DoD's $8.6M CRAW Program contract awarded to Penn State for weapon system components

Contract Overview

Contract Amount: $8,602,178 ($8.6M)

Contractor: THE Pennsylvania State University

Awarding Agency: Department of Defense

Start Date: 2023-05-16

End Date: 2026-05-15

Contract Duration: 1,095 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COMPACT RAPID ATTCK WEAPON (CRAW) PROGRAM OF RECORDD LAUCG TUBE ASSEMBLY (LTA) AND ELECTRIC POWER PLANT SECTION (EPPS)

Place of Performance

Location: UNIVERSITY PARK, CENTRE County, PENNSYLVANIA, 16802

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to THE PENNSYLVANIA STATE UNIVERSITY for work described as: COMPACT RAPID ATTCK WEAPON (CRAW) PROGRAM OF RECORDD LAUCG TUBE ASSEMBLY (LTA) AND ELECTRIC POWER PLANT SECTION (EPPS) Key points: 1. Contract focuses on research and development for critical weapon system parts. 2. Sole-source award to a university suggests specialized research capabilities. 3. Long-term contract duration of 1095 days indicates sustained R&D effort. 4. Potential for follow-on work or integration into larger defense systems. 5. Geographic concentration in Pennsylvania for this specific R&D effort.

Value Assessment

Rating: fair

The contract value of $8.6 million for research and development of weapon system components appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts for advanced weapon systems is challenging due to the unique specifications. However, the cost-plus-fixed-fee structure implies that costs will be reimbursed, plus a negotiated profit, which can sometimes lead to higher overall expenditures compared to fixed-price contracts if not closely managed. Further analysis would require detailed cost breakdowns and comparison to industry standards for similar research efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of the Navy identified The Pennsylvania State University as the only responsible source capable of performing the required research and development. This approach is often used when a specific entity possesses unique expertise, intellectual property, or facilities essential for a particular project. The lack of competition means that price discovery through market forces was bypassed, relying instead on negotiation and justification of costs.

Taxpayer Impact: Sole-source awards can limit opportunities for cost savings that might arise from competitive bidding. Taxpayers may not benefit from the most competitive pricing, as the government relies on the contractor's proposed costs and the agency's negotiation skills.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive advanced weapon system components. Services delivered include research and development for the Launch Tube Assembly (LTA) and Electric Power Plant Section (EPPS) of the COMPACT RAPID ATTCK WEAPON (CRAW) program. Geographic impact is concentrated in Pennsylvania, where The Pennsylvania State University is located. Workforce implications include employment for researchers, engineers, and support staff at the university.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Cost-plus-fixed-fee contract structure may incentivize higher spending if not rigorously overseen.
Lack of public detail on specific performance metrics makes independent assessment difficult.

Positive Signals

Award to a reputable university suggests access to specialized research talent and facilities.
Long contract duration indicates a commitment to developing critical, potentially complex, technology.
Focus on a specific weapon system component suggests a targeted and strategic R&D effort.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences. The defense industry heavily relies on R&D to maintain technological superiority. Spending in this area is crucial for developing next-generation military capabilities. Comparable spending benchmarks are difficult to establish without knowing the specific technological advancements required for the CRAW program, but R&D contracts for advanced defense systems can range from millions to billions of dollars.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded directly to a large research institution. There is no explicit mention of subcontracting requirements for small businesses. The focus on specialized university research may limit opportunities for small businesses to participate directly in this specific R&D effort, though they might be involved in broader defense supply chains.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is limited due to the sole-source nature and the classified or sensitive aspects often associated with defense R&D. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

COMPACT RAPID ATTCK WEAPON (CRAW) Program
Department of the Navy Research and Development Contracts
University-Affiliated Defense Research

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Research and Development focus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to THE PENNSYLVANIA STATE UNIVERSITY. COMPACT RAPID ATTCK WEAPON (CRAW) PROGRAM OF RECORDD LAUCG TUBE ASSEMBLY (LTA) AND ELECTRIC POWER PLANT SECTION (EPPS)

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 $8.6 million.

