DoD's $4.46M contract for high-definition imagers awarded to Cyan Systems, Inc. via full and open competition

Contract Overview

Contract Amount: $4,459,173 ($4.5M)

Contractor: Cyan Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-11

End Date: 2027-08-27

Contract Duration: 1,599 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SUPREME HIGH-DEFINITION INFRARED IMAGERS [SHDIRI]

Place of Performance

Location: SANTA BARBARA, SANTA BARBARA County, CALIFORNIA, 93111

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $4.5 million to CYAN SYSTEMS, INC. for work described as: SUPREME HIGH-DEFINITION INFRARED IMAGERS [SHDIRI] Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these specialized imaging systems. 2. The contract type (Cost Plus Fixed Fee) indicates potential for cost overruns, requiring close monitoring. 3. Research and Development focus suggests innovation and future technological advancements in infrared imaging. 4. The duration of the contract (nearly 4 years) points to a significant, long-term need for these capabilities. 5. Geographic concentration in California may indicate a hub for specialized defense technology development.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The Cost Plus Fixed Fee structure means the final cost is not predetermined, making it difficult to assess value for money upfront. However, the fixed fee component provides some cost control for the government. Further analysis would require understanding the specific technological advancements expected and their criticality to national security.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The number of bidders is not specified, but the 'full and open' designation suggests a healthy level of interest in this specialized R&D area.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible technology at a reasonable price, reducing the risk of overpayment for research and development.

Public Impact

The Department of Defense, specifically the Department of the Navy, will benefit from advanced infrared imaging capabilities. This contract supports the development of cutting-edge technology in physical sciences and engineering. The geographic impact is concentrated in California, potentially stimulating the local defense technology sector. Workforce implications may include highly skilled engineers and scientists involved in advanced research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces inherent risk of cost escalation if not managed diligently.
The specialized nature of the technology may limit the pool of qualified contractors, potentially impacting future competition.
Long contract duration requires sustained oversight to ensure progress and prevent scope creep.

Positive Signals

Awarded through full and open competition, indicating a competitive market for this technology.
Focus on R&D suggests investment in critical future defense capabilities.
The fixed fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for specialized infrared imaging technology is often driven by defense and scientific applications, with significant investment from government agencies. Comparable spending benchmarks are difficult to establish due to the niche nature of the technology, but R&D spending in defense is substantial, with a focus on maintaining technological superiority.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the specialized nature of advanced infrared imaging R&D, it is possible that larger, more established defense contractors or specialized research firms are the primary participants. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures will be tied to the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency is expected through contract reporting mechanisms, and the Inspector General's office would have jurisdiction in cases of fraud or mismanagement.

Related Government Programs

Department of Defense Research and Development Programs
Naval Research Laboratory Contracts
Advanced Sensor Technology Development
Infrared Imaging Systems Procurement

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases the need for sustained monitoring of progress and performance.
Specialized technology may limit future competition and require ongoing market analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.5 million to CYAN SYSTEMS, INC.. SUPREME HIGH-DEFINITION INFRARED IMAGERS [SHDIRI]

Who is the contractor on this award?

The obligated recipient is CYAN 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 $4.5 million.

What is the period of performance?

Start: 2023-04-11. End: 2027-08-27.

What is the specific technological advancement expected from these SUPREME HIGH-DEFINITION INFRARED IMAGERS (SHDIRI)?

The provided data does not detail the specific technological advancements expected from the SUPREME HIGH-DEFINITION INFRARED IMAGERS (SHDIRI). However, the contract's classification under 'Research and Development in the Physical, Engineering, and Life Sciences' suggests the project aims to push the boundaries of current infrared imaging capabilities. This could involve improvements in resolution, sensitivity, spectral range, real-time processing, or miniaturization, potentially for applications in surveillance, target identification, or environmental monitoring. Further details would typically be found in the contract's statement of work or technical exhibits, which are not publicly available in this dataset.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D, and what are its implications for value?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work is not fully defined at the outset, making it difficult to establish a firm fixed price. In a CPFF contract, the government agrees to pay the contractor's allowable costs plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it carries a risk of cost escalation if the contractor's actual costs significantly exceed initial estimates. Compared to a Firm Fixed Price (FFP) contract, CPFF offers more flexibility for R&D but less cost certainty for the government. For value, it depends heavily on effective government oversight and the contractor's efficiency in managing resources to achieve the R&D objectives within the estimated cost parameters.

What is the typical track record of Cyan Systems, Inc. in securing and executing government R&D contracts?

Information regarding Cyan Systems, Inc.'s specific track record with government R&D contracts is not provided in the dataset. To assess their performance, one would need to examine their past contract awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough analysis would involve searching government contract databases and performance reporting systems to understand their experience, reliability, and success rate in delivering on similar research and development projects for federal agencies.

Are there any known risks associated with the development or deployment of advanced infrared imaging systems like those specified?

Yes, there are several potential risks associated with the development and deployment of advanced infrared imaging systems. Technologically, there's the risk of unforeseen challenges in achieving the desired performance specifications, leading to delays or failure to meet objectives. From a cost perspective, R&D projects are inherently uncertain, and CPFF contracts can lead to cost overruns if not managed effectively. Deployment risks can include integration issues with existing systems, cybersecurity vulnerabilities if the systems are networked, and potential obsolescence if newer technologies emerge rapidly. Furthermore, depending on the application, there could be ethical or privacy concerns related to the capabilities of high-definition infrared imaging.

How does the $4.46 million contract value compare to historical spending on similar R&D initiatives by the Department of the Navy?

The provided data does not include historical spending figures for similar R&D initiatives by the Department of the Navy, making a direct comparison difficult. To assess this, one would need to analyze past contracts for advanced sensor development, infrared technology, or related R&D efforts awarded by the Navy. This would involve querying federal procurement databases for contracts with similar North American Industry Classification System (NAICS) codes (e.g., 541715) and keywords related to infrared imaging. Understanding the typical scale and duration of such R&D investments would provide context for the $4.46 million award to Cyan Systems, Inc.

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: N0001422SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cyan Systems Inc.

Address: 5385 HOLLISTER AVE, SANTA BARBARA, CA, 93111

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,126,059

Exercised Options: $5,575,807

Current Obligation: $4,459,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline