DoD's $5.9M R&D contract for autonomous UXV surveillance systems awarded to Ocean Acoustical Services

Contract Overview

Contract Amount: $5,912,526 ($5.9M)

Contractor: Ocean Acoustical Services and Instrumentation Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-04

End Date: 2026-12-31

Contract Duration: 2,128 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 99

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AUTONOMOUS UXV SURVEILLANCE SYSTEM RESEARCH AND DEVELOPMENT

Place of Performance

Location: LOWELL, MIDDLESEX County, MASSACHUSETTS, 01854

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $5.9 million to OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, INC. for work described as: AUTONOMOUS UXV SURVEILLANCE SYSTEM RESEARCH AND DEVELOPMENT Key points: 1. Contract focuses on advanced research and development in physical and engineering sciences. 2. Awarded under full and open competition, suggesting a broad market search. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 4. Performance period spans over five years, indicating a long-term research objective. 5. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 6. The contract value is modest for a multi-year R&D effort in this sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the inherent uncertainties in research outcomes. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, carries risks of cost escalation if not managed tightly. Without detailed cost breakdowns or comparisons to similar, publicly available R&D projects, a definitive value assessment is difficult. However, the total award value of approximately $5.9 million over more than five years suggests a focused, albeit not massive, investment in this technological area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of the Navy sought proposals from all responsible sources. The number of bidders is not specified, but the open competition suggests a healthy level of market interest and potential for competitive pricing. This approach aims to ensure the government receives the best value by considering a wide range of capabilities and offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

This contract supports advancements in autonomous unmanned vehicle (UXV) technology for surveillance applications. The research is expected to enhance the Department of Defense's capabilities in intelligence, surveillance, and reconnaissance (ISR). Potential beneficiaries include military personnel requiring improved situational awareness and data collection capabilities. The geographic impact is primarily within the defense sector, with potential for broader technological spin-offs. Workforce implications may include demand for specialized engineers and researchers in robotics and AI.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not closely monitored.
The long performance period increases the risk of scope creep or evolving requirements.
Limited public information on specific deliverables makes assessing performance progress difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Focus on R&D aligns with strategic modernization goals for defense capabilities.
The contract supports the development of potentially critical surveillance technologies.

Sector Analysis

The contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This area is characterized by innovation, long development cycles, and significant government investment, particularly in defense applications. The market for autonomous systems and surveillance technology is rapidly growing, driven by advancements in artificial intelligence, sensor technology, and robotics. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of UXV surveillance R&D, but significant investments are being made across the defense industrial base in these capabilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor's size is not detailed, the absence of set-aside provisions suggests that large businesses may have been the primary focus or participants. Subcontracting opportunities for small businesses are not explicitly detailed in the provided information, but they are often a component of larger R&D contracts. The impact on the small business ecosystem depends on whether Ocean Acoustical Services actively seeks small business subcontractors for specialized components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification for expenditures. Transparency is generally limited for specific R&D projects due to national security and proprietary concerns, but contract award details and performance reporting are usually available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Unmanned Aerial Vehicle (UAV) Development Programs
Naval Research and Development Initiatives
Autonomous Systems Research
Intelligence, Surveillance, and Reconnaissance (ISR) Technology Development
Advanced Sensor Technology Research

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long performance period may lead to outdated technology or shifting requirements.
Limited public detail on specific deliverables hinders performance assessment.
Potential for scope creep over the contract's extended duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, INC.. AUTONOMOUS UXV SURVEILLANCE SYSTEM RESEARCH AND DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is OCEAN ACOUSTICAL SERVICES AND INSTRUMENTATION SYSTEMS, 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 $5.9 million.

What is the period of performance?

Start: 2021-03-04. End: 2026-12-31.

What is the specific technological objective of this autonomous UXV surveillance system research?

The contract aims to conduct research and development for autonomous Unmanned UXV (Unmanned Unmanned Vehicle System) surveillance systems. While the specific technical objectives are not fully detailed in the summary data, the focus is on advancing the capabilities of autonomous platforms for surveillance purposes. This likely involves research into areas such as enhanced sensor integration, improved navigation and control algorithms for autonomous operation in complex environments, data processing and analysis for surveillance missions, and potentially novel platform designs or operational concepts. The goal is to enhance the Department of Defense's ability to gather intelligence and maintain situational awareness through advanced, self-operating surveillance technology.

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

The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation is a primary goal. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work but offers less incentive for cost control compared to fixed-price contracts. The government bears the risk of cost overruns, as it must cover all allowable costs. However, the fixed fee provides some predictability in profit. Compared to other R&D contract types like Cost Plus Incentive Fee (CPIF), which shares cost savings or overruns between the government and contractor, or Firm-Fixed-Price (FFP) contracts (less common for early R&D), CPFF places more cost risk on the government but allows for greater flexibility in exploring innovative solutions.

What are the potential risks associated with a five-year performance period for this R&D contract?

A five-year performance period for an R&D contract, such as this one for autonomous UXV surveillance systems, presents several potential risks. Firstly, the rapid pace of technological advancement means that the initial research objectives or technologies may become outdated or superseded before the contract concludes. This necessitates flexibility and potential contract modifications to adapt to new developments. Secondly, maintaining consistent oversight and engagement over such a long period can be challenging for the contracting agency, potentially leading to reduced vigilance. Thirdly, the extended duration increases the likelihood of personnel changes within both the contractor's team and the government's oversight personnel, which can disrupt continuity and knowledge transfer. Finally, unforeseen geopolitical or strategic shifts could alter the requirements or priorities for surveillance technology, rendering the original research less relevant or requiring significant scope adjustments.

What does the NAICS code 541715 signify in terms of the contractor's capabilities?

The North American Industry Classification System (NAICS) code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' indicates that the contractor, Ocean Acoustical Services and Instrumentation Systems, Inc., possesses specialized expertise in conducting scientific research and experimental development. This code covers establishments primarily engaged in basic research, applied research, and experimental development in these scientific fields. For this specific contract, it suggests the contractor has the scientific and technical capabilities to undertake complex R&D projects related to physical phenomena, engineering principles, and potentially life sciences, as applied to autonomous surveillance systems. It implies a focus on innovation, hypothesis testing, and the creation of new knowledge or technologies rather than routine production or services.

Are there any indications of past performance issues or successes for Ocean Acoustical Services and Instrumentation Systems, Inc. based on this award?

The provided data summary does not contain specific information regarding the past performance record of Ocean Acoustical Services and Instrumentation Systems, Inc. Contract award data typically includes details like the contractor's name, award amount, and contract type, but not a direct assessment of their performance history on previous contracts. To evaluate their track record, one would need to access databases like the Federal Awardee Performance and Integrity Information System (FAPIIS) or review past performance evaluations submitted by government agencies. Without such information, it is impossible to determine from this award alone whether the contractor has a history of successful project completion, adherence to schedules and budgets, or any performance-related concerns.

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: 99

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Thayermahan, Inc

Address: 175 CABOT ST STE 410, LOWELL, MA, 01854

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

Financial Breakdown

Contract Ceiling: $9,498,258

Exercised Options: $6,364,409

Current Obligation: $5,912,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline