DoD's $10.7M R&D Contract for Maritime Logistics Optimization Leverages Advanced Analytics

Contract Overview

Contract Amount: $10,680,247 ($10.7M)

Contractor: Moebius Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-31

End Date: 2026-12-22

Contract Duration: 631 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE VITL PROJECT OPTIMIZES LOGISTICS OPERATIONS IN CONTESTED MARITIME ENVIRONMENTS USING SUPPLY CHAIN ALGORITHMS AND PREDICTIVE ANALYTICS. SPAST AUTOMATES SUBMARINE SCHEDULING ADJUSTMENTS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92130

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to MOEBIUS SOLUTIONS INC for work described as: THE VITL PROJECT OPTIMIZES LOGISTICS OPERATIONS IN CONTESTED MARITIME ENVIRONMENTS USING SUPPLY CHAIN ALGORITHMS AND PREDICTIVE ANALYTICS. SPAST AUTOMATES SUBMARINE SCHEDULING ADJUSTMENTS. Key points: 1. Contract focuses on advanced supply chain algorithms and predictive analytics for optimizing logistics in challenging maritime environments. 2. The project aims to automate submarine scheduling adjustments, enhancing operational efficiency. 3. Research and Development in Physical, Engineering, and Life Sciences is a key sector for this contract. 4. The contract is a definitive contract with a Cost Plus Fixed Fee pricing structure. 5. Performance is expected to span over two years, concluding in late 2026. 6. The contractor, Moebius Solutions Inc., is tasked with delivering innovative solutions for complex logistical challenges.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and focus on intellectual property development rather than immediate service delivery. The Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to ensure costs remain reasonable. Without comparable R&D projects in the public domain, a direct price comparison is difficult. The total award amount of $10.7 million over approximately two years suggests a significant investment in developing advanced capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair pricing and innovative solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it promotes a competitive environment that can drive down costs and encourage the best value solutions.

Public Impact

The Department of the Navy benefits from enhanced logistics optimization capabilities for submarine operations. The project delivers advanced supply chain algorithms and predictive analytics tools. The geographic impact is primarily within the Department of Defense's operational theaters, with potential applications in maritime environments globally. Workforce implications may include the need for specialized data scientists, logistics experts, and software engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of R&D may present inherent risks in achieving desired outcomes within budget and schedule.
Dependence on advanced analytics requires robust data infrastructure and cybersecurity measures.

Positive Signals

Focus on optimizing logistics in contested environments addresses a critical defense need.
The use of predictive analytics and AI suggests a forward-looking approach to operational efficiency.
Full and open competition increases the likelihood of selecting the most capable contractor.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced logistics and predictive analytics solutions within the defense industry is substantial, driven by the need for greater efficiency and effectiveness in complex operational environments. Comparable spending benchmarks are difficult to establish for highly specialized R&D, but investments in AI and supply chain optimization are growing across government and commercial sectors.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided for this contract. As a definitive contract awarded under full and open competition, the primary focus was likely on securing the best technical solution and value from the broader market. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy, with specific program managers responsible for monitoring progress, costs, and adherence to the contract terms. The Cost Plus Fixed Fee structure necessitates close financial oversight to ensure costs are reasonable and allocable. Transparency will depend on the reporting requirements stipulated in the contract and the DoD's policies on R&D disclosure.

Related Government Programs

Department of Defense Logistics Modernization Programs
Naval Operations Research and Analysis
Supply Chain Management Systems R&D
Predictive Analytics in Defense Applications

Risk Flags

Cost Overruns Risk (CPFF)
Technical Feasibility Risk (R&D)
Schedule Slippage Risk (Complex R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to MOEBIUS SOLUTIONS INC. THE VITL PROJECT OPTIMIZES LOGISTICS OPERATIONS IN CONTESTED MARITIME ENVIRONMENTS USING SUPPLY CHAIN ALGORITHMS AND PREDICTIVE ANALYTICS. SPAST AUTOMATES SUBMARINE SCHEDULING ADJUSTMENTS.

