns with DoD's strategic objective to leverage emerging technologies for enhanced sensing, navigation, and potentially secure communications. Advancements in this field could provide a significant asymmetric advantage. The specific alignment depends on the classified or not discernible details of the R&D, but the general area is recognized for its potential military applications.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Safran Power USA LLC (UEI: 275374015)

Address: 15175 INNOVATION DRIVE, SAN DIEGO, CA, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline