DoD's $4.1M Electronics Manufacturing Center of Excellence contract awarded to Penn State for R&D

Contract Overview

Contract Amount: $4,095,884 ($4.1M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2024-03-29

End Date: 2027-03-28

Contract Duration: 1,094 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: MANUFACTURING TECHNOLOGY (MANTECH)ELECTRONICS MANUFACTURING CENTER OF EXCELLENCE (EMC)

Place of Performance

Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $4.1 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: MANUFACTURING TECHNOLOGY (MANTECH)ELECTRONICS MANUFACTURING CENTER OF EXCELLENCE (EMC) Key points: 1. Contract focuses on advancing electronics manufacturing capabilities for the Department of Defense. 2. Awarded to a single, established research institution, suggesting specialized expertise. 3. Research and Development (R&D) focus indicates potential for innovation but also inherent project risk. 4. The contract duration of approximately three years allows for sustained research efforts. 5. Pennsylvania State University's selection highlights its role in critical technology development. 6. The contract type (Cost Plus Fixed Fee) is common for R&D where costs can be uncertain.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of direct comparable projects. The $4.1 million award over three years suggests a moderate investment in a specific technological area. Without more detailed project milestones and deliverables, it's difficult to definitively assess value for money. However, the selection of a major research university implies access to significant intellectual capital and infrastructure, which can be cost-effective for complex R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple interested parties had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and innovative solutions. The specific number of bidders is not provided, but the open competition suggests a broad search for the best qualified entity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government explores a wide range of options and receives proposals from potentially numerous qualified contractors, which can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader U.S. defense industrial base, which will gain access to advanced electronics manufacturing technologies. The contract will deliver research and development services aimed at enhancing the performance, reliability, and manufacturability of electronic systems. The geographic impact is centered in Pennsylvania, where The Pennsylvania State University is located, potentially fostering local economic activity and high-skilled employment. Workforce implications include the potential for training and employing researchers, engineers, and technicians in cutting-edge manufacturing fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

R&D contracts inherently carry risk of not achieving desired technological breakthroughs within budget or timeline.
Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly, although the fixed fee component provides some control.
The specialized nature of electronics manufacturing means that market shifts or technological obsolescence could impact the long-term relevance of the research.

Positive Signals

Award to a major research university like Penn State suggests strong technical capabilities and a proven track record in relevant research areas.
Full and open competition indicates a thorough vetting process to select the most capable and potentially cost-effective provider.
The focus on a critical defense technology area like electronics manufacturing signals strategic investment by the DoD.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced manufacturing techniques for electronics. This is a critical area for national security, as the U.S. seeks to maintain a technological edge and reduce reliance on foreign sources for sensitive electronic components. The market for advanced manufacturing R&D is characterized by significant investment from both government and private industry, with a focus on innovation, automation, and specialized materials.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as it was awarded to a large research university. However, The Pennsylvania State University may engage small businesses as subcontractors for specialized services or materials, contributing to the broader small business ecosystem. The primary focus is on research capabilities rather than direct product manufacturing where small business set-asides are more common.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring progress, expenditures, and adherence to research objectives. The Cost Plus Fixed Fee structure requires careful financial oversight to ensure costs are reasonable and allocable. Transparency may be limited due to the proprietary nature of R&D, but periodic reporting requirements should provide insights into project status.

Related Government Programs

DoD Manufacturing Technology Program
Naval Air Systems Command (NAVAIR) Research and Development
Advanced Electronics Manufacturing Initiatives
University-Affiliated Research Centers (UARCs)

Risk Flags

R&D inherent uncertainty
Cost control in CPFF contracts
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.1 million to THE PENNSYLVANIA STATE UNIVERSITY. MANUFACTURING TECHNOLOGY (MANTECH)ELECTRONICS MANUFACTURING CENTER OF EXCELLENCE (EMC)

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 $4.1 million.

What is the period of performance?

Start: 2024-03-29. End: 2027-03-28.

What is The Pennsylvania State University's track record in defense-related R&D, particularly in electronics manufacturing?

The Pennsylvania State University has a long-standing history of significant contributions to defense research and development, often through its Applied Research Laboratory (ARL). ARL, a U.S. Department of Defense-designated University Affiliated Research Center (UARC), has extensive experience in areas relevant to this contract, including advanced materials, sensors, and complex systems engineering. Their work often involves close collaboration with various branches of the military, including the Navy. Penn State's established infrastructure, experienced research faculty, and prior success in securing and executing large-scale government R&D contracts suggest a strong capability to manage and deliver on the objectives of the Electronics Manufacturing Center of Excellence (EMC) contract.

How does the $4.1 million award compare to typical R&D investments in electronics manufacturing by the DoD?

The $4.1 million award for the Electronics Manufacturing Center of Excellence (EMC) represents a moderate investment for a focused R&D initiative within the Department of Defense. Larger, multi-year programs or foundational research efforts can often reach tens or hundreds of millions of dollars. However, this contract appears to be for a specific center of excellence aimed at advancing particular aspects of electronics manufacturing. Compared to individual project grants or smaller research task orders, $4.1 million over three years is a substantial commitment, indicating the strategic importance the Navy places on this capability. It aligns with typical funding levels for specialized centers or focused research thrusts designed to mature critical technologies.

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

The primary risks with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, revolve around cost control and the definition of scope. While the 'cost plus' portion allows for flexibility in covering actual, allowable costs incurred, the 'fixed fee' represents the contractor's profit, which is negotiated upfront. If costs escalate significantly beyond initial projections due to unforeseen technical challenges or scope creep, the government bears the brunt of the increased expenses, while the contractor's fee remains constant. This necessitates robust government oversight to ensure costs are reasonable, allocable, and necessary. For R&D, where outcomes are inherently uncertain, CPFF can incentivize the contractor to pursue innovative solutions but requires diligent management to prevent uncontrolled spending.

What is the expected program effectiveness and how will it be measured?

The effectiveness of this contract is expected to be measured by the successful advancement of electronics manufacturing technologies relevant to naval applications. This could include improvements in component reliability, development of novel manufacturing processes, enhanced cybersecurity for manufacturing systems, or reduced production costs for critical electronic parts. Performance metrics would likely be defined in the contract's Statement of Work (SOW) and could include milestones such as the successful demonstration of new processes, the development of prototypes, the publication of research findings, or the transfer of technology to relevant naval programs. Regular progress reports and technical reviews by the Department of the Navy would be key to assessing ongoing effectiveness.

What are the historical spending patterns for similar R&D contracts in electronics manufacturing by the Department of the Navy?

Historical spending patterns for similar R&D contracts in electronics manufacturing by the Department of the Navy show a consistent, albeit fluctuating, investment in maintaining technological superiority. The Navy frequently funds research into areas like advanced materials, microelectronics, power electronics, and secure manufacturing processes. Contracts can range from small, targeted research grants to large, multi-year programs managed through University Affiliated Research Centers (UARCs) or defense contractors. Funding levels often correlate with perceived threats, technological obsolescence, and strategic priorities, such as reducing reliance on foreign supply chains or developing next-generation systems. The $4.1 million award fits within the typical range for focused R&D centers or significant research initiatives.

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: $6,578,373

Exercised Options: $6,578,373

Current Obligation: $4,095,884

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,368,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001421D7003

IDV Type: IDC

Timeline