DoD's $31.2M R&D contract for enhanced security technologies awarded to GrammaTech, Inc

Contract Overview

Contract Amount: $31,230,284 ($31.2M)

Contractor: Grammatech, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-04-26

End Date: 2026-06-30

Contract Duration: 1,891 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE PURPOSE OF THE MATURED, ENHANCED TPCP TECHNOLOGIES FOR IMPROVED SECURITY METIS EFFORT IS TO BUILD A FLEET OF RELEVANT TOOLS AND CAPABILITIES BASED ON UNIVERSITY PERFORMERS INITIAL PROOFS OF CONCEPT THAT ALIGN WITH TASK AREAS IN THE TPCP BAA.

Place of Performance

Location: ITHACA, TOMPKINS County, NEW YORK, 14850

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to GRAMMATECH, INC. for work described as: THE PURPOSE OF THE MATURED, ENHANCED TPCP TECHNOLOGIES FOR IMPROVED SECURITY METIS EFFORT IS TO BUILD A FLEET OF RELEVANT TOOLS AND CAPABILITIES BASED ON UNIVERSITY PERFORMERS INITIAL PROOFS OF CONCEPT THAT ALIGN WITH TASK AREAS IN THE TPCP BAA. Key points: 1. Contract focuses on maturing early-stage proofs of concept into usable security tools. 2. Aims to align developed capabilities with specific task areas outlined in the TPCP BAA. 3. GrammaTech, Inc. is the sole awardee for this definitive contract. 4. The contract has a duration of 1891 days, spanning from April 2021 to June 2026. 5. This effort falls under Research and Development in Physical, Engineering, and Life Sciences. 6. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 7. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specific focus on maturing early-stage concepts. The Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee for profit, which can sometimes lead to less cost control compared to fixed-price contracts. Without specific performance metrics or comparable R&D efforts with detailed cost breakdowns, it's difficult to definitively assess value for money. However, the duration and total value suggest a significant investment in developing novel security capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple offerors had the opportunity to bid. The specific number of bidders is not provided, but the designation implies a competitive process was initiated. This approach is generally favored to ensure the government receives the best possible value by considering a wide range of potential solutions and contractors.

Taxpayer Impact: A full and open competition process aims to drive down costs and improve the quality of services by fostering a competitive environment, ultimately benefiting taxpayers through potentially better-priced and more effective technological advancements.

Public Impact

The Department of Defense benefits from the development of advanced security tools and capabilities. The contract supports the maturation of university-developed proofs of concept into deployable technologies. The primary service delivered is research and development in cybersecurity and related physical/engineering sciences. The geographic impact is primarily within the United States, with potential for broader national security implications. Workforce implications include specialized R&D roles for scientists and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may offer less incentive for cost control compared to fixed-price arrangements.
The R&D nature of the contract means outcomes are inherently uncertain, with potential for delays or unmet objectives.
Limited public information on specific performance metrics makes it difficult to track progress and value realization.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Focus on maturing existing concepts could lead to more rapid development of practical solutions.
Contract duration allows for thorough development and testing of new technologies.

Sector Analysis

This contract falls within the broader Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding nanotechnology and biotechnology. The market for advanced security technologies is highly specialized, driven by government needs for cutting-edge solutions. Comparable spending benchmarks are difficult to establish without knowing the precise technological domain, but significant government investment is typical in areas critical to national security.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a definitive contract awarded to a single entity, GrammaTech, Inc., there is no explicit information on subcontracting plans for small businesses. The focus on specialized R&D may limit opportunities for broad small business participation unless specific subcontracting goals are mandated and met by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Navy. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure compliance with the contract terms. Transparency is generally limited for R&D contracts of this nature, with reporting requirements likely focused on technical progress and financial burn rates rather than broad public disclosure.

