Penn State's $9.8M R&D contract for electro-optics to advance manufacturing technology

Contract Overview

Contract Amount: $9,803,143 ($9.8M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2023-06-05

End Date: 2025-12-05

Contract Duration: 914 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANUFACTURING TECHNOLOGY (MANTECH)ELECTRO-OPTICS CENTER OF EXCELLENCE (EOCOE)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: MANUFACTURING TECHNOLOGY (MANTECH)ELECTRO-OPTICS CENTER OF EXCELLENCE (EOCOE) Key points: 1. Contract awarded to a single, established research institution, suggesting specialized expertise. 2. Focus on manufacturing technology for electro-optics indicates a strategic investment in advanced capabilities. 3. The contract duration of over two years allows for substantial research and development progress. 4. Research and Development (R&D) in physical sciences is a critical area for technological advancement. 5. The contract's value is moderate within the context of large-scale federal R&D investments.

Value Assessment

Rating: good

The contract value of $9.8 million for R&D in electro-optics appears reasonable given the specialized nature of the work and the duration. Benchmarking against similar R&D contracts in advanced manufacturing and electro-optics would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure incentivizes the contractor to manage costs while ensuring completion of the research objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is expected to yield a fair price and ensure the selection of the most capable research institution. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down costs and encourages innovation, leading to better value for public funds.

Public Impact

The Pennsylvania State University, as the contractor, will benefit from funding to advance its research capabilities. The contract aims to deliver advancements in electro-optics technology, potentially leading to new manufacturing processes and products. The geographic impact is primarily within Virginia, where the research activities will likely be conducted or managed. This contract supports the research workforce, including scientists, engineers, and technicians, in the field of advanced manufacturing and electro-optics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not closely monitored.
The long-term impact and applicability of the R&D findings may not be immediately apparent.

Positive Signals

Award to a reputable university suggests a high likelihood of successful research outcomes.
Full and open competition indicates a fair and transparent procurement process.
The contract's focus on advanced manufacturing technology aligns with national strategic priorities.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to electro-optics. This area is crucial for advancements in defense, telecommunications, and various industrial applications. The market for electro-optic technologies is substantial and growing, driven by demand for higher performance and miniaturization. Comparable spending benchmarks would involve other federal R&D investments in advanced materials, sensor technology, and specialized manufacturing processes.

Small Business Impact

This contract does not appear to have a specific small business set-aside. As a research and development contract awarded to a large university, the primary focus is on specialized expertise rather than small business participation. However, the university may engage small businesses as subcontractors for specific components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, a component of the Department of Defense. The cost-plus-fixed-fee structure necessitates diligent financial oversight to ensure costs are reasonable and allocable to the contract. Transparency will be maintained through regular reporting requirements from the contractor and potential reviews by the Defense Contract Audit Agency (DCAA) or the Inspector General.

Related Government Programs

Department of Defense Research and Development Programs
Manufacturing Technology (ManTech) Program
Electro-Optics and Photonics Research Initiatives
University Research Grants and Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Definition Uncertainty (R&D)
Technology Transition Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to THE PENNSYLVANIA STATE UNIVERSITY. MANUFACTURING TECHNOLOGY (MANTECH)ELECTRO-OPTICS CENTER OF EXCELLENCE (EOCOE)

Who is the contractor on this award?

The obligated recipient is THE PENNSYLVANIA STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2023-06-05. End: 2025-12-05.

What is the track record of The Pennsylvania State University in securing and successfully executing federal R&D contracts, particularly in electro-optics?

The Pennsylvania State University has a long and established history of securing and executing large-scale federal research and development contracts across various scientific and engineering disciplines. Its Applied Research Laboratory (ARL) is a significant contributor to national defense research, often partnering with government agencies like the Department of Defense. While specific data on their electro-optics R&D contract success rate is not readily available in this context, their overall performance in managing complex, multi-year federal projects is generally considered strong. They have demonstrated capabilities in areas relevant to this contract, including advanced materials, sensor systems, and specialized manufacturing techniques. Their consistent ability to win competitive grants and contracts suggests a high level of technical expertise and project management proficiency.

How does the $9.8 million contract value compare to other federal investments in electro-optics R&D?

The $9.8 million contract value for this electro-optics R&D project is a moderate-sized award within the broader landscape of federal R&D spending. The Department of Defense, in particular, invests billions annually in research and development, with significant portions allocated to areas like advanced materials, sensors, and directed energy, which often involve electro-optic components. While specific figures for 'electro-optics R&D' as a standalone category are difficult to isolate, this contract represents a focused investment. Larger programs might involve hundreds of millions or even billions for foundational research, technology maturation, and system development. Smaller, targeted efforts like this one are crucial for addressing specific technological gaps or advancing particular manufacturing capabilities within the broader R&D portfolio.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for Research and Development (R&D) revolve around cost control and the definition of scope. For the government, the risk is that actual costs incurred by the contractor could exceed initial estimates, potentially leading to a higher final price than anticipated, even with a fixed fee. Effective oversight is crucial to ensure that all costs claimed are reasonable, allocable, and allowable. For the contractor, the risk lies in accurately estimating the costs required to complete the R&D objectives. If costs are underestimated, the fixed fee may not adequately compensate for the effort expended. The CPFF structure is often used when the scope of work is not precisely defined, as is common in R&D, allowing flexibility while providing an incentive for the contractor to control costs to protect their fee.

What is the expected program effectiveness and impact of advancements in electro-optics manufacturing technology?

Advancements in electro-optics manufacturing technology are expected to have a significant impact across various sectors, particularly in defense and high-technology industries. Improved manufacturing processes can lead to more reliable, higher-performance electro-optic components, such as lasers, sensors, and optical systems. This can translate into enhanced capabilities for surveillance, targeting, communication, and navigation systems for the military. In the commercial sector, it could drive innovation in areas like advanced displays, medical imaging, and industrial automation. The 'effectiveness' of this specific program will be measured by its ability to achieve the defined R&D objectives, leading to demonstrable improvements in manufacturing techniques or the creation of novel electro-optic devices that meet specific performance criteria outlined in the contract.

How has federal spending in R&D for advanced manufacturing and electro-optics evolved over the past five years?

Federal spending in R&D for advanced manufacturing and electro-optics has generally seen consistent or increasing investment over the past five years, driven by national security priorities and the desire to maintain technological superiority. Agencies like the Department of Defense (DoD), the National Science Foundation (NSF), and the Department of Energy (DOE) are key funders. The DoD's Manufacturing Technology (ManTech) program, for instance, aims to transition new manufacturing technologies into production. Spending in electro-optics is often integrated within broader initiatives related to sensors, lasers, and photonics. While precise figures for 'electro-optics manufacturing R&D' are difficult to isolate, overall federal R&D spending has remained robust, with a strategic focus on areas that enhance defense capabilities and economic competitiveness, including advanced materials and specialized manufacturing processes.

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

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 201 OLD MAIN, UNIVERSITY PARK, PA, 16802

Business Categories: Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Higher Education (Public), Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,023,184

Exercised Options: $10,023,184

Current Obligation: $9,803,143

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $6,988,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001420D7001

IDV Type: IDC

Timeline