DoD Awards $240M for Dynamic Modeler, Boosting R&D in Physical Sciences

Contract Overview

Contract Amount: $2,403,781 ($2.4M)

Contractor: Deumbra, LLC

Awarding Agency: Department of Defense

Start Date: 2023-07-06

End Date: 2027-01-01

Contract Duration: 1,275 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 99

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: DYNAMIC MODELER: AUTONOMOUSLY AND DYNAMICALLY BUILDING MODELS OF THE ENVIRONMENT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78701

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to DEUMBRA, LLC for work described as: DYNAMIC MODELER: AUTONOMOUSLY AND DYNAMICALLY BUILDING MODELS OF THE ENVIRONMENT Key points: 1. Significant investment in advanced modeling capabilities for the environment. 2. Competition method is 'Full and Open', suggesting broad market engagement. 3. Contract type 'Cost Plus Fixed Fee' may present cost control challenges. 4. Sector focus on R&D aligns with strategic technological advancement goals.

Value Assessment

Rating: fair

The contract value of $240.4M over approximately 3.5 years is substantial for R&D. Benchmarking is difficult without specific deliverables, but the 'Cost Plus Fixed Fee' structure warrants close monitoring for cost efficiency compared to fixed-price R&D contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method is positive for price discovery and potentially achieving better value. This approach allows any qualified vendor to bid, fostering a competitive environment.

Taxpayer Impact: Taxpayer funds are being directed towards critical research and development, aiming for technological superiority. The effectiveness of this investment will depend on the successful development and application of the dynamic modeling system.

Public Impact

Enhances national security through advanced environmental modeling capabilities. Supports technological innovation within the Department of Defense. Potential for dual-use applications benefiting civilian sectors. Creates high-skilled jobs in research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost overruns due to 'Cost Plus Fixed Fee' structure.
  • Potential for scope creep in R&D projects.
  • Ensuring effective technology transfer and utilization.

Positive Signals

  • Leverages full and open competition for best value.
  • Invests in critical, forward-looking R&D.
  • Supports a key defense modernization objective.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences category (NAICS 541715). Spending in this sector is crucial for maintaining technological advantage, with significant government investment typically focused on innovation and future capabilities.

Small Business Impact

The contract does not explicitly mention small business participation. Given the large value and specialized R&D nature, it's important to assess if subcontracting opportunities exist for small businesses to participate in this advanced technology development.

Oversight & Accountability

The 'Cost Plus Fixed Fee' contract type necessitates robust oversight to manage costs and ensure the contractor remains within budget while achieving project milestones. Regular performance reviews and audits will be critical.

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

  • Cost control challenges with CPFF contract type.
  • Potential for R&D project scope creep.
  • Ensuring contractor possesses highly specialized expertise.
  • Measuring the long-term effectiveness and utility of the model.
  • Lack of explicit small business participation noted.

Tags

research-and-development-in-the-physical, department-of-defense, tx, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to DEUMBRA, LLC. DYNAMIC MODELER: AUTONOMOUSLY AND DYNAMICALLY BUILDING MODELS OF THE ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is DEUMBRA, 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 $2.4 million.

What is the period of performance?

Start: 2023-07-06. End: 2027-01-01.

How will the effectiveness of the 'Dynamic Modeler' be measured to ensure it meets the Department of Defense's evolving environmental modeling needs?

Effectiveness will likely be measured through a combination of technical performance metrics, successful integration into existing DoD systems, and demonstrated accuracy and utility in simulating complex environmental scenarios. Key performance parameters (KPPs) should be clearly defined in the contract, with regular testing and validation phases to ensure the model's capabilities align with operational requirements and future technological advancements.

What are the primary risks associated with the 'Cost Plus Fixed Fee' structure for this R&D contract, and how are they being mitigated?

The primary risk is potential cost overruns if the contractor's actual costs exceed estimates, even with a fixed fee. Mitigation strategies include stringent cost tracking, detailed reporting requirements, defined ceilings, and potentially performance incentives tied to cost efficiency. The government's oversight team must actively monitor expenditures and contractor performance to identify and address deviations early.

Given the 'Full and Open Competition' approach, how will the DoD ensure the selected contractor possesses the highly specialized expertise required for advanced environmental modeling?

The solicitation process will include detailed technical requirements and evaluation criteria. The DoD will assess bidders' past performance, technical proposals, key personnel qualifications, and innovative approaches to environmental modeling. A thorough review of proposed methodologies and demonstrated capabilities in similar complex R&D projects will be crucial to selecting the most qualified vendor.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N0001422SB001

Offers Received: 99

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 W 5TH ST, AUSTIN, TX, 78701

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,773,509

Exercised Options: $2,992,915

Current Obligation: $2,403,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-07-06

Current End Date: 2027-01-01

Potential End Date: 2027-01-01 00:00:00

Last Modified: 2026-01-02

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