What is the period of performance?

Start: 2023-05-16. End: 2026-05-15.

What is the specific technological innovation or advancement expected from the LTA and EPPS development under this contract?

The contract details for the COMPACT RAPID ATTCK WEAPON (CRAW) Program's Launch Tube Assembly (LTA) and Electric Power Plant Section (EPPS) development are not publicly disclosed in detail due to the sensitive nature of defense technologies. However, the 'COMPACT RAPID ATTCK WEAPON' designation suggests a focus on developing a smaller, more agile, and potentially faster-deploying weapon system. The LTA is a critical component responsible for launching projectiles, implying advancements in launch mechanisms, materials, or integration with the weapon platform. The EPPS provides the necessary power for the weapon's operation, suggesting potential innovations in power generation, energy efficiency, or miniaturization of power sources to support rapid attack capabilities. The award to The Pennsylvania State University, known for its engineering and materials science research, indicates a focus on cutting-edge physical and engineering sciences to achieve these advancements.

How does the cost-plus-fixed-fee (CPFF) contract structure compare to other potential contract types for this type of R&D?

The Cost-Plus-Fixed-Fee (CPFF) contract structure is common for research and development efforts where the scope of work is not precisely defined at the outset, or where innovation involves significant uncertainty. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of the actual costs incurred, offering greater cost certainty for the buyer but potentially higher risk for the contractor if costs escalate. For R&D, CPFF can incentivize the contractor to pursue innovative solutions without being overly constrained by cost targets, but it places a greater burden on the government to meticulously monitor and audit costs to prevent overruns. Other R&D contract types include Cost-Plus-Incentive-Fee (CPIF), which adds performance incentives, or Firm-Fixed-Price (FFP) for well-defined R&D tasks, though FFP is less common for exploratory research.

What is The Pennsylvania State University's track record in defense contracting and R&D?

The Pennsylvania State University has a significant and long-standing track record in defense contracting and research and development, particularly through its Applied Research Laboratory (ARL). Penn State ARL is a designated University Affiliated Research Center (UARC) and works closely with government agencies, including the Department of Defense, on a wide range of advanced technology projects. Their expertise spans numerous critical areas such as undersea warfare, hypersonics, materials science, autonomous systems, and advanced manufacturing. The university consistently ranks among the top institutions for federal R&D expenditures, with a substantial portion of that funding coming from defense sources. This extensive experience and established relationship with the DoD suggest a high level of trust and proven capability in delivering complex research outcomes for national security applications.

What are the potential risks associated with a sole-source award for advanced weapon system components?

Sole-source awards for advanced weapon system components carry several potential risks. Primarily, the absence of competition can lead to higher prices than might be achieved in a competitive bidding process, as the government lacks the leverage of multiple offers. This can result in less value for taxpayer money. Secondly, without competitive pressure, there might be less incentive for the contractor to innovate aggressively or to optimize efficiency, potentially slowing down development or increasing costs. There's also a risk that the government may not be aware of alternative, potentially superior, technologies or solutions that other capable firms could offer. Finally, sole-source awards can raise concerns about fairness and transparency in the procurement process, potentially limiting the pool of contractors for future work if not managed carefully.

How does this contract fit into the broader context of the CRAW program's lifecycle and objectives?

This contract represents a specific, critical component development phase within the larger COMPACT RAPID ATTCK WEAPON (CRAW) Program of Record. The CRAW program itself aims to field a new generation of weapon systems that are likely intended to be more mobile, adaptable, and effective in modern combat scenarios. The development of the Launch Tube Assembly (LTA) and Electric Power Plant Section (EPPS) by The Pennsylvania State University suggests that these are foundational elements required for the weapon's core functionality and performance. This R&D effort likely precedes or runs parallel to other development phases, such as system integration, testing, and eventual production. The success of this contract is crucial for the overall program's ability to meet its objectives of providing advanced, rapid attack capabilities to the warfighter.

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: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $9,401,112

Exercised Options: $9,401,112

Current Obligation: $8,602,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0002418D6401

IDV Type: IDC

Timeline