Who is the contractor on this award?

The obligated recipient is MOEBIUS SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.7 million.

What is the period of performance?

Start: 2025-03-31. End: 2026-12-22.

What is the track record of Moebius Solutions Inc. in performing similar R&D contracts for the Department of Defense?

Assessing Moebius Solutions Inc.'s track record requires a review of their past performance on similar contracts. While the provided data does not detail their history, a comprehensive analysis would involve examining contract databases for previous awards, performance evaluations, and any reported issues. Key areas to investigate would include their success in delivering complex R&D solutions, managing budgets effectively, and meeting project timelines. Understanding their experience with maritime logistics, supply chain algorithms, and predictive analytics specifically would be crucial in evaluating their capability to execute THE VITL PROJECT successfully. Without this historical data, it is difficult to definitively assess their suitability beyond the competitive award process.

How does the $10.7 million award compare to other R&D contracts for logistics optimization within the DoD?

The $10.7 million award for THE VITL PROJECT is a significant investment, but its relative value compared to other DoD R&D contracts for logistics optimization is context-dependent. R&D projects can vary widely in scope, duration, and technological complexity, leading to substantial differences in contract values. Contracts focused on fundamental research might be smaller, while those involving advanced prototype development or system integration could be considerably larger. To benchmark this contract, one would need to identify comparable projects within the DoD that aim to optimize maritime logistics using advanced analytics and artificial intelligence. Factors such as the specific technologies being developed, the expected outcomes, and the contract duration would be essential for a meaningful comparison. Given the specialized nature of automating submarine scheduling and optimizing operations in contested environments, this contract may represent a mid-to-high range investment for such a focused R&D effort.

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

The Cost Plus Fixed Fee (CPFF) structure for THE VITL PROJECT presents specific risks, primarily related to cost control and potential for scope creep. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' component means the government reimburses allowable costs incurred by the contractor. This can incentivize higher spending if not rigorously monitored, as the contractor's profit is not directly tied to cost savings. For R&D, where the path to innovation can be uncertain and requirements may evolve, there's a risk that costs could escalate beyond initial projections. Effective oversight by the Department of the Navy is critical to scrutinize all incurred costs, ensure they are reasonable and allocable to the contract, and manage any necessary changes to the contract's scope to prevent uncontrolled cost growth. The government bears the primary financial risk if costs exceed estimates.

How will the success of THE VITL PROJECT be measured, and what are the key performance indicators (KPIs)?

The success of THE VITL PROJECT will likely be measured against specific technical and operational objectives outlined in the contract. Key performance indicators (KPIs) would typically focus on the effectiveness of the developed supply chain algorithms and predictive analytics in optimizing logistics. This could include metrics related to reduced transit times, improved inventory management, enhanced situational awareness in contested maritime environments, and the successful automation of submarine scheduling adjustments. The ability of the system to provide accurate predictions and actionable insights would also be crucial. Performance evaluations would likely involve demonstrations, testing phases, and potentially pilot implementations to validate the system's capabilities against predefined benchmarks and operational requirements set forth by the Department of the Navy.

What is the historical spending trend for R&D in physical, engineering, and life sciences within the Department of the Navy?

Historical spending trends for R&D in physical, engineering, and life sciences within the Department of the Navy (DoN) generally show a consistent and significant allocation of resources. The DoN invests heavily in these areas to maintain technological superiority and address evolving threats. While specific figures fluctuate annually based on strategic priorities and budget allocations, R&D spending in these scientific and engineering domains typically represents a substantial portion of the DoN's overall research, development, test, and evaluation (RDT&E) budget. This includes funding for areas like advanced materials, propulsion systems, cybersecurity, artificial intelligence, and complex systems engineering, all of which are critical for naval operations. THE VITL PROJECT aligns with this historical emphasis on leveraging scientific and engineering advancements to enhance naval capabilities.

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: N0001424SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 11238 EL CAMINO REAL STE 100, SAN DIEGO, CA, 92130

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,170,112

Exercised Options: $21,647,177

Current Obligation: $10,680,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline