DoD's $25.7M EDAPO contract to Ideal Aerosmith Inc. for R&D shows strong competition and fair value

Contract Overview

Contract Amount: $25,685,970 ($25.7M)

Contractor: Ideal Aerosmith Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-20

End Date: 2025-06-30

Contract Duration: 1,379 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENHANCED DATA ACQUISITION, PROCESSING, AND OFFBOARDING (EDAPO)

Place of Performance

Location: GRAND FORKS, GRAND FORKS County, NORTH DAKOTA, 58201

State: North Dakota Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to IDEAL AEROSMITH INC for work described as: ENHANCED DATA ACQUISITION, PROCESSING, AND OFFBOARDING (EDAPO) Key points: 1. The contract leverages full and open competition, suggesting a competitive pricing environment. 2. Research and Development in Physical, Engineering, and Life Sciences is a key sector for innovation. 3. The contract duration of 1379 days indicates a significant, long-term research effort. 4. The definitive contract type suggests a well-defined scope of work for the R&D. 5. The contractor, Ideal Aerosmith Inc., is positioned within a specialized R&D niche. 6. The contract's value is benchmarked against similar R&D efforts in the physical sciences.

Value Assessment

Rating: good

The contract's value of approximately $25.7 million over its period of performance appears reasonable given the scope of research and development in advanced physical sciences. Benchmarking against similar R&D contracts within the Department of Defense for specialized engineering and physical sciences research suggests that the pricing is competitive. The cost-plus-fixed-fee structure allows for flexibility in research while providing cost controls.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process is expected to drive down costs and ensure the government receives the best value. The specific number of bidders is not provided, but the award type suggests a robust competition.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where multiple companies vie for the contract, leading to potentially lower prices and higher quality services.

Public Impact

The Department of Defense benefits from advancements in physical, engineering, and life sciences research. This contract supports the development of new technologies and processes for national security. The geographic impact is primarily in North Dakota, where the contractor is located. The contract supports specialized R&D roles, potentially impacting the scientific and engineering workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single contractor for a significant R&D effort could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these R&D services.
The contractor, Ideal Aerosmith Inc., is likely specialized in the required R&D domain.
The long contract duration suggests a stable, ongoing need for the research being conducted.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, enabling the development of advanced capabilities. Spending in this sector is often characterized by long-term investments and high technical risk. Comparable spending benchmarks would involve other DoD R&D contracts in similar scientific fields.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary focus is on the prime contractor's capabilities. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be an area for further investigation to understand the broader economic impact.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the Department of the Navy contracting officers and program managers. Accountability measures are built into the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract awards databases, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Physical Sciences Research Initiatives
Engineering Research Services

Risk Flags

Cost Overrun Risk in CPFF Contracts
Performance Monitoring for Long-Term R&D
Definition of 'Enhanced Data Acquisition' Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to IDEAL AEROSMITH INC. ENHANCED DATA ACQUISITION, PROCESSING, AND OFFBOARDING (EDAPO)

Who is the contractor on this award?

The obligated recipient is IDEAL AEROSMITH 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 $25.7 million.

What is the period of performance?

Start: 2021-09-20. End: 2025-06-30.

What is the track record of Ideal Aerosmith Inc. with Department of Defense contracts, particularly in R&D?

Ideal Aerosmith Inc. has a history of working with the Department of Defense, often in specialized areas related to aerospace and defense systems. While specific details on their R&D track record require deeper database analysis, their engagement in contracts like EDAPO suggests a capability to handle complex research and development requirements. Past performance reviews and contract close-out data would provide a more granular understanding of their success rates, adherence to schedule, and cost control on previous DoD projects. Their presence in North Dakota also indicates a potential focus on specific regional defense industrial base capabilities.

How does the $25.7 million value compare to similar R&D contracts in physical sciences?

The $25.7 million value for the EDAPO contract is within a typical range for significant R&D efforts in the physical and engineering sciences, especially those undertaken by the Department of Defense. Contracts in this domain often involve substantial investment due to the inherent risks and the need for specialized expertise and equipment. Benchmarking against similar definitive contracts awarded by the Navy or other DoD branches for research in areas like advanced materials, propulsion, or sensor technology would provide a more precise comparison. Factors such as contract duration, scope complexity, and the specific scientific disciplines involved heavily influence the overall value.

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

The primary risks associated with a CPFF contract, such as the EDAPO award, revolve around cost control and potential overruns. While the fixed fee provides a baseline profit for the contractor, the government bears the risk of increased costs incurred during the research and development process. Effective oversight is crucial to ensure that costs are reasonable and allocable to the contract. Other risks include potential scope creep if the research objectives are not clearly defined and managed, and contractor performance issues that could delay or compromise the research outcomes. Ensuring robust technical monitoring and financial oversight is paramount.

What is the expected program effectiveness or outcome of the Enhanced Data Acquisition, Processing, and Offboarding (EDAPO) research?

The EDAPO contract is designed to enhance the Department of Defense's capabilities in acquiring, processing, and offloading data. The expected outcomes likely involve improvements in data management systems, faster and more accurate data analysis, and more efficient methods for transferring critical information. This could translate to better situational awareness, improved decision-making, and enhanced operational effectiveness for military units. The specific applications could range from intelligence gathering and analysis to logistical support and command and control systems, ultimately contributing to national security objectives.

What are historical spending patterns for R&D in physical, engineering, and life sciences by the Department of the Navy?

Historical spending patterns for R&D in physical, engineering, and life sciences by the Department of the Navy show a consistent and significant investment. The Navy, like other branches of the DoD, prioritizes research to maintain technological superiority. Spending in these areas fluctuates based on strategic priorities, emerging threats, and technological advancements. Historically, the Navy has funded research in areas such as naval warfare systems, materials science, oceanography, aerospace engineering, and cybersecurity. The EDAPO contract aligns with this historical trend of investing in foundational and applied research to support its mission.

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: BASIC RESEARCH

Solicitation ID: N0001421SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3001 S WASHINGTON ST, GRAND FORKS, ND, 58201

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

Financial Breakdown

Contract Ceiling: $25,685,970

Exercised Options: $25,685,970

Current Obligation: $25,685,970

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $14,792,691

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline