DoD Awards $564M for Logistics Optimization Tool, Boosting R&D in Physical Sciences
Contract Overview
Contract Amount: $5,644,644 ($5.6M)
Contractor: Cana LLC
Awarding Agency: Department of Defense
Start Date: 2022-11-15
End Date: 2028-01-11
Contract Duration: 1,883 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OPTIMIZATION MODELS FOR AN INTEGRATED MILITARY LOGISTICS, OPERATIONS, AND MAINTENANCE PLANNING TOOL
Place of Performance
Location: HAYMARKET, PRINCE WILLIAM County, VIRGINIA, 20169
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.6 million to CANA LLC for work described as: OPTIMIZATION MODELS FOR AN INTEGRATED MILITARY LOGISTICS, OPERATIONS, AND MAINTENANCE PLANNING TOOL Key points: 1. Significant investment in advanced logistics planning technology. 2. Competition was full and open, suggesting market availability. 3. Potential risk in complex integration of logistics, operations, and maintenance. 4. Spending falls within R&D sector, specifically physical and engineering sciences.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful oversight to manage costs. The award amount of $564M over approximately 5 years suggests a substantial project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating a broad search for qualified contractors. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: Taxpayer funds are being used for advanced research and development aimed at improving military efficiency, which could lead to long-term cost savings.
Public Impact
Enhances military readiness through optimized resource allocation. Potential for broader application in civilian logistics and supply chain management. Supports technological advancement in defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of integrating multiple planning functions.
- Potential for cost overruns with CPFF contract type.
- Ensuring effective knowledge transfer and system adoption.
Positive Signals
- Addresses critical military operational needs.
- Leverages competitive procurement for best value.
- Investment in advanced R&D capabilities.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending benchmarks for this NAICS code can vary widely based on project scope and duration, but $564M over five years represents a significant investment in specialized R&D.
Small Business Impact
The contract was awarded via full and open competition, and there is no specific indication of small business set-asides or participation in this award. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Department of the Navy to ensure costs remain within reasonable bounds and that the project objectives are met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract complexity
- Cost management with CPFF
- Integration challenges
- Cybersecurity risks
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.6 million to CANA LLC. OPTIMIZATION MODELS FOR AN INTEGRATED MILITARY LOGISTICS, OPERATIONS, AND MAINTENANCE PLANNING TOOL
Who is the contractor on this award?
The obligated recipient is CANA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2022-11-15. End: 2028-01-11.
What is the expected return on investment for this logistics optimization tool in terms of cost savings or efficiency gains?
The specific ROI is not detailed in the provided data. However, the objective of optimizing logistics, operations, and maintenance planning suggests significant potential for cost savings through reduced waste, improved asset utilization, and enhanced operational tempo. Quantifying this ROI would require further analysis of the tool's projected performance metrics and implementation success.
What are the primary technical risks associated with integrating military logistics, operations, and maintenance planning into a single tool?
Key risks include data interoperability challenges between disparate legacy systems, the complexity of modeling diverse operational environments, ensuring cybersecurity of sensitive planning data, and achieving user adoption across different military branches or units. The CPFF contract type may mitigate some financial risk for the contractor but requires diligent government oversight to manage cost implications of these technical hurdles.
How will the effectiveness of this optimization tool be measured and validated post-deployment?
Effectiveness will likely be measured through key performance indicators (KPIs) related to reduced transit times, optimized inventory levels, improved equipment readiness rates, and decreased operational costs. Validation will involve pilot programs, user feedback, and comparative analysis against pre-implementation benchmarks. The Department of the Navy's oversight will be crucial in establishing and tracking these metrics.
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
Address: 5582 TUCSON CT, HAYMARKET, VA, 20169
Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $12,663,793
Exercised Options: $5,960,548
Current Obligation: $5,644,644
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-15
Current End Date: 2028-01-11
Potential End Date: 2028-01-11 00:00:00
Last Modified: 2026-01-08
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