Related Government Programs

Tactical Prototypes and Concepts Program (TPCP)
Department of Defense Research and Development Programs
Cybersecurity Technology Development
Advanced Security Capabilities

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
R&D contracts inherently carry uncertainty regarding successful outcomes and timelines.
Sole awardee concentration of risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.2 million to GRAMMATECH, INC.. THE PURPOSE OF THE MATURED, ENHANCED TPCP TECHNOLOGIES FOR IMPROVED SECURITY METIS EFFORT IS TO BUILD A FLEET OF RELEVANT TOOLS AND CAPABILITIES BASED ON UNIVERSITY PERFORMERS INITIAL PROOFS OF CONCEPT THAT ALIGN WITH TASK AREAS IN THE TPCP BAA.

Who is the contractor on this award?

The obligated recipient is GRAMMATECH, 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 $31.2 million.

What is the period of performance?

Start: 2021-04-26. End: 2026-06-30.

What is GrammaTech, Inc.'s track record with government R&D contracts, particularly in cybersecurity?

GrammaTech, Inc. has a history of engaging in government R&D contracts, often focusing on software engineering, cybersecurity, and advanced computing. Their work frequently involves developing and transitioning technologies from research prototypes to operational systems. While specific details on past cybersecurity R&D contract performance are not publicly detailed here, their involvement in projects like the Matched, Enhanced TPCP Technologies for Improved Security METIS Effort suggests a recognized capability in this domain. Government contract databases often show a pattern of awards for similar research and development services, indicating a sustained presence and experience in serving federal agencies' advanced technology needs.

How does the $31.2 million value compare to similar R&D efforts in advanced security technologies?

The $31.2 million value for this R&D contract is substantial, reflecting the complexity and long-term nature of developing advanced security technologies. Benchmarking against similar contracts is challenging due to the specialized nature of R&D and the proprietary aspects often involved. However, major defense and intelligence agencies frequently award contracts in the tens to hundreds of millions of dollars for cutting-edge research in areas like artificial intelligence, cyber defense, and secure communications. This contract's value appears consistent with significant investments in maturing foundational technologies that have the potential for broad application and impact on national security.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can reduce the contractor's incentive to control costs rigorously, as their profit is fixed regardless of the final cost. For the government, this means the total expenditure could exceed initial estimates if costs escalate significantly. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

How will the success of this contract be measured, given its R&D focus?

The success of this R&D contract will likely be measured through a combination of technical milestones, deliverables, and the successful maturation of initial proofs of concept into functional tools and capabilities. Key performance indicators (KPIs) would typically include the successful demonstration of developed technologies against defined requirements, adherence to project timelines, and the effective integration of these technologies into frameworks aligned with the TPCP BAA task areas. The ultimate measure of success will be the government's ability to leverage the developed tools for improved security, as intended by the program's objectives. Regular technical reviews and progress reports will be essential for monitoring.

What is the historical spending pattern for similar R&D efforts within the Department of the Navy for security technologies?

Historical spending patterns for R&D efforts within the Department of the Navy for security technologies show a consistent and significant investment. Agencies like the Navy frequently allocate substantial budgets towards research and development aimed at enhancing cybersecurity, developing advanced surveillance, and improving operational security across various platforms. While specific figures fluctuate annually based on strategic priorities and emerging threats, multi-million dollar contracts for specialized R&D are commonplace. This $31.2 million contract aligns with the Navy's ongoing commitment to leveraging technological advancements to maintain a security advantage.

What are the implications of awarding this contract to a single entity, GrammaTech, Inc.?

Awarding this contract to a single entity, GrammaTech, Inc., implies that the government assessed them as having the most suitable capabilities, technology, or approach among the competitors. While this can lead to focused development and clear lines of responsibility, it also concentrates risk with one contractor. If GrammaTech encounters significant challenges, it could impact the program's progress. The full and open competition preceding the award suggests that other qualified entities were considered, and GrammaTech was ultimately selected based on specific evaluation criteria, likely related to technical merit, proposed approach, and past performance.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001420SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grammatech Inc.

Address: 106 E COURT ST, ITHACA, NY, 14850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,415,309

Exercised Options: $37,415,309

Current Obligation: $31,230,284

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline