DoD's $9.37M Electro-Optics Center of Excellence contract awarded to Penn State via full and open competition

Contract Overview

Contract Amount: $9,368,229 ($9.4M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2024-04-03

End Date: 2029-02-23

Contract Duration: 1,787 days

Daily Burn Rate: $5.2K/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: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: MANUFACTURING TECHNOLOGY (MANTECH)ELECTRO-OPTICS CENTER OF EXCELLENCE (EOCOE) Key points: 1. The contract supports advanced manufacturing technology research in electro-optics. 2. Penn State's Electro-Optics Center of Excellence is the awardee. 3. The award is a delivery order under a larger contract. 4. Research and Development in Physical, Engineering, and Life Sciences is the focus.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure value for money.

Taxpayer Impact: Taxpayer funds are supporting advanced research and development, aiming for technological advancements that could have long-term economic and national security benefits.

Public Impact

Advancement of electro-optics technology for defense applications. Potential for spin-off technologies benefiting the commercial sector. Investment in academic research infrastructure and expertise. Job creation and economic activity in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type requires close monitoring.
Long performance period (nearly 5 years) increases risk of scope creep or changing requirements.
Specific R&D outcomes are inherently uncertain.

Positive Signals

Awarded via full and open competition.
Supports a critical technology area for national security.
Leverages established academic research capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced manufacturing technology in electro-optics. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.

Small Business Impact

There is no specific indication of small business participation in this award. The prime contractor is a large university, and subcontracts would need to be reviewed for small business involvement.

Oversight & Accountability

The Department of the Navy is the awarding agency, and oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure research objectives are met within budget and on schedule.

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 Plus Fixed Fee contract type.
Long contract duration.
Uncertainty of R&D outcomes.
Potential for technological obsolescence.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 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 $9.4 million.

What is the period of performance?

Start: 2024-04-03. End: 2029-02-23.

What are the specific performance metrics and milestones for this research contract to ensure accountability and measure progress?

Performance metrics and milestones are crucial for R&D contracts, especially those with a Cost Plus Fixed Fee structure. These should include clearly defined technical objectives, deliverables, and timelines. Regular progress reviews and reporting by the contractor, coupled with independent government assessment, are essential to track advancements, identify potential roadblocks early, and ensure the research remains aligned with the Department of Defense's strategic goals and taxpayer interests.

How will the Department of the Navy mitigate the inherent risks associated with long-term R&D projects, particularly regarding technological obsolescence or shifting strategic priorities?

Mitigation strategies for long-term R&D include incorporating flexibility into the contract to adapt to evolving technologies and strategic needs. This can involve phased research approaches, regular re-evaluation of project goals, and maintaining open communication channels with the research team. The Navy should also conduct periodic technology landscape assessments to anticipate obsolescence and explore alternative research avenues, ensuring continued relevance and value throughout the contract's duration.

What is the anticipated return on investment or long-term benefit for the government and taxpayers from this investment in electro-optics research?

The anticipated return on investment stems from advancements in critical defense capabilities, such as enhanced sensing, communication, and targeting systems. Successful research could lead to next-generation technologies, providing a strategic advantage and potentially reducing future acquisition costs. Furthermore, breakthroughs may have commercial applications, fostering innovation and economic growth, thereby offering a broader societal benefit beyond direct defense applications.

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: N0001419R0003

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: $11,328,502

Exercised Options: $11,328,502

Current Obligation: $9,368,229

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,610,400

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