Department of Defense awards $9.9M R&D contract to Research Triangle Institute for applied research services

Contract Overview

Contract Amount: $9,943,919 ($9.9M)

Contractor: Research Triangle Institute

Awarding Agency: Department of Defense

Start Date: 2004-02-17

End Date: 2008-05-31

Contract Duration: 1,565 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200405!000861!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001404C0042 !A!N! !N! ! !20040217!20050819!004868105!004868105!004868105!N!RESEARCH TRIANGLE INSTITUTE !3040 CORNWALLIS ROAD !RESEARCH TRIAN !NC!27709!56020!063!37!RESEARCH TRIANGLE PK!DURHAM !N CAROLINA!+000000898888!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!E! !Z!Y!Z! ! !N!Z!N! ! ! ! ! !A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to RESEARCH TRIANGLE INSTITUTE for work described as: 200405!000861!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001404C0042 !A!N! !N! ! !20040217!20050819!004868105!004868105!004868105!N!RESEARCH TRIANGLE INSTITUTE !3040 CORNWALLIS ROAD !RESEARCH TRIAN !NC!27709!56020!063!37!RESEARCH TRIANGLE PK!DURH… Key points: 1. Contract focuses on applied research in physical, engineering, and life sciences. 2. Awarded by the Office of Naval Research, indicating a focus on naval applications. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. Research Triangle Institute has a track record with federal contracts. 5. The contract duration is over 1500 days, suggesting a long-term project. 6. The specific NAICS code points to R&D services, a critical area for defense innovation.

Value Assessment

Rating: fair

The contract value of approximately $9.9 million for over four years of R&D services appears reasonable given the specialized nature of applied research. Benchmarking against similar contracts for R&D in physical and engineering sciences would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Without detailed cost breakdowns or comparisons to industry standards for similar research projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests a competitive process but with specific limitations. This procurement method implies that while multiple sources were considered, certain entities might have been excluded based on predefined criteria. The number of bidders is not explicitly stated, but the limited nature of the competition could potentially impact price discovery and may not represent the broadest possible market engagement.

Taxpayer Impact: Taxpayers benefit from specialized research, but the limited competition might mean that a more cost-effective solution from an excluded source was not considered.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive advanced research services to support its technological development and operational capabilities. The services delivered are expected to be in the realm of physical, engineering, and life sciences research, contributing to innovation in defense technologies. The geographic impact is centered around Research Triangle Park, North Carolina, a known hub for research and development, potentially benefiting the local economy and workforce. Workforce implications include employment for researchers, scientists, and support staff at Research Triangle Institute and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored.
Limited competition could potentially lead to higher prices than a fully open competition.
The specific R&D focus requires continuous evaluation to ensure alignment with evolving defense needs.

Positive Signals

Award to a known research institution like Research Triangle Institute suggests a level of established capability.
The contract is for applied research, directly supporting potential future defense capabilities.
The duration of the contract allows for in-depth research and development.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other contracts awarded by the Department of Defense or its various branches for similar applied research services. The size of this contract, approximately $9.9 million, is moderate within the broader defense R&D landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Research Triangle Institute voluntarily engages small businesses as subcontractors for specific tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Office of Naval Research. Accountability measures would be embedded in the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is generally maintained through contract award databases, but specific project details and cost breakdowns may be limited due to the nature of R&D and national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) research initiatives
Naval Research Laboratory projects
Applied research and development contracts
Physical sciences research funding
Engineering research services
Life sciences research contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Limited competition may impact price competitiveness.
R&D projects inherently carry uncertainty in outcomes and timelines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to RESEARCH TRIANGLE INSTITUTE. 200405!000861!1700!E612A !OFFICE OF NAVAL RESEARCH, HEADQU!N0001404C0042 !A!N! !N! ! !20040217!20050819!004868105!004868105!004868105!N!RESEARCH TRIANGLE INSTITUTE !3040 CORNWALLIS ROAD !RESEARCH TRIAN !NC!27709!56020!063!37!RESEARCH TRIANGLE PK!DURHAM !N CAROLINA!+000000898888!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is RESEARCH TRIANGLE INSTITUTE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2004-02-17. End: 2008-05-31.

What is the specific nature of the 'applied research' being conducted under this contract?

The contract specifies 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' under NAICS code 541712. While the exact projects are not detailed in the provided data, this typically involves applying existing scientific knowledge to develop new or improved products, processes, or services. For the Office of Naval Research, this could range from materials science for naval vessels, advanced sensor technologies, propulsion systems, or even biotechnologies relevant to naval operations. The 'applied' nature suggests a focus on practical outcomes rather than fundamental scientific discovery.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other R&D contract types in terms of risk and potential cost?

CPFF contracts reimburse the contractor for all allowable costs incurred, plus a fixed fee representing profit. This structure is common for R&D where the scope and costs are uncertain. For the government, the risk is that costs could exceed initial estimates, although the fixed fee provides some predictability on profit. For the contractor, the risk is that actual costs might exceed the estimated costs used to determine the fixed fee, reducing their profit margin. Compared to Fixed Price contracts, CPFF generally offers less cost certainty for the government but allows for greater flexibility in R&D scope changes. It is often seen as a balance between the flexibility of cost-reimbursement and the cost control of fixed-price contracts.

What is Research Triangle Institute's track record with federal R&D contracts, particularly with the Department of Defense?

Research Triangle Institute (RTI) is a well-established non-profit research organization with a significant history of performing research for federal agencies, including the Department of Defense. While specific details of their past DoD contracts are not in this dataset, RTI is known for its work across various scientific and technical domains. Their extensive experience suggests a capacity to manage complex R&D projects and meet federal requirements. A deeper analysis would involve reviewing their contract history for performance ratings, past performance issues, and the types of R&D projects they have successfully completed for DoD and other agencies.

What are the potential implications of the 'limited competition' aspect on the overall value and innovation derived from this contract?

The procurement method 'Full and Open Competition After Exclusion of Sources' indicates that while competition was sought, certain sources were excluded. This limitation could mean that the government did not consider all potentially capable contractors, which might have led to a less competitive price or a narrower range of innovative approaches. If the excluded sources possessed unique capabilities or offered more cost-effective solutions, the government might not have achieved the best possible value. However, if the exclusions were based on highly specific technical requirements or security clearances, it could ensure that only the most qualified entities participated, potentially leading to a higher quality outcome despite limited competition.

How does this contract's value and duration compare to typical federal R&D investments in similar fields?

With a value of approximately $9.9 million and a duration of over 1500 days (roughly 4.3 years), this contract represents a moderate-sized, long-term investment in applied R&D. Federal R&D spending is vast, with individual contracts ranging from small, targeted studies to multi-billion dollar programs. Contracts for specialized applied research in physical, engineering, or life sciences often span several years to allow for thorough investigation and development. This contract's scope appears consistent with projects aimed at developing specific technological capabilities for the Navy, rather than broad, exploratory research. Benchmarking against similar NAICS codes (541712) and agencies (DoD) would provide more precise comparisons.

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 › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: BASIC RESEARCH

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 3040 CORNWALLIS ROAD, RESEARCH TRIAN, NC

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,943,919

Exercised Options: $2,976,176

Current Obligation: $9,943,919

Contract Characteristics

Cost or Pricing Data: YES

Timeline